What’s your employee value?

What’s your employee value?

What’s your employee value?

Benefits every employer should know about EOR
A questions many companies wonder before hiring someone. Here some tips that might help you.

When all the employee costs are subtracted from the employee’s assets, the remainder is the employee’s value. Below there are some factors that must be taken into account to determine this value. First we enumerate the costs, then the assets.

Employee costs

 

Salary

Salary is a fixed cost, which may increase annually as an employee becomes more valuable to the employer.

Training

During the training period, the employee will not be as productive as they will be when the training is completed so this is a cost for the Company

Benefits

Health insurance, dental plans, sick days, paid vacations, retirement plans, tuition reimbursements and other benefits all add up to a major employer expense.

Equipment

Computers, telephone service, cell phones, the use of an automobile and other equipment, required by the job, and supplied by the employer is another major expense that figures into the equation.

Employee’s assets

Measuring productivity tells us a lot about the work we’re doing.
It’s the result of the work divided by the amount of work done or the amount of resources used over a certain period of time. To do this, divide the company’s total revenues by the number of employees working there.

For example, in a newsroom, your output/input might be the total number of news releases generated divided by the time it took to generate those releases. For a blogger, it might be the total number of blog posts produced divided by the time it took to write and post those pieces.

Calculating employee value can be a tricky process, but it’s necessary if you want to see your business soar.
Remember that your staff members are your most lucrative assets – if you don’t measure their worth, you risk sacrificing growth.

After doing these calculations you are ready to decide if you can hire a new employer.
And if you need to, there is a simpler and more economical way to make it.

Do you know about Roots EOR? This Company brings your company the tool to allocate staff abroad being compliant with labour requirements, but without having to form a local legal structure, reducing risks and costs. What to know more? Click here

What remote work jobs are in demand in the new COVID word?

What remote work jobs are in demand in the new COVID word?

What remote work jobs are in demand in the new COVID word?

Benefits every employer should know about EOR
Suddenly 51% of employed began working from home. Here are the 20 most popular work-from-home job titles in USA during 2020.

More than eight months have passed since the World Health Organization declared Covid-19 a pandemic. Hundreds of millions of people have lived through lockdowns. Many have made the abrupt shift to working from home; millions have lost jobs. The future looks uncertain. We don’t know when, or if, our societies might return to normal – or what kind of scars the pandemic will leave.

Before COVID-19, remote work was already increasing in popularity. In 2018, 3.6% of U.S. workers worked remotely at least half the time, and remote work has soared 159% since 2005, according to FlexJobs.

Then, COVID happened and suddenly 51% of employed began working from home. Here are the 20 most popular work-from-home job titles in 2020, with salaries from PayScale:

1. Accountant
Average salary: $51,000

According to projections from the Bureau of Labor Statistics, employment of accountants and auditors will grow faster than the average for all occupations, at a rate of about 10% from 2016 to 2026.

2. Engineer
Average salary: $85,000

In general, engineers use science, technology and math to design everything from machines to computer software to equipment. Engineering contains a lot of different specialties, including aerospace, chemical, civil, computer, petroleum, mechanical, software and more.

3. Teacher
Average salary: $45,500

Whether it’s one-on-one tutoring to supplement home schooling or professors lecturing over Zoom to larger classes.

4. Writer
Average salary: $49,500

Many companies are looking for writers who can create content, including digital articles, marketing copy for their websites, blog posts or technical manuals.

5. Consultant
Average salary: $87,000

If you have years of experience in fields like education, health care, government services, IT, engineering or other fields, you may be able to work as a consultant to companies that are looking for areas where they can improve or problem-solve.

6. Program manager
Average salary: $52,000

A program manager oversees a company’s tasks and projects and strategically coordinates individual initiatives. Some of their responsibilities might include leading planning meetings, reviewing project plans and coordinating with other departments.

7. Project manager
Average salary: $74,000

Project managers are responsible for guiding a project from start to finish. They keep tabs on deadlines, budgets and delegate taste and track results. Several fields including construction, finance, IT and health care need project managers.

8. Customer service representative
Average salary: $38,800

As e-commerce has skyrocketed amid COVID-19, many companies are in need of customer service representatives. In this common WFH job, you assist customers, place orders or reservations and problem solve over the phone, email or chat.

9. Business development manager
Average salary: $73,000

These managers are tasked with increasing a company’s earnings by writing proposals, making sales pitches, and finding and following up on leads.

10. Account manager / Account executive
Average salary: $54,300

Account managers and executives are in charge of maintaining and growing relationships with clients and customers. You’ll find this job title in many sales jobs, but also advertising and public relations firms hire account executives.

11. Recruiter
Average salary: $50,000

In this job, you help companies find top-notch, qualified candidates for open roles. You might be in charge of writing the job postings, conducting interviews and helping companies onboard new employees.

12. Sales representative
Average salary: $49,800

Those who excel in this role are often finding new sales leads and make work in a B2B role which requires building relationships for long-term contracts.

13. Web developer
Average salary: $59,700

Web developers design and create websites. Not only are they responsible for the look of the site, but also its technical aspects. Education requirements for web developers range from high school diploma to bachelor’s degree, according to the U.S. Bureau of Labor Statistics, and the job outlook is strong as this industry is projected to grow by 8 percent between 2019 and 2029.

14. Medical coder
Average salary: $42,300

Different from a medical biller, medical coders read and analyse patient’s medical charts and categorize diagnoses and procedures by using a national classification system.

15. Territory sales manager
Average salary: $64,000

This is a popular remote job that often requires travel in a specific region the manager oversees. Territory sales managers are responsible for developing and maintaining customer relationships, setting and meeting sales goals to increase company’s revenue and creating sales strategies.

16. Nurse
Average salary: $64,500

Telehealth platforms are booming, which has created a demand for nurses to visit with patients over the phone, videoconferencing, messaging and email, answering questions and providing advice.

17. Data analyst
Average salary: $60,500

By collecting data, analysing it and spotting patterns, data analysts can help companies make decisions. Data analysts work in a variety of fields, including the health-care industry, marketing, insurance, with credit bureaus, and at tech firms.

18. Editor
Average salary: $52,000

The scope of editor roles has grown and often includes writing headlines, selecting images to go along with content, promoting content on social media and understanding SEO strategies.

19. Case manager
Average salary: $40,800

Often found in health care and legal fields, case managers work to understand patient or client needs and help connect them with resources. This might include providing education and guidance or advocating for them.

20. UX/UI designer
Average salary: $74,000

Designers in this growing field focus on how users interact with a product. Whether they are creating apps, websites, or software programs, the goal is to make their products intuitive for users.

If your company is thinking of incorporating one of this jobs to the company, but you do not have neither the money nor the time to deal with all the the structure required to employ staff: we have a solution for you!

Avoid the need of incorporating a local entity and the related costs: legal advisory and notary services, bookkeeping costs, taxes for the local entity, maintenance of a legal representative for the local company, intercompany related issues.

Hiring an EOR gives the client’s company the opportunity to manage their time more efficiently and effectively. So, if you want to find new markets, lower risks, facilitate an acquisition and simplify things and costs: EOR is the answer.

Contact us: Roots EOR

When to use an employer of record?

When to use an employer of record?

When to use an employer of record?

Benefits every employer should know about EOR
These services can be especially helpful to stay updated on the state and local laws. It may then be the best option for achieving your global growth objectives. Here 5 reasons why you should do it.

Hiring an EOR gives the client’s company the opportunity to manage their time more efficiently and effectively. So, if you want to find new markets, lower risks, facilitate an acquisition and simplify things and costs: EOR is the answer.

1. A vehicle for exploring new markets.

An EOR lets you evaluate the readiness of an international market by hiring workers for you in your targeted country. You can see if it works in the country by starting operations with your new workers, without having to commit the time and money required to establish an entity.

2. Lower risks

Employer of record can handle all payroll, benefits, tax and compliance requirements for your new global workers, so you can focus on their contributions to your organization—not on their risk.

3. Facilitate an acquisition

If your organization has recently acquired a workforce in a new country but does not have a way to compliantly pay the new employees because the deal does not include the legal business entity. An EOR would be a great solution to pay the employees compliantly on your behalf indefinitely, or until you set up an in-country entity.

4. Simplify things

One has to consider the complexity of payment schedules, the number of jurisdictions, and insurance policies involved in your current staff. With that, you can weigh the sums that will be invested in the service provision offered versus the stress and money of doing so by yourself

5. Mind the costs

Keep also in mind the costs, both in time and money, of setting up companies overseas. These sets of actions will extend the scope of liability, the jurisdictions where you can be sued, and will, most likely, exceed the difference in the price for an EOR service provision.

Now that you know that you should hire your employees with an EOR, the questions we need to answer is: What to look for in an EOR provider?

When it comes time to evaluate employer of record providers, there are some qualities to keep in mind to help protect your organization. The utmost importance is the extent of the provider’s knowledge in the countries you are targeting for expansion. One way to gauge this is by finding out how long the provider has been in the country and whether it has a direct entity and is not just relying on local partnerships.

Roots EOR brings your company the tool to allocate staff abroad being compliant with labour requirements, but without having to form a local legal structure. 

With our services our client no longer needs to own a local entity to employ talent compliantly. We offer the most cost-effective way of growing internationally while maintaining legal compliance within the countries your experts work. Want to contact us? Click here

Contractor, local entity or EOR? That´s the question

Contractor, local entity or EOR? That´s the question

Contractor, local entity or EOR? That´s the question

Benefits every employer should know about EOR
It is essential for an employer to appreciate the differences before making a decision on which method is optimal for their business objectives and available resources. 

There are two distinct methods for a multinational company to enlist and manage staff in a foreign market: Contractors and EOR.

Contractors run their own business and sell their services to others, unlike employees who work in someone else’s business. They generally use their own processes, tools and methods to complete the work. They usually negotiate their own fees and working arrangements, and can work for more than one client at a time.

Contractors have workplace rights and protections but have different responsibilities relating to insurance, taxation and superannuation.

On the other hand, an Employer of Record (EOR) is a third-party organization that hires and pays an employee on behalf of another company and takes responsibility for all formal employment tasks. Using an Employer of Records allows companies to legally and efficiently engage with overseas workers either in a new country or state, without having to set up a local entity or risk violating local employment laws.

The EOR is charged with carrying out the legal and regulatory requirements of immigration, employment and payroll, but does not participate in day to day work activity.

From the employee perspective, EOR will feel identical to being on payroll, with tax and social security contributions being taken from their monthly paycheck, and the same benefits as any other employee. But for the employer, it eliminates the admin headache and liability. The company can simply engage in a contract with the EOR, and the EOR will outsource the employment to a local partner in the same location as the employee. This local partner also handles HR such as working hours, vacation days, sick leave, and more, reducing operational costs and administrative overhead.

As more companies plan to expand their business globally, it is important to understand that employing abroad directly can be a complex process. Each country has their own rules and regulations regarding compliance, regulatory frameworks, employment laws and taxes. Communicating with specialist tax accountants and employment lawyers will also be necessary, and those costs can rise very quickly. Therefore, setting up an entity can become a costly and time-consuming process which can prove a real distraction to core business.

If a business is looking to expand into a more developed economy in Europe or test a potential market in Latin America, EOR could be a better solution to setting up an entity. An EOR solution is a more cost-effective and faster way to expand a business and hire workers in a foreign country compliantly. Businesses can hire internationally without risk and be operational in a few days without having to set up an entity allowing more time to focus on their core business.

An independent contractor:

  • Do not normally receive employment benefits
  • Pay their own taxes and are not subject to other withholdings
  • May not join a union
  • Generally, do not receive overtime or protection for employment discrimination
  • Contractors may be more vulnerable to financial insecurity than employees. They receive no pay for sick leave or accidental injury. If they get sick, make a mistake, or have an accident, they’re on their own because they don’t have the coverage that an employer provides.

EOR:

  • Receive employment benefits, like health care and paid time off .

  • Are subject to financial deductions such as income tax and Social Security tax, among others

  • May join a union

  • Are often protected by state and federal law for overtime, minimum wage, and employment discrimination issues

If you’d like some expert advice on which model is right for your business, contact us

EOR VS PEO: Are They the Same?

EOR VS PEO: Are They the Same?

EOR VS PEO: Are They the Same?

Benefits every employer should know about EOR
Before hiring an employer you should read this article. 

A PEO (Professional Employer Organization) is an outsourcing company which provides solutions related to co-employment. You set up a relationship with the provider and they will help you to manage the administrative work but employment responsibilities are still on your company.

Below are the main differences between EOR and PEO:

Workers are classified differently:

 If you choose an EOR, then the EOR provides employment and take legal responsibility of the employees, but in case of a PEO, the legal responsibility still lies on you for employing your employees.

 

Responsibility for business registration:

EOR enables you to hire employees in other countries without registering a physical entity but in PEO you need to register your entity in your location. Difference in minimum number of workers required to start up. EOR can be started with one or two employees but for PEO you need minimum 5-10 employees to start.

 

Insurance Plan.

For the employer of record, the insurance cost is already included, but in the case of a professional employer organization, the insurance is paid in addition to the PEO service cost which is one of the largest hidden cost in the service.

 

Employer of Record VS Staffing Agency: Which One is the Best Solution?

An Employer Of Record hires the employee for the foreign client where the employee perform work for the client and the EOR firm will handle all the personal functions of the employee such as payroll, tax depositing, expense claim, social contributions and other paper work. All the employee responsibility is taken by the EOR firm only.

A Staffing Agency just help with the recruiting process of the employee but they cannot hire staff. So, there are no contractual relationship between the employee and the staffing agency. The agency help you with the headhunting services and finds the right candidate according to your requirements.

 

Services Offered by an Employer of Record: 

The employer of record takes care of important responsibilities related to employment.

 

Some of the most important are shown below:
  • Payroll
  • Taxation
  • Employee Compensation
  • Managing time sheets
  • Unemployment
  • New onboarding
  • Background checks
  • Termination

Contact us if you want to know more about our services and how we can help your company to easily expand.