5 reasons why you should use an EOR
Is your Company planning to expand? Here you can find some tips to do it in the best way.
An Employer of Record regulates the relationship between the client company and the employee as a “third party” also called EOR.
It helps the employers retain, hire, payroll issues, insurance, visa applications, and other types of applications and paperwork about their employees when the employees attempt the company from another country.
Why Should Companies Use an EOR? Here some reasons:
When expanding, setting up a local entity via incorporation and registration can be very time consuming and costly, needing expertise and knowledge in order to remain compliant.
A global EOR might be the better alternative, supporting the company by handling payroll, employment and immigration requirements in the host country. The EOR would be an intermediary between the client-company and assignee, helping to ensure compliance through its network and expertise.
If you are looking to access international talent in a compliant way, an EOR can help you do just that, making sure that compliance is met and further HR-related processes run smoothly.
Transition to remote first.
More and more employers are looking into becoming a hybrid or even remote first company, allowing not only future but also existing employees to work from anywhere in the world.
This however is a highly complex process, with many aspects that need to be taken into consideration such as each country’s labor laws as well as possible lack of experience in managing teams remotely.
With an EOR, your company will be able to give this approach a trial phase with a smaller number of employees. This would result in an easier and better prepared transition as well in important financial and time savings.
Converting freelancers to employee.
Many companies profit from an alternative workforce such as freelancers and contractors. You might consider converting freelancers to employees because of various reasons such as a greater control over the working time, increased sense of belonging to your company and more commitment, reduced turnover rate and many more.
An EOR can help you retain this talent and support you in long term workforce planning by shouldering important transition and HR processes to remain compliant.
Emigration of an existing employee.
If one or some of your employees is considering moving permanently to another country, don’t make this a reason for letting them go. Being able to maintain your talent even if their wish to move abroad for an indefinite amount of time will not only reduce your turnover rate but can also strengthen your employer brand with increased flexibility and innovative features.
An EOR will be able to support you during the process, being in charge of the labor law, payroll differences and further aspects that need to be taken case of when wanting to remain compliant.