Frequently asked questions about EOR (Part I)

Frequently asked questions about EOR (Part I)

Apr 20, 2022 | Employer Of Record, EOR, Featured, Why choose us

Frequently asked questions about EOR (Part I)

More and more companies are hiring us, but at the same time there are more and more doubts. We invite you to read the first questions. We will answer more in the next days, so: stay tuned!

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1. Are you an international PEO?

Professional Employment Organizations (PEOs) provide their services in most cases by co- employing the workers with their clients. Co-employment does not exist in an identical format outside of the US. Our EOR service is designed exclusively for companies with the need to hire employees outside of the US. So, while the service is modeled after PEOs in the US and does provide many of the same benefits of a PEO, we are not an international PEO.

2. How can we engage a worker in a country where my business has no presence or establishment?

We can employ foreign workers in many countries on our client’s behalf. This means that in countries where your company does not have a business entity, you can still legally employ local workers. Our clients do not have to form a local entity. That is one of the core benefits of our EOR service delivery mode.

3. Will we need to set up bank accounts in the country we wish to engage a worker in?

No, foreign banking facilities and local funds are not required. We manage the foreign payments in the local currency, and then invoice the client in GBP, Euros or USD. However, in most countries, the worker being paid will need to have an in-country bank account to receive funds in the local currency.

4. How do we know what benefits we must provide for the worker?

The laws on benefit provisions are completely unique to each country. By becoming the employer of record, become responsible for ensuring all statutory benefits are provided to the worker. In addition, we can offer clients insights into what is customary in each country and in many cases, will provide referrals to benefit experts who design supplemental packages, if desired. Our clients find that this is a great way to help workers feel unaffected by the alternative arrangement, which results in higher worker retention.

5. How can I pay my foreign worker compliantly?

All you need to do is to agree what to pay the worker, have them sign the approved in-country worker contract, adhere to the agreed upon payroll schedule and leave the rest to us.

Do you still have doubts?

With our services our clients no longer need 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 in. Contact us

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Work changed, it’s time to change the way we employ people too.

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Over the past year, we saw more workers going remote and more collaboration happening online, changing not just work but hiring forever.

It’s no wonder that the world’s top companies now recognize global hiring as a business advantage and opportunity, allowing them to gain insights into new markets and greater diversity in ideas. Additionally, international hiring helps solve challenges around finding the right talent and retaining talent among the growing number of workers who wish to relocate. But it’s not without risks and complexity, which have long created barriers to entry for recruitment teams who want to hire across borders.

So, what is a hiring manager to do? In many hiring scenarios, the most straightforward approach is working with an employer of record.

Why use an Employer of Record (EOR)?

Most recruiters have experienced the pain of finding the perfect candidate for a role, only to turn them down because of the country where they reside. Employers of record provide the solution to this problem.

 

What is an Employer of Record (EOR)?

An employer of record is simply an entity through which you can legally employ your dream hires, regardless of where they live. Do you know about us? https://rootseor.com/ . EOR Roots acts as the worker’s employer on paper, but effectively, your hire will work for your business just like anyone else on your team.

We will typically manage hiring, compliance, payroll, benefits, and more for your foreign employees, thereby eliminating much of the cost and complication from the process of global hiring.

Why businesses need us?

The reality is that most companies don’t have the resources or expertise needed to make global hiring work, and mistakes can come with considerable risks.

For companies with the resources, opening an entity may not be the best use of their time or money. Partnering with us. Roots EOR, is often faster and more cost effective. Reducing cost and complications of global hiring are advantages of EORs, but far from the only ones. Hiring managers also need to be mindful of the risks of misclassifying workers or running astray of labor laws in the foreign countries.

hire best talents everywhere

Fortunately, by working with Roots EOR; businesses can tap into the expertise of employment lawyers and business experts whose entire focus is getting global hiring right. This means that internal talent specialists can focus on doing what they do best, like attracting and retaining the right talent on their teams. Not struggling to keep up with changing laws in multiple countries. Want to Contact us?

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What is an Employer of Record?

The solution to hire people from all over the world. Do not miss this article!

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What is a Employer of Record (EOR)?

A Employer of Record is a company that takes on all employer-related responsibilities for small to large enterprise-sized businesses. The Employer of Record handles state-specific onboarding, payroll, taxes, payroll compliance, benefits administration, unemployment claim reporting, and other HR-related tasks.

Some important things to have in mind…

1. Full legal employer: An Employer of Record is liable for all employer-related responsibilities—from benefits and payroll to insurance and taxes. Working with an Employer of Record allows you to focus strictly on day-to-day oversight of your workforce.

2. State registration not required: With an Employer of Record partner, your company can expand its talent pool and compliantly recruit talent in any state—without going through the time-consuming business registration process.

3. Compliant, cost-effective benefits: When you bring on talent in new markets, your Employer of Record partner ensures you provide benefits that adhere to local regulations. An Employer of Record pools your talent with workforces from other companies, so you get access to lower-priced group rates from insurance providers.

 

What is a Professional Employer Organization (PEO)?

A PEO is a company that partners with small and medium-sized businesses to provide comprehensive HR services, including payroll processing, benefits administration, regulatory compliance, tax filings, and more. A PEO acts as a company’s outsourced HR department so internal teams can focus on their core responsibilities.

Some important things to have in mind…

1. Co-employment: When your company partners with a PEO, you are both legal employers of your workforce. However, you remain responsible for the day-to-day oversight of your talent.

2. State registration typically required: Working with a PEO usually means you must register your business in every state in which you hire.  As a result, it makes the most sense to partner with a PEO when you plan to hire in states where you’ve already registered your business.

3. Boosted benefits packages: A PEO helps small and medium-sized businesses provide the same robust employee benefits plans offered by larger companies. Like an Employer of Record, a PEO partner pools your employees with those from other organizations to qualify for more favorable group rates from insurance companies.

The critical difference between an Employer of Record and a PEO: An Employer of Record is the full legal employer of a company’s distributed workforce, while a PEO remains a co-employer.

If your goal is to quickly and compliantly hire top talent no matter where they’re located, partnering with an Employer of Record gives you the flexibility to easily enter to any country.

Working with an Employer of Record also gives you peace of mind knowing that experts compliantly handle every HR and employer-related responsibility, so your teams can focus on their core responsibilities. As a result, Employer of Record providers reduce the time, hassle, and cost required to build a distributed workforce across the world.

Are you interested in expanding your work team?

Roots EOR brings your company a turn-key solution to allocate staff abroad to be compliant with local labor requirements without forming a local legal structure. Contact Us

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Americans quit jobs at a record pace during the second half of 2021, and more plan to resign in the new year. How can companies take advantage of this situation and seduce employees?

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Although specialists predict that quitting will continue steadily at similar, elevated rates we’ve seen over the past year, they are not confident that we’ll see another big quitting wave in 2022.
That’s because the tight labor market has pushed companies to offer better benefits and higher salaries, that will keep employee turnover from being “completely rampant” in the months ahead.
What are companies doing to seduce employees?

 

Flexible work arrangements will be the norm, not the exception

The freedom to work from anywhere has become the most sought-after benefit during the pandemic – so much so that people value flexibility as much as a 10% pay raise, according to new research from the WFH Research Project.

More companies will embrace this change to attract and retain talent. Leaders are starting to ask: “How can we give people more power over their schedules? How can we be more flexible?”

Managers that blame external factors for turnover – whether it be government leadership, the pandemic, unemployment benefits or other reasons – and refuse to offer flexible work arrangements will be the “losers who struggle in the wake of the Great Resignation”.

Flexible working culture will lead to better work-life balance and improved mental health for employees. HR leaders know that work will fit around our personal lives rather than our personal lives fitting around work.

 

Remote jobs will become more competitive

As companies struggle to hire in the United States, a growing number of managers could turn to automation and international candidates to fill open roles.

The pandemic accelerated the trend toward automation as companies embraced digital waiters, concierges and other technologies amid social distancing rules and virus fears. In 2020, the World Economic Forum surveyed about 300 global companies and found that 43% of businesses expect to reduce their workforces with new technology.

Economist predicts that companies will make larger investments in robots and artificial intelligence to reduce hiring times and costs even after the pandemic subsides.

 

Those same benefits could push companies to hire more international candidates for remote roles and create even more competition for remote jobs, he adds. In the United States, employees tend to be paid higher wages than people in many other countries. If you’re a remote organization, you can recruit workers from all over the world who can do the same job for a cheaper rate.

Are you ready for your remote work team?

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Hiring international workers?

Roots EOR makes it simple! Let’s look at the following article!

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While everyone is still coping with the effects of COVID and the global response to the pandemic, there are some results of the past two years that are clear. One is that remote work and the shifting worldwide workforce is here — and it’s here to stay.

Almost three out of four companies report they plan to shift some of their employees to remote working permanently. Meanwhile, up to 30 percent of the workforce will likely be working remotely by the end of this year. And for the most part, both employers and employees are saying that they see benefits from this new arrangement.

Remote working makes the at-home workforce work

You’ve probably seen the hoops your company’s HR pros have to jump through when all your co-workers are stationed in one place. Now, imagine the hurdles they face when your co-workers work in other time zones. Or even, other nations.
Roots EOR does everything for your company: bringing together tools for overseeing payroll, benefits and formalities.

Roots EOR can simplify the hiring and staffing process for any company with remote staff, it’s particularly geared to help firms navigate through the complex world of international labor and hiring.

Globalize your workforce with Roots EOR

Whether firms want to better organize their current workers or open the doors to international talent. Roots EOR has optimized the process for adding workers in foreign nations to a team naturally.

Typically, the process of hiring foreign workers would be a long, laborious one, requiring a company to set up a legal entity in the worker’s own country so they could get paid with all applicable taxes paid and local laws observed. If that sounds like more work than most companies would want to do just to onboard a foreign worker…you’re right, which is why most haven’t.

Roots EOR handles all international compliance and HR responsibilities. With representatives all over the world, Remote leverages in-country experts to make sure employees you hire are paid in their local currency, enjoy benefits and perks befitting their nation, and support all HR issues from salary changes and rewards to discipline and offboarding when needed.

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Three things to consider when expanding into Brazil

A community which is rising in prominence on the world stage in the tech field.

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Brazil is one of the ten largest economies in the world with a deep talent pool to draw, especially a country full of developers, programmers, coders, and technologists with in-demand skills.

While there are rich rewards to be found in the Brazilian marketplace and hiring pools, expansion is not without its challenges.

 

1. Get to know the Brazilian people

The Brazilian people are famously open, gregarious, and fun-loving. In addition to the fact that Brazilians speak Portuguese—and not Spanish—there are other important facts you should consider.

Brazilians are shrewd negotiators, entrepreneurial, and creative in their approach to business. These qualities are sometimes overlooked as Brazilians put a large emphasis on building relationships first before engaging in business.

As a result, patience is important when working with Brazilians. Be prepared to talk, over a cafézinho (small dark coffee), about social, non-business-related topics during meetings for a much longer time than is customary in the U.S. or Europe. Enjoy the process of building relationships with your Brazilian counterparts and try not to rush—business will eventually be discussed.

 

2. Prepare for Brazilian labor regulations

Like many other countries in the LATAM region, the Brazilian market is still mired in rigid rules and practices. Companies that expand into Brazil or engage talent in the country must think about the impact of higher-than-normal labor costs and the challenges of a complex bureaucracy.

Despite these hurdles, there is light at the end of the tunnel. More and more multinational corporations move into Brazil with the goals of engaging talent that meets their budget, finding professionals with the skills they need, and reaching new customers and clients. As a result, the Brazilian government is making strides towards creating a more welcoming employment market. That means loosening some strict employment laws and making it easier for international companies to engage talent.

As such, it is now easier than in previous years to engage temporary and contingent employees, handle payroll, and comply with employment regulations. Still, it’s wise for your internal HR, legal, or finance teams to constantly stay up-to-date on classification rules, salary requirements, and more.

 

3. Understand Brazil’s digital compliance rules

Companies that do business in Europe are already familiar with the challenges of adhering to the General Data Protection Regulation (GDPR). Those that move into Brazil face a new obstacle: meeting the requirements of Brazil’s Lei Geral de Proteção de Dados (LGPD).

Like the GDPR, the LGPD sets strict rules for how companies acquire, manage, and use personal data from customers. Personal data refers to anything related to names, health history, political opinions, sexual orientation, web data like IP addresses, and more.

The LGPD requires companies to appoint a Data Protection Officer (DPO) to ensure that their company meets LGPD standards. The DPO must maintain contact with Brazil’s compliance authorities (locally known as the Autoridade Nacional de Proteção de Dados) while ensuring the company continues to compliantly manage user data.

Are you thinking of expanding your business in Brazil?

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