EOR Vs PEO

EOR Vs PEO

EOR Vs PEO

How can EORs help you hire global teams successfully?

Post main image. Illustrative EOR vs PEO

But there are key differences between the two services you need to know about, and this article will help you to understand them.

What Is a Professional Employer Organization (PEO)?

In HR, PEO stands for Professional Employer Organization. If your business is looking to outsource its HR function locally, PEOs can offer extensive employment management services. They can provide a holistic HR and admin solution including: Payroll, managing benefits, onboarding, advice to help companies keep to local employment laws, meeting local customs and industry best practice.

As these administrative processes require dedicated resources and expertise, PEOs can offer an outsourced HR function that helps companies to comply with local tax and employment laws. There are a handful of other benefits of working with an experienced PEO team, including: Lower HR overheads, simplified payroll process and tax preparation, advice on regulatory compliance and management of legal risks, advice on industry best practices and benchmarks, improved employee experience, more time to focus on business and productivity
By working with PEOs you can often outsource a range of HR functions, while maintaining control of organizational decision-making, such as managing your employees’ day-to-day roles and responsibilities.

There is one significant disadvantage to working with a PEO, and that’s that the legal responsibility remains with you as the employer. This often means you have to set up a local entity (i.e. incorporate a company or register your business) in the jurisdiction where your employees will work. This can be time-consuming and complex, especially for start-ups or SMEs. It’s also worth noting that PEOs aren’t legal in some countries. You can read more on that below.

PEOs are a great option for companies that are expanding their operations globally and setting up local entities, but require local HR support for their remote team. They can help take away some of the workload associated with HR functions and could save your company money.

 

What Is an Employer of Record (EOR)?

An Employer of Record offers similar services to a PEO, but unlike a PEO, an EOR does become the legal employer for their client’s chosen talent.

While PEOs focus on particular HR and payroll tasks, they don’t represent or act on behalf of client companies. In contrast, EORs do act on behalf of client companies, employing talent for their clients via a service agreement.

This means that EORs take on the added responsibility of complying with local employment laws for their clients. EORs ensure compliance with local regulations regarding:

Compensation, holidays, benefits and welfare, severance and termination, payroll tax and collective agreements.
EORs also sign the employment contract alongside the employee. On paper, they are the employer for a client’s chosen talent and are legally liable for them.

Nevertheless, client companies still retain full control over their relationship with the employee and the work they are doing. This is ensured through the service agreement between an EOR and their client company.

If you want to hire someone based in a country your company doesn’t already operate in, using an EOR is probably the best solution for you. This is because you won’t need to set up a local entity, which will, in turn, save your HR team precious time and resources.

Work with ROOTS EOR

Using an EOR can help you hire talent abroad compliantly while taking on HR work like payroll and benefits. Want to know more? Contact Our Advisors 

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Four advantages of hiring a foreign worker for your canadian business

Four advantages of hiring a foreign worker for your canadian business

Four advantages of hiring a foreign worker for your canadian business

Why hire a foreign worker?

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So many legal procedures and formalities along with ongoing immigration compliances. Plus, there will be the cultural challenges of having somebody from another country working with your team.

Yet, it doesn’t make sense to avoid hiring foreign workers altogether. If done right, this decision can transform your business, boost your profitability, and create a more cohesive and loyal team of employees.

 

1. Expand your talent pool

Graduates from the top universities of India to the most experienced candidates in Vietnam—you can compare and select candidates from the biggest talent pool in the world. You have the option of hiring directly from a foreign country.

Or, you can choose a foreign employee who has just graduated from a Canadian university. And finally, there are those working in Canada on a work permit whom you can consider for your position.

Opening up your position to such candidates can give your business an advantage that your competitors have been ignoring.

2.Diversify your workforce

Managing a diverse workforce can be a very challenging experience. However, get this right and your business will enjoy fantastic benefits over the long run.

If you want your business to have the capacity to tackle different types of challenges, then you need people who think differently working together as a team. Selecting candidates from the same social and cultural background will not lead to a versatile and dynamic team.

A diverse workforce creates numerous cross-cultural learning opportunities for the entire workforce. Getting people from different nationalities to work together is the most effective way to create a strong bond of loyalty among your team.

A diversity-friendly business is more productive, more efficient, and will work harder to overcome business challenges.

 

3. Access the big immigrant customer base

A business that hires immigrant workers will find it easier to establish a connect with immigrant customers. It’s natural for a person to have more trust in a person of the same ethnic, cultural, and national background.

If the best candidate for the job is a foreign worker or immigrant, then you will find it easier to access and tap the vast market of potential customers who have immigrated to Canada from another country.

The message that your business focuses on quality and efficiency over all other parameters will be evident if you hire the best person for the job even if he/she will be moving to Canada from a foreign country.

This is probably the best way to create a modern, progressive, and diversity-friendly vibe around your brand.

4. No more unfilled positions

Canada has more aged people than young working-age individuals, which means there’s a real risk that you may not find the right candidate for your position from within Canada.

At a time when the entire world has become one big market, having multiple unfilled positions or being unable to find the best candidates for the positions can be a massive disadvantage. Being open to hiring foreign workers will protect your business from this risk.

While your competitors will continue to struggle, you can hire the right person for the job and get on with the task of boosting the revenues and profits of your business.

Work with ROOTS EOR

If you have decided to explore the option of hiring foreign workers, then it’s time to sit back and trust the professionals. Don’t make the mistake of presuming that the various immigration rules and procedures apply only after you have selected the foreign worker. Need help? Contact Our Advisors 

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Recruiting in Canada

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Recruiting in Canada

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Expanding your company and hiring new employees in Canada is an exciting time. However, you could face costly fines or other sanctions if you do not follow Canada’s employment and recruiting compliance laws closely.

Canada has extensive employment laws at both the federal and provincial levels, which can make Canada employment compliance bewildering for businesses new to the country. Every province has its own withholding, social services, and notice periods. About 90% of Canadian employees are protected by provincial employment laws, while the rest is covered by federal law. Federally-regulated industries include banks, telecommunications, and air transportation.

Most provinces limit the number of hours your employees can work in a week, although some jurisdictions have exceptions for the maximum hours for specific industries. Employees also have the right to an annual paid vacation — although this also varies by province.

Just as the culture shifts among provinces, so do the recruiting laws. Each province has the authority to create its own regulations while following the Canadian government’s overarching staffing and recruiting laws.

Canadian employment contracts often include a probationary period of three months. However, employers are required to provide reasonable notice of termination.

Before you officially hire Canada employees, you’ll need to examine each new employee’s Social Insurance Number (SIN) and record it. If the number begins with nine, the worker is not a Canadian citizen or permanent resident and can only work for a particular employer with authorization from Citizenship and Immigration Canada.

You’ll also need to ask employees to fill out required forms such as Form TD1 (Personal Tax Credits Return), before their first day.

Because Canada has extensive employment laws, you’ll need to stay well-versed on both federal regulations and those in the particular province where you are hiring. Canada hiring outsourcing with a EOR is a great way to stay compliant and save you time and money.

Work with ROOTS EOR

Roots EOR can hire employees on your behalf to get you started without setting up a subsidiary. As the Employer of Record, we handle all Canada employment compliance and take the liability off your shoulders.
Contact Our Advisors 

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8 benefits of hiring remote workers

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8 benefits of hiring remote workers

Post main image

In the age of COVID-19 more and more employers are starting to switch from traditional office employees to remote employees. What are some benefits of hiring remote workers?

According to some recent remote work statistics in the United States alone, 5 million employees work from home at least half the week. There has been a 173% increase in the number of people who work remotely since 2005 and it starting to accelerate even faster in 2020. It’s estimated that 75 million people or 56% of the workforce could work from home.

What are some benefits of hiring remote workers?

1. Reduces overhead costs

Office lease rent payments can be an enormous cost, especially during economic downturns. There are also other overhead costs that add to the expenses such as workers’ compensation insurance, furniture, cleaners, and office supplies. Compensating the employees for their working space is unnecessary when they’re working remotely. A survey by glassdoor showed the 30% would trade pay raises for the option to work remotely.

2. Remote workers are more productive

They can focus on their work without being sidetracked by their coworkers. A lot of employees also love working remotely. They cited that the flexible schedule and the ability to work from any location as the biggest benefit.

3. Reduces costs for workers

While you’re getting a huge benefit and savings in remote working, the same goes for your employees. They save on gas, car insurance, maintenance, and food costs.

4. Saves time for workers

Employees have a higher quality of life cutting out the long commutes to and from work.
That is why 14% of Americans actually moved just to live closer to their jobs. However, it’s not always the best decision as there are many factors to consider, such as higher rent costs the closer they are to a larger city.
Some working from home productivity statistics state the average remote worker saves between 2 and 5.5 hours a day from not commuting to work or having weekly onsite meetings.
This makes remote work appealing to a lot of potential employees. 

5. Increases worker retention

Having the ability to work from home increases employee retention. The ability to avoid the commute is a big selling point to many current and potential employees.

6. Increases worker productivity

According to some recent studies working from home can increase productivity by up to 50%

7. Working from home is healthy for the environment

The more people that work from home reduces the amount cars are on the road and the less pollution that occurs.

8. You can hire workers from anywhere

Hiring remote employees gives you a chance to hire more talented individuals even if they’re from the other side of the United States. Meanwhile, office employees are limited to the talent you can source within the local area where the office is located, or you must pay relocation expenses. For companies who are not located in big cities, this means the number of talented individuals you can hire is much lower and you have a hard time competing for those candidates that enjoy the big city life.

You would like to hire employees from other parts of the world, but you don’t know how to do it. You think it is very difficult, you should know the labor rules of each country, and you must pay a lot of social charges? We have the solution for you. 
Contact Our Advisors 

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We keep going strong in Africa

We keep going strong in Africa

We keep going strong in Africa

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We guarantee quickly and compliantly hire, pay, and manage a global workforce in many parts of the world.

In a world of ample employment choices, companies need to remain relevant to this segment, incentivizing new ideas and concepts that increase people’s appeal and desire to form part of them.

Attracting talent from different parts of the world has wide benefits. Years ago, it was unexpected that someone from another country worked for a company physically in another place. Today, thanks to technology and companies like us, responsible for the legal part when hiring people, it is possible and profitable.

An employer of record (EOR) can hire staff locally and carry out the legal and regulatory requirements of employment, payroll, and even immigration obligations, but do not participate in day-to-day work activity.

Today we bring you good news. Thanks to the applied success and the demand we decided to expand borders: Now we also work with African countries such as Nigeria, Kenya and Uganda.

RootsEOR Nigeria

No. 128B, Association Way, Dolphin Estate, Ikoyi, Lagos State

RootsEOR Kenya

Ngong Road, Professional Centre, 1st Floor,P. O. Box 13913-00800 Nairobi, Kenya

RootsEOR Uganda

Kisinde Estates suit 31, Gayaza Road Behind Total Kalerwe Petrol Station

As a legal Global Employer of Record, we utilize our global infrastructure to hire and pay your supported employees. You maintain day-to-day control of your team, while we manage payroll, benefits, risk mitigation, compliance, and ongoing employee support.
If you want to save time, money and hire employees anywhere in the world quickly, compliantly, and without establishing a foreign entity with this global expansion solution. Contact Our Advisors 

5 tips to find the best jobs for you

5 tips to find the best jobs for you

5 tips to find the best jobs for you

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Guidance on how to find the work you will love.

Identifying how your personal ambitions, goals and needs align with a particular job opportunity is no easy task. But outlining these factors is essential when searching for a job that’s the right fit for you. Here are some tips to help you identify if a job is a good fit for you:

1. Decide what you want in a job

At the start of your job search, spend some time reflecting on what has prompted you to look. Are you interested in doing the same job for a different employer? Do you want to change career paths? Are you entering the job market for the first time? Are you returning from an employment gap?

 

2. Research job titles and descriptions

You can review different job titles to get a better understanding of what a certain role entails and what skills may be required. The Bureau of Labor Statistics also provides up-to-date information on a comprehensive set of occupations.

 

3. Review salary trends

Salary trends is a tool that lets you see the trends in compensation for specific jobs in different locations. Enter a job title and you’ll see the salary range in various cities and with different employers.

 

4. Identify your must-haves

Another method of finding the jobs that are right for you is to identify your non-negotiables and areas where you may be more flexible.

5. Experiment with different job searches

The best way to get a feel for the jobs that are available to you is to try out different search terms. As you search, you’ll get better at recognizing the jobs that feel right and those that don’t.

If you’re not sure where to begin, it’s a good practice to start with broad search terms and steadily narrow it down.

Finding the ideal job is not easy. Many times, you can find it in another country. Did you know that you can be hired and hire people without being in the same physical location in a simple way? Contact Our Advisors