Most startups work with local easy-to-manage teams. However, as your business grows, expanding your talent pool becomes necessary, including searching for workers from other regions or countries. While this guarantees you talent, navigating the employment laws from another country can be challenging.
Employment laws in most states require an employer to assume the responsibilities of their employees, including costs, tasks, and liabilities, and failure will attract penalties. Fortunately, through EORs, employers unwilling to take up these roles can still access talent.
Read on for the role of an employer of records (EOR).
What Is An EOR?
An EOR is an external entity overseeing the onboarding and human resource activities on behalf of another business. EORs like Global Expansion feature legal entities in the countries relying on their recruitment services and will take responsibility for legal compliance. Therefore, through EORs, a business can recruit internationally without needing multiple entities.
Functions Of An Employer Of Records (EOR)
The following comprise the roles of an EOR.
Exploration Of New Markets
If your business aims at global expansion without setting up an entity, EOR is the way to go. Through an EOR, you can test a new country without an entity establishment by hiring their team, generating new revenue streams, and reaching out to new customers. For instance, if you are an employer based in the UK and lacking a physical presence in the US, you can hire employees from the US through EOR, saving time, money, and resources.
Attraction And Retention Of Top Global Talent
In today’s labor market, remote work is desirable, increasing the competition for top talent as more companies turn to remote employees. By hiring through an Employer of records, you will surpass geographical limitations and open up your business to a talent pool with the skills you want. Also, EOR will help you retain your talent in case of relocation.
Mitigation Of Compliance Risks
Sourcing employees internationally necessitates legal compliance with the country of operation. Employer of records features experienced accountants and lawyers that keep up with the labor laws and taxes of countries they have legal entities. Therefore, a company working with an EOR need not worry about the local labor laws and regulations as they comply on their behalf.
Maintenance Of Records And HR Roles
EORs maintain confidential data for all employees through efficient and reliable systems with dedicated data management personnel that ensure an easy update for all records. You can also entrust EORs with human resource roles for competency, given their experience and knowledge in the field. Employer of records have tested and proven processes that enhance the delivery of the following HR services:
- Background checks
- Employee onboarding
- Processing of payrolls
- Employment contracts
- Employee benefits
- Termination of employment
- Maintenance of records
Grow Your Business With The Help Of Employer Of Records
While it is easier to assume human resources roles at the local level, keeping up with the regulations is tough at the global level hence the need for an EOR. An EOR will help your business grow by attracting talent, managing compliance on your behalf, and performing HR tasks. This way, your business will save time and money and focus on more productive activities.
