The increase in popularity of remote work provides a tremendous opportunity for growing businesses to hire first-class talent from any part of the world. Global hiring comes with multiple benefits. However, expanding businesses hiring global talent have some major challenges to overcome.
Each country has its own employment laws, customs and cultures, making it challenging to hire workers and adhere to all the rules and regulations. A company that wants to utilise global talent has two options to choose from, which include the following:
- Establish a local entity and act as an employer
- Work with an employer of record (EOR)
Setting up a local entity and acting as an employer can be time-consuming as the entire process takes anywhere between ten weeks and eighteen months. The process of establishing a local entity involves several tasks, including:
- Registering with local labour departments and tax authorities
- Setting up an entity
- Complying with employment rules and regulations
- Creating employment agreements
- Managing ongoing payroll overheads
- Handling payroll
- Staying up-to-date on changing rules and regulations
Large companies manage to set up local entities in countries where they want to hire global talent. But this approach mayn’t be ideal for businesses focused on core activities. And that is where Via employer of record comes in.
Via helps businesses of all sizes to recruit, hire and pay international workers with on-the-ground employment support. The company makes local hiring, payroll, benefits, and immigration compliant and seamless.
If you’re looking for the best employer of record, the company you’re considering needs to answer the following five questions correctly. Let’s go through them to unearth more.
Will the Company Employ Your Workers Legally?
Prior to delving into any other inquiry, it’s crucial to investigate and determine whether your employer of record service provider handles local employment. Your employer of record service provider should be able to handle activities like:
- Maintaining a local corporate entity
- Processing payrolls
- Registering as a business with tax authorities and filing taxes
- Ensuring HR compliance
- Providing statutory benefits
Check to ensure the employer of record can handle all these tasks according to the local employment laws. Only work with a company that ticks all boxes right when it comes to handling these activities.
Is a Global HR Platform Included?
Your employer of record in question needs to utilise technology that makes everything easier for your business. It should be able to simplify the challenges and complexities of recruiting global workers. Make sure that the technology your service provider uses is user-friendly and that your team enjoys using the platform. You’ll want to find an employer of record who provides the following:
- Tech stack integrations
- Data protection and digital safety
Does the Employer of Record Include Support Services?
Ensure that the EOR provider has qualified HR experts who can offer the support your business requires as you recruit and onboard new global talent. Your company needs to depend on consultative services the employer of record offers and have a good idea of how responsive they’re to your concerns and inquiries.
Top-rated employer of record service providers will offer much-needed support and guidance for all core HR responsibilities. Your team should rely on in-house experts in several aspects, which include the following:
- Worldwide payroll
- Employment law
- Country-specific taxation law
- Benefits
- Global compliance
If you use an EOR service provider who doesn’t have enough knowledge and expertise in all these areas means more room for mistakes, and expensive penalties.
Does Your EOR Company Offer International Compliance?
All labour laws globally govern how businesses treat workers and offer certain protections. These laws vary from one country to another across the universe. And these laws can change anytime.
That means if your company is expanding globally and hiring great talent from different states, it can be challenging to track all the differences in labour laws as well as the alterations that may occur. In general, businesses need to remain compliant in different areas. A top-rated EOR solution will confirm that a business adheres to the following regulations.
- Non-discrimination protections
- Minimum wage
- Compliant employment agreements
- Statutory benefits
- Termination protections
- Working hours and overtime
- Privacy and data laws
How Much Does the EOR Charge You to Employ Workers Through Their Platform?
An EOR would charge a certain percentage of the compensation or a flat fee for their services. The charge can differ slightly or maybe harmonised for all states. Depending on the EOR, these fees would be charged monthly or billed yearly. The price an EOR quotes depends on certain commitment for your business (number of workers, timeframe, etc.).
Request to know how your employer of record’s fee structure works. Also, you can ask the provider to help with employer taxes and gross-to-net calculations as well as their fee so that you can have a correct figure; how much it’ll cost you to employ a worker or a team through them monthly and yearly.
These five questions and their solutions have offered you insights into how to assess your EOR’s value and make the right choice. Partner with a top-rated EOR company like Via to recruit first-class talent globally and remain compliant.