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  • James H

Why Companies Are Using Employer of Record Services

Employer of record (EOR) services are becoming increasingly popular among companies that want to expand their workforce globally without the hassle of setting up a legal entity in each country. An EOR is a third-party company that acts as the legal local employer on behalf of the end user, taking care of all the administrative, legal, and compliance aspects of hiring and managing employees in different jurisdictions. The end user retains the control and direction of the employees’ day-to-day activities, while the EOR handles payroll, taxes, benefits, insurance, and other local employment requirements.

There are many benefits of using an EOR service, especially for small and medium-sized businesses that want to scale up quickly and efficiently. Some of the main advantages are:

  • Speed: An EOR service can help you hire employees in a matter of days or weeks, compared to the months or years it may take to establish a legal entity and comply with all the local regulations in a new country. This allows you to tap into new markets and opportunities faster and more flexibly.

  • Cost: An EOR service can help you save money on the initial and ongoing costs of setting up and maintaining a legal entity in each country, such as incorporation fees, accounting fees, legal fees, office rent, etc. You also avoid the risk of fines and penalties for non-compliance with local laws and regulations. An EOR service typically charges a fixed percentage of the employee’s salary, which is often lower than the total cost of employing them directly.

  • Compliance: An EOR service can help you ensure that you are compliant with all the local employment laws and regulations in each country, such as minimum wage, working hours, paid leave, social security, health insurance, etc. An EOR service has the local expertise and knowledge to handle all the payroll, tax, and legal obligations on your behalf, and to keep up with any changes in the legislation. You also avoid the risk of misclassifying employees as contractors, which can lead to legal disputes and liabilities.

  • Talent: An EOR service can help you access a wider pool of talent across the world, without being limited by the availability and quality of local candidates. You can hire the best people for the job, regardless of their location, and offer them competitive compensation and benefits packages. You also increase your employer brand and attractiveness, as you can offer your employees the opportunity to work for a global company with a diverse and inclusive culture.

As you can see, using an EOR service can be a smart and strategic way to grow your business globally, while reducing the risks and complexities of international employment. If you are interested in learning more about how an EOR service can help you, please contact us today.

We are a leading provider of EOR services, with a network of partners in over 110 countries. We can help you hire and manage your global workforce with ease and confidence. 🌎

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