Companies want to have the best employees. Today it is possible to get them anywhere in the world. Are you interested in knowing how to do it? Read the article.
EOR services is an Employer of Record, or a third-party organization contracted to assume the legal responsibilities involved in employing workers/laborers on behalf of your company or organization. An EOR is typically used by companies electing to not directly employ workers on assignment, or in a different state of foreign country. The EOR commonly manages the HR processes associated with hiring, employee tax reporting, benefits administration, all relevant insurance coverages and, (for international resources) visa applications and sponsorship. The EOR becomes the primary employer of your employees in a legal sense.
What are the benefits of using an EOR?
- The primary benefit of an EOR is a reduction in the complexities associated with HR and specialized contingent workforce management functions
- An EOR helps improve market access to employees in other states and countries
- The EOR ensures a business is compliant with all relevant labor laws and regulations which can be especially challenging during international expansions where regulations surrounding benefits and taxes are more complicated
- The EOR can unlock access to new markets and help drive better rates for benefits
1. Develop an adjustment plan after recruiting abroad
Once you’ve put in the time and resources to recruit abroad, it’s crucial to ensure your new global employees adjust properly. Having a global team means that your relationship with those employees will be different than with your local teams. Plan to bridge the social distance, make both teams feel important and supported, and provide enough space for the new team to make decisions.
Focus on defining your company so you can communicate those values to new employees. When you bring a local hire into the company, it’s much easier to catch onto the business culture. When someone is far away, even on the other side of the world, it’s crucial to be more communicative.
2. Understand local labor laws
Local labor laws can be complex and counterintuitive. Every country has its own set of labor protections and regulations. They can differ between regions or cities within a country, too. Without an in-depth knowledge of local laws, you can write contracts that are unenforceable, mishandle tax information and collection, and other errors.
Misclassifying workers is a frequent error for companies hiring overseas. It can be tempting to label every new hire an “independent contractor,” which keeps costs down. The employer pays fewer fees, taxes, and has fewer responsibilities when dealing with contractors.
However, most labor systems have strict tests for whether a contractor is actually an employee. Misclassifying someone as a contractor who should be an employee can result in huge expenses and lawsuits. The best way to ensure compliance with local labor laws is to use a trusted partner who is familiar with it so you can focus on developing your business.
3. Recruit smarter
While there is no shortage of people looking for a job, there is often a shortage of qualified, hard-working candidates. It can be difficult to find workers with the skills you need.
Many companies use their social networks to recruit good workers. You can also expand your reach by engaging with strategic partners that have established international networks to help find qualified employees.
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