The world is more connected than ever, and your employee search no longer needs to be limited by geography. However, hiring overseas does present new human resources and compliance considerations that need to be taken into account.
The good news is that the right Employer of Record (EOR) partnership provides turnkey solutions that lift the burdens of local employment complexities off your plate by becoming the official legal employer abroad. EORs take care of everything from compliance and payroll to benefits and terminations, country by country.
Yet, not all EORs are created equal. Providers vary widely in capabilities, services, global presence, and approach to compliance management. With the multitude of options now available, how do you select the one that best fits your needs and plans? Here are five key factors to keep in mind.
Choosing the right EOR starts with some introspection. Before you even begin browsing providers, it's crucial to take a step back and truly understand your company's unique needs and goals when it comes to international employment. This isn't just about ticking boxes; it's about finding a partner who aligns with your vision and can support your specific journey.
Consider these scenarios:
By identifying your primary hiring needs, you can narrow down your Employer of Record options and focus on providers with relevant experience and expertise.
Realistically assess your internal HR capabilities. How much support will you need from your EOR partner? This will depend on factors like your company size, internal resources, and the complexity of your international hiring needs. As you take that into consideration, you can start mapping the level of needs. Loosely, they will fall in one of three categories
Don't hesitate to ask potential EOR providers about their support levels, SLAs, and the availability of dedicated account managers.
While many EORs boast extensive global coverage, it's essential to look beyond the number of countries they claim to support. A critical factor is whether the EOR owns its infrastructure in those countries.
Some EORs rely on third-party providers or "middlemen" to deliver services in certain locations. This can lead to several issues:
It's generally advisable to choose an EOR that owns its infrastructure in the countries where you plan to hire. This ensures greater control over service quality, compliance, and access to expertise.
When evaluating EORs, be sure to ask:
By understanding the EOR's operational model, you can make an informed decision and choose a partner that can truly provide the local expertise and support you need.
Making a strong first impression is key when bringing on new talent or transitioning employees to a new employment model. An exceptional EOR provides a seamless and positive onboarding experience that makes employees feel valued while also efficiently handling contractual details and conforming to local norms. This requires deep in-country expertise.
But onboarding is just the beginning. Ongoing employee support throughout the employment lifecycle is essential for satisfaction and retention. Employees will have questions about payroll, benefits, time off policies, regulations, and more. The EOR should readily address each inquiry with helpful and prompt support, serving as an extension of the company's HR team.
When evaluating Employers of Record, inquire about their onboarding process and employee support model. Ask how they handle inquiries, their service level agreements, and what communication channels they utilise to connect with distributed team members. The responsiveness and in-country knowledge of the EOR will directly impact the employee experience.
International employment is inherently complex. Unexpected challenges and situations can arise, requiring expertise and careful navigation of local laws and regulations. The right EOR partner will not only be prepared for these complexities but will proactively guide you through them. This includes expertise in:
When evaluating EORs, inquire about their experience handling challenging situations, their approach to compliance, and their process for resolving disputes. Ask for specific examples of how they have successfully navigated complex scenarios for other clients.
This blog post has provided a valuable overview of the key factors to consider when choosing an EOR partner. But there's much more to learn!
Download our comprehensive eBook, "The Ultimate Guide to Employer of Record: How to Choose the Right EOR Partner For Your Business" to gain a deeper understanding of the intricacies of international employment.
In this eBook, you'll discover:
Download your free copy and become an expert in navigating the world of EORs.
Navigating international employment can be complex, but with the right EOR partner, it doesn't have to be. At Boundless, we act as your consultative partner, handling the intricacies of global hiring so you can focus on your core business goals. Here's what sets us apart:
We're passionate about empowering businesses to access global talent and providing employees with the best possible experience. Get in touch with our team today to learn how we can help you achieve your global expansion goals.