An Employer of Record (EOR) is a third-party agency that employs workers on behalf of businesses. EORs are responsible for everything from managing payroll to workers’ compensation insurance. Sometimes they operate in the same countries that the businesses they support are based in, and other times they are based internationally. If you have heard good things about EORs and want to hire one, take time to perform extensive research first. This post will simplify your research for you by explaining what EORs are, how they can help you, and what the benefits of hiring one are.
The Role of an Employer of Record in Streamlining Workforce Operations
1. Finding Support
If you are interested in hiring an EOR, you need to find the most experienced agency you can. Whether you want to hire people in Singapore or in any other part of the world, make sure the agency you hire has lots of positive reviews, a large client portfolio, and experience hiring in the industry your business operates from. Also make sure the company you hire offers its services at a price point you can afford. A business’s reviews will give you an idea of what they are like to work with and help you to determine whether they are the right choice for you or not.
2. Legal Obligations
The main benefit of an EOR is that by hiring one, you don’t have to worry about the legal aspect of hiring people, i.e., payroll compliance or taxes. EORs also hire employee contracts, ensuring they are properly drafted, and that they protect employees and your business. It is also commonplace for EORs to perform background checks on potential employees. Background checks prevent you from hiring unskilled, unsuitable, or even criminal employees.
3. Hiring Internationally
You can use EORs to hire internationally without you having to worry about legally establishing your business in the countries you plan on hiring people in. If you are going to work with an EOR for this reason, you need to make sure that the agency you hire has experience hiring people in the countries you want to hire from. Ideally, you should hire an agency based in the country you want to hire people in, because they will be in the best position possible to ensure that your business only hires the most skilled, talented, and qualified individuals.
4. Handling Compliance
One of the most complex aspects of hiring people is compliance. Compliance can be a nightmare to handle, especially if you are not experienced in dealing with the specific laws of the country in which you are hiring people. By hiring an EOR, however, you won’t have to worry about handling compliance, because they will do all of the hard work for you. They won’t only ensure that compliance regulations are met when employees are initially hired, but they will also ensure that employees themselves are compliant, and if they deviate from compliance standards, that they are punished.
5. Managing Payroll
Payroll is one of the hardest departments for a business to manage. It is not easy managing the payments of tens or hundreds of employees, not to mention ensuring their taxes are paid. By hiring an EOR, you will never have to worry about payroll again. They will manage payroll for you, so you don’t have to. You will have to either give them access to a business bank account to make payments from, or get them to send payment requests to you, however. This is so employees can be paid on time. If you do not provide a means for your EOR to take payment, salary payments will be delayed.
6. Streamlining HR
Even if you hire an EOR, you will still need somebody running your business’s HR department. This is so that domestic employees or workers not employed by your EOR have somebody to talk to about problems they experience working for you. However, you will be able to streamline HR by hiring an EOR, since most of your employees will work directly under them. By streamlining HR, you will be able to save a lot of money, as you won’t need multiple full-time HR staff working for your company.
7. Scalable Solutions
Finally, one of the best things about EORs is that their services are highly scalable. You only pay for the support you need, so if you only want to hire a few employees, you can do that. Likewise, if you want to employ hundreds, you can do that to. An EOR will ensure all your needs are met and that you only pay for what you need, which prevents you from overspending or exceeding your budget.
An Employer of Record can benefit your business in many ways. If you want help hiring employees based in foreign countries, now’s the time to get in touch with one. It’s also worth noting that you can find EORs based domestically, too.
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