COMPLIANCE
Unlocking success: an EOR – your key to the world of global talent
Nafisa Samreen, editorial consultant, Neeyamo , highlights the benefits of using an employer of record (EOR) service, and provides advice on ensuring you select the provider that works best for your business and employees
A t the heart of every business lies the desire for global expansion, and with it comes the need for immense talent that may not always be available in one specified area, territory or even country. To find the perfect hires for all roles, businesses may have to step out of their comfort zones and cross borders, literally and figuratively, by hiring global talent. Hiring globally may seem straightforward if you already possess a legal or physical entity in the target country, which is complex and requires long-term planning and commitment, but what if you lack this? Hiring employees in a new country would entail dealing with the specified country's tax and compliance laws, which, with the help of an EOR service, can be easily dealt with by the provider. An EOR allows companies to onboard, manage and pay overseas employees. An EOR service applies to organisations of all sizes and is mostly used by companies looking to hire in the long-tail region or regions with fewer employees. The benefits of using an EOR provider A basic EOR agreement has various components which the provider takes care of in addition to the employer's basic legal employment of the employee in the country. Other aspects of employment that EORs assist with are:
l the transfer of the employee's intellectual property to the company l taxes and contributions paid to the government by the employer and employee l salary and benefits of the employee l the length of contract between the employer and the employee. Alongside this, the service providers also take on all the formal employment procedures, including the: l onboarding and offboarding process l compliance and tax documentation l adherence to company and employment law. "Businesses may have to step out of their comfort zones and cross borders, literally and figuratively, by hiring global talent" This is all while shouldering the burden of any risk of violating the country's local employment laws. Having an EOR provider provides various other benefits to the employer and employee, some of which are covered below:
comes with its own complications, as there are many aspects to be taken into consideration, such as tax and benefits, time and absence, compliance and payroll capabilities for expats, for example. But using an EOR provider allows for these complications to be easily resolved by the expertise and experience of the provider who assumes responsibility for all this as part of the service. Benefits An EOR provider can assist employers in providing their employees with the benefits they need to make joining the organisation and position more appealing to the employee. This also aids in employee satisfaction and pushes employees to unleash their potential. Local labour laws A country's local labour laws are prone to change and can vary from region to region, making it a tedious task to keep up with; using an EOR provider will allow employers to hand over this task to the in-country partners who deal with this. Local experts Local experts guide employers on tax and regulations to ensure they stay compliant and updated on the country's regulations.
C ost management Establishing a legal or physical entity in a
Payroll processing Handling payroll in a new country
| Professional in Payroll, Pensions and Reward | February 2024 | Issue 97 26
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