As countries start to move out of mandated lockdowns, the global hiring freeze that occurred in early March is starting to pick up. With that comes more opportunities for businesses to diversify their workforces and employ workers internationally. In this post, we look at how using an employer of record solution can help businesses employ international workers in a post-pandemic world.
Creating a Global Workforce
Although the shift to remote working happened very fast in March, employees have adapted well with many companies reporting that employee productivity has not changed that much. We knew that remote working was the future, but what the last three months have shown is that working remotely can be done anywhere.
The future of the workforce is changing. Post COVID-19 lockdowns, we are more likely to see businesses’ workforces include a mixture of local office-based workers and dispersed, global, remote workers.
Implementing International Expansion Plans
As we move on from COVID-19 lockdowns, many businesses want to continue with their expansion plans to help grow their revenue streams and take advantage of a new global remote workforce. So, how can businesses employ their new international workers compliantly? One way to do this could be using an employer of record solution.
What is an Employer of Record Solution?
Employer of Record (EOR) is a global employment solution whereby a third-party provider hires your employees on your behalf.
The EOR provider becomes the legal employer and takes responsibility for the entire employment relationship, employment benefits, and HR, leaving the end client company to manage only their day-to-day responsibilities.
Some of the reasons why businesses could use an EOR (Employer of Record) include:
- Fast entry to new markets
Using an EOR provider allows faster expansion into new markets. Expanding abroad and setting up an entity is a time consuming and costly project. However, if a business wants to expand quickly and has immediate global hiring needs, then working with an EOR provider could be the answer. By using an EOR solution, your business can have a presence in a new international market quickly and compliantly without all the hassle of setting up an entity.
- Reduces expansion costs
Expanding internationally can cause many challenges. The costs of setting up a foreign entity varies dramatically from country to country and the process includes establishing an entity, registering with all the right tax and labour authorities, opening a foreign bank account, and setting up a payroll vendor. However, by using an EOR solution, businesses can reduce their expansion costs by thousands of dollars.
- Helps your workers stay compliant
Staying compliant should be a major concern for all businesses. Expanding internationally can be complex, as employment laws are inherently different and vary from country to country. These laws change regularly and as a result it can be very time consuming and expensive to stay compliant in an unfamiliar country.
By choosing to partner with an EOR provider, you will receive the correct advice. Our dedicated international in-country specialists understand each country’s employment laws and will help your workers stay compliant.
- Enables businesses to focus on their core business activities
Outsourcing non-core business activities are becoming increasingly popular and taking away employment risk in certain jurisdictions can be very attractive. EOR solutions make it easier for businesses to concentrate on the running of the core day-to-day business without the hassle of organising global payroll, HR, or contract compliance.
Choosing an EOR Provider for your international expansion plans
As we can see from the latest reports, international expansion is still happening, and EOR is one way to expand into markets faster with a compliant and legal workforce in country.
Through using an EOR provider, you can save valuable time and resources that would be spent on understanding the complexities of setting up in-country and employing international workers.
An EOR solution helps you to quickly scale your business globally and allows you to build a global workforce that is legal and compliant from day one.
Looking to employ international workers? Fill in the form below to see how we can help your business.
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