In today’s competitive landscape, achieving growth often involves tapping into international talent. But, navigating the global terrain can be intimidating without a reliable ally.
Getting your hiring decisions and recruitment strategies right from the start will elevate your organization to new levels of success, but getting it wrong can expose you to all sorts of risks.
Thus, at the forefront of the transformative journey stands a global Employer of Record (EOR) partner. Wondering how you can make sure your EOR is the perfect fit for your business? Let’s dive into 5 key factors to consider when choosing your ideal partner.
What is an Employer of Record (EOR)?
An Employer of Record (EOR) is your all-in-one global human resources partner, handling the legal responsibilities of hiring, compensating, and overseeing a company's international workforce. They are risk mitigators, tasked to handle the nitty-gritty - be it complex tax obligations, compliance with local labor laws and regulations, and full-cycle HR functions. They empower businesses to seamlessly enter international markets smoothly, and most importantly, with a peace of mind. Therefore, partnering up with the
right EOR is a strategic approach towards your growth plan.
5 Key Factors in Choosing the Ideal EOR
1. Transparency in Pricing
Navigating the financial landscape can be a bit like sailing in uncharted waters. A transparent EOR ensures you're on a clear course for smooth financial sailing. Fees can include:
Monthly administration for onboarding and offboarding fees
Deposits for payroll and monthly payroll fees
Travel and issuing of legal letters, where consulates and embassies often require official documents from the legal employer
Travel insurance, when the employee may require for work-related travel
2. The EOR’s Level of Support
It’s important to understand the EOR’s service-level agreement (SLA) and quality of customer service, and one way is to check through online referrals or reviews from other companies that have used their services. For instance, if you have tight deadlines for onboarding, ensure that your EOR can align with your timeframes.
3. Expertise in Navigating Global Markets
Here’s an insider’s tip! Understand where they REALLY have legal entities. Some collaborate with other EOR companies that already have a legal entity in certain countries, and some handle payroll on subcontract basis rather than in-house.
Both these details play a crucial role in the quality of your support, turnaround times and flexibility for payroll changes and inputs.
4. Handling of Foreign Exchange Rates
One of the biggest mistakes we see in newly established EORs in Europe, is the mistake of not adapting offer letters to the candidate’s local currency. Most countries require payment in local currency - not Euro or USD - and this causes frustration with currency exchanges, especially for more volatile currencies.
5. The Forgotten Detail: Offboarding of Employees
The details of employee offboarding often slips under the radar until faced with the task of parting ways with an employee. Since the employee is hired by the EOR, it is vital to coordinate with your EOR to ensure proper documentation and appropriate approach. Additionally, make sure to understand the different scenarios and protocols, mainly - termination due to underperformance, layoffs due to economic or organizational reasons, or voluntary leave by the employee.
It’s also important to be aware of financial implications, such as paying of indemnifications associated with the nature of the dismissal or the duration of the individual's employment.
Leverage Our Expertise for Your EOR Partnership
With our global insight and knowledge of EORs worldwide, we are a trusted HR partner committed to facilitating your seamless global expansion. Our team is dedicated to supporting your recruitment efforts alongside your EOR of choice, ensuring a harmonious labor relationship for your employees and providing unmatched expertise in navigating the intricacies of international employment.
If you have any uncertainties or wish to explore how the right EOR can transform your global strategy, feel free to connect with us. We'll be delighted to assist you in making well-informed decisions tailored to your specific needs.