Ever thought how great it would be to be able to leap over borders and cherry-pick top talent from around the world for your business? Thought so - but what about all of that annoying red tape and the compliance black holes that are involved? Don’t worry, we’ve got you covered. Yes, you’re right in thinking that hiring overseas can get complicated, but an EOR (Employer of Record) partnership can help you to bring the world closer in terms of talent without getting mired up in the logistics.
From payroll to PAYE,
an EOR partner can take the strain of these tasks - as long as you pick the right one so, in this article, we’re explaining how to choose the best partner for you.
Critical Factors for Selecting the Right Partner
Your chosen partner should become an integral part of your business and so, because of this, there are some super-important factors you need to look at to make sure that you’re on the same page and, these are:
Alignment With Global Workforce Strategy
An EOR buddy is more a long-term relationship than a casual fling and, as such, it’s vital that the chosen one has a full and in-depth understanding of your workforce needs - both now and in the future. Along with that understanding, you want somebody who is able to provide proper insights into local markets and talent acquisition processes and pay rates. They should also have the necessary expertise to leap over cultural fences in order to ensure fast and effective integration and experiences.
Compliance With Local Employment Laws and Regulations
If you don’t want your overseas hiring to land you in hot water with the law, it’s imperative that your Employer of Record is able to keep you in tune with all employment laws in your target region; including taxes, benefits and regulatory filings. Without this you may find yourself on the wrong side of local laws which can lead to reputational damage and even a hefty fine.
As in your own country, you need to be aware of things like data laws and employment classification. These include, for example, full time, part time, permanent, temporary or contracted. And you need a partner you can rely on to keep your reputation and business the right way up.
Partners should provide regular compliance updates as well as guidance on regulatory changes. For example, advanced platforms like
Borderless AI combine technology with legal expertise to automate compliance processes. Take from this that companies need partners with proven track records.
Scalability and Flexibility Across Worker Types
We’ve just mentioned the different types of worker that you might want to employ (you were paying attention, right?) but that doesn’t mean just for now. There’s a good chance that you’ve got at least one eye on the future of your business and this means that your staffing needs are likely to change - which calls for flexibility.
Flexibility requirements include:
Your new best pal will need to be abreast of your ambitions and be able to keep up through employee classifications, different working models and fast and efficient onboarding and offboarding.
This means that you should be able to switch up (or down) your workforce needs without the need for tons of new paperwork.
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Transparency in Service and Pricing
Before you go ahead and choose your overseas employment company, it’s time to get down to brass tacks. While you might be itching to sign on the dotted line, you first need to make sure you know what you’re getting into. A trustworthy EOR won’t hesitate to give you a full and transparent breakdown of what all of this is going to cost you.
Pricing transparency must include all costs, fees and charges including setup, onboarding & offboarding and service charges. You’ll also want to grill them about procedures, service levels and response times to make sure that they’re a good fit.
Evaluating EOR Partners for Global Success
It should go without saying that global success requires a global partner who has a pitch-perfect track record of their knowledge and expertise - and here’s how to find them by asking the right questions.
Assessing Local Expertise and Market Insight
Can they provide solid evidence of their in-country expertise? For example; which local specialists do they use and how many registered entities do they have in that country / region?
Local infrastructure makes a big difference
So, your new compadre knows all there is to know about the region - good for them, but that’s not quite enough. Do they have a wide network of suitable professionals and what is their relationship with these clever folk? Things like employee benefits can vary massively between states, countries and continents and so you need to make sure that they have a veritable army of specialists on their side to keep you sitting pretty when hiring abroad.
Technology, Service Reliability, and HR Support
Unless you’re planning on hopping across the sea(s) to visit your EOR partner every few minutes, you’ll need to dig down into how - and how often – they’ll be communicating with you … and by which means. And while you’re at it, you’ll want to know what kind of employment systems they use for stuff like contracts and statements.
Human-centered support separates excellent providers from average ones
Who will I be speaking to and how often? This is a good question to kick off with in order to establish whether you’ll have a dedicated account manager or just get bounced around the office every time you call. Here’s where you also ask for evidence of data protection standards and financial management processes and systems.
Due Diligence: Track Record and Legal Safeguards
Not such a fun fact - if your EOR company gets in trouble with the law,
so do you by association. Because of this, you need to make sure all the T’s are crossed and the I’s dotted by asking for documentation such as bank references and local certification for employment. Risk management runs both ways and this should be rock solid to ensure that it protects both you and your new associate.
Conclusion
Hiring from overseas can add a whole new dimension to your business - as long as you know what you’re dealing with. An EOR partner is your passport to tapping into top talent without all the drama so, as we’ve highlighted in this article, you need to take your time and choose wisely to make this work for you.
