PLAYROLL BLOG

Insights into global expansion & employee retention

Published: May 16, 2022

Important Things Every HR Practitioner Should Consider when Choosing an International Employer of Record

Times have definitely changed and so have HR practices. Gone are the days when talent is managed under one roof and where payroll is somewhat of a breeze. With globalization taking over, HR gurus are faced with a new world of opportunities and challenges regarding managing talent on a global scale across different time zones and cultural diversities.
employer of record

Times have definitely changed and so have HR practices. Gone are the days when talent is managed under one roof and where payroll is somewhat of a breeze.

With globalization taking over, HR gurus are faced with a new world of opportunities and challenges regarding managing talent on a global scale across different time zones and cultural diversities.

There are many laws in place regarding taxation and employment compliance that need to be followed, and if you decide to hire international talent without the help of an Employer of Record, you may be in for a tough time.

Things You Should Consider When Hiring an EOR

Solving Your Legal Woes With an Employer of Record

Navigating the harsh terrain of international hiring is no easy task, especially with each country having their own set of legal landmines and consequences to contend with, making compliance an emotional rollercoaster ride for even the most experienced HR practitioners.

Hiring an Employer of Record will help them sleep at night knowing that the bulk of legal and compliance hurdles will be dealt with, from tax compliance to local labour law, giving them the time to do what they do best without worrying about the pesky fines and legal inconveniences that come with non-compliance.

Will the Employer of Record help your business become more efficient?

Any good Employer of Record will not only help you hire international talent, but it should also take over the legal liability of any employment law discrepancies that may arise.

It is important that you trust the EOR that you choose to partner with as they will act as your legal, tax and HR infrastructure. You should be mindful of the fact that some EOR partners act as a go-between for other third-party companies that operate in the country you are hiring in.

This could make things far more difficult as the chain of command then only grows longer creating even more distance between you and your international personnel.

How will duties be split between your business and the Employer of Record?

When an employer of record states that they will help you with your HR compliance in a specific region it is imperative that you find out exactly what this will entail.

There are many things that an EOR partner can do on behalf of your business but you will not be handing over the reins entirely and it is important to remember this.

An EOR generally has no dealings around your talent’s work responsibilities. This direction comes from the original employer.

Does The EOR Service Deal With Similar Business Owners In Your Industry

If they understand your industry, they will be better equipped to handle specific compliance and day-to-day business obligations. This aspect is also important so that you can ensure you are provided with a tailored solution that fits the needs of your company.

Is The Employer of Record Service Part of Their Core Business

When choosing a service provider, one of your main boxes to tick should be that EOR is a core focus of what they do and not merely a small part of what the company offers. If you are expanding your business internationally, Payroll can help.

With over 20 years of EOR experience under our belt, we provide integrated global outsourcing solutions while working side by side with our clients to keep their goals in mind.

Our EOR services cover country-specific essentials and can be customised to suit your business needs. We pride ourselves on offering global services with a local approach that puts employees first.

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