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Employer of Record

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EORs: Solving The Challenges Of Distributed Work

A staple of today’s workforce, distributed work can boost productivity, attract and retain top talent, and improve performance. In fact, Forbes says that more than 9 out of 10 workers expressed a wish to work remotely at some point in their tenure.

But while the benefits of remote work are many, it doesn’t come without challenges.

The common obstacles to remote work include a lack of spontaneous team collaboration, no clear way to track performance, and a lack of technology that streamlines global HR functions. 

These challenges get amplified when you start managing a global remote workforce. As a global employer, you face barriers unique to having international employees, which can hinder you from focusing on core activities and connecting with your employees.

Employer of Record (EOR) services work to help you overcome the problems of remote work and global employment. They are a comprehensive HR solution that gives you access to diverse talent, allows you to expand into new markets, and helps you build a stronger connection with your team.

Let’s explore the hurdles presented by global talent management, how to navigate them, and the role of EORs in facilitating a successful remote work environment for your international teams.

The challenges of managing a global workforce

Managing multinational talent is already complicated by the differences in time zones, language barriers, and cultural variations.

An extra layer of difficulty is added when you throw in the other challenges of global talent management. Hiring employees in multiple countries means complying with each country’s employment, payroll, and tax laws and regulations. The laws vary significantly from country to country, and failing to comply can result in severe consequences: fines and penalties, sanctions, and reputational damage.

Depending on the magnitude of the violation, the country’s regulatory agency may restrict your ability to continue operating or revoke you from doing business in that country again.

Using payroll and compliance tools specific to each location may at first seem viable; until you realize what was meant to alleviate your administrative burden inadvertently added to it!

Every locality you hire from results in HR staff having to keep up with additional regimes across international borders using multiple platforms. In short, there’s no scalability. Depending on the type of service you use for compliance, you’re still responsible for any labor and compliance violations. This exposes you to a variety of legal risks and the repercussions.

EOR services help mitigate the risks and complications associated with distributed work. That’s because EORs have expertise in navigating the complex landscape of international employment law. 

They ensure your business maintains multinational compliance, processes payroll accurately and on time, and complies with local tax withholding laws. Implementing an EOR service diminishes the need to manage compliance on your own and prevents you from blundering into legal disputes or violations.

EORs also help conquer the other problems of remote work. Services like Multiplier equip you with technology that streamlines your HR administration and helps you better support your global remote employees.

EOR services can include:

  • Benefits administration
  • Employee onboarding and offboarding
  • Time and attendance trackers
  • Expense and reimbursement management
  • Scheduling
  • Visa applications
  • Work permits

When you’re engulfed in compliance and everyday HR tasks, you can’t focus on the activities that help to build connections between your remote teams.

Leveraging global talent

Overall, EORs provide the technology, expertise, and support needed to leverage global talent to achieve company objectives effectively. With an EOR handling the legal, administrative, and compliance aspects of international employment, you can spend more time fostering a positive global remote work environment.

For instance, that time dividend might encourage closer collaboration and enable regular check-ins with employees so they can share updates, ask questions, and trade ideas. You’ll have more time to learn and understand the different cultures and backgrounds of the people working for you.

Grasping how employees view work and what matters most to them helps you develop strategies and work policies that are right for them and their specific team. At the same time, you might also gain an understanding of the local market and figure out ways to use that information to your company’s advantage.

Creating a positive work environment promotes employee productivity, retention, and engagement among remote team members. With more than half of workers feeling that remote work improves their motivation and productivity, you just cannot ignore the ramifications of creating the conditions that produces productive, motivated, and high-performing employees.

Go global with Multiplier

Optimize your global talent management without the hassle of legal complexities and multiple platforms. Let an EOR handle the administrative and compliance side of your international workforce so you can continue growing your business and build strong relationships with your employees.

Speak with an expert today about how Multiplier can help!

Will Smith
Will Smith

Content Writer

Will is a Content Writer at Multiplier. With a background in technology journalism, he is passionate about busting jargon, getting to the heart of complex topics, and writing pieces you'll enjoy reading.

Employ the best person for job, regardless of location

Employ the best person for job, regardless of location

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