Partnering with an Employer of Record (EOR) is the easy way to accelerate your global hiring efforts. EORs are more than just another monthly expense. They’re an investment you can’t afford to miss. Here’s why.
EOR benefits: Global hiring the easy way
EORs empower companies of any size to expand their global teams by simplifying international hiring and managing regulatory compliance. And that’s only scratching the surface of the full suite of EOR benefits. Here’s our top three.
1. Break into new markets faster
Slow hiring can hinder long-term growth, leading to you lacking the manpower required to put your plans into place. EORs help onboard employees rapidly so you can start putting your employees to work sooner – without the need to set up an entity.
2. Diversify talent acquisition
Hiring from a global talent pool pulls together people from various backgrounds, all with unique skills, experiences, insights, and perspectives.
An organization’s leaders can use this resource to develop more innovative solutions, strategies, and products. It has a measurable impact on the bottom line too. A workplace that has a diverse workforce tends to perform better financially.
3. Decrease the risk of fines and penalties
Not fully understanding each country’s compliance regulations can amount to thousands or even millions of dollars in fines and penalties.
The best EORs are well-versed in local employment, tax, payroll, and labor laws in other countries, so that you can operate fully protected from legal compliance risks and liabilities.
Why an EOR beats the alternative
To understand the other benefits of an EOR, we first have to mention the alternative: legal entities.
Hiring an employee beyond your borders used to require you to set up an entity in the prospective country. It’s a long winded process that exposes you to ongoing legal obligations and government red tape, all of which require legal and accounting professionals to handle.
These steps can take weeks, or even months to complete – not to mention the effort it takes to dissolve an entity you no longer need. As Multiplier’s Amrit Singh said in our recent global hiring guide, “It’s a very real risk that you could open an entity that doesn’t have a long lifespan because wage costs have increased making the talent pool there uncompetitive.”
EORs reduce the time and cost of international HR management and compliance, letting you:
Avoid hidden costs
The entity-associated costs you can avoid with an EOR include:
- Hiring legal and accounting professionals
- Documentation fees
- Account fees
- Notarization
- Government registration as a legal employer
- And more, depending on the country
Access one centralized platform
Managing separate HR tasks like benefits, payroll, or attendance, is hard to do manually. Relying on technology for each problem means taking on multiple ongoing costs.
With the right EOR platform, you can get all these services in a single location. Your company only has to handle the employee management side of things: job duties, performance, goal setting, schedules, and so on.
The real-world impact of an EOR
Global expansion becomes easier when you know you’re legally compliant and have an experienced team of professionals to ensure your success. That frees you up to focus on growth and improving your product or service.
Axero, a technology and digital workspace solution firm, is the perfect example of this. They needed an EOR platform to help them simultaneously comply with the employment and tax laws in India, Spain, Montenegro, and the Philippines.
Axero began working with Multiplier and was able to maintain compliance in all countries of operation seamlessly. Apart from saving up to 300 hours of labor a month, the partnership ensured Axero reduced its annual payroll expenses and operational costs by $1 million.
Multiplier’s EOR platform
Using an EOR gives you the opportunity to embrace the lowest total cost of ownership of employing a global team. EORs minimize the upfront costs of expansion, eliminate legal compliance risks, and make it easy to manage HR operations efficiently.
EORs like Multiplier are a valuable investment to companies looking to hire internationally. In a world of talent crunch and high interest rates, the need for businesses to continue growing and expanding across borders is only increasing, and you’ll need an EOR that can match your pace.
Need more information about how Multiplier can help? Speak to one of our experts.