An Employer of Record also known as EOR is a reliable third party that takes care of hiring full-time employees on behalf of your organization. With EOR, you can hire, manage and pay global employees in a seamless way. An international employer of record (EOR) is a third-party service that enables small, medium, and enterprise-level businesses to easily onboard, manage, and pay international employees. It can handle everything from legal compliance to payroll processing for your employees working in different countries.
What is EOR all about?
Working with remote teams is a convenient option in many ways . When you build a remote team for your business, demographic limits do not stop you and you can access a global pool of talents.
When your business operates remotely, you can easily onboard international talents who can meet the requirements of your company in an efficient manner. With this, your business gets more opportunities to enter new markets and grow into multiple directions.
However, you have problems when hiring employees on a global basis.
Yes, each country has various sets of labor laws and tax regulations. Plus, these social norms are subjected to change from time to time.
Given the scenario, you have to ensure that your company complies with these legal structures in order to onboard international employees.
Managing all these on your own is obviously a herculean task. Here is where an Employer of Record comes into play.
An employer of record can help you with the following HR-related activities.
EOR takes care of everything about payroll including setting up and managing deposits, taxes, tax contributions, payment schedules, and any other payroll-related functions for your remote team in an error-free way.
The employer of record administers all employee benefits including paid day-offs, bonuses, commissions, reimbursements, health insurance, retirement plans and much more on behalf of your organization.
When onboarding employees from other countries, you ought to make sure that you maintain compliance so as to avoid legal hassles. With an employer of record, you can establish channelized and compliant hiring practices within your organization.
Additionally, the reliable third party also handles other HR functions such as registration, tax filing and more for your organization.
In addition to the above mentioned responsibilities, an EOR also extends professional assistance for other miscellaneous activities such as keeping track of medical leaves and other short-term and long-term absence of employees at work, compensation and termination negotiation
Benefits of EOR Services
Below are the benefits of using EOR services to take care of the HR-related activities of your organization.
Onboarding and managing international employees demands you to handle complex calculations. So, errors may occur now and then if you handle these HR activities on your own or with an in-house team. Plus, it isn’t easy to identify the source of the error.
On the contrary, when you entrust an EOR to take charge of HR functions, you can quickly put an end to the conventional payroll processing methods. Either way, this is a better option than struggling to handle global payroll with an in-house team that also has other organizational responsibilities to cater to.
Besides preventing unintentional errors, you can expect greater accuracy in everything, including, calculating the working hours, paid time offs, deductions, employee benefits, generating reports, tax filings and much more when you go for multi-country payroll outsourcing services to handle your company’s payroll at large.
Global employee management does consume a lot of time. Another problem is, it needs constant attention because many of its parameters including taxes and legal procedures change without any early sign. If you fail to keep track of these changes in various countries across the globe, you might end up placing a wrong brick and the entire payroll process will collapse in no time.
Given the scenario, taking care of multi-country payroll on your own or with an in-house team does not sound like a wise choice. It’s high time for a change and if not, you and your resources will only end up spending more time while missing out on big business prospects that come your way.
Taking professional help from a trusted EOR is the first best way to stop all these from dawning upon your company.
When you opt for an EOR,, you let a trusted third party manage everything about your global payroll. This way, you save a lot of time, energy and money for your organization.
On the other hand, this also means you have more time for your core business activities and you can also encourage your employees to exhibit more productivity at work.
Increased productivity can fetch you more business prospects and spending more time on the same can result in translating opportunities into your loyal customers at large. When you gain more new customers, you can increase the revenue flow and of your company and expand into new markets in the days to come.
This way, an EOR can help you to grow your global business while streamlining what is happening behind the actual business scene.
As you know, it is difficult to achieve high precision even when you have an internal team for global HR management.
The question here is, what is the point in handling global payroll on your own when your expectations are not rightly met but you end up overspending time, money and your human resources on it?
An EOR can help you save all the costs you spend on these resources. Yes, it is both effective and affordable.
If you compare the costs you spend on an EOR and the total sum of money you pay your in-house payroll managers while taking their total hours at work into account, you will see a big difference there.
With a well-targeted strategy, you can invest the money saved into your core business activities and boost your profit margins incredibly.
Global HR management involves handling confidential information regarding your global employees and your organization.
Managing it without proper resources can pose a serious threat to server safety which, in turn. leads to a data breach.
With an EOR, you need not worry about data theft because their advanced technology tools can withstand cyber attacks and safeguard your business data.
With EOR, you can rest assured that your company’s payroll is handled efficiently with zero-compromise on safety.
Choosing Your EOR Service Provider
Given the involvement of confidential information, there are a few factors you need to take into consideration before you opt for HR payroll outsourcing.
(i) Narrow Down What You Want
When you want someone else to process your company’s HR functions on your behalf, you need to have a clear idea as to what you want them to do exactly. Be more precise with the kind of employees your organization comprises, the taxes and deductions to be taken into account while processing the global payroll.
Doing this can fetch you two benefits. First, you will be able to narrow down reputed EOR specialists and choose the one who can rightly cater to your needs.
Second, your inputs will be quite useful to the external party, which, in turn, leads to channelized overseas employee management.
(ii) Handpick Your Service Provider
Managing remote teams involves handling sensitive information. Yes, the data comprises the personal information of your employees and some aspects of your company’s confidential information as well.
Given the scenario, you need to make sure in every possible way that your data is in safe hands and that they will maintain confidentiality to the fullest.
(iii) Explain Your Requirements
Once you find a reliable external party that can be a good fit for you, get in touch with them so that they can take the burden of international employee onboarding and management off your shoulders. Let them take care of it for you while you go back to fetch more business opportunities that can open up your revenue pipelines.
Why choose Multiplier for EOR Services?
Multiplier is a powerful technology platform that can address and automate everything about payroll processing.
As a trusted EOR, we help companies to hire, manage and pay employees anywhere across the world, all in just a click. The best thing is, you can do all these without a local entity.
No matter if you want to onboard many people from one country or build an international team with ten people, each one belonging to a different country, Multiplier helps in every step of the way to create your dream team in a hassle-free way.
We promise zero complications for the company and let you gain complete ownership over your employees. On the other hand, it also takes care of legal compliance, taxes and deductions that are problematic for you.
In a nutshell, Multiplier simplifies complex payroll and tax payments for companies, saving a great deal of time and resource use at large. The platform makes it easier than ever before to keep track of payments, approve and pay employees working for firms from anywhere in the world.
Happy employees make a successful organization. Pay your employees on time by using an advanced, error-free platform and make them even happier while scaling up your business to reach new heights.
Want to unlock the amazing benefits of EOR for your business? Contact us at Multiplier today.