Employer of Record (EOR) services: Hiring employees in Saudi Arabia

Looking to hire employees in KSA? An EOR can help.

Saudi Arabia, a rapidly developing nation with a strategic geographic location, offers significant opportunities for businesses looking to expand their global operations. With a focus on economic diversification and technological advancement, Saudi Arabia has emerged as a key player in the Middle East and North Africa region.

If you’re looking to expand your business’s presence in Saudi Arabia, an Employer of Record or EOR can help you navigate the complex regulatory landscape and streamline your hiring process. By partnering with an EOR, you can bypass the challenges of setting up a local entity and focus on growing your business.

An EOR acts as the official employer for your workforce in Saudi Arabia, handling all HR and compliance responsibilities, while you maintain control over day-to-day operations and strategic decision-making.

Why choose an EOR for hiring in Saudi Arabia?

For startups, small businesses, and medium-sized enterprises aiming for rapid global expansion, navigating the complex regulatory landscape of Saudi Arabia can be daunting. With limited in-house resources, outsourcing HR functions to an EOR offers a streamlined solution. By partnering with an EOR, you can:

• Quickly onboard talent in Saudi Arabia without the need for a local entity.
• Let the EOR handle complex compliance and labor law obligations.
• Outsource payroll, benefits, and tax administration to focus on core business activities.
• Delegate HR tasks to the EOR, reducing administrative burden.

An EOR acts as the legal employer for your Saudi Arabia-based workforce, ensuring seamless onboarding, payroll processing, and benefits administration. This allows you to concentrate on growing your business in Saudi Arabia while the EOR takes care of the complexities of local employment law.

Choosing between an EOR and PEO in Saudi Arabia

When expanding into a new market like Saudi Arabia, businesses have two primary options: an EOR or a PEO (professional employer organization). To make the best choice, it’s crucial to understand the key differences between an EOR and PEO.

For organizations prioritizing complete delegation of compliance with employment law in Saudi Arabia, an EOR is the ideal solution.

How to select the right EOR provider in Saudi Arabia

Choosing which EOR is best as a partner in Saudi Arabia is crucial for ensuring seamless global expansion. Not all EORs can handle the complexities of the Saudi Arabian market, and selecting the wrong partner can lead to compliance issues, unnecessary costs, and a bad new-hire experience.

To make an informed decision, it’s essential to consider factors such as the EOR’s understanding of Saudi Arabian labor laws, their ability to provide reliable customer support, and their pricing transparency.

• Legal compliance: How well does the EOR understand Saudi Arabia’s complex labor laws, worker protections, tax regulations, and localized benefits? Does the EOR have a proven track record of handling industry-specific compliance challenges in Saudi Arabia?
• Customer service: Does the EOR provide round-the-clock support and offer dedicated account managers for every customer?
• Transparent pricing: Many EOR solutions have low entry costs, but hidden fees or a confusing pricing structure can significantly increase overall costs. Ensure transparency in pricing to avoid unexpected expenses.
• Total cost of ownership: While initial costs are important, it’s crucial to consider the long-term value and potential hidden costs associated with an EOR provider. Avoid choosing a low-cost provider that may compromise on quality of service or compliance. Instead, invest in a reliable EOR that can deliver exceptional value and minimize risks.

How EOR services work in Saudi Arabia

Step 1: Send that contract over

Once you’ve found the perfect job candidate and the perfect EOR, a locally compliant employment contract can be generated quickly — in less than five minutes. Multiplier’s automated HR functions ensure that contracts are fully compliant with Saudi Arabian labor law. You can then customize terms such as job responsibilities, working hours, remuneration, and termination conditions. The EOR will securely send the contract for signature, streamlining the onboarding employees.

Step 2: Enhance compensation with competitive benefits

To attract and retain top talent, consider offering a competitive benefits package. Your EOR can provide guidance on selecting suitable benefits that align with local regulations and employee preferences.

Step 3: Get all your documentation in order

To streamline the onboarding process, the automation that comes with an EOR like Multiplier will collect and handle all necessary documentation, including tax and banking information, to set up payroll. This ensures a smooth and efficient start for your new hires.

Step 4: Run payroll for employees in Saudi Arabia

Running payroll in Saudi Arabia can be complex due to specific tax rates and contributions. By partnering with an EOR like Multiplier, you can ensure accurate and timely salary payments while the EOR handles all local taxes, contributions, and withholdings. With a global payroll solution from Multiplier, you’ll be able to manage payroll for your global workforce in one place and skip dealing with sundry local vendors.

Step 5: Leave HR compliance to the EOR

Your EOR will handle all aspects of post-hire onboarding, ensuring that your Saudi Arabian employees receive their first and subsequent paychecks on time and accurately calculated. Additionally, Multiplier manages terminations and voluntary leaves, ensuring compliance with local labor laws.

Moving forward with Multiplier EOR in Saudi Arabia

An EOR is a highly recommended solution for businesses looking to expand quickly into Saudi Arabia. By outsourcing HR and compliance functions to an EOR, you can streamline operations, mitigate risks, and focus on core business activities.

Multiplier’s Employer of Record (EOR) services constitute a robust solution for growing a workforce into Saudi Arabia. By outsourcing core HR administration, you can hire top talent without the need to establish a local legal entity.

Multiplier ensures smooth hiring, onboarding, and employee management processes, along with locally compliant contracts, managed payroll, and a range of customizable benefits tailored to Saudi Arabian standards.

Book a demo today to learn how Multiplier can help you achieve your global expansion goals in Saudi Arabia.