Did you know that, according to a study that was released in May 2021, the majority of companies (70%) said that they planned to use a hybrid work model? Additionally, according to a survey, 39% of respondents wanted a work environment that was hybrid, and 58% wanted a remote one.
If you’re thinking of hiring more workers remotely as you scale your business, you might be stressed about the whole process. After all, scaling a business can be a huge, complicated endeavour.
Fortunately, an EOR can help. In this article, we’ll review how this solution can help you scale your business efficiently.
Finally, you can grow your team and business, making your business more successful faster than ever. Read on to learn more.
What Is an EOR?
An EOR—short for an Employer of Record—is a legally-established firm that helps with a large number of administrative tasks that would be challenging for a large organization to manage. These tasks include those related to:
- Performance appraisals
- Visa applications
They also include tasks related to employee remuneration, employment benefits, and taxation. By providing these services to businesses, business leaders can focus on managing their businesses on a global scale. For a business experiencing International Expansion, this helps its business leader focus on growth.
How an EOR Can Help You Scale Your Business Fast
When you have a scalable business model, an EOR can help you scale your business in several ways. First of all, they can help you with talent recruitment. When your business is smaller and you’re hiring just one person at a time, this isn’t as challenging.
However, when you’re scaling your business and hiring more talent—especially globally—this can take a huge amount of time and effort.
Tasks you’ll have to engage in include advertising the positions, sifting through a large number of applications, and shortlisting candidates. Once you’ve decided who to hire, you then have to go through the onboarding process.
An EOR can do all this for you. As a result, you can focus on scaling your business as your team grows.
Employment Contract Management
Another service that an EOR can provide for you is employment contract management. This includes fixed-term, casual, and indefinite work contracts. If you’re hiring a large number of new employees as you scale your business, this can make the process far less overwhelming.
Payroll Management Abroad
As you scale your company, you might hire people internationally. This is another way an EOR can help you, as they can handle payroll management abroad for you. This is helpful because taxation rates can differ significantly from country to country, and laws can change yearly.
If you were to do this on your own, it would be challenging to ensure that you’re meeting all the requirements and following laws.
An EOR will be up to date with regulations. As a result, when you hire an EOR, they can help you observe compliance regarding retirement benefits, staff welfare, and taxation.
You will also ensure that you get everyone paid the right amount, at the right time. This will have a beneficial impact as it will ensure that your employees are happier. As a result, you will have greater employee retention.
Handling of Work Permits and Visas
If you start hiring international employees as you scale your business, an EOR can help you with the handling of work permits and visas. Instead of having to manage all this paperwork yourself (sometimes for several countries), they can do it for you.
This will both save you time and help you ensure that you’re following all the legal requirements of the different countries where you’re hiring employees remotely.
Assisting With Talent Retention by Providing Benefits and More
Another challenge that you might face when you’re scaling your business is talent retention. You want to be sure, as your company grows, that you can keep working with the employees you already had and retain the new talent you hire.
This is another area where an EOR can help. An EOR registers with workers’ compensation, health insurance, and pension funds providers, as well as other provider types.
They can also help you get optical and dental benefits, as well as maternity leave and sick leave.
By having access to these benefits through an EOR, you can provide your employees with the best benefits. As a result, they’ll be more likely to keep working with your company as you scale it.
The Two Main EOR Models
If you’re considering working with an EOR to help you scale your business, it’s important to know what the two main EOR models are. With the aggregator model, a major company has sub-contracting companies helping out with outsourcing.
With the wholly-owned model, the company manages the whole process. It will hire the staff itself, under its management and payroll, managing these for its clients.
Looking for an EOR Solution?
Now that you’ve learned about how an EOR can help you scale your business fast, you might be looking for an EOR solution. In this case, you should look no further than Bradford Jacobs. We have an EOR solution that can help with sustained business growth, the delegation of duties, and more.
To learn more about our EOR or any other services, contact us now.