The market for employers of record will reach $6794.5 million by 2028. This statistic just highlights how many companies are looking to expand their business.
If you’re interested in growing your business, you need to hire a company for their employer of record services.
There are many benefits to using these services, but keep reading to find out how it can help your company.
What Is an Employer of Record?
An employer of record (EOR) lets a company manage and hire employees across domestic and international borders. You don’t have to worry about setting up a local part of your business, and you also don’t have to worry about violating any local laws.
This EOR will handle your business operations and act as an international HR team. This allows you to expand your workforce while still maintaining a central location for your business.
What Do They Do?
An EOR employs workers in other countries or states on your behalf. For example, if your company is located in the United States, you’ll be able to use an EOR to hire people in Germany, France, the UK, or more countries.
They’ll manage all of the legal and HR functions like hiring full-time workers, managing payroll, managing freelancers or contractors, or handling benefits. They can also distribute employee stock options and manage employee layoffs.
This is a great option for remote companies who want to hire outside of their state or local area. However, there are many more benefits to working with an EOR.
One of the main benefits of working with an EOR is that you’ll save money. They can help you expand without needing a global entity, which could take months or years to set up. You’ll also be able to save on any costs associated with opening an office in a new country or state.
You can hire quickly, and depending on where you’re hiring, you can also find cheaper employees as well. This can save you on taxes as well.
The EOR will also give you flexibility so you can move into new markets quickly to capitalize on profits. When you have a more efficient and flexible company, you’ll be able to maximize your income as well.
Lastly, having an EOR manage this side of your business ensures that you are legally compliant. While this might not save you money, it can save you from having to pay thousands of dollars in fees if you are found to be violating any international labor laws.
Grow Your Business
You’ll be able to grow your business with employer of record services as well. More and more companies are hiring remotely, which means that many companies will now be able to enter international markets as well.
If you aren’t able to enter these markets, you could fall behind your competitors and lose out on key customers and potential employees. The more areas where you have employees, the more likely you’ll find customers in that area as well.
It’s also a great solution for people who don’t want to open a global entity of their business.
Remove Global Barriers
An EOR can also help people remove barriers to global markets. There are tons of benefits of hiring abroad, including having workplace diversity, expanding your talent pool, and having a more affordable workforce.
An EOR can give you all of those benefits and remove some of the red tape that would come with hiring global employees.
When you hire internationally, you have to keep track of the local labor laws as well. For example, many countries require you to give employees a certain number of PTO days. If you’re going to lay an employee off, you’ll also have to pay them the right amount of severance.
Each country has its own types of laws, and they can change at any time. When you’re hiring in multiple countries, this can be challenging to keep up with, especially if you’re running a major business.
An EOR solution can help manage all of this for you and ensure that you’re legally compliant with all of the labor laws. They’re experts in each country’s laws, and they can operate in a legal way to help you avoid any fines or fees.
This way, you can spend time focusing on what you do best: running your business, developing new products or services, and improving your profits.
Lastly, an EOR will help you save time by keeping track of all the paperwork for you. They’ll handle all of the administrative HR tasks, like managing payroll, terminating employees, managing stock options and other benefits, and hiring employees.
Handling all of these for your local business can be challenging enough, and if you throw in global employees, it can be overwhelming. Thankfully, an EOR can take care of all of this for you, and you won’t even have to think about it.
You’ll need to choose a vendor that you trust, but when you find them, you can spend your time actually working on your business.
Discover More Benefits of Employer of Record Services
These are only a few benefits of employer of record services, but there are many more that can help you grow your business.
However, to enjoy all of these benefits, you need to find the right EOR.
Thankfully, you came to the right place. If you’re interested in learning more about our employer of record services, contact us today!