In Today’s scenario of Borderless work environment, companies are not so worried about their Employees physical location, as long as they can deliver on their goals and achieve their milestones. However, building and hiring a remote global team is no walk in the park especially if you are based abroad.
For many organisations, partnering with an EOR (employer of record) can be extremely beneficial to their business operations. The EOR essentially handle all HR and support based Back-office tasks related to the company and many of which can be an overwhelming task for owners of small to midsized firms.
At the same time, there are many organizations who may not be aware of these services or how they can help a company achieve success.
Most companies are turning to Employer of Record services to build a successful global team without the hassle of setting up business overseas. An EOR provides the much-needed flexibility in scaling a Global dream team.
By the time you finish reading this article, you’ll have a clear understanding of what are the benefits of an EOR.
What is an EOR?
An Employer of Record is a legal firm established to deal with employee remuneration, including taxation, employment benefits, insurance, performance appraisals, and all other administrative tasks that would provide a logistical burden to global companies. Modern companies often outsource these demanding tasks to EOR companies to avoid spending time dealing with unending paperwork.
A global employer of record’s, knowledge of local language & culture, means that they can offer Benefits & a host of services which will go a long way in building a solid long-distance employer-employee relationship.
Top 5 benefits of using Employer of Record services
EOR companies bridge the talent gap and provide the following benefits to help businesses achieve new heights:
1. Focus on day-to-day operations & leave the rest to the EOR:
Running a business is a daunting task. Not only will you have operational functions that must be handled, but adhoc & unforeseen situations & functions must be managed as well to keep a company moving forward. An employer of record can handle anything from recruiting to dealing with taxes, allowing small-business owners to focus on other critical tasks.
2. Facilitate & administer legal payroll management:
Hiring remote workers comes with a lot of legal implications & statutory Regulations that govern the employment laws. Sometimes, few laws differ from country to country and state to state. For example, taxation rates differ significantly, and with many laws changing every year, it can be challenging to keep track of all changes. An EOR firm stays up to date with state regulations to ensure their clients are compliant with state and country regulations concerning taxation, staff welfare, ESI, PF and various benefits.
3. Promote Business compliance
Whenever a business has employees, there is certain information that must be maintained to remain compliant with the labour department and adhere to state and local employment laws. All of these can be maintained by the EOR as an outsourced HR Service. Therefore, finding a local EOR who understands their way around these laws ensures you do not get into trouble with your host country.
4. Time Saving & Cost-effective operations.
Without EOR companies, many companies would have to consider setting up physical offices for their global operational needs. An EOR eliminates the need to set up companies abroad, which translates to significant savings for the organisation. Also, addressing employee matters is quite time-consuming, especially for larger firms. An EOR will help firms free up their time and help the company concentrate on growing the business and focus on various other critical operational functions.
5. Facilitate Recruitment, Employee Onboarding & various HR Services.
Finding promising talent to hiring to onboarding the new hire is one thing but helping them understand the core values, culture, vision, mission, and goals and helping them to settle down to work is a major hurdle for many businesses.
This is where the EOR helps step in to ensure a smooth & satisfactory employee onboarding process. Outsourcing is generally cheaper in nature, and many businesses are making use of it to fill in positions.
But, if you are time conscious and need to scale quickly & effortlessly as possible, then using the services of an EOR is the best way to go.
InsourceIndia is a pioneer in handling HR & Payroll operations with a combination of the latest technology & personal touch. We specialize in PEO/EOR in India, HR & Recruitment consulting services, and successfully serving clients globally. InsourceIndia PEO/EOR service in India is committed to assist the employer from any country to successfully set up their business in India. InsourceIndia takes care of services for HR, payroll, insurance, benefits, and risk management. InsourceIndia goes one additional step further than what generally PEO agencies offer, we provide extended services like leave management, recruiting, office infrastructure Service & HR management.