Employer of Record (EoR): The Secret to Scaling Your Business Fast!

Employer of Record

Hiring global talent takes a lot of effort and time. It can be a massive headache, and you might be discouraged from hiring the best workers from foreign countries such as Germany, the UK, the Netherlands and Spain, among others.

For example, if you want to hire workers from Germany, you need to partner with one of the leading, respected and trustworthy HR platforms of employer of record Germany.

The size of your company doesn’t matter, whether big or small; a reliable employer of record will allow you to hire the best talent from Germany and many other countries across Europe and other parts of the world. At the same time, the employer of record ensures that your company is compliant with the local laws and the legislation of the country where the main office is located.

If you’re looking to expand your business to a foreign country, an employer of record (EoR) can act as a lawful entity in different countries for your business.

What’s an Employer of Record?

An employer of record (EoR) is a third-party company that performs all recruiting, hiring and human resource processes on behalf of your organisation. Employer of record service providers don’t replace your organisation’s human resource division; they only augment it.

So why would you need to augment your human resource division? If you’re hiring the best talent from a foreign country, you would require a subsidiary in that particular jurisdiction. For example, if your company is headquartered in Canada and you want to hire some workers in Germany, you’ll have to register your business there.

Remember, registering a company in Germany requires you to fulfil all the labour regulations and other associated laws. That means you need to travel to Germany and understand all the laws related to registering a new company.

But with an employer of records, you don’t need a subsidiary or travel to Germany if you want to hire workers or expand your business. Instead of travelling or establishing a subsidiary, your international employer of record will hire employees on your behalf, meeting or even exceeding your expectations.

Scaling a Team? The Challenges of Growing a Business

Growing a business to an international level takes effort and time since there are numerous challenges to overcome along the way, which include the following:

Hiring the Best Talent

Finding and recruiting new talent that can meet your unique needs and requirements, as well as standards, isn’t an easy undertaking. Aside from advertising, you need enough time to review a massive list of applications and shortlist candidates. After hiring your new workers, you also need to go through the laborious onboarding process.

Retention of the Best Talent

After hiring workers, you need to do everything possible to retain and keep your top talent happy. You’ll keep looking for ideal replacements if you cannot achieve that. Keep in mind that workers usually look for companies that pay well and value their employees. So you’ll need to have effective measures in place to ensure you retain your workers.

Delegation of Duties

Most company owners have challenges finding dependable employees to manage operations when they’re out for other duties. That means they aren’t comfortable when they’re away from their offices.

Finding Support Services

You cannot operate a business without taking care of important functions such as human resource administration, payroll management, and other operations that require more manpower. That means you must find third-party companies to help you manage these important functions effectively.

Establishing Consistency

Any successful international company puts in additional effort and resources to remain competitive in its respective market. If consumers are sure to get high-quality services and products at reasonable prices every time, they’ll stay loyal.

How Can an Employer of Record Help?

An employer of record can help your company overcome all of these challenges and many others. The numerous functions and responsibilities that a reliable employer of record company offers can be customised to blend smoothly with your business needs and requirements.

These functions and responsibilities include compliance oversight and monitoring, tax and payroll management, consultative services, and HR administration. Under these responsibilities and functions, company owners will find many benefits to make their businesses successful in their new markets.

When to Use Employer of Record

You must be patient and spend more time and effort expanding your business. An employer of record can take these heavy responsibilities off your back, allowing you to focus on making bigger decisions.

You’ll need the services of employer of record when you’re planning to expand your business to foreign countries, attract and retain top talent globally, visas and immigration fail, and need to hire quickly while remaining compliant.

Final Thoughts

When you work with a top-notch employer of record company, you’ll enjoy obvious benefits like quick business expansion, reduced costs by avoiding compliant errors and associated punishments, compliance guidance and streamlining/automating key global HR functions.

As you can see, reliable employer of record services are the secret to your company’s expansion globally. Don’t gamble with your company’s future; be sure to partner with a reliable and trusted international employer of record company.

Article and permission to publish here provided by Karolina Polewka. Originally written for Supply Chain Game Changer and published on March 30, 2023.