The benefits of using EoR in international hiring

• Simplifies international hiring and compliance: An Employer of Record (EoR) helps businesses to navigate employment laws, tax regulations, and HR requirements in multiple countries. This ensures full compliance and reduces the risk of legal issues.
• Cost-effective and efficient expansion: Companies can avoid the cost and time commitment of setting up permanent operations abroad. Instead, they can quickly and affordably hire global talent through an EoR. This streamlines hiring, onboarding, and payroll processes while maintaining flexibility in new markets.
• Comprehensive employee support and expertise: EoRs provide 24/7 in-country HR support and expert local knowledge. This helps businesses to retain talent, manage administrative burdens, and focus on growth and innovation.

Hiring overseas is the best way for smart employers to elevate their business and optimise their workforces. Recruiting the best of specialised talent from abroad allows leaders to drive innovation and broaden their business horizons.

Using an Employer of Record (EoR) can simplify the complex process of hiring internationally for organisations of all sizes.

Why hire internationally?

Ambitious businesses know that in today’s competitive marketplace, taking their operations to the next level means looking beyond their home markets. However, taking those first steps towards international hiring can be daunting.

You may be wondering how to successfully and efficiently navigate in-country compliance in multiple locations. Tax laws, HR, and global payroll can pose challenges to companies starting on their global journeys. Equally, debates around visa and immigration policies in a company's home country may make it easier to hire remote talent overseas than to bring foreign workers into the country.

One option is to establish in-country entities to directly hire local talent. However, setting up an entity can be costly, time-consuming, and resource-intensive. Such a significant investment requires confidence that your target market is the right place for your business in the long term.

For companies planning to test the waters in one or more foreign locations, hiring through a global hiring service such as Employer of Record is cost-effective and time efficient.

Using an EoR is also a strong option for organisations looking to leverage concentrations of highly specialised talent. An example of this is how many international tech companies are hiring in Latin America due to the region’s booming tech scene.

What is Employer of Record (EoR)?

An Employer of Record (EoR) is a third-party provider that hires and employs staff in a certain country, on behalf of an organisation. EoRs have registered entities set up in multiple countries. This means they can compliantly hire staff through these entities.

EoRs hire workers in strict compliance with all local employment laws. This spares the client organisation the expense of setting up permanent operations in the new country. The Employer of Record handles hiring, onboarding, HR, and payroll. Meanwhile, the day-to-day management of workers remains with the client.

For more information on Employer of Record, check out our ultimate guide to Employer of Record.

What are the benefits of using an EoR to hire internationally?

Compliance

Hiring and tax regulations differ significantly between countries. So, accidental non-compliance is a huge risk if you’re unfamiliar with local legislation.

Misclassifying employees as contractors or incorrectly filing tax information can lead to serious trouble for companies. The size or status of your organisation does not matter. Industry giants like Amazon and Nike have faced lawsuits and hefty financial penalties for non-compliance.

The best way to avoid the risk of non-compliance and the associated consequences is to engage a global hiring service provider, like an Employer of Record. An EoR has expert knowledge of all the ins and outs of a country’s employment and tax laws. This means the greatest care will be taken to ensure compliance and mitigate risks.

Cutting-edge EoRs will use the best of new technologies to improve compliance and transparency. Mauve Group’s platform, Mauve Insight Platform, houses all worker HR and payroll data in one place, allowing employers and workers full visibility and access at all times, in line with all data protection requirements.

Speed and efficiency

The alternative to using an Employer of Record is setting up an entity to directly hire staff. This can be a lengthy and costly process, often requiring numerous suppliers. Managing these suppliers - such as lawyers, visa and immigration services, and accountants - can quickly become a headache. This can also pose compliance risks if a global business expansion service provider does not oversee the process.

An Employer of Record allows organisations to quickly and easily hire in new territories. It removes the need to set up permanent operations. This makes it the perfect choice for short-term assignments, as well as long-term projects.

It also consolidates services and reduces costs and administrative burdens. It does so by providing hiring, onboarding, HR, and payroll support all in one place.

24/7 in-country support

Smart employers understand that keeping staff happy and supported helps with retention, commitment, and loyalty. However, navigating differing time zones can be a huge challenge for employers supporting globally distributed teams.

That is why Employer of Record is such a great option. An EoR provides 24/7 in-country HR support to your workers. This way, you know your staff have all the support they need, on the ground.

This local knowledge is invaluable for navigating employment laws and regulations in a new country. The EoR’s experts are fully equipped to support workers facing HR issues, guiding them toward a compliant resolution.

Expert knowledge

Employer of Record teams are experts in local laws and regulations as well as the cultural norms and expectations in the country of hire.

It is crucial to have expert knowledge on your side when hiring internationally. This is because the risk of non-compliance is high when navigating unfamiliar regulatory landscapes.

Local expertise is also key to ensuring strong in-country HR support for your workers. Safeguarding your staff’s rights and ensuring they feel connected to the wider organisation ensures the long-term success of your global hiring strategies.

In today’s global marketplace, embracing international hiring allows businesses to sharpen and maintain their competitive edge. Global hiring via an Employer of Record provides access to top international talent. It also means that organisations of any size can expand seamlessly into new markets.

Employer of Record relieves organisations of the stress and administrative burden of navigating employment laws, tax regulations, and HR across multiple regions.

An Employer of Record shoulders the responsibility for hiring and onboarding staff in-country. HR and payroll will also be taken care of. This leaves business leaders free to focus on driving innovation and managing the day-to-day running of operations.

Ultimately, using an EoR is a strategic move for businesses that wish to scale internationally. An EoR minimises risk while maximising flexibility.

Employer of Record empowers businesses to unlock new opportunities, drive expansion, and build a strong, diverse workforce across borders, by simplifying international hiring and broadening the scope of opportunity for organisations of all shapes and sizes.

Find out more about how Mauve Group's Employer of Record (EoR) solution can help you to hire internationally. Contact our team, today.