How Employer of Record services simplify global hiring

• Simplifies global hiring and compliance: Employer of Record (EoR) services allow companies to hire internationally without setting up local entities – handling payroll, or navigating complex labour laws, ensuring compliance across multiple regions.
• Expands talent pool and promotes diversity: EoR enables businesses to access global talent, fill skill gaps, and create diverse, inclusive teams, which enhance innovation, employee satisfaction, and business growth.
• Reduces costs and increases efficiency: by consolidating HR, payroll, and legal services under one provider, EoR minimises administrative burdens, lowers hiring costs, and allows businesses to scale quickly and focus on core operations.

The world of work is smaller than ever. The 2020 pandemic gave rise to a huge surge in the popularity of remote working. Now, remote and hybrid working models are the norm across many industries. As a result, an increasing number of businesses are turning to services such as Employer of Record (EoR) to simplify their global hiring.

We are seeing an increase in back-to-office mandates, with giants like Amazon, Google, Meta, and X setting the precedent. More recently, the US President issued an executive order compelling all federal employees to return to in-person working. This is not what workers, in general, want.

Savvy employers are seeking ways to hire and maintain global workforces. Employer of Record is one way to ensure worker satisfaction and the retention of top talent.

YouGov’s recent survey showed that 57% of U.K. workers want a remote work option. Workers with the option of remote or hybrid work report a better work-life balance. This has prompted a 35% increase in retention rates. According to Forbes, offering flexible working options is “non-negotiable” when it comes to attracting and retaining top talent.

Employer of Record stands out as the most straightforward option for employers looking to hire or maintain staff abroad.

How Employer of Record optimises the benefits of global hiring

The benefits of fostering flexible working environments for your teams work both ways. Workers enjoy better work-life balance, improved morale, and greater wellbeing. Meanwhile, employers who are willing to employ workers remotely overseas broaden their business horizons significantly.

Expands talent pool

Hiring overseas provides greater access to top talent, by expanding the pool of potential applicants. Tailor your recruitment campaigns to global markets. This allows you to leverage concentrations of specific specialities to bridge skills gaps.

For example, Latin America is currently experiencing a tech boom, with Mexico and Brazil producing a combined total of roughly 605,000 software engineering graduates per year.

Engaging a global hiring service like EoR means that you can hire in foreign countries compliantly and efficiently. Avoiding establishing in-country entities and payroll processes eliminates the cost and time commitment. Mauve Group’s decades of experience and wide reach means that our EoR service gives you access to hiring solutions the world over.

Increases diversity

Workplace diversity has repeatedly been proven to promote success, bringing in increased revenue, driving innovation, and smashing DE&I targets. Hiring globally ensures your workforce features a range of voices, experiences, and backgrounds. Inclusivity at this level improves understanding, broadens thinking, and elevates your organisation by giving it a competitive advantage.

Mauve Group’s Employer of Record solution allows you to hire in over 150 countries. As a result, our in-house HR experts are up-to-date with diverse hiring practices and DE&I requirements, which differ between countries.

Reduces costs

Hiring processes and low retention rates cost employers significantly. That’s why expanding the talent pool and ensuring employee satisfaction by offering flexibility are financially savvy business strategies.

Mauve Group’s EoR service can be paired with our Salary Benchmarking service. Salary Benchmarking is a process whereby our experts benchmark salaries against local standards and expectations. This way, you can ensure you are offering attractive remuneration packages and retaining your competitive edge when hiring abroad.

For more information on the benefits of going global and how Mauve can help, check out our guide.

The benefits of Employer of Record when recruiting internationally

So, you’re ready to hire internationally. Now find out how engaging an Employer of Record can massively simplify the process.

Promotes efficiency

As the old saying goes, time is money. Setting up overseas entities to hire a small number of workers will cost time and money that may be better spent engaging a global hiring service provider to support and then leaving the rest to them.

You see, if you are interested in hiring employees overseas on a budget or testing out new foreign markets, setting up legal entities in-country may not be the most efficient route. Entity establishment can be costly, complex, and time-consuming.

With Employer of Record, the EoR provider hires, onboards, and pays your staff, while providing on-the-ground HR support. You can rest assured your workers are compliantly hired and reliably taken care of. That leaves you free to focus on the day-to-day running of your business, without worrying about overseas compliance or permanent establishment risks.

Consolidates services

Global employment services providing EoR solutions handle hiring, onboarding, HR, and payroll. They can also provide services including visa and immigration support, global payroll, global business expansion services, and many more.

Accessing all of these services and more in one place will save you time, resources, and costs that may have otherwise been spent seeking support from individual providers. One provider supporting in all areas of your overseas hiring is one of the key ways in which Employer of Record simplifies otherwise complex process.

Ensures compliance

When hiring in different countries, employers need to be aware that legislation differs greatly between regions. If you’re employing staff in multiple territories, without the support of local experts, the risk of accidental noncompliance is high.

An Employer of Record will have all the local knowledge necessary to ensure total compliance across the board, no matter where in the world you’re hiring. These experts will constantly monitor the situation in-country for any changes to employment, tax, or immigration legislation that may impact your workers and then act accordingly.

Ensuring compliance through working with an EoR means that you avoid the hefty fines, legal trouble, and reputational damage that can be associated with non-compliance. It also protects your global workforce by making sure they are employed and paid correctly.

The Employer of Record’s ability to shoulder all HR duties and manage employee data securely also mitigates the risk of non-compliance. Mauve Group’s local experts are equipped with all local knowledge necessary to handle any HR issues as and when they arise. Our secure data management systems ensure that worker data is protected and handled appropriately. Through our Employer of Record service, businesses know that their employees are readily supported and compliance is upheld.

Why choose Employer of Record?

In the rapidly evolving world of work, embracing global hiring gives businesses a competitive advantage. Engaging an Employer of Record simplifies accessing top talent, ensuring compliance, and reducing operational costs.

By removing these barriers, and providing an alternative to costly entity set-up, Employer of Record enables organisations to scale efficiently, test new markets, and maintain a flexible, globally distributed workforce.

Employer of Record services help organisations to create more diverse and inclusive work environments, leading to greater innovation, improved employee satisfaction, and stronger business outcomes.

With expert guidance on local labour laws, payroll, and HR management, Employer of Record ensures that global workforces are hired and managed compliantly, mitigating risks and protecting both business and employees.

By leveraging an Employer of Record, leaders can focus on growing their businesses, without worrying about administrative brunt work.

Whether you’re looking to expand into new territories or retain top talent through flexible work arrangements, EoR services provide the expertise and infrastructure to simplify global hiring.

For more information on Employer of Record, consult our Ultimate Guide to Employer of Record.

Find out how Mauve Group’s Employer of Record service can help you to go global, by contacting our team of experts today.