How to embrace ethical employment for sustainable businesses

Sustainability is the future of work. It's a working practice that sees more and more governments striving to reach sustainability and renewable energy targets. So, it makes sense that global organisations are implementing eco-friendly and energy efficient business processes and policies.

When an organisation expands into a new country, it must consider the most ethical and environmentally friendly roadmap to global mobility.

What is the Employer of Record model and how does it work?

An Employer of Record (EoR) solution provides an effective way to recruit workers in a new overseas territory. There is no need for an organisation to establish its own local presence. An EoR compliantly hires and employs staff in-country, on your behalf, via its legal entity. So, your teams save the time, money, and resources associated with setting up a permanent business in the country in which you’re hiring.

When you delegate onboarding, offboarding, HR, and payroll to an Employer of Record, you can dedicate your attention and resources to the day-to-day running of your business and management of your teams.

EoR is most often used by employers who do not have a foreign entity to employ expatriate workers abroad. But you can also engage an EoR to employ workers in their home country, if you do not have a local entity set up.

Mauve Group offers Employer of Record solutions in over 150 countries. We operate wholly owned entities in over 70, while collaborating with trusted partners for the remainder.

Why is sustainability important?

The world is beginning to experience the consequences of the climate crisis. Businesses must respond by committing to ensuring sustainability in every part of their operations.

Governments are introducing incentives and policies aimed at reducing emissions and promoting sustainability at work. According to the World Economic Forum, companies in Europe will soon be required to prove compliance with environmental and human rights standards within their supply chains. Businesses have both ethical and legal obligations to promote sustainability. So, it benefits businesses of all shapes and sizes to commit to implementing and adhering to sustainable practices.

As a result of these mounting concerns, the global clean energy industry is growing fast. In 2022, electric car sales reached a record high of 10 million. In 2023, the amount of renewable energy capacity added to global energy systems increased by 50%.

The global green energy industry is ripe with opportunity for investment. Green business opportunities exist across Africa. Meanwhile, the likes of Chile lead the way in green energy, in particular.

How does the EoR model promote sustainability?

Supporting remote working

EoR facilitates remote working. Remote working has a positive effect on the environment and sustainability. The environmental benefits of remote working are well documented. They include:

• reduced traffic because fewer workers are commuting;
• reduction in air travel and pollution;
• reduced food waste and waste generated by eating out, as more workers prepare meals at home; and/or
• less energy used to heat, light, and fuel large workspaces.

Tech Target cites research from Global Workplace Analytics. Findings reveal that if employees were able to work from home for even half the working week, greenhouse gases would reduce by 54 million tons.

Reaching ESG goals

EoR supports organisations’ Environmental, Social and Corporate Governance (ESG) goals. Meeting ESG criteria makes companies attractive to potential investors. Most financial institutions and venture capital firms require organisations to achieve ESG standards prior to offering support.

An Employer of Record can help companies to reach ESG goals by cutting Co2 emissions. An EoR manages hiring, onboarding, offboarding, HR, and payroll. This means that your organisation cuts its carbon footprint. You will find that you can reduce your reliance on data infrastructure, including online platforms and large amounts of visual storage required to complete these processes in multiple locations.

How EoR can support the sustainability industry

Employer of Record is an excellent tool for global employment in the rapidly growing sustainability industry.

Supporting international assignments

Green energy opportunities may arise outside of your home country. Clean energy companies often conduct operations in multiple locations to avail of global resources and opportunities.

When this happens, engaging an Employer of Record means that your organisation can pursue opportunities without having to establish an entity overseas. The amount of travelling required is reduced. Services are also consolidated, reducing the number of online servers used.

Providing access to global talent pools

By allowing clean energy companies to seamlessly expand into new locations, EoRs provide access to global talent pools. This allows companies in the green energy sector to bridge skills gaps and leverage local knowledge and expertise.

Specialised knowledge and skillsets are often required for clean energy projects to succeed. An EoR allows for the swift hiring and onboarding of professionals across multiple locations to support on sustainability projects. EoR supports both short and long-term assignments.

Ensuring compliance

When establishing a new project overseas, navigating employment, tax, and business regulations can be complex. An Employer of Record will ensure that your organisation adheres to all local laws.

Remaining compliant is key. Failing to comply with local laws can lead to severe penalties and legal consequences.

These repercussions can include:

• fines;
• reputational damage;
• legal proceedings; and/or
• business closure.

Employment and tax regulations vary greatly between countries and jurisdictions. It is, therefore, important to seek professional expertise when navigating the employment landscape abroad.

Increasing efficiency

The moment your organisation identifies an opportunity in the rapidly expanding and dynamic green energy space, time is key. To secure the project and ensure its success, you will need to act fast.

An EoR will look after hiring, onboarding, HR, compliance, and payroll. This means that your business leaders will have more time to manage the day-to-day running and handling of the business. It also means that your company can go to market with greater speed.

An EoR will not only help with the employment and HR side of things. Most EoRs offer additional services such as corporate global visa and immigration support and salary benchmarking. These complementary services help companies to successfully and compliantly hire abroad.

How Mauve can help

With over 28 years’ experience in the field of global mobility, Mauve Group is a trailblazer of the Employer of Record model. Committed to sustainability and green initiatives, we are a trusted partner to organisations in the NGO, green energy, and sustainability sectors, as well as to businesses across more than 70 industries.

Contact us at Mauve, to find out how our Employer of Record model can help your organisation – whether you are seeking to meet ESG standards or operating within the sustainability sector.