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Managing change: introducing global work and EoR to your organisation

Discover how an Employer of Record can help you to compliantly navigate complex tax and fiscal laws, as you build your global workforce.

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It is a common observation that the world of work has undergone unprecedented levels of change since the pandemic of 2020. The move to remote and hybrid working, and the resulting challenges, complications, and chances have remained top of mind for businesses leaders over the past four years. These subsequent changes continue to present obstacles and opportunities for organisations the world over.

The move toward flexible working arrangements has been broadly met with a positive response from employees, who enjoy better work-life balance,  and better time management. Recent figures from The Global Workplace Guide show that half of employees would opt for flexibility over a pay rise, while a mere 8% would be happy with a full-time return to in-person working.

These figures attest to the fact that it is now in the best interest of employers to offer flexible working, to maintain and retain a happy, productive, and committed workforce. However, with fully remote working comes the challenge of compliance, if your employees wish to work abroad.

To ensure that your organisation remains fully compliant, it is necessary to be aware of all local employment and tax law, and to be certain that your workers are fully aligned with any and all necessary regulations.

Benefits of global work

The benefits of facilitating global work for your employees are manifold.

Broaden your talent pool

When you choose to broaden your organisational horizons by hiring abroad, you are automatically expanding the talent pool from which you are choosing.

Strategically expanding into a market in which your product or service is sought after, and a sector that boasts a high number of skilled workers, means that you will have access to an increased number of applicants. This allows you to make the best choice for your business and your team.

Equally, when you facilitate employees to move abroad and work remotely from their chosen country, it will allow your business to become up-to-date with local regulations,  the talent pool, and workforce landscape in that country, providing you the opportunity to better understand what may be gained by hiring in that region.

Reduce costs

Hiring a global workforce can be cost-effective for a number of reasons. Operating a remote team removes the need to buy or rent expensive office space; instantly reducing your annual expenditure, by eliminating the need to secure a space,  and the resulting tax and insurance costs.

Hiring in countries with a lower cost of living and, thus, lower average pay scales can also help your business to reduce costs, while supporting the economy of the country in which you’re hiring.

Diverse perspectives

By hiring abroad or supporting your existing employees to move to a new country, you are making space for diverse perspectives which will bolster your team. It will allow for greater creative problem solving, crucial understanding of regional cultural norms and local knowledge, as well as supporting and enhancing innovation.

Committing to empowering diversity in your workplace is hugely important and beneficial. According to a report published by Deloitte, when employees see their organisation as committed to diversity, they report an 83% uplift in ability to innovate, 31% in responsiveness to changing customer needs, and 42% in team collaboration.

How to compliantly introduce global working

So, you’ve decided that going global is the way forward for your business – whether that’s seeking to hire talent remotely or facilitating existing employees to move abroad.

Now the question is: how are you going to do this 100% compliantly, operating in multiple countries, and adhering to various sets of laws pertaining to employment and tax?

The safest way to ensure compliance across the board when introducing global working to your organisation, is to employ the services of an Employer of Record (EoR).

What is an Employer of Record?

An Employer of Record (EoR) is a third-party organisation that takes on the legal responsibilities of employing workers on behalf of another company. This allows your business to safely and compliantly hire talent in foreign locations, without the commitment of establishing in-country entities.

An EoR will oversee payroll processing, tax compliance, benefits administration, HR support, legal compliance, and risk mitigation. This leaves you as a business leader free to focus on the day-to-day running of your business, and management of your employees.

The use of an EoR also facilitates seamless and rapid global expansion and mitigates compliance risks, using expert knowledge and experience. So, it’s a cost-effective measure; reducing the costs and administrative burden of your organisation having to manage payroll, benefits, and compliance.

Introducing global work

Introducing global working to your organisation involves careful planning and strategising in order to be successful. Managing a global team across a number of locations is a challenge, which will need to be adequately prepared for.

What are your objectives?

What are your objectives when looking towards expanding globally? Are you seeking to hire remotely to broaden your market horizons, potential talent pool, and to reduce expenditure? Or are you seeking to facilitate an employee-led move abroad, retaining your existing talent while they expand their personal horizons by moving to a new country?

Understanding your chosen market

Understanding the market into which you’re expanding is also key to a successful global venture. Whether you are hiring abroad, or sending an employee to a new country, ensuring that both leadership and those working in-country have an in-depth understanding of cultural norms and local laws and regulations is vital. EoRs will be able to provide you with the local expertise, necessary to thrive in your chosen location.

Legal entity or EoR?

It is important to know what your goals are and understand your market, in order to understand whether it makes more sense to establish an in-country entity, or to engage an EoR to support with compliance.

HR policies

When introducing global working to your company, your HR policies need to reflect this new way of working. Accommodating different time zones, cultural norms, and the need for flexibility are all key considerations when overhauling your HR processes and procedures. You may also wish to provide cultural sensitivity training to employees moving to countries with very different cultural practices, as well as support with any new languages they may need to learn.

Fostering connection

When preparing to support a remote workforce, it is important to consider methods of fostering and maintaining connection in order to ensure that global employees feel part of the team, and remain invested in the company due to feeling appreciated and supported.

Regular meetings, video conferencing, weekly check-ins, and virtual social activities such as coffee breaks and quizzes can all help to maintain a sense of unity and a positive company culture.

How Mauve can help

Active since 1996, Mauve Group’s Employer of Record service was borne from necessity, and continues to support companies and organisations of all sizes, across a range of industries, to achieve their dreams of global expansion.

Mauve Group can help your business to operate in over 150 countries worldwide, minimising and navigating the burden of global admin. With 80 of our own wholly-owned global entities, Mauve Group offers second-to-none HR, legal, and in-country expertise.

No matter what size your enterprise, or how long (or short) your project, speak to our team today to find our how our Employer of Record service can help you to succeed on your global journey.