Tenacious Holdings (Ergodyne) hired globally with Employer of Record

New markets bringing new challenges

US-based protective clothing and safety product manufacturer Tenacious Holdings, Inc. (dba Ergodyne) wished to hire a worker in Denmark in order to access the Danish, German and Scandinavian markets. However, having previously undertaken legal entity set-up in the UK, they found the process the time consuming and unsuitable for their needs at this time.

As a result, Ergodyne required a solution that would allow them to swiftly and compliantly hire the worker in Denmark, without setting up a legal in-country entity.

About Tenaction Holdings (Ergodyne): Pioneering work wear solutions

Tenacious Holdings, Inc. (dba Ergodyne), is a US-based pioneer in the design and manufacture of protective work wear and safety products, created to defend from the elements and improve the safety and comfort of workers on job sites around the world. As Ergodyne has grown, so too has their global customer footprint, and they now operate a global workforce.

Problems faced

Ergodyne’s international sales strategy has historically involved contracting independent sales representatives and distributors to market their products outside of the US. However, in recent years, the company gradually moved towards the direct hire of sales individuals in key territories. In 2021, Ergodyne decided to bring one such representative inhouse as a full-time employee in Denmark, in order to exclusively sell their products there and in neighbouring Germany and Scandinavia.

Ergodyne had previously set up a wholly owned subsidiary in the UK and the process had been cumbersome and expensive. Ergodyne was required to learn UK employment law requirements and set-up new payroll processes, a UK bank account and inter-company transfer pricing. For the hire of one person, the set-up process of an entire legal entity was overly complicated.

Ergodyne needed a solution that would allow them to hire the worker in Denmark efficiently and in line with all local employment laws.

Partnering for success: finding the right solution

• Finding the solution: Mauve Group’s Employer of Record solution allowed Ergodyne to hire the worker in Denmark efficiently.

• Compliance guaranteed: By handling hiring, onboarding, HR, and payroll in Denmark, Mauve Group ensured that Ergodyne’s worker was engaged in 100% compliance with Danish laws.

“Our parent company personally recommended Mauve Group as an Employer of Record, and our experience has been fantastic over the past year. We are experienced in managing a remote sales team, but this is our first time doing so through an EoR, and it has worked seamlessly and effectively.” - Karen VanDerBosch, Erdogyne CFO

Key takeaways

• The worker in the Denmark was hired, onboarded, and payrolled efficiently via Mauve’s Employer of Record solution.

• Cost of setting up in-country entity eliminated.

• Cost of mistakes arising from lack of local expertise eliminated.

• Cost of employing multiple services, such as legal support, consolidated to one service provider.

• Compliance ensured in each country thanks to the Mauve team’s local expertise.

• Trust and transparency ensured every step of the way.

• In-country support guaranteed for all workers.

• Flexibility meant that specific requests, such as fortnightly payments to the worker, were accommodated.

Client quote

“I have found everybody at Mauve to be very pleasant to work with, and very informative – if we have a question, our account manager will quickly put us in contact with an inhouse expert. The breadth of knowledge within the Mauve team is very extensive and having an agency like Mauve that knows the legal details by country of what is required is truly valuable. I would also like to give a special mention to the new Mauve Insight Portal.

"We were recently granted access, and I can see how this will make the onboarding and management of staff even easier. Having the approval process directed through that system is very useful – if there are any changes, everything is reflected in one place and our employee can access it on his side. It’s very user-friendly and intuitive and will make adding another employee simple. As for the future between Ergodyne and Mauve Group, I can see the relationship growing and evolving. We have plans to establish the business in a new territory, and will hire new individuals locally using Employer of Record where needed. We are likely to replicate this expansion model elsewhere in the future in areas where we see high-growth opportunities."

- Karen VanDerBosch, Erdogyne,  CFO