What are Global EOR Services and How will they help your Business?

An organization that can hire and pay employees on behalf of another company, whether locally or globally, is known as an employer of record (EOR). However, these organizations are sometimes also known as professional employer organizations (PEO) or Global Employment Outsourcing (GEO). With global EOR services, you don’t have to worry about establishing a new business in a new foreign market. These organizations will be in charge of all HR-related operations which include employment, payroll, and immigration. 

The fundamental duty of a global EOR service

Many businesses have global growth as a goal because they wish to enter new markets and take advantage of new opportunities. In that case, global EOR services can be a very helpful answer for businesses attempting to capture new international markets. The reason behind that is operating in a new country can throw in many new obstacles and some of them can limit the success of business operations. Thus, using an EOR service employers can be worry-free regarding all the administrative work that is prevalent within the process of the global expansion of a business. 

The benefits of hiring a company that provides EOR services?

  • Employers of record services enable businesses that don’t have any local legal institutions to lawfully hire employees in an international location. These services include payroll, employee benefits, stock options, taxes, and compliance, which primarily fall under the purview of the HR and legal departments of a business. 
  • For businesses wishing to grow their workforce into other foreign markets, the services related to advisory aspects may be another responsibility undertaken by employers of record. An EOR might offer relevant guidance on how to integrate the aspect of remote working or how to develop a global pay strategy, for a given business venture. 
  • Services provided by employers of record primarily do not include the concept of “co-employment,”. It is a situation in which an individual is employed by two different organizations at the same time. In that case, it’s important to note that the EOR is the only employer within the nation where the employee is employed. However, in reality, the EOR only performs HR-related tasks like payroll and benefits administration and does not involve itself in the employee’s regular activities.

Is it possible to hire workers from different countries without EOR?

To be precise, it is possible. However, doing so necessitates either creating your own local legal business or hiring the staff as independent contractors. Both approaches have advantages and disadvantages. 

Without the involvement of EOR services, you will be in charge of overseeing every aspect of the business in the new nation after establishing a legal entity. That way employing professionals such as payroll experts, and attorneys might become a necessary aspect. Doing the same will only make sense if you desire to recruit a substantial number of employees. However, an EOR is more cost-effective if a business aspires to recruit only a handful of people. 

When it comes to the process of hiring abroad, consulting global EOR services is the wisest move a business can make. It is the responsibility of the EOR service providers to handle all aspects related to permanently employing someone. Moreover, they will also look after the tax and payroll structures to comply with local and federal laws. These practices will benefit your business a lot as employment laws differ greatly from one country to the next.