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Global EOR services: 8 outstanding benefits

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For anyone looking to hire internationally without having to get to grips with an unfamiliar regulatory regime or worry about being able to find the best talent in a new market, global EOR services offer an outstanding solution.

An employer of record (EOR) hires professionals on your behalf through its international entities, thereby acting as their legal employer in the eyes of local authorities. The EOR manages the payroll and takes care of other administrative matters for those professionals, who report directly to you.

As part of the sevices agreement, an EOR will guarantee full compliance with local laws, as well as assume the vast majority of liability in the event of an unexpected non-compliance issue arising. That means you effectively have intrernational team members reporting to you, without having to worry about the more complicated and technical aspects of international hiring.

SEE ALSO: Call center outsourcing: 5 great destinations to consider 

In the even you don’t already have people lined up for the roles you wish to fill, a provider of global EOR services will also have established recruitment networks everywhere it works and able to help with identifying and recruiting outstanding talent based on profiles you provide.

Anyone interested in global EOR services should note that some providers will refer to themselves as an internatioal professional employer organization (international PEO). 

Contact us to find out more about how we can help you with global EOR services. 

8 key benefits of global EOR services

Depending on the country, recruiting professionals internationally can be more cost-effective than hiring locally. You can enjoy opportunities in different labor markets, as well as a different languages and time zone coverage. 

Also, working with remote employees is linked to faster hiring processes when compared to full-time office workplaces, according to Forbes. Global EOR services can help you unlock the many benefits of both international recruitment and remote work. 

Serviap Global graphic showing some key benefits of global EOR services.
Global EOR services provide a range of benefits

1) Navigating regulatory complexities 

One of the most important benefits of global EOR services is keeping up with the set of laws, tax regulations, and requirements from each country they work with. An EOR will ensure that your company remains compliant with aspects such as minimum wage, insurance, registration, among others.  

2) Offering regional insight 

A good employer of record will provide insights into local customs and traditions that could impact the work environment, such as assistance with language barriers. Also, an EOR often has local market knowledge that can be valuable in understanding the labor market conditions. 

3) Assistance with recruitment 

An EOR can assist you in selecting professionals in faster ways, because of their local network practices. This includes promoting job vacancies in the proper platforms, picking out candidates by comparing their experiences to your expectations, as well as conducting interviews. You can get more or less involved in the process, but the final hiring decision will be yours, and new team members will report directly to you.  

4) Drafting compliant contracts 

Providers of global EOR services will draft an employment agreement under the regulations of the respective country that takes both laws and norms into account. This approach ensures that you steer clear of penalties and potential employee misclassification risk

5) Streamlining onboarding 

Once new professionals have been selected and signed contracts, efficient onboarding is also one of the many global EOR services you can enjoy. This ensures that your new team members are both legally and logistically ready, including visas where necessary. Likewise, your EOR can ultimately help with the offboarding process too. 

6) Managing payroll and benefits 

Knowing how to pay international employees can be a major headache, especially when dealing with multiple currencies and taxes. An EOR handles payroll management, including calculations, deductions, and timely payments. Additionally, they will make sure your employee benefits packages follow local laws. 

7) Offering legal representation 

An EOR can work as a legal representation of your company in a foreign country. This helps prevent costly penalties or lawsuits and your foreign colleagues can also seek regional assistance if they ever need to solve legal intricacies related to their work in the company. 

8) Providing HR support 

Global EOR services can work with your HR team and provide expert guidance on matters like performance management, employee relations, and talent development. This ensures a smooth and cohesive work environment, regardless of geographical distances. 

Alternatives to global EOR services

An employer of record will generally offer their services based on a monthly fee per employee, or based on a percentage of the salary that each professional earns. That will generally work out to be less costly than the process of setting up an entity and hiring directlyt, meaning that working with a provder of global EOR services is often a cost-effective choice for companies.

Men at computers on tables to illustrate article on global EOR services. By Charles Deluvio on Unsplash.
An EOR can assist with other services

However, it’s not the only way to recruit internationally. Some businesses choose to employ foreign-based professionals directly. In such cases, companies must establish a legal presence in each foreign country they are employing in, as well as deal with the entire process of selecting, hiring, and managing personnel on their own. 

This can be an effective way to do things if a company already has extensive international knowledge, or plans to establish a long-term presence in specific countries. Even then, businesses can still use a global EOR services provider as a stop gap to have professionals onboarded while an entity is established, as well as to assist with standalone recruitment services.

Another option to consider is hiring independent contractors abroad, who are self-employed people or organizations. They can operate similarly to employees, but are not on the payroll, and do nto have the same rights and responsibilities. You can hire independent contractors directly, or via global EOR services as well. 

How to start working with an employer of record 

When a company opts for global EOR services to tap into international talent, it’s crucial to partner with a reputable provider with a strong track record. This collaborator should be able to handle the complexity of the project and also fot into the budget for your global talent acquisition strategy

Once a reliable EOR is identified, the company works closely with them to outline the specific job vacancies that need to be filled. Together, they’ll define the candidate profiles, along with the requisite qualifications. An EOR knows the labor industry well, so they can help design a strategy and determine where to find the best professionals. 

The EOR takes charge of the hiring process with applicants who have demonstrated the technical requisite for the roles. Afterward, they will send job offers to the chosen candidates and craft contracts according to local regulations, which means seamless integration of new team members. 

Meanwhile, company managers will be responsible for managing the schedules, workload, and task assignments of all professionals hired through global EOR services. This allows you to effectively collaborate with international staff, without establishing a legal presence in the location where these professionals are based. 

Serviap Global provides global EOR services 

Serviap Global assists companies with global EOR services, helping them to recruit and manage remote professionals without needing to set up local entities or worrying about unfamiliar regulations wherever those team members are based.  

Our portfolio includes international PEO / EOR services, contractor hiring, and global talent acquisition to assist companies with finding direct hires, and our reach extends to over 100 countries worldwide. 

Contact us to find out more.

https://www.youtube.com/watch?v=pxLlwjtJuMY
Serviap Global offeres both PEO and EOR services around the world

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