Uruguay is known for its prosperity, low levels of violent crime, and political and economic stability when compared to many other Latin American nations. Those factors, along with the availability of highly skilled professionals, have helped the country emerge as an increasingly popular destination for investing and employing international talent.
For anyone interested in hiring in this South American nation, working with an employer of record can be a great choice. Because an EOR in Uruguay will hire professionals on your behalf, taking care of their payroll and other administrative matters as part of the service.
In the event you need assistance finding outstanding candidates for a particular role, your EOR in Uruguay will also be able to help you. Because that provider will have an established local recruitment network and expert understanding of the job market, meaning they will be able to offer recruitment as part of services agreement you sign with them.
If you need an EOR in Uruguay, contact us for more information.
Uruguay: country overview
Uruguay boasts a rich cultural heritage influenced by its history and geographical location. Spanish is the official language, and English is spoken in urban areas and tourist hubs. In the last decade, the country has made rapid improvement in English proficiency and now boasts a level above the world average.
An EOR in Uruguay will often be based in capital Montevideo
Economically, Uruguay has maintained relative stability since emerging from periods of uncertainty. It ranks 2nd among Latin American countries in the Economic Freedom Index, and its membership in the Southern Common Market (Mercosur) enhances the attractiveness to international investors.
Hiring in Uruguay offers access to a well-educated workforce, such as graduates from prestigious universities like the University of the Republic and ORT University. Four Uruguayan universities feature in the QS Latin America University Rankings.
In recent years, Uruguay has attracted foreign investors, due to the country’s emphasis on STEM education and strong tech ecosystem in the capital city of Montevideo. Coupled with its attributes as an orderly and open country, with access to decent infrastructure, Uruguay is an ideal place to test new technologies.
Hiring via an EOR in Uruguay
Employing the services of an EOR in Uruguay offers substantial advantages. The services of an employer of record save the need for foreign companies to establish their own entities in the country, while still having a proper international team.
Montevideo is Uruguay’s capital
These third parties manage onboarding, payroll, and compliance with local laws, avoiding common legal complications for employers, such as misclassification risk. Additionally, an EOR in Uruguay often offers cost-effective solutions compared to setting up a new entity and hiring local support staff.
Hiring through an EOR in Uruguay ensures peace of mind, access to local expertise, and faster onboarding of professionals. Companies that have specific candidates in mind or plan to relocate employees to Uruguay can benefit from the EOR’s assistance with visa applications.
Moreover, EORs in Uruguay have established recruitment networks and deep knowledge of the local academic institutions and employers, making them invaluable partners in identifying outstanding candidates for various roles. They also understand the work culture, language, and time zone.
Regulations an EOR in Uruguay will oversee
Compliance with local regulations is essential when employing an EOR in Uruguay. Key regulations include:
Employment Contracts: Indefinite employment contracts are most commonly used, but fixed-term and specific task contracts are also options.
Working hours: You cannot work more than 8 hours a day, nor more than 44 or 48 hours a week, depending on whether you work in commerce or industry.
Salary standards: As of 2023, the minimum wage has been increased to UY$ 21,106 (approx. US$550) per month.
Vacations and public holidays: Employees are entitled to a minimum of 20 days of paid vacations per year, along with 15 official holidays.
Health insurance: Health insurance is mandatory in Uruguay. The employer’s payroll tax includes a 5% contribution for health insurance, while employee taxes make up an additional 3% to 8%.
Medical leave: Medical leave is mandatory, and employees are entitled to up to three days of sick leave.
Maternity and paternity leave: Mandatory maternity leave covers 12 weeks on average. Fathers are entitled to three days of paid leave from the date of childbirth.
Taxes: The standard VAT rate is 22%. Employer payroll taxes also include 0.1% for labor re-conversion fund, 7.5% for pension fund, and 0.025% for labor credit guarantee. Meanwhile, employee payroll taxes include 15% for pension fund and 0.1% for labor re-conversion fund.
Alternatives to hiring via an employer of record in Uruguay
While hiring via an EOR in Uruguay is a popular choice for many businesses expanding into the country, alternatives do exist. Setting up an entity and hiring professionals directly is an option for those planning long-term or large-scale operations.
Punto del Este is regionally famous
Companies that prefer to hire directly usually already have extensive previous international knowledge. This is key, considering they will have to handle legal intricacies and manage foreign personnel on their own.
However, even in such cases, an EOR in Uruguay can provide standalone recruitment services to assist with direct hires or act as a temporary solution while the company formation process is underway.
Another alternative is hiring international contractors in Uruguay, who operate as freelancers. Among many recruitment models, this approach offers a lot of flexibility, even though it may come with challenges related to contractor misclassification. Employers of record can facilitate contractor hiring and help assess the associated risks.
We assist clients with global hiring in more than 100 countries worldwide, having started out in Latin America in 2010. Over more than a decade of operations, we have earned a reputation as experts in helping companies recruit talent in emerging markets.
If you are looking for an EOR in Uruguay or elswehere, contact us to find out more about how we can help you.
https://www.youtube.com/watch?v=pxLlwjtJuMY
Serviap Global started in Mexico and now operates all around the world
Hiring foreign independent contractors has become an increasingly attractive option for companies looking to bring on experienced professionals, thanks partly to the massive uptake of remote working in recent years.
An international independent contractor is an individual or group with scheduling flexibility and expertise in a field, providing an agile solution for an emerging project or given period.
Hiring foreign independent contractors offers many advantages, but it also carries some risks, especially those related to independent contractor misclassification, which can lead to legal complications and financial penalties.
If you want to hire foreign independent contractors, learn everything you need to know about these experts, such as their professional attributes, how to recruit them, the risks of misclassification, and how to eventually convert them into employees if necessary.
Contact us to find out how we can help with hiring foreign independent contractors for your company.
The advantages of hiring foreign independent contractors
Independent contractors are individuals or groups that offer a temporary service. As they are foreign professionals working from anywhere in the world, their offer is aimed at international clients from different sectors.
These professionals usually have specialized knowledge and flexible schedules. Hence, hiring foreign independent contractors is an agile solution for companies with projects requiring specialist knowledge or needing more staff for a short, clearly defined period.
Hiring foreign independent contractors rather than locals is particularly useful for many small to medium sized businesses, as they will bring valuable diversity to your company. You may find that they have new insights that provide you with a competitive advantage.
Contractors will likely charge more for their services than a full-time employee, but they usually provide their own work tools and do not receive the same benefits as a worker who is part of the company, such as training, paid overtime or vacations.
Companies hiring foreign independent contractors should know that the labor flexibility of these professionals allows them to work with a number of clients at the same time. This means that you won’t have as much control over them as you would with full employees, and limits should be agreed from the start in the contract.
Any company with a global talent acquisition strategy interested in hiring foreign independent contractors has three basic recruitment options: via an employer of record (EOR), through a legal entity, or directly.
Via an EOR
An employer of record (EOR) is a fast and efficient solution for companies requiring foreign contractors. These providers are third parties with established entities and contracting networks that can efficiently connect their clients with autonomous workers.
An EOR can hire remote professionals for you
Companies acquiring the services of an EOR will not have to worry about the paperwork and expenses associated with opening representative offices or subsidiaries in the countries where the contractors are based. The time and money they save can be invested in growing their business.
Hiring foreign independent contractors through an EOR also minimizes any legal problems, as these employers have extensive knowledge of local regulations and know how to differentiate between an employee and a contractor, one of the most common risks of working with autonomous experts.
Companies partnering with an EOR to recruit contractors maintain control over the projects they assign to these professionals, as the EOR is only responsible for hiring foreign independent contractors according to the business needs. In exchange for its services, the legal employer will charge a fee for each contractor hired.
Through a legal entity
Some companies with long-term international expansion plans that require many employees prefer hiring foreign independent contractors through their own local entity, such as a local branch or subsidiary.
This hiring option minimizes any problems related to local labor and tax regulations. However, setting up an entity and registering it compliantly with the local authorities is a costly and time-consuming process.
In addition to the resource investment involved in setting up a subsidiary or representative office abroad, companies must have extensive knowledge of local laws as well as the market and its potential. For this reason, organizations might want to engage the services of an EOR to handle employee recruitment while establishing an entity.
A legal entity is also a good solution for offshore contractor recruitment if companies want these professionals to join their distributed workforce as full-time employees when the organization grows and needs to take on full time staff.
Directly
Another alternative for hiring foreign independent contractors is to recruit these professionals directly. For direct recruiting, the interested company will have to know in detail the local regulations, from the types of contracts to the payment of taxes, if necessary.
To access independent contractors in a given territory, firms requiring their services will have to seek them out directly through online job boards or recommendations from other clients.
Not relying on an intermediary for hiring foreign independent contractors could result in savings for companies. Still, it also entails some risks, as finding independent professionals in other countries is a complex task.
Avoiding the legal problems associated with hiring contractors directly is possible, but employers must be fully aware of local laws. An EOR can also be consulted, especially for the correct classification of employees and contractors.
Misclassification, the risk of hiring foreign independent contractors
Hiring foreign independent contractors can be a quick solution for companies that need expert talent for a given project or period. However, there is a risk of misclassifying them as employees or vice versa, which can result in penalties and fines.
To avoid the legal implications of misclassifying international collaborators and expand a business without complications, companies should consider the following aspects when establishing an employment relationship with foreign professionals:
Make sure that you agree everything clearly ahead of time to avoid misclassification
Contracts: professionals who work full-time for an employer usually sign contracts for a probationary or indefinite period. These contracts establish that the workers are on the payroll, have certain obligations, comply with a schedule, receive a monthly or biweekly salary, and enjoy particular benefits.
Contractors work temporarily, usually receive a one-time payment for their services —which may be higher than what a full-time employee would earn— and are responsible for their taxes and benefits, such as social security.
Control: in case of doubts about the classification of contractors abroad, companies may review the degree of control over the tasks assigned to these professionals. A contractor, a self-employed expert, retains a certain degree of control and independence in their performance. In contrast, a full-time employee is usually subject to more direct and constant review.
Flexibility: when working remotely, flexibility is vital, as it is part of employee retention strategies. However, contractors have higher work flexibility as they organize their own time and schedule, allowing them to collaborate on more than one project at a time. A full-time remote employee also has work flexibility but usually serves only one employer and works a minimum number of hours daily.
Tools: companies hiring employees usually provide them with the tools necessary to perform their duties. These can range from laptops and/or software programs to specialized machinery. This clause does not always apply when hiring foreign independent contractors since they could have their tools, which means company savings.
Permanence: another aspect to consider when hiring foreign professionals is the duration of the employment relationship. A full-time employee will likely have an ongoing, long-term employment partnership with their employer. As temporary collaborators, contractors offer their services for a determined period.
To avoid contractor misclassification, you need to check the local regulations of each territory where you wish to work with foreign independent experts or employees. If you are working with an EOR, simply follow their guidance. You can also consult our free tool to identify you level of contractor misclassification risk.
How to turn contractors into employees
Hiring foreign independent contractors can be a solution for companies that have embraced remote work and need skilled labor for a specific project. But, as the business grows, the working relationship between client and contractor might need to change to that of an employer and employee situation.
When hiring global talent, the labor regulations in each territory will determine whether they are independent contractors or employees. However, to ensure compliance, the simplest way to add contractors to a company’s international workforce as employees is through an EOR.
Independent contractors have their materials
As a legal employer with established entities, an EOR will guarantee that the contractor is now an employee and therefore part of the payroll, enjoying all the benefits that this represents, such as bonuses, paid time off, and social security. The EOR will also sign a contract indicating the employee’s working hours, remuneration, and obligations.
The company will manage the working relationship with these new workers, assign the first tasks, and make them feel part of the organization. In the meantime, the EOR will assume legal responsibility for personnel administration on behalf of its clients.
Serviap Global helps you to hire foreign independent contractors
We started in Mexico in 2010 before expanding to Latin America and more than 100 countries worldwide. Today, we are a benchmark in international recruitment, especially in emerging markets.
Serviap Global can help with standard EOR and/or hiring contractors
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.
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.
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.
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.
Serviap Global offeres both PEO and EOR services around the world
If you need to recruit professionals for your international team, an employer of record in Turkey can help you quickly and compliantly hire top talent in this attractive emerging market without setting up a local entity.
Located at the meeting point between Europe and Asia, Turkey has seen significant growth since the turn of the century and is home to expanding pools of highly skilled professionals available at competitive rates.
An employer of record (EOR), sometimes also known as an international professional employer organization (international PEO), will hire professionals on your behalf via its local entity, overseeing their payroll and other administrative matters as part of the service.
Your EOR in Turkey will also have an established recruitment network and be able to help you identify outstanding candidates for the roles you need to fill if you don’t already have people lined up.
That means you can have local team members in place in only the time it takes to find them, with those professionals reporting directly to you and able to be integrated as remote members of your existing team if needed.
At all times, your employer of record in Turkey will work under the guarantee of full compliance with local regulations and assume the vast majority of liability in the event of an unexpected non-compliance issue arising. So you do not have to worry about unexpected legal complications or financial penalties.
If you are interested in hiring in Turkey, contact us to find out how we can assist you.
Turkey: country overview
Turkey is a transcontinental country of 85 million people, located between Western Asia and Eastern Europe, with coasts on the Black, Aegean, and Mediterranean Seas. Thanks to its strategic location and maritime connections, this country has historically been a key meeting point of Europe and Asia and home to important cultures, civilizations, and empires. Today, it is a democratic republic affiliated with NATO, the OECD, and the G-20.
Although Turkish is the only official language of this country, Kurdish, Arabic, and Bosnian are also spoken while English and German are popular among younger people in metropolitan areas. In terms of religion, the majority of residents adhere to Islam. The national currency is the Turkish lira (TRY).
An employer of record in Turkey can help you quickly enter this enticing market
The most important cities are Ankara, the political capital, and Istanbul, Turkey’s historical, financial, economic, and cultural center. Some other developed urban centers include the major port cities of Trabzon and Izmir, and the industrial hubs of Bursa and and Adana.
As a result of the mixture of Western and Eastern elements, Turkish culture is vast and diverse, with a strong religious influence seen, above all, in the architecture. Music, cinema, and literature are products of great cultural value exported by this country, while soccer is the most popular sport.
To boost the local economy, Turkey has pursued a series of strategies called the Turkish Economic Model in recent years, which aims to lower interest rates, increase domestic investment, and devalue the lira to boost exports and reduce imports.
Turkish market highlights
Turkey is an emerging economy driven by industry, services, and the agricultural sector, with the latter accounting for around 20% of employment nationwide. Essential export products include honey, poultry meat, and wool.
Turkey is famed for its textiles, as well as being known for automotive and electronics production. Mining is also important to the economy, helping make Turkey one of the world’s most significant producers of steel, boron, and chromium.
Germany is Turkey’s leading trading partner, a country with a large Turkish population to which many young Turks emigrate to study or search for better job opportunities. The wider EU, the United States and Iraq are also key trading partners, so also play a crucial role in the Turkish economy.
The Ministry of National Education is in charge of primary education, which is compulsory and free in public schools between the ages of 6 and 14. Turkey’s higher education system includes state universities, vocational schools, and private higher institutions.
According to the OECD, about 40% of the Turkish population aged 25-64 has a university education and a second or third language is often required for finding employment. Thus, workers here stand out in software development, IT, and services related to the automotive industry.
Companies interested in doing business in Turkey will face a growing market with investment facilities. In addition, thanks to its location, it is a platform for expansion and growth for doing business in Europe and Asia, so an employer of record in Turkey can help you enter new markets.
Hire professionals with an employer of record in Turkey
Working with an employer of record in Turkey has many benefits for companies. This third party will hire employees or international independent contractors on behalf of its clients through its local entity, so international firms will not have to open any representative offices or subsidiaries in this country.
Once the best and most competent talent has been identified, either to join the company or to collaborate on a specific project, the employer of record in Turkey will take care of their onboarding, manage administrative aspects such as payroll, as well as their eventual departure from the organization, all in compliance with local Turkish law.
Istanbul is Turkey’s cultural capital
As a permitted employer, an EOR in Turkey will assume most of the legal responsibility for talent recruitment so its clients will minimize potential legal problems, financial penalties, or termination of operations. This is why working with experienced employers who know the market well is essential.
Companies that choose to acquire the services of an employer of record in Turkey will pay a fee for each person employed in Turkey. While this is an expense for expanding companies, it will likely be less than the costs involved in setting up an entity and hiring the HR staff to manage a local team.
When working with an EOR in Turkey, in addition to being less costly than opening a representative office or subsidiary, companies can relax throughout the process of recruiting and managing professionals, have specialized expertise, and access local talent faster than recruiting people directly.
As part of its offering, an employer of record in Turkey can assist its clients with visas and work permits, especially when they intend to move team members to a new territory for headhunting or relocate part of their operations.
Local regulations your EOR will handle
In Turkey, labor relations are established based on Labor Law No. 4857, which specifies, among other things, labor contracts, working hours, and minimum wages. An EOR, as your legal employer, will be responsible for compliance with the clauses described below:
Contracts: these may be fixed-term, indefinite-term, part-time, or project-based. Note that probationary periods are up to two months.
Working hours: the legal working week in Turkey is 45 hours, with a maximum of 11 hours per day. Employees working on Sundays and public holidays are entitled to additional pay, usually double the average salary. Any working hours over the 45-hour workweek limit are considered overtime.
Minimum wage: TRY8,506.80 per month, (approximately US$310).
Bonuses: an employer of record in Turkey is not required to offer a salary bonus, such as a 13th month’s pay, as in other countries.
Vacations: depend on the employee’s seniority in an organization, but from one to five years, they can enjoy 14 paid days, from five to 15 years to 20 days, and from 15 years or more to 26 days per year with pay. Holidays, on the other hand, are seven by 2023.
Sick leave: employees are allowed sick leave, which varies according to the time of service within an organization. Employees with the same employer for at least one year are entitled to 30 days of sick leave. Maternity leave is 16 weeks, eight weeks before and eight weeks after birth, while paternity leave is five days. In addition, employees in Turkey have three days of paid leave for marriage.
Social security: covers health insurance, retirement insurance, insurance against accidents at work, and unemployment insurance.
Taxes: VAT is 18%, while income tax ranges from 15% to 40%.
For more information about Turkey, consult our Knowledge base.
How to hire employees with the help of an EOR
Any expanding company interested in recruiting professionals quickly and compliantly through an employer of record in Turkey should follow these steps to add the best professionals to their teams in the shortest possible time:
1) Define employee requirements
Hiring internationally requires defining in advance and according to your business objectives what kind of professionals and how many you need. An EOR can also help you determine the profile of the right employees, as they have a broad knowledge of the talent in Turkey and know the local market. This is why looking for experienced recruiters who understand your needs and fit your budget is necessary.
2) Complete preliminary screening
By defining the roles, experience, and competencies your employees will need in Turkey, the EOR will share these vacancies on its recruitment channels, so resumes and letters of motivation will arrive quickly. After a thorough screening, only those profiles that meet the stated requirements will be shortlisted for a first round of interviews.
3) Carry out interviews
If agreed at the outset, your employer of record in Turkey will interview the candidates, but a team within your organization can also interview them remotely. Interviews can serve both as a first filter to screen out applicants and to check whether they have the knowledge and skills required to join your company.
4) Send job offers
Once the interview phase ends, your EOR will present you with the strongest candidates to add to your international team. After you select your new employee(s), the employer or record in Turkey will send job offers, negotiate salaries and benefits if necessary, and sign the contracts based on Turkish Labor Law No. 4857. As an expert in local regulations, working with an EOR will minimize any risk of non-compliance related to hiring professionals.
5) Initiate employee onboarding
In addition to finding and hiring professionals in record time, your employer of record in Turkey will handle the administrative tasks involved in working with professionals worldwide. They will manage payroll, benefits, and vacations. And when necessary, they will also address the departure of these professionals from your company. By minimizing administrative responsibilities, onboarding new employees and assigning them their first tasks will be faster.
Alternatives to hiring via an EOR in Turkey
If you want to try your luck with other recruitment forms than through an employer of record in Turkey, you can open a local entity to recruit staff directly. This means that you will be fully responsible for complying with local regulations and taking care of the administration of your employees.
Turkey’s Cappadocia Balloon Festival
An entity, either a representative office or a subsidiary, can be a good idea if you plan to have a long-term presence in the Turkish market or if you need to hire many professionals in this country. However, keep in mind that this alternative is costly and time-consuming.
Even if you decide to invest in your entity and bear the expenses it will represent, you can still rely on the services of an employer of record in Turkey. An EOR offers a variety of solutions, so it can be an interim talent recruitment option while you set up your company in this new territory.
However, if opening your local entity doesn’t work for you either, you can opt for hiring contractors overseas. These freelancers work individually or in groups for their own company, which provides services to foreign clients for specific projects.
Contractors are likely to charge slightly more for their services than full-time employees, but they usually have their tools and equipment. Although they are not subject to receiving the same benefits as regular workers, they are protected by specific local rules worth knowing.
For this reason, be aware that many countries are cracking down on the misclassification of in-house employees as contractors. However, if you have an emerging project, freelancers are a good alternative thanks to their flexible schedules and experience.
You can also use an employer of record in Turkey to work with international contractors. Through their robust recruitment networks, these outsourcing experts will supply you with profiles of freelancers, evaluate your needs, and provide you with the best possible services.
Serviap Global can be your employer of record in Turkey
At Serviap Global, we offer international PEO / EOR solutions and contrractor hiring in over 100 countries worldwide, including Turkey. So if you need an employer of record in Turkey, we can help.
We started out in Latin America over a decade ago, where we are known for our unrivaled expertise, and we have expanded internationally to become known as specialists in hiring in emerging markets.
Serviap Global operates worldwide, including as an employer of record in Turkey
We recently had the chance to speak with Kelvin Kettelsen, an entrepreneur and consultant with extensive experience in international recruiting, immigration, and staffing in the United States.
After spending several years working with major corporations, with a heavy focus on business development and operations, Kettelsen began his entrepreneurial journey and today occupies senior roles with three companies he helped found.
They include TN Visa Advisors, a company dedicated to supporting professionals during the application process for a TN Visa in the United States, for which he is currently a partner and consultant.
He also serves as president of Panyeah, a company dedicated to providing employer of record (EOR) services in the United States, and also runs his own consulting firm Kettlesen Consulting, focused on helping companies improve their business operations.
Here’s what he had to say:
1) How did you end up as an entrepreneur working in the international hiring space?
My path was both intentional and serendipitous. Working in prestigious firms like EY, J.P. Morgan, Accuity/Fircosoft, and Mastercard, I had the opportunity to immerse myself in various financial and business roles while also experiencing firsthand the challenges and processes related to work visas as a non-U.S. citizen. Engaging with these bureaucratic intricacies made me aware of the hurdles international professionals face in securing employment in the United States.
This recognition was coupled with my observation of the disparate ways companies managed their HR and payroll for international employees. Witnessing these challenges and armed with a solid understanding of both the corporate and immigration landscapes, I identified a significant gap in the market for specialized services facilitating international hiring and immigration.
With my educational foundation and practical exposure, the decision to start my own venture seemed both logical and exciting. I believed there was a need for a service that could streamline and demystify the immigration and hiring process for both employers and prospective employees from around the world. This laid the groundwork for my entrepreneurial journey, leading to the inception of companies dedicated to immigration, recruiting, and staffing solutions designed to support and guide individuals and corporations through the labyrinth of international employment.
2) What are the main differences between the TN visa and other common work visas?
The TN visa is specifically designed for citizens of Canada and Mexico under the United States-Mexico-Canada Agreement (USMCA), previously known as the North American Free Trade Agreement (NAFTA). Here are the primary distinctions between the TN and other common work visas:
Kettelsen is a partner at TN Visa Advisors
Eligibility: The TN is exclusively available to Canadian and Mexican citizens, while other visas, like the H-1B, are open to nationals from any country.
Professions list: Applicants for the TN visa must work in a profession listed under the USMCA, which primarily includes jobs in the sciences, arts, and business. In contrast, the H-1B visa is available for specialized occupations that require at least a bachelor’s degree.
Application process: Canadians can apply for the TN visa at the border or a pre-flight inspection station, receiving immediate approval. Mexicans and other visa applicants typically must go through consulates or embassies, which can be a longer process.
Duration & Extensions: For Mexican citizens (designated TN2), the TN visa can possess a validity of either one or four years, with the option for indefinite extensions in three-year increments, provided the applicant persistently satisfies the requisite criteria. In contrast, Canadian citizens (designated TN1) can obtain the TN visa with up to three years of initial validity, also extendable indefinitely in three-year increments under continued compliance with requirements. This structure contrasts with other visas such as the H-1B, which comes with an inherent six-year cap, albeit with possibilities for extension under particular conditions.
Dual intent: TN visas are non-immigrant visas and do not recognize “dual intent,” meaning holders should intend to seek permanent residency while on a TN visa. In contrast, some other visas, like the H-1B, do allow for dual intent.
3) Are there any emerging industries or job roles that are particularly suitable for the TN visa category?
Absolutely! With the burgeoning technological and health sectors, several professions within these industries have found an excellent match with the TN visa category.
Technology and IT: With the rapid advancements and a growing need for skilled professionals, roles such as software engineers, data scientists, and IT consultants are in high demand. The TN visa is becoming increasingly popular among individuals with expertise in these areas as it facilitates smoother entry into the US market.
Healthcare: Given ths ever-growing industry, there’s a consistent demand for healthcare professionals, including registered nurses, pharmacists, and medical technologists. The TN visa supports qualified individuals from Canada and Mexico in these roles, who are willing to contribute to the U.S. healthcare system.
Consulting: Management and strategy consultants, particularly those with a focus on emerging fields like digital transformation, sustainability, and healthcare, also find the TN visa to be well-suited for their career paths.
Agriculture and farming: The agriculture sector is fundamental to the economy, and there is a continual need for expertise in agronomy, soil science, and plant breeding. Professionals such as agricultural scientists, agronomists, and agricultural consultants from Mexico and Canada can leverage the TN visa to explore opportunities within the dynamic and diverse U.S. agricultural sector.
Hospitality and hotel management: With the U.S. being a prime destination for tourism and business, the hospitality industry is robust. Positions like hotel managers, event coordinators, and food and beverage managers are crucial. Individuals with a background in hospitality management from accredited institutions and relevant work experience can consider the TN visa as a viable entry point into the U.S. hospitality landscape.
Engineering: The U.S. has always been at the forefront of engineering innovation, offering a wide array of opportunities across various engineering disciplines. Whether it’s civil, mechanical, electrical, or chemical engineering, professionals with degrees and experience in these fields can utilize the TN visa to engage with cutting-edge projects and initiatives in the American engineering sector.
It’s imperative to align one’s qualifications and experience with the professions listed under the USMCA to successfully apply for the TN visa. For individuals in farming, hospitality, and engineering looking to carve a niche for themselves in the U.S. market, the TN visa can be an excellent facilitator, and my companies are here to assist in making this transition as seamless as possible.
4) What common problems do workers face in requesting visas and how can they overcome these?
Applicants frequently encounter several challenges during the visa application process. One prevalent issue, especially for Mexican applicants, is the significant amount of time it takes to secure immigration appointments. The long wait times can be daunting and often hinder the timely progression of individuals’ plans to work in the U.S.
Another common obstacle is visa denial. It’s disconcerting for applicants when immigration officers deny their visa applications without providing clear and detailed explanations for the rejection. There are instances where applicants, despite having the requisite education and qualifications, find themselves facing visa denials, often with little understanding of the reasons behind the immigration officer’s decision.
“Professional guidance can provide clarity on eligibility, required documentation, and the application process, significantly enhancing the likelihood of a successful application.”
– Kelvin Kettelsen
Additionally, the inherent limitations associated with each visa type also pose challenges. While it’s evident that the U.S. market has a demand for international talent and labor, the stringent and sometimes rigid immigration rules and specifications can act as substantial barriers. The U.S. economy requires a diverse talent pool to thrive, and while immigration can be a viable solution to meet labor market needs, the strict stipulations surrounding various visas can often make this process more complicated and inaccessible than it needs to be.
Navigating through these challenges can be tough, but understanding and anticipating them can help applicants be better prepared for the complexities of the visa application process. With the right guidance and support, like the services offered by my companies, applicants can better navigate these challenges, making their journey through the U.S. immigration system smoother and more predictable.
5) What advice would you give to anyone out there who is interested in applying for a TN Visa but doesn’t know if they would be eligible?
For individuals contemplating applying for a TN visa but uncertain about their eligibility, I would advise taking the following crucial steps:
Review the USMCA list: Begin by examining the United States-Mexico-Canada Agreement (USMCA) professions list. The TN visa is exclusively designed for specific professions; hence it’s pivotal to ascertain that your occupation is recognized under the agreement.
Understand qualification requirements: Each listed profession under the USMCA has distinct qualification criteria, often necessitating a particular educational background or equivalent professional experience. Familiarize yourself with these prerequisites and evaluate how your credentials align.
Evaluate job offer: A prerequisite for the application is having a job offer from a U.S.-based employer. The offer should be for a position that corresponds with the professions listed under the USMCA, so ensure the job you’re considering is compliant.
Online eligibility quiz: To facilitate a smoother understanding of your eligibility, we’ve developed an online quiz. This interactive tool is designed to offer preliminary insights into whether you might be a suitable candidate for a TN visa. Take the quiz on our website to get started.
Professional consultation: Immigration policies and regulations can be intricate and daunting. It’s advisable to schedule a consultation with immigration attorneys, consultants, or expert services like those offered by my companies after taking the quiz for more detailed and personalized advice. Professional guidance can provide clarity on eligibility, required documentation, and the application process, significantly enhancing the likelihood of a successful application.
Prepare for scrutiny: The application process can be stringent, with immigration officers meticulously evaluating your credentials, job offer, and overall eligibility. Engage in meticulous preparation and be ready to convincingly demonstrate how you meet the TN Visa requirements.
Stay updated: Immigration policies are subject to change, and staying informed is crucial. Regularly check for updates on the U.S. Citizenship and Immigration Services (USCIS) website or consult with immigration professionals to ensure you have the most current information.
Embarking on the TN Visa application journey with an informed and strategic approach, coupled with the use of our online quiz and professional advice and support, significantly enhances the prospects of not just understanding your eligibility but also successfully securing the TN Visa.
6) You launched your EOR company within a year of starting your visa project. How did you find yourself moving into EOR after working in visas?
The transition was a natural and strategic progression. The inception of my first company in 2016 marked the beginning of a journey in providing adept staffing solutions. Through years of engaging with the staffing domain, a profound understanding of the market dynamics and client needs was developed.
As we provided specialized visa facilitation services through the TN visa company, it became increasingly evident that our corporate clients required more comprehensive solutions. The process didn’t just end at recruiting and securing visas for international professionals; there was a distinct need for continued support in managing HR-related matters for these individuals once they were on board.
In recognizing this, the idea to formalize and offer EOR services in 2023 was conceived. This was not merely an expansion but a response to the evident market need. The EOR services were designed to seamlessly integrate with our visa facilitation, providing a holistic solution that covered recruitment, visa processing, and ongoing HR management. By doing so, we were able to offer an unparalleled value proposition to our corporate clients.
This integrated approach also created a supportive environment for the employees themselves. With the EOR services, we could ensure that, post-recruitment and visa processing, employees had a smooth transition and could navigate through HR procedures with expert guidance available.
In essence, the move into EOR was a thoughtful expansion of our service portfolio, driven by the desire to provide end-to-end solutions for international hiring needs.
7) What are some of the biggest challenges you have faced since launching your companies?
Here are some of the major challenges I have faced since the inception of the companies:
Navigating regulatory changes: Immigration policies and labor laws are subject to frequent changes, often with little notice. Adapting to these shifts while ensuring compliance and minimal disruption to our clients has been a significant challenge.
Client education: Many corporate clients were initially unfamiliar with the benefits and procedures of TN Visas and EOR services. Educating potential and existing clients about the value and logistics of our services required a concerted and ongoing effort.
Market competition: The immigration and EOR services market is competitive. Establishing a brand presence and differentiating our services from established players demanded planning, marketing, and the delivery of consistent service quality.
Talent acquisition and retention: As service-oriented businesses, having skilled and dedicated staff is crucial. Recruiting, training, and retaining employees who are knowledgeable and also share the company’s vision and commitment to client service is essential.
Technology integration: Developing and integrating technology to streamline our services, improve efficiency, and enhance client experience was a complex process. Implementing tech solutions that are user-friendly and reliable required significant investment and expertise.
Global pandemic: The COVID-19 pandemic brought unforeseen challenges, including travel restrictions and policy changes, affecting international hiring and mobility. Navigating these uncertainties while supporting our clients and maintaining business operations required agility and resilience.
To overcome these challenges, we’ve engaged in continuous learning, proactive planning, and developed a deep understanding of the industry and our clients’ needs. Through commitment to our mission and a focus on delivering value, we have navigated through these challenges, learning and growing along the way.
8) If you could go back and give your younger self some advice, when would you go back to and what would that advice be?
If I could turn back time and offer advice to my younger self, I would choose the moment right before I embarked on my entrepreneurial journey in 2016. Armed with the wisdom and experience gained over the years, my advice would be as follows:
Embrace failure: Understand that failure isn’t the opposite of success, but a part of it. Every setback is a setup for a comeback. Failures are lessons in disguise; embrace them, learn from them, and use them as stepping stones to success.
Patience and persistence: Success rarely happens overnight. It’s the result of continuous effort, even when there seems to be no progress. Be patient and stay committed to your goals, understanding that persistence is key.
Invest in relationships: Business is not just about transactions; it’s about building and nurturing relationships. Invest time and effort in building relationships with clients, employees, and partners. The trust and rapport you develop will be invaluable assets.
Continuous learning: The business landscape is ever evolving, and lifelong learning is non-negotiable. Stay curious, keep updating your knowledge, and always be open to new ideas and perspectives.
Celebrate small wins: While it’s important to have big goals, celebrating small victories along the way is crucial. These moments of celebration will keep you motivated and help you enjoy the journey.
Listen actively: Whether it’s feedback from clients or advice from mentors, active listening is a skill that will serve you well. Not all advice will be applicable, but being open to input and considering different viewpoints is vital.
Taking this advice to heart would undoubtedly smooth out some of the bumps in the road ahead and perhaps accelerate the learning curve that every entrepreneur must navigate. Each piece of advice represents a lesson learned through experience.
9) Do you have any additional comments you would like to share with our community?
Certainly, there’s always more to share! One aspect I would like to highlight is the importance of maintaining a client-centric approach in every facet of the business. In the fields of immigration, recruiting, and staffing, we deal with individuals’ lives and careers, and it’s crucial to handle these matters with the utmost care, empathy, and professionalism.
Client-centric approach: Navigating immigration and employment processes can be stressful and confusing, and we aim to provide support that is expert, reliable, compassionate, and personalized. The positive feedback and success stories from our clients are immensely rewarding and validate our commitment to delivering service excellence.
Continuous improvement: I would advise budding entrepreneurs to foster a culture of continuous improvement and innovation within their organizations. The business environment is dynamic, and staying relevant requires adaptability and a willingness to evolve. At our companies, we consistently seek feedback, assess our performance, and explore ways to enhance our services.
In closing, embarking on an entrepreneurial journey in the immigration and staffing industry has been challenging but deeply fulfilling. Every professional we assist, and every company we help, represents a step towards creating a more inclusive and accessible employment landscape.
For aspiring entrepreneurs, my story illustrates that with passion, resilience, and a commitment to serving others, it’s possible to build businesses that are not only successful but also meaningful and impactful.
Kelvin Kettelsen is an entrepreneur and consultant based in Florida, United States. He was speaking to Rafael Sens.
Serviap Global supports international hiring
At Serviap Global, we help companies with global hiring solutions in over 100 countries worldwide, including international PEO / EOR services, contractor hiring, and recruitment.
Tlalnepantla, Mexico; October 2, 2023 — Serviap Global is thrilled to announce the launch of Serviap Hub, the latest evolution of our industry-leading HR management platform, allowing you to oversee your international team members at the touch of a button.
Packed with new features and built for ease of use, Serviap Hub allows you to manage professionals reporting to you from almost anywhere in the world.
With just a few clicks, you have working access to key documentation and processes for every international team member that we have onboarded for you, including contracts, visas, salary history and benefits.
That means, no matter where you are located, you can keep track of your global team while we take care of the payroll and administration of all of the professionals we have hired on your behalf.
Serviap Hub include bespoke support provided through an in-platform ticketing system, meaning you can always rely on quickly accessing any help you need.
“The launch of Serviap Hub is an exciting step for our company and for all of the companies we work with around the world, helping us to take our service to the next level and providing our clients with easy access to every profesional we are administering for them,” said Victor Anaya, co-founder and CEO of Serviap Global.
At Serviap Global, we offer rapid and compliant hiring solutions in over 140 countries worldwide, including employer of record services and international contractor hiring.
Having started out in Latin America in 2010, we have expanded worldwide and become known in the global hiring industry for our expert knowledge of recruiting in emerging markets.
Our vision is to help companies expand anywhere with confidence. With the launch of Serviap Hub, we have made that even easier.
In today’s dynamic job market, many businesses rely on independent contractors to complete important projects or meet short- to medium-term labor needs. However, a growing number of countries are cracking down on independent contractor misclassification,so it is important to guarantee you are compliant with local laws wherever you are hiring.
Usually seasoned professionals, independent contractors are freelancers who work on a project by project basis and generally charge a premium rate for their services. However, they must supply their own equipment and are not eligible for a range of benefits that direct employees enjoy.
As such, independent contractors bring flexibility and often offer cost savings, making them an attractive option for many companies. For anyone looking to tap into international talent, hiring contractors overseas can be a particularly attractive option.
However, misclassifying someone as an independent contractor when their working conditions should see them classified as direct employees can result in major legal complications and significant financial penalties, as well as causing reputational damage.
Below, the concept of independent contractor misclassification is explored at depth, along with the risks it brings, before some tips are offered on how to minimize your contractor misclassification risk.
If you are interested in hiring international independent contractors, contact us today.
Independent contractor misclassification occurs when an employer incorrectly categorizes a worker as an independent contractor rather than an employee. This classification is not merely a matter of semantics; it has significant implications for both the employer and the worker.
Key factors in determining worker classification
Control: One of the central factors in classifying a worker is the degree of control the employer has over the worker’s tasks. Employees are typically subject to more direct control, while independent contractors have greater autonomy over how they complete their work.
Hiring contractors offers many benefits
Economic realities: Courts also consider the economic relationship between the worker and the employer. Independent contractors often have multiple clients, bear their own expenses, and have the opportunity for profit or loss, whereas employees usually rely on a single employer for their livelihood.
Duration and permanence: The duration of the work relationship can be a critical factor. Employees generally have an ongoing, long-term relationship with their employer, while independent contractors often work on specific projects for a limited time.
Misclassification can occur unintentionally or as a deliberate attempt to avoid certain legal responsibilities. Common reasons for misclassification include the cost-savings entailed in not having to provide employees with certain benefits if they are classified as contractors — which is often the basis of a misclassification offence.
Working with independent contractors also offers simplicity because they are generally responsible for managing their own tax burden, meaning that they create less work for finance and HR departments.
Another common cause of misclassification is simple unawareness of local laws and the conditions under which a professional must work to be correctly classified as a contractor.
Risks of independent contractor misclassification
Some of the most important risks associated with independent contractor misclassification include:
Legal consequences
Misclassifying workers as independent contractors can lead to a litany of legal problems for employers. Here are some of the primary risks:
Wage and hour violations: Independent contractors are not eligible for minimum wage, overtime pay, or meal and rest breaks. Misclassified employees can sue for unpaid wages and overtime, potentially leading to significant backpay obligations.
Tax penalties: Employers who misclassify workers may be liable for unpaid payroll taxes, including. In ther United States, for example, the IRS may impose penalties and interest on unpaid taxes due to independent contractor misclassification.
Employee benefits and protections: Misclassified workers can be denied important benefits and protections, such as workers’ compensation, unemployment benefits, and family and medical leave.
Legal claims and lawsuits: Misclassified workers have the right to file legal claims against their employers. If they win their cases, employers may have to pay damages, legal fees, and other costs.
Class actions: Misclassification cases can escalate into class-action lawsuits, in which multiple workers join forces to sue their employer. This can result in substantial financial liabilities for the company.
Reputational damage
Beyond the legal and financial risks, misclassification can harm a company’s reputation. When workers feel they have been treated unfairly, they may take to social media or speak to the press, damaging the company’s image and making it less attractive to potential clients, customers, and future employees.
Audit triggers
Government agencies, such as the Department of Labor and the Internal Revenue Service (IRS) in the United States, are increasingly scrutinizing worker classifications. Misclassification can trigger audits and investigations, diverting resources and time away from core business activities.
How to avoid independent contractor misclassification
Preventing independent contractor misclassification is essential for businesses. Here are some steps employers can take to ensure proper worker classification:
1) Understand the legal distinctions
Educate yourself and your HR team on the legal distinctions between employees and independent contractors. Familiarize yourself with local labor laws wherever you are planning to hire contractors, as they can vary.
Contractors are usually seasoned professionals
2) Implement clear contracts
Draft clear and comprehensive independent contractor agreements that define the scope of work, payment terms, and the worker’s status as an independent contractor. Include language specifying that the worker is responsible for their own taxes and benefits.
3) Assess the nature of the relationship
Regularly evaluate the working relationship with your contractors. If the level of control increases, or the worker becomes an integral part of your business, it may be time to reevaluate their classification.
4) Seek legal guidance
Consult with legal counsel or HR experts who specialize in employment law to review your worker classifications and employment practices. They can help identify potential misclassifications and suggest corrective actions.
5) Keep accurate records
Maintain accurate records of payments to independent contractors, contracts, and communications related to the working relationship. These records can be essential in case of a legal dispute or audit.
6) Review local laws
Be aware of local laws and regulations governing worker classification. Some countries have stricter criteria for independent contractor status than others, while in some countries laws may vary in different states, or their equivalent.
7) Stay informed
Stay up-to-date with changes in labor laws and court rulings that may affect worker classification. The legal landscape is continually evolving, and compliance is crucial.
Independent contractor misclassification overview
Independent contractor misclassification is a serious issue that can have dire consequences for businesses. Understanding the legal distinctions between employees and independent contractors, and taking proactive steps to ensure proper classification, is vital for mitigating the associated risks.
The cost of misclassification in terms of legal liabilities, financial penalties, and damage to reputation can far outweigh any perceived short-term benefits. By prioritizing compliance and treating workers fairly, businesses can navigate the complexities of labor laws and build a foundation for long-term success.
With all of this taken into account, if you are considering hiring international contractors it makes sense to work with a seasoned provider that will have a firm understanding of labor laws in the country where you hire them, and will stay on top of regulations as they evolve.
Serviap Global can assist you with contractor hiring
At Serviap Global, we support companies with contractor hiring, as well as offering EOR services and global talent acquisition for sourcing direct hires.
We started in Mexico in 2010 before expanding internationally. Today we are recognized for our unrivaled understanding of Latin America and our expertise on hiring in emerging markets.
Contact us to find out more about how we can assist you.
If you are concerned about independent contractor misclassification, visit our interactive tool to get a better idea of your risk level.
Serviap Global offers contractor hiring as EOR services
For any company interested in hiring international talent but unsure how to go about it, numerous recruitment models are available, with each offering advantages and drawbacks.
A recruitment model is a strategy for finding and hiring team members, which will often involve working with a third party provider.
When considering the many paths available for recruiting international professionals, including hiring directly and working with an employer of record (EOR). The best choice will be based on a range of factors, including the length and scale of the project for which people are being hired and the roles that need to be filled.
Contact us if you need support with rapid, compliant international recruitment.
Recruitment models: characteristics, advantages and challenges
Recruitment models have evolved in recent years, with the emergence of new hiring solutions, and the COVID-19 pandemic changing how many companies approach sourcing talent, especially in the context of their increased uptake of remote work.
Because not being limited by physical location offers access to a much broader pool of talent, with many highly-skilled professionals available at competitive rates. This has given companies the opportunity to consider new recruitment models offering quick and easy international hiring.
Businesses that need to add new talent to their pools can use any of the three standard recruiting models: internal, RPO, and embedded. However, they must also be aware of new staffing strategies known as hybrid or tailored models and choose the one that works best for them.
Three common recruitment models to choose from
1) Internal recruitment
In this recruitment model, companies have an in-house team, usually part of the human resources department, that is responsible for talent acquisition. These in-house recruiters work wiuth other departments to find and onboard new team members, generally condusting initial interviews in order to pass a vetted list of canidates to the hiring manager.
This team is also responsible for the administrative tasks involved in talent acquisition, like the legalities associated with hiring, onboarding, and training new employees, workforce development, cross-departmental collaboration and communication, risk management, and more.
Advantages: In-house recruiters know the organizational culture and current team members well and will likely have experience of filling the types of roles that the company needs.
Challenges: In-house recruitment requires a range of support staff to administer professionals who are hired. It can also be subject to ebbs and flows, depending on the scale of the company.
2) Recruitment process outsourcing (RPO)
The second on the list of recruitment models is RPO, in which companies rely on a third party, such as an employer of record (EOR), for some or all of the talent acquisition processes.
These provders can simply provide recruitment services to source direct hires, or can serve as the local legal employer for overseas professionals, managin their payroll in the process.
Advantages: RPO offers a rapid and convenient option for hiring internationally, with the provider having an established recruitment network and expert understanding of the local job market. RPO can also offer significant cost-savings, while relieving the hiring company of a significant proportion of compliance risk.
Challenges: In many cases RPO is chosen for hiring people to work remotely, meaning that you will need to deal with common challenges of managing remote teams.
3) Embedded recruitment
In this recruitment strategy, a company’s internal recruitment team is bolstered by the addition of external recruiters.
Often embedded recruitment will be chosen not only to add capacity to the recruitment team, but also as a form of consultancy by which the provider also offers guidance on improving internal processes.
Advantages: Embedded recruitment offers the key advantage of boosting recruitment capacity on a medium-term basis, as well as providing the company with access to advice from seasoned professionals who can help improve internal processes.
Challenges: embedded recruitment is often more a medium-term choice than short-term, especially when it involves consultancy on processes. It therefore often requires a significant committment in terms of time and resources.
Other recruitment models
Beyond those three recruitment models, some other hybrid models have grown in popularity in recent years. They include:
There are many recruitment models available
On-demand recruitment
Under this hybrid recruitment model, firms acquire the services of an on-demand provider, either to work on an hourly or project-specific basis, as if they were international independent contractors.
The on-demand recruitment model is similar to RPO, but much more limited in scale. The external recruiter is only brought in to hire for a specific limited number of roles.
Contingency recruitment
When companies opt for the contingency recruitment model, they rely on one or more agencies to search for the right candidate to fill a vacancy. These providers are only paid if candidates they source are hired, so they have considerable incentive to find the right person.
One of the drawbacks of such a model is the fact that the providers must invest resources into processes without the guarantee of success, which can lead to breakdowns in the relationship if the candidates a provider offers are consistently overlooked.
Retained recruitment
Among recruitment models, retained recruitment is similar to working with an EOR, with providers retained as the sole recruitment partner for a given vacancy or project. The provider will usually receive an advance fee to cover the cost of the search for potential candidates.
This model obviously demands a level of committment from the hiring company, because they are required to invest in the process in advance and are effectively committed to the provider until the needed roles included in the services agreement have been filled.
Tips to improve your recruitment process and get the best talent
Whichever of these recruitment models is most suitable for you, the following tips should be useful:
All recruitment models benefit from these five tips
Implement intelligent systems: An applicant tracking system (ATS) is an innovative tool that helps internal, external, or combined recruiters streamline their selection processes. The software saves time, reduces costs, and detects the most complete profiles.
Take advantage of AI: AI recruiting tools simpliofy searching for and hiring the best talent, making them a great help in any recruitment model. These tools focus on the skills and capabilities of the applicants, avoiding any unconscious human bias related to aspects such as gender, age, or origin.
Create attractive job descriptions: attractive but honest job offers in the proper recruitment channels help companies find the best talent quickly. These should include key aspects such as the skills and knowledge that the applicant should have, the activities to be performed, the location of the offices or if it is a remote position, the salary range, and the benefits offered by the organization.
Improve your business image on social media: a good image on social networks is essential for any business, especially those with limited resources and seeking to attract top talent. Platforms such as LinkedIn for professional networking and even social media such as Instagram, TikTok, or Facebook are of great help in any of the recruitment models mentioned.
Offer good benefits and rewards: to improve recruitment models and retain the best talent, offering attractive salaries but also benefits and rewards is necessary. Some of the most popular among workers today are paid time off, ongoing training, discounts at gyms or sports clubs, and grocery and gas vouchers.
Trust in the services of an EOR: an employer of record (EOR) facilitates recruitment and reduces clients’ expenses since it has established entities and recruitment networks worldwide. In addition, it is familiar with local regulations, thus minimizing any risk related to talent acquisition. It also takes care of companies’ human resources, from payroll administration to the eventual departure of employees.
Serviap Global offers international recruitment services
At Serviap Global, we support companies with different recruitment models, including EOR services, contractor hiring, and global talent acquisition for sourcing direct hires.
We started in Mexico in 2010 before expanding internationally. Today we are recognized for our unrivaled understanding of Latin America and our expertise on hiring in emerging markets.
Contact us to find out more about how we can assist you.
https://www.youtube.com/watch?v=pxLlwjtJuMY
Serviap Global es experto en contratación internacional
Bulgaria has seen positive economic development in recent years, as its startup, export, and tourism sectors have grown, helping this eastern European country become a target for investment.
With the economy on a good trajectory and the country home to a growing pools of skilled professionals, hiring via an employer of record in Bulgaria has become increasingly attractive, offering the opportunity to quickly and compliantly tap into local talent.
Because an employer of record (EOR) hires professionals via its own local entity on your behalf, taking care of their payroll and other administrative matters as part of the service, and assuming a significant portion of liability as their official employer.
Those professionals, meanwhile, report directly to you. So when you hire via an employer of record in Bulgaria you effectively have local team members in place, without needing to worry about setting up your own entity or worry about unfamiliar employment regulations.
In the event you need help sourcing candidates for the roles you want to fill, your EOR in Bulgaria will also be able to help, giving you access to established recruitment network and expert knowledge of the local job market.
If you are interested in hiring in Bulgaria, contact us for more information.
An employer of record in Bulgaria can help you quickly hire top talent
Bulgaria: country overview
Bulgaria is a medium-sized country situated in southeastern Europe. It has a Black Sea coast where many tourist destinations are found, ranging from popular beaches to natural landmarks, and including mountains with great ski resorts.
The official language is Bulgarian, written in Cyrillic script. Russian, Turkish and English are widely spoken as second languages, the latter especially among younger people and in central areas and tourism hotspots.
Bulgarian culture is diverse, influenced by its history and geographical location. It has a rich tradition of music, dance, and folklore. Football is the most popular sport and the stars of the 1990s golden generation are still idolised.
As for economic growth, Bulgaria has shown resilience and a relatively stable financial sector since transitioning from communism in the early 1990s. Key sectors include energy production, services, and tourism.
Bulgaria has been a member of the European Union (EU) since 2007, which has brought opportunities for funding, market access, and regulatory harmonization.
Hiring in Bulgaria
In Bulgaria, you can find plenty of top-ranked universities next to some of the biggest international high-education choices. Faculties such as New Bulgarian and Sofia University are respected and well-known in the academic communities as medical, engineering, law schools, and so on. This means you can hire skilled professionals, who will likely speak English as well,as it is a requirement on courses.
As an EU member, Bulgaria has advantages
Also, in the past decade, Bulgaria has risen as a major destination for foreign direct investments, especially in its capital city, Sofia. The country boosts thousands of multilingual IT and STEM specialists who are seizing the opportunities that the expanding local startup ecosystem is offering.
The country has been boosting a positive and efficient innovation input to output performance. According to the 2022 Report for the Global Innovation Index, Bulgaria currently holds second place in innovative economies in the upper middle-income countries group, after only China. It is also one out of only five middle-income economies among the top 40 economies for innovation worldwide.
The Bulgarian investment terrain has evolved significantly, with larger funding rounds and greater participation rates as the startup ecosystem becomes more developed and sophisticated. The fields of artificial intelligence, fintech, and health tech stand out. Some other well-developed professional areas include technical skills and marketing talent.
Advantages of hiring via an employer of record in Bulgaria
An employer of record in Bulgaria will hire professionals on your behalf via its own local entity, meaning you don’t need to go through company formation to be able to bring top talent onboard.
The EOR will then also take care of onboarding those professionals, as well as managing their payroll and other administrative matters, all in full compliance with local laws. When the time comes, your employer of record in Bulgaria will also offboard those team members.
Because the EOR is the official employer, it assumes most liability, meaning you can rest safe in the knowledge that you are highly unlikely to face legal issues or financial penalties for non-compliance. The fact that your provider will know the market well means they will be able to guarantee compliance.
While hiring via an employer of record in Bulgaria will obviously come at a fee — which could be a flat fee per person employed or a percentage of each professional’s salary — that expense is likely to be significantly less than the costs involved in setting up an entity and hiring the support staff needed to administer your local team.
Even when the cost is comparable, an EOR offers peace of mind, expert local knowledge, and will be able to have professionals onboarded much quicker than if you set up an entity and hired them directly.
Often companies that choose to work with an EOR already have people lined up for roles, or are intending to relocate someone to a new country, in which case the provider will likely also be able to help you with the visa application process.
But in the event you also need assistance with identifying outstanding candidates for the roles you want to fill, your employer of record will have an established recruitment network and will also know of the best local academic institutions and employers to look out for on profiles.
In the event you do opt to access those recruitment services, the EOR will also carry out initial interviews to vet candidates and present you with the strongest selection possible for your own interviews, should you wish to carry them out.
Regulations an EOR in Bulgaria will oversee
Your employer of record in Bulgaria will guarantee compliance with a wide range of local regulations, with some of the key ones being:
Employment contracts: official contracts can be either fixed term or for an indefinite period. They can be signed by both employer and employee in any language.
Working hours: average working week is 40 hours (8 hours/day).
Salary: As of 2023, the average wage is 1,927 Bulgarian Lev per month (approx. US$1,050).
Vacations and public holidays: minimum of 20 days of paid vacations per year. There are 15 official holidays.
Health insurance: mandatory in Bulgaria. The employer payroll tax includes a 4.8% contribution for health insurance, while employee taxes make up for an additional 3.2%.
Medical leave: Mandatory. Employees are entitled to the benefit after six months of being registered for sickness insurance.
Maternity and paternity leave: Mandatory. Maternity leave covers up to 410 days, beginning 45 days before the due date of child birth. The father is entitled to 15 days of paid leave from the date of childbirth. Adoptive parents are entitled to 365 days leave upon adoption of a child up to 5 years.
Taxes: Income tax comes at a flat rate of 10%. The standard VAT rate is 20%. Employers must also contribute 14% of each employee’s salary to a social security fund and 4.8% for healthcare.
Alternatives to hiring via an employer of record in Bulgaria
One of the main alternatives to hiring via an employer of record in Bulgaria is to set up an entity and hire professionals directly, which will also mean assuming liability for compliance with local regulations. This can be a good idea for businesses that are intending on establishing a large-scale or long-term presence in the country.
Plovdiv is a cultural hub
However, companies that choose this path may still find that an employer of record in Bulgaria could be of assistance, as in many cases they will offer standalone recruitment services to assist with sourcing direct hires. Hiring via an EOR arrangement could also be a good stop-gap to consider in order to get team members in place while going through the process of company formation.
Another option is hiring international contractors in Bulgaria. These are freelancers operate independently, and while they will charge a premium for their services, they will generally be expected to provide their own tools and equipment, and will not be eligible for certain benefits.
If you are considering this route, it is important to remember that many countries are cracking down on the misclassification of in-house employees as contractors. In many cases, an EOR will be able to help facilitate contractor hiring, as well as assisting you with assessing your contractor misclassification risk, based on the terms under which those professionals will work.
Serviap Global can help you with hiring in Bulgaria
At Serviap Global, we assist companies with global hiring solutions in over 100 countries worldwide. Our portfolio includes international PEO / EOR services, as well as contractor hiring and global talent acquisition services to help source direct hires.
Over more than a decade of doing business, we have emerged from our roots in Mexico to establish an international presence, and are known for our expertise in hiring in emerging markets, including Eastern Europe.
If you are looking to work with an employer of record in Bulgaria, contact us today.
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A proposed new tax on digital nomads in Mexico City is intended to help ease a housing crisis that many say has been exacerbated by a major influx of remote workers into the Mexican capital since the onset of the COVID-19 pandemic in 2020.
Rep. Frida Jimena Guillen (source: X)
According to Rep. Frida Jimena Guillen, who is leading the proposal to the Congress of Mexico City, more than 60,000 remote workers – widely referred to as digital nomads – have relocated to the city in recent years. Some reports place that figure at over 90,000.
While Guillen stated that she welcomed these newcomers and recognized the positive benefits they offer to the local economy, she also outlined concern for the effect they have had on the cost of living in the areas digital nomads tend to gravitate to, with real estate particularly affected.
According to Guillen, rental prices have risen as much as 60% over recent years in some of the most in-demand areas. That has forced some local people and businesses out of neighborhoods they have occupied for generations.
“Faced with this situation, some countries have opted to establish a special tax for foreigners who work remotely so that this income compensates for the inconvenience caused to national citizens,” Guillen said in a video posted to X, formerly Twitter.
The proposal involves charging a tax that foreign remote workers become liable to pay after spending 20 nights in the country’s capital. The tariff would currently work out at around 104 Mexican pesos per day (approximately US$6).
According to Guillen, who represents the opposition National Action Party (PAN), the proceeds of the tax would go towards building affordable housing for local people and improving public transport and other services in non-gentrified areas of the city.
“The problem is that none of those foreigners pay taxes in our country for using infrastructure built through decades and billions of pesos coming from our pockets,” she stated
The explosion of Mexico’s digital nomad population
Remote working was already on the increase when the pandemic supercharged its uptake in 2020, and once international travel began to return to normal, large numbers of people started choosing to relocate internationally.
That saw Mexico City become a major destination for digital nomads, especially those from the United States, thanks not only to the cheaper cost of living and high quality of life, but also the convenience of being on a similar time zone and a relatively short distance from home.
This led to the Mexican capital being labeled a “leading global hub for foreigners free from office commuting, favored by remote work policies and attracted by the kind of convenience that a salary in dollars or euros allows,” in an article published by the New York Times in late 2022.
In the first 10 months of that year, more than 9,500 permits were reportedly issued to US citizens allowing them to reside temporarily in Mexico City, while many more simply entered on tourist visas, offering them the chance to remain in the country and work in jobs based overseas for up to six months.
While the influx has been a boon to many parts of the economy, with the likes of work cafes popping up and thriving in areas popular with digital nomads, it has also created problems for many residents, who are being priced out of areas as rental prices have spiraled.
This has been exacerbated by a major increase in short-term rentals in those same areas, seeking to capitalize on and cater to the influx of visitors, but has come at the expense of residents because those properties are taken off the normal rental market.
While the proposal has not yet been formally debated by the Congress of Mexico City, it is likely to attract a significant amount of support, with public concern about rising prices and gentrification in certain parts of the capital building for years. Guillen’s party holds almost a quarter of the chamber’s seats.
What remains unclear is how enforceable it will be in terms of verifying overstay within the city limits, as well as what pushback may be felt from groups that have particularly benefited from the arrival of digital nomads.
Serviap Global helps companies hire top local talent in Mexico
At Serviap Global, we help companies hire outstanding professionals throughout Mexico without needing to set up a legal entity or worry about dealing with unfamiliar regulations.
We offer employer of record (EOR) services and contractor hiring, as well as recruitment services to help find direct hires, and we have an established recruitment network with a long track record of success in identfying outstanding talent in Mexico.
Contact us to find out more about how we can help you quickly and compliantly hire professionals in Mexico, or anywhere else.
Serviap Global assists companies with EOR services in over 100 countries worldwide
