Hiring remote workers has become one of the most advanced trends in today’s world. On the other hand, many companies want to enter the global market by hiring virtual employees. However, it’s not easy to build a virtual team.
That’s the reason why these companies prefer hiring employers of record services. According to a survey, around 58% of companies will hire EOR services in the next three years. So, what’s the advantage of hiring an employer of record solution?
If you have the same question, we can help you out. In this guide, we will share the top benefits of an EOR solution. Moreover, we will also cover how an EOR can help your company grow globally. So, let’s find out.
What is an Employer of Record?
In simple words, an EOR is a firm that can help a company in several employee remuneration activities including performance appraisals, taxation, insurance, visa application, and more.
There was a time when most company workers used to handle all these things. However, things are different now. Modern companies prefer outsourcing these tasks to an EOR solution. On the other hand, it’s a very good way to grow a business in the global market.
Plus, the demand for EOR firms will increase in the coming years with the opportunities for remote work. An EOR service not only saves your time, but it will open new paths for your company.
What Does an Employer of Record do?
If you are not aware of what an EOR does, we can help you out. Most companies hire an employer of record for several reasons. In the following list, we will share how an EOR can help you improve your business. Let’s find out:
1. Legal Compliance
As we mentioned before, it’s not easy to operate a company virtually. It can be hard when you want to grow your business in a foreign country. In this case, you need proper knowledge of the required company rules. Dealing with legal compliance is one of the top tasks of an EOR solution.
2. Risk Mitigation
Besides working with remote workers, you have to be aware of some risks. You see, misclassification of workers is one of the major risks that a company might face. In this case, an EOR solution will help you out. However, you have to choose an EOR firm wisely. So, they can reduce risks for your company.
3. Payroll Administration
One of the top activities of an EOR company is administering payroll and tax. You see, most companies do these tasks by themselves. However, it can create a lot of issues if you want to enter the global market. An employer or record solution can take care of payrolls and tax deductions.
4. Employee Management
Employee management is a huge task, especially when you have remote workers. Here comes the EOR service. From hiring workers to handling their tasks, an EOR can solve everything. On the other hand, EOR services can work on some crucial things such as managing employment contracts, preparing timesheets, and permitting visas.
Top Benefits of Hiring EOR Service
As we noted before, most companies hire an EOR service to grow business. However, you have to know the top benefits before hiring a service. That’s why we will share the top advantages of hiring an EOR in the following:
1. Growth
One of the best reasons to hire an employer of a record firm is growth. Yes, they can help you a lot when you want to grow your business on the global market. As we noted before, these firms are very good at handling remote workers and legal issues. With a good service, you can expand your business in different locations.
2. Saves Time
Another great advantage of an EOR service is it can save a lot of time. If your workers are still dealing with legal issues, taxation, and managing workers, you have to change it. An EOR company will take care of everything in this case. Plus, you don’t have to hire workers for separate roles.
3. No Regulatory Risks
As we noted before, you have to face legal compliance when you want to grow your business globally. It can be difficult when you have to work in multiple locations. An employer of record service will take care of everything related to labor law. Plus, they have better experience handling these things.
4. Updated Records
You see, hiring EOR services is an advanced thing. So, we can expect more advanced activities with these firms. And that’s one of the top benefits of hiring EOR solutions. Besides handling crucial tasks, they will keep all records up-to-date. Plus, this will help you save time and energy as well.
Conclusion
No matter if you have just started a business or want to grow your company, an employer of record can help you with a lot of things. However, you have to choose the right service as well. In this case, you have to consider some factors before hiring an EOR. You can also get help from other companies.
FAQs
Q: What are the advantages of a company using an EOR?
There are several benefits of hiring an EOR service for your company. An employer of record can help you by saving time, promoting immigration compliance, facilitating employee onboarding, and more.
Q: Why use an Employer of record?
Hiring an employer of record can help your company in different ways. This service can help you with managing workers and taking care of legal agendas.
Q: How do I choose the right EOR?
To choose the right EOR, you have to consider some facts including the model of pricing, flexibility, the data privacy and security that the EOR service provides, and experience.
Q: What is the difference between a PEO and EOR?
You can hire EOR in other countries even without a co-employment status. On the other hand, a PEO can help you with a co-employment arrangement.
