An Employer of Record, is an employment service provider aimed at helping you employ workers globally. They handle all of the legal and administrative work that comes with international hiring, and ensure that your company is compliant with the local employment laws in your new hire’s country of origin.
Basically, an EOR will employ workers in another country on your behalf. For example, if your company is based in the US, but you’re looking to expand your hiring pool outside the US border, an EOR would not only help you find qualified and skilled candidates from nearly anywhere in the world, but they would then assume responsibility for all things related to recruiting, hiring, and paying said employee.
When it comes to your international employees, an Employer of Record will take care of everything from payroll, to taxes, to stock options, and so on, freeing you up to focus on finding top-tier talent and growing your business.
In 2020, the remote-work opportunities in the US made up only about 4% of all available jobs. Now, remote jobs make up about 15% of the work opportunities, and that trend doesn’t seem to be slowing down any time soon.
These numbers are important because they show the changing landscape of the job market, both within the US, and internationally. US workers are now casting a much wider net when it comes to job searches, which means the race for talented workers has and will continue to be increasingly more competitive.
So, if most workers these days are looking for jobs anywhere in the world, why are you still limiting yourself to just hiring within the US?
Could it be because hiring internationally is complicated and trying to work with the bureaucracies of another country intimidates you? We get it. Which is why we recommend letting EOR experts take on those responsibilities for you. Here’s just a short list of some of the HR and legal functions an employer of record can perform:
There are a lot of benefits that come from hiring an Employer of Record service provider. They not only ensure that your international employees are getting paid properly, but they can also help you attract more global talent to begin with by curating more competitive international benefits packages and the like.
And the list of pros associated with hiring an EOR provider goes on, but let’s break them down into four categories:
Compliance is arguably the most important service an EOR provider offers. Most hiring managers and business owners don’t have the time to sit down and learn the ins and outs of all the employment regulations for every country they may be recruiting from. Luckily, the members of your EOR team will already be experts on all this stuff. This means they will not only save you time and money, but your employer of record will also make sure you don’t find yourself in any sort of legal trouble. There are often costly fines or other harsh penalties associated with international employment non-compliance, so it’s imperative that you’ve got people working for you that know what they’re doing.
In order to legally hire people internationally without using the services of an EOR, many companies would be forced to expand their business globally and transition into being an international entity. As you can imagine, this is a very time-consuming and costly process that wouldn’t make sense to implement if you’re simply looking to broaden your search for new employees.
Using an EOR, on the other hand, makes the most financial sense for most companies. EORs can cut down on payroll and benefits costs, and help with your taxes. And what about recruiting? Unlike most EOR solutions, IsoTalent can also provide you with access to a global network of talent, which could very likely help you cut down on hiring and turnover costs.
There are a lot of hoops that must be jumped through in order to start hiring employees internationally, and the administrative work alone can be incredibly time consuming. But with an EOR, the experts would be jumping through those hoops for you, and since they are, in fact, experts, they’re going to be much better at it.
In the short term, EORs are the more efficient option because they take responsibility for the majority of the hiring process, and even some of the onboarding process. In the long term, using an EOR can be more efficient because they can help you avoid any legal trouble down the line. Partnering with a recruiter like IsoTalent in general is also proven to lower turnover rates, which is another way of ensuring that your company is running as efficiently as possible.
Lastly, one of the most important reasons to consider hiring an EOR provider, is simply the peace of mind they can offer you. Employers of record will not only take on the brunt of busywork that comes with hiring internationally, but they can also help you avoid costly mistakes like worker misclassification.
IsoTalent’s EOR has a proven track record and can help you navigate your way through the many bureaucratic twists and turns of having a global workforce.
Most businesses that want to be competitive in the job market these days should think about expanding their employee search internationally. But as we’ve already outlined, establishing a local entity in another country is expensive and time-consuming. Not only that, but creating an international chapter of your business somewhere else, only allows you to hire from that specifical place.
Why go through the trouble, when using an EOR is not only cheaper and more efficient, but it provides you with access to workers from almost anywhere.
Companies big and small should absolutely be looking into this option, and sooner rather than later. And if you’re worried about the cost of hiring an Employer of Record, IsoTalent offers EORs and other recruitment services at a fraction of the price. To learn more, contact our global EOR team.
IsoTalent’s not only offers a transparent payment structure, but also a vast array of recruitment services aimed at helping you find your next great hire. Our recruiters are knowledgeable, and communicative, and choosing us as your EOR provider will give you access to our extensive candidate database which sources workers both nationally and abroad.
You can trust IsoTalent to source and hire the right talent to help you build a strong, reliable workforce, made up of talented individuals from just down the street or across the globe.
But don’t take our word for it! Check out this testimonial from one of many satisfied clients. Click here to learn more about how EORs help you remove barriers and expand internationally.