An EOR, or Employer of Record, can play a crucial role in helping a business expand globally by simplifying and managing various aspects of international employment.
Here are five benefits of working with an EOR during that time:
Access to ongoing guidance from local professionals
An EOR with experience in the target country can provide valuable insights into the local culture, business practices, and employment norms. This cultural understanding can enhance communication and collaboration among global teams.
Speed to market
As EORs employ workers on your behalf, this means that you will not be required to set up a local entity, saving you time and money that you can spend focusing on other aspects of the business.
Efficient onboarding and payroll processing
EORs have systems in place that will streamline the onboarding and payroll management of people globally. They will deal with any regulations relating to the different type of contract workers. In addition, currency fluctuations can further complicate matters, affecting the value of wages and financial planning for both the organization and its employees. EORs often offer pay remittance management as part of their service.
Compliance with local employment laws
The US for example functions like 50 individual countries in many aspects, including taxation and employment laws. Each of the 50 US states has its own legislation and the autonomy to enforce unique employment laws. Just a few examples of US employment laws that can vary state-to-state: overtime, and minimum wage. Partnering with an EOR operating in the country you wish to expand in will be of significant help.
Scale up or down as needed
An EOR provides flexibility by allowing businesses to scale their workforce up or down in response to market demands without the administrative burdens of hiring and firing employees in each country individually.
If the US is one of the countries you’d like to expand to as part of going global this year, the LGWS experts can help – book your call today.