What are the possibilities of a global Employer of record?
An employer of record proves to be a valuable ally in effectively managing a dispersed workforce and navigating global markets. A global EOR enables businesses to:
Explore New Markets:
If your business harbors aspirations for global expansion and wishes to venture into a new market but does not plan to establish a legal entity, an EOR offers a compliant means to test the waters in a new country without the commitment of entity formation. Through an EOR, you can rapidly hire a team in new international markets, generate additional revenue streams, and reach fresh customer bases.
Attract and Retain Top Talent:
The appeal of remote work is a highly sought-after benefit in today's labor landscape. The competition to attract elite talent remains intense, prompting an increasing number of companies to embrace remote workforce options. Furthermore, hiring without geographical limitations broadens your talent pool, allowing you to pinpoint individuals with precisely the skill sets you require. A global EOR assists companies in hiring from any location, attracting top-tier talent, and, when necessary, facilitating the relocation of employees without the need for entity establishment.
Employ Staff During Entity Setup:
While establishing a legal entity permits you to hire local talent and expand into a new international market, it demands a substantial investment of time, capital, and expertise in the host country's legal framework. An EOR can serve as an intermediary solution, providing support for hiring and valuable insights into entity establishment while you finalize the necessary requirements.
Avoid Misclassification of Contractors:
Instead of recruiting international employees or setting up an entity in another country, some businesses opt to engage contractors as a cost-effective method to hire remote international talent. However, as a company grows, there is a heightened risk of incorrectly categorizing contractors as employees. A global EOR offers an efficient way to transition contractors into employee roles, mitigating compliance risks.
