Whether youโre hiring internationally to meet a specific need, or to expand
your organizational footprint and expertiseโor bothโitโs critical to have the
right strategy in place for employing top talent.
But what if that top talent resides in countries where you donโt yet have a
legal entity for employing them or you donโt have plans to establish one?
It may be time to explore global employment solutions.
A global
employer of record, sometimes referred to as an
international PEO,
enables organizations to hire the talent they needโvirtually anywhere around
the worldโwithout the need to first
establish an entity . Providers of this type of global employment solution hire employees on your behalf, handling the legal, HR and payroll
requirements, while giving you the freedom to manage their work and
contributions to your company.
Whyโand whenโto consider global employment solutions
Using a solution like an employer of record can give your organization the
advantage of streamlined hiring in unfamiliar international markets as well as
peace of mind that employment is in compliance with local laws. How? In-
country HR and payroll expertise and support.
Consider the following scenarios:
Because an employer of record has in-country HR and payroll experts supporting
your organization, you can be sure that your new international workers are
paid correctly and on time, have appropriate taxes withheld, and receive all
the benefits theyโre entitled to.
Because an employer of record has its own local entities or partnerships, it
legally hires works on your behalf, absorbing the responsibilityโand the
riskโof complying with local labor laws and ensuring all employment contracts
for your new workers meet the countryโs standards, no matter how nuanced or
complex.
What to look for when selecting a provider for your global employment needs
Not all global employment solutions are alike, so once the decision has been
made to use one for your international hiring, itโs important to evaluate them
carefully. Here are a few questions to ask when selecting a provider.
How do they communicate? Learn about the providerโs preferred method of
communication and whether youโll have a direct point of contact. Will they be
available via phone, email, text or videoconference in your time zone or their
own? With workers potentially thousands of miles away, you need to know youโll
be able to communicate with your provider for HR and payroll support should
any questions or issues arise.
How is the partnership structured? Make sure you fully understand the
roles and responsibilitiesโand the costsโof working with the global employment
solutions provider. With an employer of record, the HR and payroll
administration are typically handled by the provider, with the client company
directly managing the employee, including their work schedules and
performance. And although working with an employer of record is significantly
less costly than establishing a local entity, you should gain a clear
understanding of the provider's costs, what they cover and whether they pay
workers in the local currency, as this may affect your bottom line.
An employer of record is often the simplest way to hire the talent you need,
no matter the international market. Learn more about how our
Employer of Record (EOR) solution has been helping organizations employ talent around the worldโcompliantly and often in as little as two weeksโfor over a decade.