Employer of Record & Its Benefits
An Employer Of Record (EOR) is almost the same as a Professional Employment Organization (PEO). The difference comes from the legal responsibilities of the third-party organization. With a PEO, the business and the PEO have a system of sharing the employment obligation. The system is vastly different from an EOR, in which they are the sole responsible for the legal commitments of the workers.
Another difference is that the establishment of a PEO must be in the country where the employers are. On the other hand, an EOR is free from the legal obligation of establishment in the company’s nation.
The best benefit that an Employer of Record can give your company is providing you employees from your desired country without the hassle and complex systems of laws and regulations.
EORs can be your trial when you are interested in operating in a specific country. By employing workers from that nation, you will see how that country performs.
Due to EORs having legal obligations for workers, they can easily set up a system for you in the country without needing to have an established entity right away.
Employer of Records can also aid you in not having to analyze all of the labor laws in that specific country. Since they have all of the obligations for the workers, you did not need to stress yourself all the intricate details of the regulations.
Having different labor laws also means having various regulations for payroll in each country where you get the workers. EORs ensure that the payment for the hired workers complies with the law.
Lastly, they can easily give you detailed options for workers as they also have the duty of running background checks on them.
Come Up With A List Of Criteria
In choosing an Employer of Record, you need to first come up with a goal in your mind. What kind of responsibilities do you want them to handle? What countries are you targeting to recruit workers? Having these in mind, you can narrow down a plethora of options into several that have your criteria.
Furthermore, the EORs that you have narrowly downed to can have a picture of what you desire from them, eliminating miscommunication and saving the time and resources of both you and the EOR.
Check Their Performance
Since the responsibility of handling employees, payroll, and labor law of the country is complex and must be taken care of carefully, you need to make sure that the EOR chosen has a good reputation among other companies that have used their services.
Not only is the reputation important, but also their experience. Comprehensively researching the company is a must to see if they have gained enough knowledge in the industry and the country to see if they know what they are doing.
Employer of Records is a great way to have a fast entity in your chosen country. They handle several responsibilities so selecting the best option is a must.
Looking at the performance and other data of the EOR chosen must still be done from time to time to see if they have provided exemplary services for your business.