Employer Of Record and Hiring Remote Workers

What is An Employer of Record (EOR)?

An Employer of Record is an organization that handles all responsibilities for hiring employees. The EOR becomes the employer of the workers employed since they manage even the payroll.

Even though the EOR manages the employee salary, the initial company still has jurisdiction for the workloads, promotions, terminations, and the fair wage of the workers.

In a general sense, the duty of an EOR can be summed up to:

Easy Access to International Labor Force

With the help of an EOR, you can easily hire workers from your target country without the obstacles of the local labor laws and a local entity. EORs can easily navigate the local market without the trouble of finding appropriate employees.

Straightforward Processing for Payroll

Employer of Record handles the complicated operation of calculating the local country’s taxes and insurances. With this benefit, companies can focus on other works without worrying about the accurate deductions per worker.

Fast Course of Action

EORs can quickly give workers to clients in a matter of weeks. Starting companies can benefit from this crucial aspect of having a fast operation.

PEO (Professional Employer Organization) and Employer of Record are somewhat similar with their services of aiding the company, but there are clear distinctions between the two.

PEOs Become A Part of Your Company

First and foremost,j a PEO would be incorporated into the company to be a part of its HR department seen as co-employers. Similarly, they provide services such as the worker’s payroll, termination, benefits, etc. Unlike the EOR that handles all of these services without being a part of the business.

PEOs Need to Setup A Local Entity

One of EORs most significant advantages is not needing the client to have a local entity in the worker’s country. However, since PEOs are a part of the business, they require registering a local entity.

Describe The Right Individual for The Position

Describing the ideal candidate would narrow down the chosen employees. It will also benefit the client since they will be compatible with their needs.

Examples of must-haves in a remote worker are excellent communication and time management skills. Without these characteristics, companies will have difficulty asking for updates and meeting deadlines. 

Showcase The Company Culture and Values

By letting candidates preview the work environment, they will know the best way to work there. Another benefit of presenting the company values is the filter to see eager candidates that want to be a part of the business.

Assess Their Capabilities

Evaluating a prospect by asking the appropriate questions would let you know if they are a good fit in the company. You want to ensure that they are the best for their job description.

Employer of Records assists a company in a lot of ways. There are similar organizations that act like them, but they are fundamentally different. In the end, all of the EORs benefits are there to make a companies responsibilities lighter. It is still up to them to choose the right employee.

Global People is a leading local employment solutions provider for national and international corporations and can advise and escort you in your next destination.

About Us

Global People aims to assist its clients to fully focus on their development and success in their target destinations without having to worry about the regulation and compliance involved in the employment of their local and expat employees.


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