With the global job market flourishing, businesses are adopting a worldwide growth perspective to reach new heights of success. However, hiring, compensating, and overseeing international employees can be quite challenging while ensuring compliance.
Collaborating with an Employer of Record (EOR) can help you navigate these difficulties and take advantage of global employment opportunities without the need to establish local entities.
How does an Employer of Record operate? Let’s dive into the advantages of working with a global EOR service and discuss how to select the best option for your needs today.
What is an EOR?
An EOR is a solution that legally employs workers on behalf of another company, enabling global hiring without setting up a legal entity. A global EOR serves as the legal employer of individuals that a company wants to hire in a new country when that company does not have an entity in the country and can’t legally employ those individuals, regardless of their entity status. As the legal employer, an EOR manages all aspects of employment including payroll, taxes, benefits, human resources tasks, and compliance. Because an EOR assumes the responsibility of ensuring compliance with local labor and employment laws, it must stay up to date on local legal requirements relating to employment.
With an EOR in place, you can:
1. Begin hiring globally starting in minutes.
With a quality EOR, you can hire the best person for the job, anywhere in the world – regardless of entity status. Everything from automatic contract generation to global payroll setup and management reduces risk and allows your business to begin operations in your target country starting in minutes instead of months.
2. Simplify global payroll processing.
Do you manage team members in multiple countries? No problem. An EOR legally employs workers and puts them on its locally compliant payroll, eliminating the need to set up subsidiaries internationally. Team members are paid on time, in their local currency, and in compliance with local payroll and tax requirements.
More than ever, implementing a compliant, accurate payroll system is seen as a key driver to successful business operations. According to 2024 global talent trends, enhancing or modernizing pay practices is a top priority for 41% of HR professionals in 2024. In addition to providing compliant and accurate payroll, G-P’s Global Growth Platform™ offers equity-based compensation in supported countries as well as clear and simple invoicing with our premium EOR package. You can enjoy the peace of mind knowing that payroll reporting and tax withholdings stay compliant with local labor laws.