EOR means an employer of record, an effective and most straightforward way for companies to hire global talent.
Employer of record services make businesses better places to work. This article explains employer of record (EOR) Canada and how it can boost your global employee experience. Read on to discover more.
What’s An Employer Of Record (EOR)?
An employer of record (EOR) is a third-party company that allows businesses to recruit and onboard workers anywhere without having subsidiaries and ensuring compliance with employment laws. Some complications arise when hiring foreign employees.
These complications originate from country-specific employment rules and regulations.
Contracting and onboarding foreign contractors and hiring remote workers is challenging without setting up local legal entities and involving experts in each target country.
In many countries globally, businesses would require legal entities to be established to hire residents, which is a lengthy and costly process.
It’s difficult to follow the employment and payroll tax laws of foreign countries without local experts.
Employer Of Record: A Legally Compliant International Employment Solution
Employer of record (EOR) can help solve all these mentioned issues by managing local legal compliance, conscripting compliant contracts and making sure there’s no employee misclassification.
Also, it accurately handles tax and payroll compliance while at the same time ensuring employees receive correct and timely salaries as well as statutory benefits.
The employer of record acts as the legal owner of your global workers on paper.
As a business owner, you still have the responsibility to manage your workers and take care of your company’s everyday operations and functions.
The employer of record still handles all complex HR tasks, and you can utilise great global talent without establishing local entities.
An employer of record is a helpful partner if you wish to expand in different worldwide marketplaces.
How An Employer Of Record (EOR) Improves Global Employee Experience
Up to this point, you have already discovered some of the benefits that employer of record offers for both businesses and their employees.
Here are the many ways an EOR benefits employees and enhances the overall working experience.
Makes Onboarding Painless And Seamless For New Recruits
When EORs hire new workers on behalf of client businesses, they offer an onboarding plan for the paperwork process involved in making international recruitments.
They handle all complex contracts, tax and legal preparation for workers, minimizing confusion and enabling them to focus on achieving their employment goals.
During the first month, EORs can also help recruits get set up with vital tools and equipment and help with other human resource processes, such as compensation plans, contract support, and offboarding.
Enables Diverse And Flexible Work Environments
An employer of record goes arm in arm with the future work. It allows recruits to live and work anytime, anywhere, which is important since most employees are currently looking for flexible locations and hours in their next career.
An employer of record can modify contracts easily if workers decide to travel for longer periods or relocate.
Another important aspect is that an employer of record provides much-needed diversity.
Since it recruits globally, it creates a naturally diverse team. On top of that, an employer of record is usually familiar with the culture of the people it recruits, and it adds the advantage of easy communication in native languages.
Allows Timely And Error-Free, Employee Pays
An employer of record owns global payroll software and management systems.
That means it takes care of the whole payroll process for all workers.
This ensures all workers receive their earnings in local currency without having to exchange and incur unnecessary fees.
It also ensures that no employee misses a paycheck. Employees who are sure of stable pay spend more time looking for ways to enhance their skills and perform excellently.
They work with peace of mind knowing everything is in control.
Offers Continuing HR Support
Partnering with the best employer of record means you’re still in full control of your workers.
However, an employer of record can be a vital part of your business’s human resource department.
It acts as a link between the management and employees. When workers have problems with their contracts, training, benefits, onboarding, offboarding or any other HR issue, their employer of record can help them.
Is An Employer Of Record An Ideal Option For Your Business?
One of the key factors for deciding to partner with an employer of record (EOR) is the presence of a local entity.
An EOR acts as your business’s local entity, which you can take advantage of, when expanding your business globally.
It helps you avoid lengthy and costly processes while enjoying the great talent that the whole world offers.
Partner with the leading employer of record service provider and enjoy all the benefits mentioned in this article.