EXPANDING a business overseas is a pivotal and key moment for any growing business.
And as the business landscape continues to evolve, more and more companies are exploring the idea to reap the benefits of going global. For instance, increase in brand awareness, improved margins, and enhancements in overall business operations.
However, making that transition comes with challenges especially when it comes to hiring people overseas.
Employer of Record (EoR) solutions can be the perfect initial approach if you’re looking to hire talent outside your home jurisdiction.
But how does it work?
Here, one of the leading experts in this field, Steve Malley, Global Director of EoR at HSP Group, shares his insight on the crucial role EoR can play within any growing business, and the importance of finding the right provider.
How an EoR can help global expansion
A rapidly implementable and risk-mitigating strategy, EoR empowers businesses to access fresh talent pools whilst removing the need for the establishment of a full legal entity. When executed correctly, this method eliminates any potential breaches of local employment or tax regulations.
The intricate landscape of foreign employment and tax laws can expose businesses to substantial risks. However, EoR acts as a protective shield, ensuring compliance with local regulations. By leveraging EoR, companies can confidently operate within the confines of the legal framework, significantly minimizing the likelihood of noncompliance.
It’s important to highlight that EoR solutions offer a particularly advantageous avenue for startup businesses, enabling them to establish a presence in diverse markets with a streamlined financial commitment.
From the outset, the advantages of EoR are abundantly clear, yet it is crucial to select the right provider to help harness these benefits effectively.
Things to keep in mind when picking an EoR provider
With the market currently swamped with multiple EoR providers, all of which present their own thoughts and ideas, business owners are inundated with information, making it difficult to make an informed decision.
That’s not necessarily a bad thing – having multiple options can be great for businesses that prefer to compare scenarios before committing. For example, different providers favor different approaches and recommend varying routes, such as suggesting direct or non-direct EoR.
All this excess information can, however, overcomplicate the process, which is what you’re trying to avoid through the use of EoR.
It’s important to do your research and find an experienced provider that can ensure the essentials are covered, such as compliance, whilst also actively seeking to simplify the overall process.
Furthermore, key areas for consideration when choosing a provider include the transparency of the provider, its knowledge and expertise of different markets, its global mobility, and workforce solutions.
Three ways to implement EoR
As part of our main EoR offerings at HSP Group, we have four solutions to choose from:
HSP EoR Offerings
EoR Evaluation – a HSP consulting project to help a customer evaluate if EoR is the right or the wrong answer for them, given their objectives and other available solutions in the market.
Solutioned EoR – HSP ‘white-labeling’ 1 of 3 EoR partners that have been selected through a lengthy RFP exercise. We will have personas for buyers and EoR providers to better align which EoR provider the work is sourced with based on the buyer profile.
Supported EoR – a ‘managed service’ HSP offering, whereby we sit between the end customer and the EoR provider to ensure the customer has a fully optimized experience.
EoR Graduate – HSP assists a customer with establishing/running their own infrastructure and moving away from the EoR model. This likely includes some version of setting up an entity, managing registrations, assisting with setting up a bank account, managing payroll, and statutory accounting and tax.
To find out more about HSP Group and how it can assist with global expansion, particularly through the use of EoR solutions, visit the website today at https://www.hsp.com/eor