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As your business grows, you may find the need to expand your operations overseas. If you’re not familiar with the process of hiring international employees, you may be wondering how to go about it. Employment and recruitment law, payroll, and benefits packages differ from country to country, and the landscape of employee management changes completely. Managing these complexities can quickly become overwhelming for companies without an experienced Human Resources department or in-house counsel. This is where an international EOR (Employee of Record), also known as a global EOR, comes in. An international EOR is a third-party agency that specializes in managing employee data and records for companies with employees in multiple countries. Read on to find out 6 reasons why your company needs an international EOR.
#1 Compliance with local labor laws
When you’re expanding your business into a new country, it’s important to comply with that country’s labor laws. Otherwise, you could face hefty fines or even have your business shut down. An international Employer of Record can help you comply with local labor laws by handling payroll, taxes, and other HR-related tasks for your employees. When you outsource your EOR services to a reputable provider, you can rest assured that they will stay up-to-date on changes in global employment regulations. This way, you can focus on running your business without worrying about compliance issues.
#2 Streamlined HR Functionality
An international EOR centralizes all of your employee data in one secure system. This makes it easy for you to keep track of employee information, compliance documents, and payroll across multiple countries. An international EOR can also help you manage the recruitment process for new hires, as well as train existing employees on HR best practices specific to their country of work.
#3 Reduced overhead costs
Setting up a subsidiary in a new country can be costly. Not only do you have to pay for office space and equipment, but you also have to staff it with qualified individuals. An Employer of Record can help reduce your overhead costs by taking care of all HR-related tasks for your employees. This includes payroll, benefits administration, and even recruiting and hiring new staff members. As a result, you can save money and time by using an EOR rather than setting up your own subsidiary.
#4 Increased Efficiency
An international EOR can increase the efficiency of your HR department by automating many of the tedious and time-consuming tasks associated with managing employee data. For example, rather than having your staff input employee information into separate systems for each country, an international EOR can do this for you quickly and easily. This frees up your staff to focus on more strategic tasks that contribute to the overall success of your company.
The needs of businesses change over time. Perhaps you initially hired an employee for a short-term project but now want to keep them on permanently. Or maybe you need to downsize your workforce and let go of some overseas employees. An EOR well-versed in global employment matters provides companies with the flexibility they need to adapt to changing circumstances, especially when it comes to overseas labor laws and regulations. For example, if you no longer need an employee’s services, you can simply terminate their contract with the EOR rather than go through the process of firing them yourself. On the other hand, if you want to keep an employee on after their initial contract expires, you can easily do so by renewing their contract with the EOR.
#6 Improve Employee Satisfaction
Last but not least, you can improve employee satisfaction by ensuring that they are being paid fairly and on time. Especially when it comes to international hires, the payment process can be complicated and risky, potentially causing huge delays in transfer time. Using an international EOR can take the problem out of your hands and ensure timely payment. Employees who feel like they are being treated fairly and receive their paychecks promptly are more likely to be satisfied with their job and less likely to look for new opportunities elsewhere. This can lead to increased productivity and retention rates, which can save your company money in the long run.
If your company is expanding its operations internationally and wants to streamline the process, it’s important to have a plan in place for managing employee data across multiple countries. An international Employer of Record can help you do just that and provide a slew of benefits for companies that are looking to globalize some aspects of their business, whether that be hiring international talent or setting up an overseas office.
Want to partner up with a trusted global EOR? Based in Hong Kong, FastLaneHR is your one-stop solution for HR outsourcing services, and is experienced in helping businesses navigate and oversee international employment-related activities. Get in touch with FastLaneHR today to learn more about our EOR services.