The decision to expand globally offers perks like tapping into a wider talent pool and growing your business. But it requires an understanding of labor laws, regulations, and other requirements in the countries you wish to enter. This is where a global employer of record (EOR) comes in.
An EOR service provider allows you to hire and manage teams in other countries where you’re not familiar with labor laws or have an office.
The global EOR acts as your partner and extension of your business without you being present.
Keep reading to learn more about what a global employer of record is and why you need one. We’ll also compare EOR providers to professional employer organizations (PEO) and discuss how TechieMatter’s EOR services can help your business.
What is an employer of record?
An employer of record acts as a third-party HR service provider for your business. EORs provide a variety of legal, financial, and HR services to ensure businesses are compliant in the countries they operate in.
The EOR provider acts as the legal entity hiring your employees, managing their compensation and benefits, engagement programs, among other benefits.
You can work with a local EOR service provider, which is limited to one country, or a global EOR, which covers several countries.
For example, if your company is headquartered in the United States and wants to hire tech talents from India, Nigeria, and the Ukraine, you can work with a global employer of record, like TechieMatter.
TechieMatter helps you every step of the way. From creating the job description for the role you’re trying to fill to sourcing, hiring, assessment, technical interviews, all the way to onboarding.
Further reading: Boost Retention with These 9 Virtual Onboarding Best Practices
EOR vs PEO
A professional employer organization (PEO) is a type of EOR but with a different business and work model.
In the Middle East, the PEO model is referred to as an outsourced HR department or manpower planning services company.
Unlike the EOR which handles legal and financial aspects of your contract with employees, the PEO acts as a co-employer of your workforce. Consider them an outsourced HR department.
PEOs and HR management companies often work with companies that hire full-time employees only. Meanwhile, EOR providers work with companies, hiring full-time, part-time, temporary, and contractor roles.
Here’s a clarification of the top differences between employers of record and PEOs.
Benefits of using a global EOR service provider
Now that we’ve covered the differences between EORs and PEOs, let’s look at why companies turn to EOR providers.
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Access to global talents
One of the top reasons companies turn to global EOR providers is because they offer a wider net of skilled talents.
Not only can they source candidates from around the world, but also can provide a full-cycle recruitment service.
From sourcing to testing to selection to hiring and post-hiring.
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Save time to focus on core operations
EOR providers help you save time on recruitment all the way to onboarding and post-hiring.
For example, as a global EOR service provider, TechieMatter takes away all the hassles of tech talent recruitment, ensuring you find the right candidates in record time.
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Cost-effective solution
Hiring and paying employees across international borders can be costly. Especially if you’re trying to pay employees in multiple countries, an endeavor that can result in costly transfer fees.
EOR service providers give you visibility over the transferred amount. This ensures no problems arise when employees receive their salaries.
Working with a global EOR provider like TechieMatter saves you all this hassle and helps you transfer salaries on time, without worrying about fees and additional costs.
In addition, EOR companies help you offer benefits at discounted local prices.
For example, if you have team members in India and Egypt, you can offer them medical insurance with local providers, instead of expensive international insurance.
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Legal and labor compliance in several countries
One of the top reasons companies around the world use employers of record is to ensure they’re in line with local laws, regulations, and compliance in countries where they hire people.
You don’t want to get excited about hiring skilled employees, especially if you’re cutting on costs by hiring abroad, only to find yourself inundated with hefty fines.
Whether you want to hire one full-time employee or a team, there are labor laws and regulations to consider. Maintaining legal and labor compliance ensures your company doesn’t fall into any traps or suffer from any violations you may unknowingly be doing.
For example, you’ll find that full-time, part-time, and contract-based labor regulations for employees in the United States differ from countries in the European Union, Africa, or the Middle East.
Put simply, working with a global or local EOR ensures you mitigate legal, labor, and financial challenges and risks. It also ensures a hassle-free experience.
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Entity setup
Besides being a cost-effective and time-saving solution, EORs help you set up your entity in another country. Doing so allows you to offer additional perks like a company HQ, where you conduct annual or quarterly meetings or meetups.
Companies that require on-ground and in-person operations often need to have a physical entity set up in different countries.
Some companies do this when they begin to expand and have dozens of team members in other countries.
Besides managing the recruitment process, the EOR service provider offers benefits packages along with ongoing HR support for your business there.
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Ability to offer employee benefits
Let’s face it. Offering a competitive salary and annual vacation days aren’t considered ‘benefits’ or perks anymore. They’re a given.
Employees, especially skilled tech talents, expect more. They need an incentive to leave their company and come to yours.
From offering an employee engagement and rewards program to travel opportunities to paid education options, medical insurance, access to workspaces, among others; these are perks talents would consider joining your company for.
Working with a global employer of record gives your company the opportunity to provide various employee benefits in multiple countries.
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Opportunity to enter new markets
Working with EOR providers can be your gateway to entering new markets. This isn’t limited to hiring team members in a new country or offering them benefits.
Entering new markets can mean massive business endeavors worth millions of dollars. Using an employer of record helps you manage taxes, ensure compliance, mitigate legal and financial hurdles, among others.
In other words, an EOR can help you expand your business, while avoiding the headaches and many expansion challenges.
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Access to competitive medical insurance pricing
Another reason to consider working with an employer of record service provider is their access and connections to local medical insurance companies.
One of the top employee benefits new candidates seek is medical insurance.
Medical care is expensive, regardless of which country you’re in or operating from.
That’s why companies offering medical insurance packages are more likely to attract talents.
TechieMatter, your Global EOR for tech talents
As a global remote employer of record, TechieMatter provides all the above services to companies around the world.
Whether you’re based in Germany and want to hire and onboard team members in Egypt and India, or you’re a fully-remote business and want to have teams in several countries, we’ve got you covered.
In addition to the above, we offer a few more benefits as global EOR providers:
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Flexible payroll options
One of the top EOR services our clients use is the flexible payroll option. TechieMatter specializes in hiring tech talents for companies around the world.
In the tech field, it’s common to be paid in US dollars, even if you’re based in Egypt and the local currency is the Egyptian pound.
As an EOR provider, TechieMatter helps clients pay team members in US dollars, euros, or the local currency where the employee is located.
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Employee home-office setup
Found the right tech talent in the country you want but they don’t have the setup to work on your big project? No problem!
TechieMatter helps companies set up their employees’ home-office, with purchase orders in various countries.
Whether you’re in the United States and hiring in India or Poland, you can make purchase orders for laptops, workstations, or any devices your employees need to start working.
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Retention and engagement benefits
Benefits can be the reason candidates join your company or work for your competitor. Benefits vary from compensation, bonuses, to employee rewards and recognition programs, among others.
As an employer working with a global EOR provider like TechieMatter, you can offer your remote and global employees various benefits.
These benefits can include:
- Access to co-working spaces in each employee’s country (to allow team members to work together or find alternatives to work-from-home settings)
- Access to discount cards that they can use for personal use
- Access to local medical insurance providers (local for the employee)
- Travel opportunities
- Mental wellbeing sessions
- Entertainment packages such as Netflix or Amazon Prime subscriptions
- Access to gyms and other physical activities (discounted access)
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Banking and financial benefits
Companies using TechieMatter’s EOR services also get access to banking and financial benefits. Not only can they open bank accounts for their employees, but also offer credit and debit cards, for personal or business use.
- EOR services for all your employees
As mentioned, TechieMatter specializes in hiring tech talents for companies around the world. However, our EOR services extend to anyone in your company.
If you want to manage the payroll of employees not hired by TechieMatter, you can do so with ease. Just let us know by messaging the support team at support@techiematter.com.
Wrapping it up
As you can see, working with a global employer of record can help your business in many ways. Particularly in helping you expand your footprint and hire globally.
Companies hiring tech talents should be aware that they are competing for talents on a global scale. Their competition isn’t just companies in their local market but a global competition for attracting top tech talents.
As a global employer of record, TechieMatter helps companies attract, retain, and engage tech talents. And because we understand the differences between tech talent recruitment and general recruitment, we offer a complete tech recruitment solution for businesses.
The TechieMatter tech hiring solution begins with recruitment, covers assessments and expert interviews, all the way to onboarding and EOR services.
Save time, money, and grow your business faster with TechieMatter. Learn more about our employer of record services.
