As you look to take your business south of the border, you may have many questions. Canadian business owners sometimes feel a bit daunted by entering the US market, and for good reason. There are many different rules to be aware of, as well as things such as cultural differences.
One of the smartest decisions any Canadian business owner could make is to ask for help. You have plenty of choices when it comes to picking a partner, and all of them offer something a little bit different.
One option you may consider is an employer of record (EOR). It’s important to consider what an EOR does, and how they will help you grow your business.
An Employer of Record Makes Compliance Simple
One of the most compelling reasons to work with an EOR is that they already know the US market. They’re aware of the different rules and regulations. You can call on their expertise to help you navigate these uncharted waters.
Compliance work is key to a business’s success, but it might be a tall task for even the most talented of HR teams. By working with the EOR, you could reduce the amount of time your team spends sorting out taxes codes and deciphering employment law.
EORs Save Businesses Time and Money
Since the EOR works to make your US operations comply with the letter of the law, they can help you avoid hefty fines and penalties. Taking a look at payroll showcases how the EOR helps and provides value.
The IRS reports the average small business pays $845 US per year in payroll fines. Late payments are the most common issue. By working with an EOR, you can avoid late payments and other US payroll missteps. That puts money back in your business’s pocket. You could probably think of a few better ways to spend nearly $850.
More than that, the EOR also saves you money by reducing the amount of time you spend on tasks like payroll and compliance. Since the employer of record’s team is made up of experts, they make quick work of almost any task you set out for them.
Boosting Employee Satisfaction
Canadian business owners should consider working with an EOR to increase employee satisfaction.
How does an EOR make your employees happier? The EOR’s expertise and skill in delivering HR services make it easier to manage your employees the right way. They can help you offer the right compensation package to your US workers, as well as handling payroll, worker’s compensation, and more.
Better yet, they could also advise on where your company policies might be improved to make your firm more attractive to prospective candidates. This makes it easier to hire the right talent and keep them onboard longer.
Navigating Cultural Difference
One thing Canadian business owners may not think of is just how different American work culture is from their own. American workers have very different expectations than Canadian ones. They even prefer different styles of communication and leadership.
Those elements might cause friction between your business and those who work for you. By working with an EOR, you can change the story and provide a better workplace environment. An experienced EOR could help you pinpoint problem spots, and advise you on how to narrow the gap between your Canadian company culture and what your US workers expect from you.
Increase the Success of Expansion Efforts
Perhaps the biggest benefit of working with an EOR is their ability to help you succeed in the US market. Many Canadian business owners make missteps when they go it alone, which may cause problems for the business.
By calling on the experience and expertise of the EOR, you can make expanding into the US much smoother sailing. If you’re curious about what an employer of record could do for you, get in touch with an expert team today.