One of the most complicated aspects of expanding overseas is the hiring process. You have business needs to address that don’t always involve your new expansion. As a result, many businesses opt to work with an employer of record service (EOR) to help handle overseas responsibilities, such as hiring, training, taxation, etc.
When it comes to choosing which EOR to work with, things can get even more confusing. How do you know which one is best suited for your situation? To help you understand what you should look for, this is a list of do’s and don’ts for finding the perfect employer of record.
What is an EOR?
An employer or record is a service that helps expanding businesses outsource talent, manage health benefits/pensions, and hire full-time team members for a business that’s expanding into a new country. One of the main reasons to work with an EOR is helping businesses manage complicated foreign labour laws they may not be familiar with.
Each country has different laws regarding taxation, benefits, employee over-time hours, or benefits. Working with an EOR reduces the risks associated with expanding into new and unfamiliar territory, and complying with new laws and regulations.
DON’T Forget to Research
There are plenty of EOR services, it would be a mistake not to research exactly what each one offers and what you can expect you will need from them. Have a clear understanding of each company before reaching out to them for a quote. Customer reviews, testimonials, or case studies are a great way to see what quality of work you can expect.
DO Ask Questions
Have questions ready and be prepared to ask them. Before signing off on anything, make sure you’ve asked the questions you need in order to make the right decision.
Is there a customer service team with around-the-clock support? Can you pick and choose which services your company needs? What prices can you expect and how do they differ from the competition? With the right answers you’ll be able to make your decision with ease.
DON’T Overlook Your Business Needs
Choosing an EOR before you understand what your company needs is a mistake. You don’t want to find out down the road that your employer or record doesn’t offer certain services you need, or perhaps they offer too many. Before reaching out, have a deep understanding of exactly what help you need in order to expand your business.
DO Explore Your Options
One of the best ways to make an educated decision regarding your employer of record service is to shop around. Request a quote from multiple companies, compare the services offered, and consider the work experience. By shopping around you can ensure no rock has been left unturned, helping you find the perfect EOR.
DON’T Expand without an EOR
While you might think you can handle it, expanding internationally without an employer of record is a considerable mistake. Expanding on your own leaves a lot to chance.
Do you understand international labour codes, taxation regulations, vacation pay requirements, and health benefits? Did you know some penalties include fines or even jail time? Save yourself the time and reduce the risk—expand with an EOR.
DO Work With an EOR Familiar in Your Country of Expansion
If you’re expanding into Canada, you’ll want to work and EOR who has experience with Canadian regulations. Confirming this detail can be the difference between success and failure. Before you choose an employer of record, ensure they have a great deal of experience within the country you are expanding. Otherwise, you might find yourself starting your search all over again.