You’ve heard all about the benefits of teaming up with an employer of record in order to expand your business operations into Canada. Legislation can change from country to country and even from province to province, which can complicate hiring, termination, and even calculating vacation time and holiday pay.
Working with an EOR solves all these issues. If you’ve heard others warn you of the “dangers” of teaming up with an employer of record, you can almost bet these folks went about engaging the EOR the wrong way!
If you’re concerned about partnering with an employer of record, learn what not to do when you approach them.
You Don’t Set Expectations
What do you want out of your partnership with the employer of record? With all the talk of advantages, you may think the sky’s the limit. You want whatever the EOR can do for you.
Keep in mind employers of record aren’t miracle workers. They’re very helpful and, when engaged correctly, they can help keep your business on the straight and narrow. If you can’t tell them what you want or what you expect, they probably won’t be able to live up to your standard.
Instead, think about what your business needs are before you approach the EOR. Once you have a clear idea of what you need, you can talk to your potential partner about their services and how they can meet those needs.
You Don’t Communicate Clearly
Setting expectations is part of a larger task: communication. Many business owners and managers who try to connect with EORs and fail do so because they don’t communicate properly.
Keep in mind poor communication can happen on both ends of the line. Representatives at the EOR’s offices may not be 100-percent clear or they may promise too much. They might fail to communicate important details. Similarly, you may forget to mention certain details or decide not to ask when something wasn’t clear.
If something is unclear, ask. Don’t be afraid to restate your points or to mention details a second (or even third) time. Good communication is key to a great relationship with your employer of record.
You Weren’t Truthful
Some company owners and business managers like to think they can pull the wool over a potential partner’s eyes. In the end, this strategy almost always backfires, as the truth will come to light.
Take, for example, a company that wants to team up with an EOR, but their finances aren’t quite in order. The client decided to disguise the truth about the financial situation. The employer of record initially didn’t ask them to provide funding for payroll, believing the company to be in good financial standing.
Just before implementation, however, someone at the EOR discovers evidence of the funding issue at the client company. Maybe an initial payment bounced or a lien came to light. Either way, the EOR now demands upfront payments for payroll to protect their own issues. The client company is furious and the deal collapses.
This wouldn’t have happened if the client company was just upfront and honest in the first place. While it may have meant they received less favourable terms, they would have still had a good relationship with their EOR and help with their payroll.
You Didn’t Read the Fine Print
One other issue might have happened in the example scenario above. Maybe the client didn’t read the fine print. Perhaps they thought the EOR wasn’t asking for an upfront payment, but the contract said otherwise. The client was thus surprised and thought this was “changing” the terms of the agreement.
Be sure to read the fine print of any contract you sign, whether it’s with an employer of record or another service provider. Engaging an EOR is easy, so long as you do it the right way.