Hiring in Israel with an Employer of Record (EOR)

Hiring staff in Israel? An EOR can help you get started quickly.

Israel, a hub of innovation and technology, offers a wealth of opportunities for businesses looking to expand globally. With a highly skilled workforce and a strong emphasis on research and development, Israel has become a sought-after destination for international companies.

If you’re looking to expand your business’s presence in Israel, an Employer of Record or EOR can help you navigate the complexities of local labor laws and streamline your hiring process. By partnering with an EOR, you can quickly and efficiently hire talent in Israel without the need to establish a legal entity.

An EOR acts as the official employer for your workforce in Israel, handling all HR and compliance responsibilities, while you retain control over daily operations and strategic decision-making.

Why choose an EOR for hiring in Israel?

For startups, small businesses, and medium-sized enterprises aiming for rapid global expansion, navigating the complexities of the Israeli labor market can be challenging. With limited in-house resources, outsourcing HR functions to an EOR offers a streamlined solution to make new hires in Israel. By partnering with an EOR, you can:

• Quickly onboard talent in Israel without the need for a local entity.
• Leave all the risk of complex compliance and labor law obligations to the EOR.
• Outsource payroll, benefits, and tax administration to focus on core business activities.
• Lessen the load of HR tasks, giving them to the EOR and reducing your administrative burden.

An EOR acts as the legal employer for your Israeli workforce, ensuring seamless onboarding, payroll processing, and benefits administration. This allows you to concentrate on growing your business in Israel while the EOR takes care of the complexities of local employment law.

How to select the right EOR provider in Israel

When expanding into a new market like Israel, businesses have two primary options: an EOR or a PEO. To make the best choice, it’s crucial to understand the key differences between an Employer of Record and a Professional Employer Organization.

For organizations prioritizing complete delegation of compliance with employment law in Israel, an EOR is the ideal solution.

How to select the right EOR provider in Israel

When selecting which EOR is best for your expansion into Israel, several key factors should be considered. A poorly chosen EOR can lead to compliance failures, many avoidable costs, and a potentially terrible impact on your workforce.

Look for these factors:

• Legal compliance: How well does the EOR understand Israel’s complex labor laws, regulations, and cultural nuances? Does the EOR have a proven track record of handling industry-specific compliance challenges in Israel?
• Customer service and support: Does the EOR provide reliable customer support, including dedicated account managers and timely responses to inquiries?
• Pricing and transparency: Ensure the EOR offers transparent pricing models without hidden fees or unexpected costs.
• Total cost of ownership: While initial costs are important, consider the long-term value and potential hidden costs associated with an EOR provider. Avoid choosing a low-cost provider that may compromise on quality of service or compliance. Instead, invest in a reliable EOR that can deliver exceptional value and minimize risks.

How EOR services work in Israel

Step 1: Send that contract over

Once you’ve identified a really good candidate and the EOR of your choice, Multiplier can rapidly generate a legal employment contract. Multiplier’s automated HR functions ensure that contracts are fully compliant with Israeli labor law in less than five minutes. You can then customize terms such as job responsibilities, working hours, remuneration, and termination conditions. The EOR will securely send the contract for signature, streamlining the onboarding process.

Step 2: Enhance compensation with competitive benefits

To attract and retain top talent, you really should consider offering a competitive benefits package. Your EOR can provide guidance on selecting suitable benefits that align with local regulations and employee preferences, and you won’t have to figure it out yourself from the long list of local vendors.

Step 3: Get your documentation in order

To streamline the onboarding process, your EOR will collect necessary documentation, including tax and banking information to set up payroll. Automation in Multiplier’s solution does this by default. This ensures a smooth and efficient start for your new hires. Onboarding employees in Israel may seem very difficult, but an EOR like Multiplier makes it easily doable.

Step 4: Run payroll for employees in Israel

Running payroll in Israel can be complex due to specific tax rates and contributions. By partnering with an EOR like Multiplier, you can ensure accurate and timely payments to your workforce while the EOR handles all local taxes, contributions, and withholdings. With Multiplier’s global payroll solution, you can manage payroll for your workforce worldwide in one place.

Step 5: Manage Your Employees and Leave HR compliance to the EOR

Your EOR will handle all aspects of post-hire onboarding, ensuring that your Israeli employees receive their first paycheck and subsequent paychecks on time and accurately calculated. Additionally, the EOR will manage terminations and leaves, ensuring compliance with local labor laws.

Moving forward with Multiplier EOR in Israel

An EOR is a strategic choice for businesses seeking to expand quickly into Israel. By outsourcing HR and compliance functions, you can streamline operations, mitigate risks, and focus on core business activities.

Multiplier’s Employer of Record (EOR) services are very robust. Together, they form a solution for expanding your workforce in Israel and outsourcing related HR tasks. You can hire top talent without the need to establish a local legal entity.

Multiplier ensures seamless hiring, onboarding, and employee management processes. We offer locally compliant contracts, managed payroll, and a range of customizable benefits tailored to Israeli standards.

Simplify your HR and compliance processes. Book a demo today to learn how Multiplier can help you achieve your global expansion goals in Israel.