Onboarding and managing the HR needs of employees spread across countries is costly and cumbersome. Before hiring an employee beyond your borders, you must set up an entity in the prospective country. You’ll also need legal and accounting professionals to handle compliance.
These steps can take weeks, or even months to complete, not to mention the effort it takes to get past red tape in each country you plan to operate in. That’s time you can’t use making profits and expanding your organization’s presence.
Partnering with an Employer of Record (EOR) can accelerate your expansion into another country and save you time and money. But EORs are more than just another monthly expense. They’re an investment you can’t afford to miss.
Shifting perspective from cost to investment
For those wanting to test out a new market or with a strict budget to adhere to, EORs reduce the time and cost of international HR management and compliance. With an EOR, you don’t have to worry about creating your own entity and the many expenses that come with it.
Other associated costs you can avoid with an EOR include:
Hiring legal and accounting professionals
Documentation fees
Account fees
Notarization
Government registration as a legal employer
And more, depending on the country
EOR service providers assume the legal role of an employer and are responsible for compliance, payroll, tax withholding, and other tasks.
Some EOR services also offer:
Onboarding compliance
Employee off-boarding
Employee classification
Insurance and benefits
Your company, then, is only left with the employee management side of things: job duties, performance, goal setting, schedules, and so on.
Global expansion becomes easier when you know you’re legally compliant and have an experienced team of professionals to ensure your success. That frees you up to focus on growth and improving your product or service. With more and more companies adopting EORs to expand, the global EOR market is poised to grow many times through this decade.
EORs aren’t only for large employers
Thanks to their endless capital, we constantly hear about companies like Amazon, Apple, and other major corporations continuously expanding into international markets. EORs make it possible for smaller businesses to thrive in a similar way.
You don’t have to be an enterprise or a large employer to experience the benefits and value of global employment. Simply put, EORs empower companies of any size to grow their global footprint.
The overall value of an EOR
EORs simplify global employment and manage regulatory compliance, but that’s only scratching the surface of their full utility. The real value lies in the benefits they offer:
Breaking into new markets faster: In the business world, where everything moves fast, slow expansion can hinder long-term growth. EORs can help onboard employees at pace. You can start hiring and working with your resources sooner without the need to set up an entity.
Diverse talent acquisition: Hiring from a global talent pool pulls together people from various backgrounds, all with unique skills, experiences, insights, and perspectives. An organization’s leaders can, in turn, use this resource to develop more innovative solutions, strategies, and products. It has a measurable impact on the bottom line too–a workplace that has a diverse workforce tends to perform better financially.
Decreased risk of fines and penalties: Not fully understanding each country’s compliance regulations can amount to thousands or even millions of dollars in fines and penalties. EORs are well-versed in local employment, tax, payroll, and labor laws in other countries, so that you can operate fully protected from legal compliance risks and liabilities.
One single platform: Setting up your entity in other countries is one thing. Complications arise when you bring in multiple platforms to manage separate HR tasks like benefits, payroll, attendance… the list goes on, and each comes with its own price tag!
With the right EOR platform, you can get all those services in a single platform. Your employees across the globe, too, can access and manage their employment tenure from a single platform.
Taking advantage of Multiplier’s EOR platform
A major challenge that organizations face when expanding their workforce globally is maintaining compliance in multiple countries while being cost-efficient at the same time.
Axero, a technology and digital workspace solution firm, encountered the same obstacle. They needed an EOR platform to help them simultaneously comply with the employment and tax laws in India, Spain, Montenegro, and the Philippines.
Axero began working with Multiplier and was able to maintain compliance in all countries of operation seamlessly. Apart from saving up to 300 hours of labor a month, the partnership ensured Axero reduced its annual payroll expenses and operational costs by $1 million.
The lowest total cost of ownership
Using an EOR gives you the opportunity to embrace the lowest total cost of ownership (TCO) of employing a global team. EORs minimize the upfront costs of expansion, eliminate legal compliance risks, and make it easy to manage HR operations efficiently.
EORs like Multiplier are a valuable investment to companies looking to hire internationally. In a world of talent crunch and high interest rates, the need for businesses to continue growing and expanding across borders is only increasing, and you’ll need an EOR that can match your pace.
Need more information about how Multiplier can help?
