How Do You Choose an Employer of Records?

An Employer of Record allows you to hire local workers lawfully without establishing an entity in that particular foreign nation

How Do You Choose an Employer of Records?

An Employer of Record allows you to hire local workers lawfully without establishing an entity in that particular foreign nation. Employer of Record services manage some important HR functions, including employee benefits, contracts, leaves and taxes, as well as payroll processing. These services allow companies to compliantly hire and manage workers overseas by creating a lawful presence on their clients’ behalf.

When looking for the best employer of record services, you need to consider some crucial factors to ensure you’re working with the right company. As the workers' world becomes a global village, businesses are increasingly turning to Employer of Record services to aid in the growth of their worldwide operations.

As you go through the research process, you’ll come across thousands of Employer of Record services, making it challenging to pick the right one. Here are three key factors to consider in order to choose the best EOR service provider.

Knowledge of the Target Country

You need to determine if the Employer of Record service provider has a professional and well-versed team with enough knowledge and expertise in the nation where you want to engage or expand talent.

An inexpert partner will require extra costs and time to research the labour regulations and laws, putting your business at risk of reputational damage, legal fees, fines and non-compliance. Make sure you’re partnering with an EOR that understands everything about your target state.

Proven Track Record

When you find an EOR that promises quick customer care support, transparent pricing and expert knowledge, ensure they keep their promise. Read testimonials and reviews, taking into consideration both positive and negative and speak with as many references as possible to make sure most customers are happy with the Employer of Record service provider’s services.

You can also ask potential partners for references with the same qualities and goals as your business, including industry, budget, and talent type.

Experience

Another important thing is to ensure that the Employer of Record service provider you’re planning to work with has extensive knowledge and experience in your industry. The EOR firm should also understand the local laws and regulations in your target countries. Go for a service provider that serves customers from across the world and in different industries.

Final Thoughts

These three important considerations will help you know how to evaluate the merits of the best Employer of Record service provider. If you want to hire global talent from anywhere in the world, be sure to choose an EOR that meets all these requirements, and you'll be able to avoid the risk of non-compliance and heavy fines.