Hiring international employees can be invaluable for any business. However, keeping track of global operations can be tricky. You need to worry about local employment laws in multiple countries, set up a local entity abroad, pay attention to global markets, and mitigate compliance risks. All while you are responsible for your operations at home.
That’s when a global EOR service provider or Employer of Record comes in handy. EORs offer global workforce solutions catered to your unique needs. Beyond simply offering HR services, EORs help hire employees anywhere in the world in compliance with local labor laws and provide ongoing support throughout the employment relationship.
Convinced that you might need employer of record services when hiring international employees? Let’s take a look at some of the key questions to ask before you partner with an EOR.
Question 1: What Is an EOR?
Before we get started, you might be wondering what exactly an EOR is.
An EOR is a third-party entity that acts as the legal employer on behalf of another company. The EOR takes on the other company’s employer-related responsibilities and ensures all contract, payroll, insurance, banking, and tax requirements are met. EORs allow companies to compliantly employ and pay hires abroad without having to set up a legal entity in those other countries.
Beyond that though, think of EOR partners as specialists who can help you and your organization manage global expectations that are a part of your internal brand strategy. Whether you are thinking about expanding your workforce, or even require help with internal HR and legal matters — an employer of record service provider can support smooth operations usually through a dedicated account manager.
Question 2: Is an EOR the Same as a Professional Employer Organization?
When you are looking for a potential global EOR service provider, you may come across information surrounding Professional Employer Organizations (PEOs).
These service providers share a lot of similar DNA with EOR services. Both provide HR services, manage global payroll, and offer global benefits management for international employment.
However, what sets an EOR provider apart from a PEO is the employment relationship that they build with your potential hires.
EOR services take on the majority of administrative responsibility by functioning as the employer of record for selected staff dictated by the client. Meanwhile, PEO services rely on a co-employment strategy, putting half of the workload on you.
A staffing agency is also different. Staffing agencies source employees while EORs do not. On the other hand, EORs take care of legal obligations and responsibilities while you manage an employee’s day-to-day work.
Question 3: What Is the Scope of EOR Services?
As previously mentioned, not every global EOR service is created equally, and the scope of one service provider may be different than another. It’s vital that you choose an EOR that offers the services that your company needs for an effective global hiring strategy.
When interacting with an EOR partner, it would be best to lay out what your business expectations are so you can set the scope of your partnership with the provider.
Be open about what your expectations are when establishing a relationship with a potential EOR. Don’t limit your expectations either. Well-established global EORs are used to dealing with varying issues across the globe — so odds are — they probably have an answer to most questions you may have.
If you want a more detailed breakdown of the services a global EOR partner may provide, ask for a service list. Any EOR partner that has their ducks in a row should be able to provide a service list upon request, giving you a hard copy of possible avenues for you to go down, should you engage in a partnership.
If the services you are provided with may not match certain needs of your enterprise, don’t be shy in inquiring about wiggle room. Some global EOR services will be able to provide you with customizable options.
Here are a few examples of services offered by global EORs.
- EOR Services: Global EOR providers become the legally recognized employer for your international hires, meaning they are responsible for payroll, tax withholding, benefits administration, and more.
- Compliance and Risk Management: A global EOR service guarantees that the client company abides by all laws and regulations set by the country where employees are based.
- Global Payroll: A global EOR partner manages payroll processing and ensures that employees are paid accurately and on time.
- Customized Benefits Administration: EORs offer localized benefits packages for employees across the world. These may include benefits such as health insurance, retirement plans, and other employee perks.
- Onboarding and Offboarding Services: A global EOR service handles the onboarding and offboarding processes, which include tasks like conducting background checks, verifying employment eligibility, and managing exit procedures when employees leave the company.
- Visas and Immigration: If your staff needs to move across borders for work, EORs can support the legalities of visa and immigration processes.
- Global Contractor Management: Beyond employees, EORs can also help you compliantly engage independent contractors without the risk of misclassification or permanent establishment.
These are just some of the services that may be offered by an EOR. For specific packages and offerings, make sure to contact your EOR provider of choice.
Question 4: How Will Your Services Scale with My Business?
Success and smooth management will make any business enterprise grow exponentially, as is the nature of most commerce. As a result, if you are working with a global EOR partner, it’s best to ask about services rendered as your business grows.
Say you wanted to hire a couple of engineers in India to start building your app. Then, as you got your next round of funding, you’d need to quickly onboard 50 more engineers. Can your EOR partner support that type of rapid growth?
Or, maybe, you want to hire international talent in more than one country. Where can the EOR facilitate hiring beyond your HQ location?
Scalability is crucial for any business partner, so when you are looking into bringing on an EOR, inquire into the nature of their ability to grow alongside you. It’s crucial to know that what may be working for you now, may not be a good fit for you later, so plan for your future success.
Question 5: How Has Your Strategy Worked For Other Clients?
When bringing on a desired EOR partner, it’s best to not fly blind.
There is a chance you may be impressed with a detailed list of services rendered, a keen ability to scale upward alongside your business, and a promise to adapt. However, if an EOR lacks proven success stories, it may be best to take a beat and consider your options.
That’s why when you’re looking into partnering up with a global EOR provider, it’s best to ask about previous clients they have worked with. Odds are they will be able to provide you with statistics and data surrounding their previous success stories.
And with a little luck and the right kind of communication, you can be added to that list!
Question 6: How Will You Ensure Global Compliance?
Bringing on a global EOR provider is meant to supply you with the kind of trust and peace of mind that comes with having a partner who has your back. You can have the best EOR provider out there, and if they don’t keep up with regional policy, they’re not as good as they’re saying they are.
Compliance is crucial, as one of the main tasks an EOR provider oversees is the streamlining of workplace activities on a global scale — and with that has to come a global mindset.
That’s why when you start shopping around for a global EOR service, it’s crucial to ask them about compliance management.
These inquiries can be things like,
- What is your understanding of international labor laws?
- Do you have a team of experts that keeps abreast of international tax regulations?
- How do you ensure that each contract you draft complies with international employment requirements?
While these are guidelines, make sure to ask questions specific to your region of operations as well. Any qualified global EOR partner that has a firm grasp on global compliance should have no problems with region-specific inquiries.
Question 7: How Do You Manage Onboarding?
While no category is worth skimming over, the process of onboarding is an area no prospective employer looking to bring on an EOR service can miss.
Onboarding with an EOR should be smooth for both you and your employees. It can impact your reputation as a company and employer. So, it’s crucial to partner with an EOR that makes onboarding a pleasant experience for everyone.
Thai brings us to the right kind of questions you must as your potential global EOR provider of choice when looking into their onboarding process.
What Documentation Is Required from Our Company?
Get a thorough understanding of what documents your company needs to provide to your EOR of choice to efficiently start the onboarding process.
What Documentation Is Required from the Employees?
Inquire as to what documentation the prospective global EOR partner will request from your employees.
How Do You Process Employment Contracts?
Discuss how the EOR manages the creation and distribution of employment contracts for your employees.
What Paperwork Do You Provide?
Ask about the onboarding forms that your EOR of choice provides to employees, such as tax forms, direct deposit information, and employee handbooks.
How Do You Facilitate Payroll?
Ask questions about how the prospective global EOR partner manages employee payments while ensuring compliance with local tax laws.
Do You Conduct Background Checks or Screenings?
Determine whether the potential EOR partner performs background checks or any other pre-employment screenings as part of the onboarding process.
What Is the Timeline for Employee Onboarding?
Ask about the expected timeline for completing the onboarding process, from the initial paperwork to the first paycheque.
How Do You Handle Employee Benefits Enrollment?
If benefits are part of your compensation package, discuss how the EOR partner facilitates employee benefits.
The foundation of any partnership is built on a strong beginning, and the onboarding process will be the first major undertaking your potential global EOR partner will take on alongside your enterprise.
So when it comes to onboarding, make sure you ask the right questions.
Question 8: How Will You Work With My Timeline?
Now that we’ve covered some of the inner workings and logistics of beginning a partnership with an EOR, we can now cover some of the broader, yet still vital, details that come with taking on this kind of partnership.
Once you’ve asked the big questions — and hopefully — got the answers you were looking for, you can then start laying out a game plan for a timeline of operations with your new global EOR provider. Certain EOR services may have specified functions to prioritize and these areas may or may not line up with the demands of your venture.
If you want to start off on the right foot, be direct.
Ask about a timeline for when they can begin to align their operations with your needs.
Inquire about requirements needed to familiarize themselves with compliance protocols that correlate to certain regions. Ask if they need more time to brush up on compliance in certain areas. Like with any good partnership, honesty is key and an ideal EOR will let you know if they need a little wiggle room in order to match your needs.
Additionally, context is everything. So, if there are certain details you feel need to be readdressed, feel free to ask your newly acquired EOR service if they understand the nature of operating parallel to your needs.
Question 9: Can You Provide Me With a Written Agreement?
Above all else, the answers to your questions must be in writing.
A written summary will help you hold your prospective global EOR service accountable for delivering the promises they made to you when setting up the initial partnership. This can be a detailed itinerary on both the deadlines and goals you have organized.
Not only does formal documentation keep all involved parties on the same path to success, but it also functions as a checklist to manage tasks set between you and your global EOR partner.
Wrapping It Up
When starting any kind of partnership, openness and a willingness to commit are key.
That’s why when you bring on Borderless as your EOR, we will answer any questions you may have in regard to the process of setting up an EOR partnership. For now, here are some highlights on why Borderless should be your choice EOR.
- Zero Deposit Strategy: For the employee onboarding process, we require no deposit whatsoever.
- Express Payroll Services: We ensure an express payroll function, meaning you won’t have to worry weeks in advance.
- Rapid Onboarding: At Borderless, the onboarding process is facilitated in a matter of days, as opposed to weeks.
- Tax Team: Our in-house tax team is purposefully organized to manage the entire scope of global tax regulations.
- Assured Compliance: Much like our tax team, our internal platform guarantees regional compliance on a massive scale.
- Localized Benefits: We offer a strategic benefits package to keep you and your employees safe and healthy.
Contact us today, we’ve got the answers to all your EOR-related questions.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
