The rapid transition to remote work has made it easier than ever to hire remote workers from anywhere in the world.
Whether you’re hiring a global team or expanding into new markets, your employment contracts must be fully compliant with local labor laws — or you could face hefty fines and even jail time.
Enter employers of record (EORs) — organizations that help companies with global hiring processes, handling everything from global payroll processing to employee benefits.
Put simply, EORs take the hassle and expense out of hiring global talent.
With the demand for remote work showing no signs of slowing down, it’s no wonder the employer of record market is also growing. In 2022, its value was USD 189 million — a figure expected to grow to USD 3.7 billion by 2028.
With so many EORs to choose from, how do you pick the best one to partner with your company? Today, we’ll walk you through seven things to look for when choosing an EOR.
One of the first things you need to decide is whether you need an EOR or a professional employer organization (PEO). A PEO acts as a co-employer and handles human resources on your behalf, whereas an EOR acts as the legal employer for your employees in their countries of residence.
The most significant difference between them is that a PEO requires you to have a legal entity in the country where you’re hiring, and an EOR doesn’t. So if you don’t have a local entity and don’t plan on setting one up, an EOR service provider will probably be the fastest and most affordable option.
Additionally, if you partner with a PEO, you’ll be fully responsible for ensuring legal compliance, whereas an EOR takes care of compliance issues on your behalf.
When comparing EOR services, ask yourself the following questions:
The whole point of global employment is that it’s, well, global. It doesn’t matter where a candidate lives — if they’re the best person for the job, you’ll want to hire them regardless.
Perhaps today you’re contracting a software engineer from Cameroon — but who knows where your hire will come from? That’s why it’s best to look for an EOR with extensive global coverage that can help you hire the best talent.
Additionally, you’ll need to make sure your EOR is fully compliant with local employment laws in every country of operation to minimize any compliance risks or liabilities. Worker misclassification can come with costly penalties, so look for an EOR with a team of legal experts who have in-depth knowledge of local laws and stay on top of changing regulations.
When managing a global workforce, you’ll want a customer support service that’s available when you need them and can provide answers in a timely manner.
For example, Remofirst provides clients with a dedicated account manager and offers 24-hour customer service support so you can receive the help you need when you need it.
When hiring multiple employees across different countries, the costs can quickly add up, so it’s important to know what your options are to make your new hires as cost-effective as possible.
Therefore, you should look for an EOR that provides clear and transparent pricing, billing, and reporting structures, so that you can track and monitor your costs and expenses.
Company values matter — they’re part of the reason your employees want to work for you. So it’s a good idea to find an EOR that shares your company culture and values, as a cultural fit is essential for ensuring a productive and harmonious working relationship.
Ensuring your EOR’s values align with your own will minimize the risk of misunderstandings between you and your EOR, as well as between the EOR and your remote employees.
For instance, if your company is remote-first or fully remote, you may want to look for an EOR with a similar approach.
Your business is always changing and growing, so you’ll need an EOR that offers flexible solutions that can support your global expansion and scale with your business.
For instance, right now, you might need to hire new employees, but in the future, you might want to work with independent contractors. Look for an EOR that offers flexible solutions that cover both.
Last but certainly not least, you’ll need to think about your bottom line and choose the most cost-effective EOR. Shop around and compare EOR pricing and services to find the solution that best fits your needs and budget.
If you’re looking for a fast, reliable, and cost-effective EOR solution to help you hire international employees, book a demo with Remofirst.
With same-day employee onboarding in over 150 countries starting from $199 per person per month, we can help you hire top talent anywhere in the world.