The world is increasingly becoming interconnected, paving the way for businesses to hire talent across borders. Over the last five years, remote work has also gained tremendous momentum, making it easier for businesses to tap into specialized talent even from the hard-to-reach markets by relying on the services provided by an Employer or Record (EOR).
So, what is an EOR and how does it work?
In simple terms, an EOR is a third-party entity that hires talent for companies that do not have a physical entity in a foreign country. It handles talent sourcing based on job requirements, interview scheduling, contract/offer letter negotiation, onboarding, payroll and benefits management, and termination. An EOR takes over the employer’s obligations and ensures zero risks to the company.
However, the evolved remote work landscape has also given rise to hundreds of EORs in the markets. Keeping this in mind, it is essential to choose the right hiring partner who can effectively cater to your job requirements. This article delves into the top tips to select the best EOR service providers for your business.
Lay down your business requirements
1. What type of role do you want to hire?
You must first get a clear understanding of where your business requires full-time employees or freelancers/independent contractors. Though the process to hire either of them remains the same, what differs is the laws and regulations for engaging with them. For instance, to hire an employee in India, you will need to provide them with a Provident Fund, which is mandatory as per the Government of India. Hence, choose the employer of record services in India that’s fully aware of such laws and will not get you into any trouble when engaging talent in this region.
2. Where do you wish to hire?
Typically, most EORs have established physical entities in multiple countries. But some EORs specialize in operating in a specific region while others offer global employment solutions.
Those who have been in this business for many years have a long-standing reputation for simplifying the offshore talent hiring process. Narrow down your contenders for EOR service providers by identifying the countries where you plan to hire talent. For example, if you want to get talent from India and Mexico, make sure to hire an EOR that operates in those countries. But keep your options open. When an EOR does not perform well, you can freely switch to another while maintaining the same pace.
3. What volume are you looking to hire?
Some EOR service providers provide great support for hiring an entire offshore team while others are more suited for individual hiring. Based on your current and projected job requirements, choose the EOR that will fulfill the staffing needs of your projects.
Consider key factors for evaluating EOR service providers
After getting a clear understanding of your business requirements, now it is time to match EORs that can meet your needs.
It is paramount that an EOR service provider operates across international borders and has deep knowledge of the country’s laws and regulatory frameworks. Check whether or not has local HR experts in the region you want to hire. It must have an excellent track record of ensuring 100% compliance with the country’s labor laws and tax regulations. You can also check out the feedback given by other people about the EORs on dedicated software review websites. Confirm if they also provide support for payrolling, benefits administration, and other HR and admin-related tasks. Do they leverage software where you can manage everything from job posting and onboarding to payment processing and terminations? Is the platform user-friendly and can be seamlessly integrated with your internal HR systems? Lastly, check their pricing transparency. It is important to note that pricing models differ among the EORs. Nevertheless, you must ensure there should not be any hidden charges, markup, or upfront commissions that could impact your overall recruitment budget.
Finalize and negotiate your terms
From a broad option of EOR service providers, narrow it down to the best potential ones that perfectly align with your organizational objectives and budget. Make sure to check references and other companies’ feedback. Ask them to share case studies and proposals that detail their services, pricing, and service level agreements. Schedule demos and participate in them one by one. Your objective here is to gauge the capabilities of their technology platform and teams. Ask specific questions about their platform’s functionalities to gain a better understanding of how well it can serve your recruitment objectives. Negotiate with each EOR service provider and see who meets your expectations and budget. Take your final call after confirming that your chosen EOR will be the best partner for your hiring and payroll requirements.
Choosing the right EOR goes beyond fulfilling your staffing needs. It can be a great investment, which can offer you substantial ROIs from the hired talent, support to enter into untapped and profitable markets, and a technology-enabled platform that can manage end-to-end hiring and payroll.
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