In today's globalised business environment, companies are increasingly looking to hire and manage talent worldwide.
This presents a unique challenge, as navigating the complexities of international employment laws, payroll taxes, and compliance can be daunting.
That's where Employer of Record (EOR) services come in.
EOR services act as a legal employer for your remote workers in foreign countries, taking on the administrative and legal responsibilities associated with international employment.
This comprehensive guide will explore the top three EOR services I recommend – Deel, Lano, and Boundless – and discuss why they are the best choices for businesses looking to hire global remote workers.
An Employer of Record (EOR) is a third-party organisation that takes on the legal responsibility of employing remote workers on behalf of a company.
They handle payroll, taxes, employee benefits, and compliance with local labour laws.
By using an EOR service, businesses can expand their operations and hire talent from around the world without having to navigate the complexities of international employment on their own.
Deel, Lano, and Boundless – why they stand out as the best choices, in my opinion, for businesses looking to hire global remote workers.
Deel is a leading EOR service specialising in global hiring, payroll taxes, and compliance risks.
They offer a comprehensive solution for businesses to rapidly employ talent in over 150 countries without establishing a legal entity in each country.
Key Features of Deel:
Lano is an EOR service providing a seamless experience for businesses hiring and managing international workers.
They offer a user-friendly platform that simplifies the process of onboarding, payroll, and compliance management for remote teams.
Key Features of Lano:
Boundless is an EOR service that helps companies hire, onboard, and manage employees in multiple countries.
They offer a technology-driven solution that simplifies international employment by taking care of payroll, compliance, and benefits on behalf of the business.
Key Features of Boundless:
Click here to explore Boundless
When selecting an EOR service for your business, it's essential to consider the following factors:
There are several benefits to using an EOR service for your international workforce:
Transitioning to an EOR service involves several steps:
While both EOR and PEO services provide support for businesses looking to hire and manage international workers, there are some critical differences between the two:
In summary, if your business is looking to hire remote workers in a country where you do not have a legal entity established, an EOR service may be the best option.
A PEO service may be more suitable if you already have a legal entity in a foreign country and need additional support to manage your international workforce.
Q: How does an EOR service ensure compliance with local labour laws?
A: EOR services work closely with local legal experts to stay current on the latest labour laws and regulations in each country where they operate. They ensure that your business remains compliant by handling tasks such as payroll processing, tax withholdings, and employee benefits administration on your behalf.
Q: Can I use an EOR service for hiring independent contractors?
A: Yes, many EOR services also provide support for hiring and managing independent contractors. They can help you navigate the unique compliance requirements associated with contractor employment, such as managing tax withholdings and ensuring that contracts comply with local laws.
Q: What are the costs associated with using an EOR service?
A: The costs of using an EOR service can vary depending on the provider and their services. Typically, EOR providers charge a flat rate per employee or contractor hired through their service. Some providers may also offer additional services, such as international recruiting or benefits administration, which may incur additional fees.
Here are some tips for effectively managing a global workforce with the help of an EOR service:
As the future of work continues to evolve, businesses must adapt to the changing landscape by embracing new technologies and strategies for managing a global workforce.
EOR services are a powerful tool for companies looking to access top talent worldwide and navigate the complexities of international employment.
By partnering with a reputable EOR service, businesses can streamline their global hiring processes, ensure compliance with local labour laws, and provide a seamless experience for their remote workers. In doing so, they can position themselves for success in the increasingly competitive global marketplace.
Click here to explore Boundless
In conclusion, Employer of Record services are a critical resource for businesses looking to hire and manage a global workforce.
By partnering with a top EOR provider like Deel, Lano, or Boundless, companies can navigate the complexities of international employment, ensuring compliance with local labour laws and providing a seamless experience for their remote workers.
Working with me helping you understand your needs and assist your company develop a sound human capital strategy where an EOR is involved is recommended.
As the future of work continues to evolve, EOR services will play an increasingly important role in helping businesses adapt to the changing landscape and remain competitive in the global marketplace.
By considering the factors discussed in this guide and choosing the right EOR service for your business, you can set your company up for success in the world of remote work and international expansion.
Paul Arnesen is a human capital strategist with more than 10 years experience working with companies globally with HR processes and global strategic direction. Paul is from Norway, but lives in Milan, Italy.