Emily Clarke

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Pros and Cons of an EOR


With the continuing globalization of business, companies are constantly searching for talent outside their jurisdiction. You may want to hire people outside your state or even those in another country. But there's just one hurdle: Variable employee and labor laws!

Hiring even a single employee from another state or country can open up a mess of paperwork and confusing logistics. For some companies, it's far out of the scope of possibility, leaving them to abandon their efforts.

Luckily, you can legally hire non-local employees without jumping through logistical hoops. The solution? An EOR.

What's an EOR?

EOR stands for employer of record. An EOR is a third-party company that enables organizations to hire people from different states and countries. The EOR is responsible for the employment tasks, establishing its own legal entity in those jurisdictions so that your company doesn't have to.

Essentially, they handle the legal requirements and hire employees on your behalf. That way, you only have to worry about the day-to-day duties of your new hire!

The Benefits of an EOR

An Employer of Record manages the legal and regulatory matters on your behalf. That might include the arrangement of work visas, registering as a local entity to comply with employment laws, adhering to all local regulations and protections, and more.

Think of an EOR as your representative and interface to the employee's government.

The benefits aren't hard to see. It saves your organization the trouble of hiring the employees you want through legal hurdles. It ensures that you stay compliant with the host country's laws, no matter how complex they might be.

Ultimately, an EOR can help your business cost-effectively expand into new territories. You can hire new workers with no added taxes or complicated legal boundaries.

The Disadvantages of an EOR

There are a couple of downsides to working with an EOR.

As a whole, this method of getting new employees is more of a temporary solution. If you plan on having a real presence in the host country, you can't rely on an EOR entirely. It's more of a quick solution to hire one-off employees or to get new employees in the early stages of your expansion.

Author Resource:-

Emily Clarke writes about employee management, benefits and payroll service. You can find her thoughts at employee data blog.

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