Hiring globally is becoming easier and more businesses are building remote global team through an Employer of Record (EOR Provider). Cross border hiring through an EOR facilitates global expansion and makes it easier to manage global payroll. However, selecting the right partner is easier said than done. Here is some points you should assess to determine how to choose the right EOR provider for building a cross border team.
Let’s have a look at it!
Table of Contents
Who is the legal employer ?
There is a lot of confusion about the sort of service a EOR provides. The main reason that you are looking to partner with an EOR provider is usually because you do not have a legal entity in the country you want to engage talents. And thus, you need a partner to carry all employment obligations in front of the government and authorities.
Some providers will offer you legal employment, but it does not mean that you are dealing with the direct partner. Partnering with an organization which is not the legal employer may blur the lines of responsibility, reduce responsiveness and overall impact the quality of service.
To make sure who is going to legally employ your talent, ask for the employment agreement and check out the signatory. This way, you’ll be able to choose the right EOR provider.
Does the EOR have a strong local expertise ?
Cross border employment can be tricky and time-consuming. It is pivotal to consider a valuable EOR partner which has a strong expertise of the applicable labor laws and regulations in the market you are looking to engage talents. On top of that, they should have an extensive experience of payroll and in-house HR. For instance, investigate if your EOR partner is able to explain what the statutory benefits in the given market are or what is included in the severance payments. This decision may save you non-compliance issues and fines. An experienced provider will know the ins and outs and help you stay compliant.
What about responsiveness?
This may seem obvious, but you need to enquire the responsiveness of your EOR partner and see how they handle emergency situations.
Avoid EOR partner which redirect you to a chat box or a guidebook.
We advise you to choose a partner that provides you a dedicated account manager. Also, your dedicated manager should be able answer your question and not constantly transfer you to someone else.
Is the communication with the EOR clear and transparent ?
Transparency is a key point when partnering with any company, even more organization which deal with employment.
Indeed, when looking at the things to consider when choosing an EOR, the transparency is a crucial point. Of course, a EOR partner must be transparent about their fees, from onboarding fees to offboarding fees but also about termination fees.
Assess the transparency of your potential EOR partner. A Employer of record which is clear and transparent about his fees would be more trustworthy when it comes to handle employment processes.
It is also important to enquire how payroll and data are managed. Your EOR provider must be able to explain to you any payroll regulations or adjustments.
Where is your EOR located ?
When seeking the right EOR partner, make sure to have a dedicated account manager who will provide timely support in your workforce’s local language.
Also, your employees and talents must receive support in their first language. When looking at the time zone, be sure to understand how do your EOR partner handle emergency situations, or “out of hours” contact.
Many EOR services around the world focus on one local jurisdiction or region. And there is a simply explanation for that : it is quite difficult to own a accounting company in every country.
Then, you need to understand your needs: Are you looking to hire in a specific region or do you want to recruit globally ?
While you’ll be looking for EOR partner in the first case, you may need to investigate PEO businesses if you are going to recruit globally.
Does the EOR provides a excellent employee experience ?
Most EOR businesses will promise transparency, expertise and responsiveness. Make sure your can trust them and look at the record of sucess and testimonials. To do so, rely on unbiased sites and ensure the actual customers are happy with the service provided.
How can Europortage benefits your business ?
We are an Employer of Record (EOR) company in Brazil. With our EOR and Payroll Services, we hire and onboard your candidates while managing compliance. Besides, we manage your payroll in Brazil. Do you have a project in Brazil ? Contact us now!
