Want to onboard an employee in Latin America?
As global hiring gains traction, so does the Employer of record market. Today, many providers offer EOR solutions, and it can be hard to pick up the best provider which will match with your special needs.
To ensure the partnership with the EOR aligns with your needs, it’s essential to consider several key questions. Here are some qualities you should look:
- Strong level of expertise
- Responsiveness and Flexibility
- Accuracy
- Proven track record
- Transparency
- Excellent employee experience
Let’s go into more details about how to choose your employer of record partner and the questions you must consider before picking your EOR partner ⬇️
What is an employer of record (EOR)?
An employer of record (EOR) is a third-party entity that legally employs workers on your behalf. As the legal employer of your workforce, the EOR takes full employer-related responsibilities including compliance, payroll, taxes and benefits when you maintain and control the day-to-day operations.
10 questions to consider when choosing an Employer of Record (EOR) for your business.
What is the EOR level of expertise ?
A very important aspect to assess when selecting an EOR partner is the partner’s level of expertise and knowledge in the market you are looking to expand. The EOR provider must have an extensive knowledge of the country laws and regulations and a thorough understanding of the country’s business culture. An inexperienced EOR may put your business at risk of non-compliance resulting in fines and penalties.
Does the employer of record (EOR) hire under its own entity or work with a partner ?
It exists two types of Employer of record solutions: direct and indirect EOR.
An indirect EOR works with multiples third parties globally. Then, the employee will not be hired by your selected partner but by another company. This approach can result in a lack of responsiveness and more complex responsibility share. Also, any miscommunications between the various parties will create serious complications which can affact your business.
On the other hand, a direct partner will hire your employee under its own entity. Their team can assist your employee directly and immediately.
Does the EOR operate in countries you need to hire in?
To select the right EOR partner and reach your hiring goals and objectives, it is pivotal to assess the EOR coverage.
If you’re looking to hire in one single country, then local EOR can totally be the right fit. However, if you’re looking to hire distributed team, make sure your EOR partner operates in countries you need to hire.
How responsive and flexible is the employer of record (EOR)?
One of the top benefits of using an EOR is the increased speed and flexibility they offer to enter a new market. Then, you deserve a EOR partner that quickly responds and supports your team.
Look for a EOR partner that provides you with a dedicated account manager which is able to provide timely support to your team and to your employee in the local language and time zone.
Also, an EOR service provider should also be able to offer flexible solutions to your business which will help you adjust to your changing needs.
Do they provide accurate employer burden calculations ?
When collaborating with another business, you always expects to have a reliable partner. When hiring internationally via an Employer of record solution, your chosen EOR partner must provide you with accurate quotes. Indeed, they must calculate accurately your employer burden, social contributions, and value-added tax (VAT).
Before choosing an EOR partner, make sure they provide you with up-to-date information and accuaret calculations.
Is the EOR transparent about pricing ?
You must also consider pricing when assessing EORs. Generally, EORs use two different pricing model to set their prices: Pourcentage of employee payroll or fixed fee per employee.
In both case, it is pivotal to ask about any additional fees or hidden costs to ensure transparency. See below some common additional costs that you may pay on top of the EOR service fee:
- Onboarding/Offboarding fee
- Banking fee
- Security Deposit
- Foreign exchange fee
- Additional termination fee
- Benefits management fee
Does the EOR have proven track of success ?
To correctly select an EOR, request client references to gain insight on the EOR performances and ensure existing clients are happy with the service provided.
Research testimonials written by clients but also employees. It would help you to validate the EOR’s credibility and reliability.
What is the EOR scope of services ?
Your business needs will constantly evolve. You may need to terminate talents, convert contractors to employees, build more robust benefits packages, or even decide to set-up your own entity. Clarify with the EOR providers whether they offer additional services.
Do the employer of record offer robust portfolio of both local and global benefits ?
To attract and retain talents, a company must customize benefits package and adapt its offering to the market.
Look for EOR partners with a strong understanding of local customs and a robust portfolio of benefits. Keep in mind that, sometimes, offering global benefits is not the most suitable. Indeed, your employee could be more serene using local health insurance providers instead of a global insurance.
Is the employee experience a top priority ?
When working with an EOR, you want a top-notch service. This also means that the employee must go through a great experience.
When assessing your Eor partners, make sure that the team will answer on a timely manner any question that your international hires may have about onboarding, payslips, benefits, and more. Your EOR partner should also provide a streamlined process throughout the employee lifecycle, from onboarding to offboarding.
Use Europortage Employer of record solution in Latin America.
Hiring in Latin America is complex especially when it comes to compliance. That’s why we recommend working with a direct and local partner like Europortage.
Our team of local experts is on hand to support you throughout the entire employee lifecycle, including time-off management. We can give you clear advice on fringe benefits, in addition to handling employment contracts, payroll, and benefits. That way, you can focus on growing a world-class team and business.
Get in touch to find out more and start hiring top talent in Brazil and Mexico!
