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These days with globalization and a tilt towards work from home (remote jobs), companies are looking for hiring talent from a global pool transcending national boundaries. One of the proposed solutions in this field is the use of “Employer of Record (EOR)” services and we recommend taking a look at Remote in this regard. By using this EOR service, your company in say India can employ a full-time staff who is say a resident of UK and will work remotely.
What are employer of record (EOR) services?
An EOR service provider helps client companies to legally carry out their activities in different countries by providing services such as company registration, payroll processing, taxation, insurance, and human resource management. By using EOR services, companies can quickly and without the need to establish a new company in a new country, pay the related costs, and perform their activities at the lowest cost.
Some advantages of using (EOR)
1. Cost reduction: One of the main benefits of using EOR services is reducing the company’s costs. By using this service, the client company does not need to establish a branch in a foreign country.
2. Maintaining focus on business: By using EOR services, the client company reduces its financial and legal concerns and simply focuses on its main goal, which is to develop its business.
3. Global market access: By using EOR services, the client company can easily access global markets. This method allows the client company to hire employees in other countries with the lowest cost and time.
4. Legal and legal management: By using EOR services, the client company does not need to create an accounting and legal department to manage employees in a foreign country.
Remote’s EOR: How it works?
1. Contract between the client company and the Remote: Initially, the client company signs a contract with the Remote to start working.
2. Recruiting employees: Then, the client company hires its employees in the foreign country. It is to be noted that headhunting is the responsibility of the client company.
3. Provision of salaries and benefits: EOR company is responsible for paying salaries, benefits, insurances, and any perks to employees. In other words, the client company will pay the Remote, and Remote under its own name as employer transfer to the employees/contractors.
4. Legal Management: The EOR company is responsible for the legal management of employees, including responsibilities such as managing work and residence permits, complying with labor laws and maintaining the rights of employees in the target country.
5. Reporting: EOR company is required to provide reports such as contractor payment, social security, health insurance, and other benefits to the client company.
Reputation and performance of the EOR company & How Remote stacks
The reputation and performance of the EOR company in managing employees in a foreign country can have a great impact on the motivation of the hired foreign employees. With a score of 4.5 out of 5 and going through the reviews by employees hired by the client company through Remote on Trustpilot, one can feel confident about the capability of the Remote to deliver. Most complaints are due to not having 24×7 customer support and occasional delays in responding to emails.
In the words of Yasmin Ahmed, simpleclub’s VP of People, “There was a situation where we had to partner with another provider, because hiring in that particular location wasn’t possible through Remote at that time. And that was proof immediately that, yes, we are very happy with Remote!”(simpleclub makes easy work of its international expansion).
Choosing the best EOR company helps companies to get better services and adopt the right strategy to succeed in the global market. To choose the best EOR company, you can pay attention to the following:
1. Company experience: EOR company’s experience in providing services to companies and managing employees in other countries is very important. Remote makes it easy to manage international payroll, benefits, taxes, stock options, and compliance in 50+ countries. Here is one review by a user on TrustRadius:
“If you have a company that is hiring employees globally, remote does a great job and helps you with ease. If you are being employed by an international company, you can suggest remote for them, it will really help you and still give you all the benefits of legal worker rights….”
2. Onboarding time: The EOR company should ensure your employees are onboarded quickly while keeping your business compliant with all local employment legislation. The minimum onboarding time with Remote.com is only 3 working days for hiring a full-time employee from India (Employ in India with ease).
3. Service costs: EOR company’s service costs are also important to be considered in choosing the desired company. With Remote, they have one low flat rate and never charged percentages or fees.
Here is one relevant comment by a Reddit member:
“Looked at other EORs and the fees were extremely high and not transparent, felt like a bait and switch. Remote did not charge anything extra, just the $599 per month. They say a few countries are cheaper (I know Canada is for example) but none are more than the $599.”
4. Information security: EOR company must keep sensitive information about your employees and company confidential and secure. Using the services of EOR companies means the exchange of sensitive information, including the financial and personal information of employees. Therefore, information security is very important and should be considered. Remote has appropriate information security practices in place to keep the client company’s data and the data of their employees safe and secure. Checks such as two-factor authentication (2FA) and single sign-on (SSO) for all users with a Remote platform login, provide an additional layer of security. Read more here: How Remote protects sensitive employee and employer data.
Some companies that have been successful in using EOR services by Remote and their experience
1. Optymyze: Sales performance management (SPM) platform founded in 2013 that allows businesses to automate any SPM challenge with unlimited scalability — and all without having to write any code. To deliver innovative solutions, they recruit globally. As a fully remote company, Optymyze chose Remote to onboard, manage, and pay its remote team. Currently the number of employees and contractors with Remote: 65 (Optymyze simplifies its global hiring with a compliant, time-saving approach).
2. Linearity: Headquartered in Berlin, founded in 2017 in the design and technology industry. Linearity provides design software with powerful yet easy-to-use tools. The number of employees with Remote 27 (Global by design: how Linearity manages global talent with Remote).
3. Banyan Security: On March 10, 2023, Silicon Valley Bank failed shuttered by regulators. It was the third-largest bank failure in United States history and the largest since the 2007–2008 financial crisis. With a panic over how to access funds, hundreds of Remote’s customers too were affected. Remote CEO Job van der Voort assured customers that their workforces would be paid. Kay Gabaldon, Head of People & Culture at Banyan Security, explains how Remote is extraordinary, partnership with Remote is not just transactional (Rising to the occasion: strengthening relationships during the Silicon Valley Bank crisis).
4. Gomada: As per Alexander Spahn, co-founder at Gomada, “We loved the Country Explorer when we compared it with other providers. Giving this overview of the key facts such as minimum wage and other country specifics in an easily consumable fashion is super useful.” (Gomada and Remote create a recipe for happiness).