Examine your options carefully before choosing an employer of record service. This will allow you to identify the organization that is most suitable for your business. Before making a choice, we explain a few factors you should consider.
Consult their compliance expertise
EOR service providers should assist you in ensuring compliance with important labor laws and regulations. Different sectors and industries may have different regulations in different states, countries, and industries.
As an example, wages and hours at a restaurant may differ from those at a retail store.
EOR compliance expertise should be verified when hiring an EOR due to the significance of compliance risks. Consider hiring a company with previous experience in your field.
By getting the EOR to handle payroll taxes, insurance obligations, and payroll processing on your behalf, you can move forward with confidence.
Analyze their pricing strategy
The employer of record should provide a breakdown of how payments and pricing are handled. You can use this information to find the payment model that works best for your business.
Flat fee payments are set up by some EOR services, for example. Alternatively, some businesses base their fees on a percentage of employee wages or profits.
Take a look at their additional services
Services such as work permit assistance, benefits management, or solutions to help you move your business or open a new branch in a foreign country may be offered by different service providers.
Think about the services the EOR offers and which will be beneficial to your business. As an example, suppose you plan to expand internationally and hire international employees in the near future. During that time, you may prefer to work with a global employer of record that offers transition assistance.
See online reviews
Finally, examine the EOR’s success with businesses similar to yours. You can learn more about other businesses’ experiences by reading online reviews and relevant blogs.
Consider what other businesses and their EOR service providers like and dislike, what works well for them, and how the setup benefited them.
Receiving feedback about real-world experiences can improve your understanding of them. Your decision can be influenced by this information.
Employers of record offer numerous benefits
There are a number of benefits you can receive from an EOR payroll that will help you grow and manage your business more effectively. Here are some of the main benefits that companies enjoy.
Spend less time and money
Saving time and resources is one of the benefits small businesses note when switching to an EOR. Business owners can spend more time and money on building their businesses when they outsource payroll and related HR responsibilities. EORs allow companies to manage all employee responsibilities without having to create and fund a full-time HR department.
Maintaining up-to-date regulations, answering employee questions, and tracking the different components and liabilities associated with employees can consume considerable time and effort.
By eliminating this need, an EOR allows businesses to hire new employees and manage their HR departments more cost-effectively.
Maintain compliance with international and out-of-state labor laws
New markets and remote employees present opportunities as your business grows. Your company can hire the top candidates from a global talent pool by hiring remote workers.
Although remote work can help you find the best candidates, it can make employee management more difficult. In addition to staying updated on state and federal regulations, it can also be a time-consuming task to stay on top of international regulations.
The good news is that an EOR can ease this burden. Keeping everything straight regarding contracts and employee benefits, the organization will stay on top of regulations.
When you work to build your business, having an EOR prevents accidental noncompliance. In areas where your EOR operates legally, you don’t need a local business entity.
Offer competitive benefits
Full-time employees need to be offered competitive compensation plans to remain employed. Nevertheless, benefits like health insurance, workers’ compensation, retirement funds, and life insurance can be costly.
When competing with larger companies, small businesses may need help maintaining their benefits packages. Providing top performers with attractive benefits packages could be possible because the EOR manages employee benefits.