How Partnering with an Employer of Record Service Provider Can Boost DEI Initiatives

In today's borderless business landscape, companies are increasingly recognising the importance of implementing diversity, equity, and inclusion (DEI) initiatives in the workplace. A diverse and inclusive workforce not only fosters innovation, but also ensures a more equitable and harmonious work environment.  

According to a recent Pew Research Center survey, a majority of employed U.S. adults (56%) say that focusing on increasing DEI at work is a good thing.  However, effectively implementing DEI initiatives is easier said than done.  

Increasingly, many organisations are turning to Employer of Record (EOR) services to help them streamline their HR processes and tap into an international talent pool. However, working with EOR service providers also has the added benefit of helping these organisations to simultaneously address their DEI goals. 

According to the Everest Group, “EOR providers have emerged as key partners in assisting organisations not only to build a resilient and diverse workforce but also to foster a sustainable future that aligns with their ESG commitments.” 

Understanding Employer of Record (EOR) Services 

An EOR service provider allows an organisation to hire employees in a country or jurisdiction where they don’t have an existing establishment. The EOR acts as the legal employer of the worker or workers in question, assuming responsibility for the integration and induction of employees, release and termination of employees, and payroll on the client's behalf.  

As the employer, the EOR partner manages the legal, HR, tax and local compliance needs for the workers as its own employees, while the client organisation maintains full control of their day-to-day work. 

How Can an Employer of Record Service Provider Boost DEI Initiatives? 

1. Diverse Candidate Sourcing 
   One of the fundamental steps in promoting DEI is ensuring that your candidate pool is diverse. Partnering with an EOR service provider allows a business to tap into an international pool of talent and source candidates from various backgrounds, experiences, and demographics. With an international reach, it becomes much easier to achieve DEI goals in hiring. 

2. Compliance Expertise 
   DEI initiatives often involve compliance with various laws and regulations, which can be complex and time-consuming to navigate. EOR services are, by their nature, experts in labor laws, taxes, and regulations, ensuring that your employment practices are in line with the law. This expertise reduces the risk of legal challenges related to DEI initiatives.  

3. Fair and Consistent Payroll and Benefits 
   EOR partners often handle payroll and benefits administration for their clients, ensuring that employees are compensated fairly and equitably no matter where they are based. They can help companies design and implement benefits packages that align with DEI principles, providing equal access to benefits for all employees. 

4. Diversity Reporting and Analytics 
   EOR services often provide tools and resources for tracking and reporting on DEI metrics. This data-driven approach can help companies measure progress and identify areas that need improvement. 

5. Resource Allocation 
   DEI initiatives require dedicated resources and time. By outsourcing some HR functions to an EOR partner, a company’s internal HR team can focus more on DEI efforts, strategy, and employee engagement activities. 

6. Risk Mitigation 
   By partnering with an EOR, companies can mitigate the risks associated with DEI initiatives. EORs can help organisations navigate potential legal issues, discrimination claims, and other challenges, reducing the overall risk associated with implementing DEI programs. 

In today's corporate landscape, fostering diversity, equity, and inclusion is not just a moral imperative — it's also a strategic advantage. Employer of Record services provide a valuable solution for companies looking to implement DEI initiatives effectively.  

Atlas, the pioneer of the direct model for Employer of Record (EOR) services, recently published its first annual ESG report as part of its impact program. This report outlines how Atlas is partnering with the people and communities where it operates and how it is positively contributing to a sustainable economic future. 

Download the report below