How Employer of Record Services Can Help You Save Time and Money
Employer of Record (EOR) services can provide businesses with an efficient and cost-effective way to manage and grow their international operations by outsourcing many of the administrative and compliance duties.
Employer of Record services can help businesses by:
Simplifying the Hiring Process
Through an EOR, businesses can hire employees in new regions without the need to create a local entity. This is a significant time saver as, on average, it can take up to four months to create a new local entity. Partnering with an EOR means the hiring process can be completed within a matter of weeks.
EOR also makes the international hiring process much cheaper as there are many costs associated with setting up new local entities, such as bank setup, capital requirements, employment registration, and legal counsel. All these expenses contribute to an average cost of as much as $80,000 for setting up a new entity.
Through an EOR, however, these costs are just a fraction of what they otherwise would be.
Each country has its own unique set of laws relating to employment, taxation, data protection, and more that employers must comply with. Keeping up with these host of laws can be difficult and time consuming for fast-growing businesses. As a result, businesses must either employ legal personnel to ensure that they are compliant or continuously keep up with the laws themselves, which is risky and time-consuming.
Partnering with an EOR allows businesses to mitigate much of this risk as the EOR provider assumes responsibility for local compliance in the regions that you have people operations in.
Streamlining Payroll Processes
EOR providers can help to streamline international payroll by ensuring that employees are paid in the correct currency and on time in their local bank account.
For international businesses, it is a legal requirement in most regions they operate within to have a local bank account to pay your employees from. Most places also require a considerable sum of money to be deposited in these accounts to meet capital requirements before you can start paying people.
Partnering with an EOR provider removes the costs associated with setting up local bank accounts and meeting capital requirements.
At Atlas, we believe that every organization should have the ability to thrive internationally. We envision a future where growth thrives across borders and cultures. Through our HXM platform, we allow businesses to hire the best talent that suits their needs, wherever in the world that talent may exist.