Artificial Intelligence (AI) continues to be a focus in the tech industry — and an estimated 57% of tech startups are focused on AI-powered applications. The tech industry is already competitive, and the market for AI applications may prove to be even more competitive for startup companies.
The race to build and distribute the best AI applications is powered by the talented individuals who develop Artificial Intelligence — but the competition in the industry can make it a challenge to find the talent you need as a startup. This competition for talent has forced many tech startups to find and hire remote talent from around the world in emerging tech markets like Central Asia that have become global hubs for AI/ML talent.
Global Employer of Record services provide tech startups with the tools needed to find the right fit for a remote team that will help turn a product vision into a reality. Partnering with an employer of record is a proven strategy for tech companies to find the talent they need — but it is important to understand why AI startups are choosing EOR services to scale remote teams — and Truss has the answers.
Contact Truss today to learn more about our global payroll platform and employer of record services!
READ MORE: Differences Between an EOR and Local Entity in Central Asia
5 Reasons Why AI Startups Choose Employer of Record Services
Tech startups that partner with an employer of record service — like Truss — will bypass the need to establish a local entity in the country where they hire tech talent. Your employer of record takes on legal responsibility for remote employees by handling payroll, managing employee classifications, and ensuring that tech companies remain compliant with local labor laws.
Here is a closer look at why many AI startups are choosing employer of record services to help build and manage remote development teams:
1. Increased Access to Global Talent
There are many advantages to partnering with an employer of record — but gaining access to a deeper pool of global talent may be #1. Employer of record providers have expertise and knowledge hiring in global tech markets and will work to find, recruit, hire, and onboard remote employees in markets that they have experience in. Tech startups that want to hire engineers, analysts, and developers that specialize in AI applications may find that Uzbekistan, Georgia, and Kazakhstan provide a wealth of AI talent.
2. Faster Global Hiring
There may be times when tech startups need to hire fast to push a project across the finish line — and an employer of record can help speed up the hiring process. When compared to a local entity or hiring service, an EOR can shorten the hiring process from months to just a few days or weeks. Employer of record services can also speed up the onboarding process, shortening it to 2 – 6 weeks in many cases.
3. Minimized Compliance Risk
Tech companies that conduct their own hiring will find that labor laws in different parts of the world can be very complicated — but an EOR takes on that responsibility for you — as non-compliance with local labor laws can result in financial penalties. When you partner with an employer of record, they will handle labor laws that apply to contracts, terminations, and benefits to reduce the risk of financial penalties or lawsuits.
4. Affordable Scalability
Tech startups looking for efficient and cost-effective ways to find, recruit, and hire will find that global employer of record services make building a larger team more affordable than implementing a local entity. The upfront costs of a local entity can be as high as $15,000 – $20,000 that an employer of record reduces to more affordable monthly fees. This is a particularly viable option for tech startups.
5. Simplified Payroll and Taxes
Are you hiring data scientists from Uzbekistan? Are you hiring ML engineers from Armenia? Hiring in multiple foreign countries with multiple currencies can make payroll a complicated task for even the most experienced HR professionals. Working with an employer of record that has experience in those countries — like Truss — is well-equipped to handle multi-currency payroll in addition to automating tax filings, and ensuring local employee benefits are taken care of. This level of attention paid to employee payroll can also contribute to improved employee retention.
READ MORE: The Hidden Costs of Compliance and Why Startups Need an EOR
Why Choose Truss as Your EOR?
Tech startups that choose Truss as their employer of record partner have the ability to bypass the significant hurdles and expenses of establishing a legal entity in a foreign market. By implementing an established global infrastructure, Truss manages everything from local employment contracts and benefits administration to legal compliance with international labor laws. This streamlined approach ensures that your remote employees are onboarded correctly and paid accurately, while you stay focused on your core objectives.
When you look beyond compliance with local labor laws, Truss provides an end-to-end global hiring platform for managing every aspect of your remote tech team. With transparent pricing starting at $499 per month with no hidden fees, you can easily and efficiently scale your workforce in emerging markets across Central Asia with confidence. From facilitating competitive salary packages to offering ongoing support via dedicated account managers, Truss acts as a true extension of your HR department.
Contact Truss today to learn more about our global employer of record services!
