Businesses that choose to hire remote employees in the different countries of the world may not know how to accomplish that goal, and will find themselves faced with different options. Businesses can hire independent contractors, establish their own legal entity where they are hiring, partner with a Professional Employer Organization, or work with an Employer of Record.
U.S.-based tech companies interested in the depth of talent in emerging markets like Armenia, Uzbekistan, Kazakhstan, and Georgia can find the right fit for their company in these different parts of the world — but how they accomplish that goal may vary. Truss provides tech companies with global EOR services, and many businesses that are new to the global hiring process want to know — why hire remote software developers with an employer of record?
Contact Truss today to learn more about our global hiring platform!
READ MORE: EOR vs. Local Entity in Central Asia
5 Reasons Why You Should Choose and Employer of Record
No matter which option you choose when you hire remote global employees, you will discover pros and cons — but partnering with an employer of record service can help set your tech company apart from competitors. Working with an EOR can help startup tech companies reduce employment costs, protect your company from compliance mistakes, protect your Intellectual Property, help you find affordable talent in Central Asia, and more.
Here is a better look at the main reasons why you should choose an employer of record, like Truss to help you build your remote team:
1. No Need for a Legal Entity
Hiring in a different country means expanding your business legally in many cases, and establishing a legal entity in the hiring country takes time, money, and effort — and leaves you with other challenges to overcome. The timeline to establish a legal entity in Central Asian countries can range from a few days or weeks to 2 – 3 months. When you have established a legal entity, you still need to find and hire talent, and ensure you remain compliant with local employment laws — legal aspects that can be handled by an employer of record.
2. Reduced Overhead Costs
A key benefit of partnering with a global EOR is the reduced overhead costs — especially when compared to establishing a legal entity in the country where you are hiring. The overhead costs of a legal entity can range from $2,000 – $15,000 on average in the first year, which includes government registration fees, legal advisory services, a local office, and corporate bank accounts. With an employer of record, you do not have to worry about any of those overhead costs.
Here is a closer look at average overhead costs for a legal entity in many emerging markets in Central Asia and other parts of the region:
- Uzbekistan: $2,500 – $8,700
- Kazakhstan: $2,000 – $6,200
- Kyrgyzstan: $2,200 – $7,200
- Turkmenistan: $15,000 – $25,000
- Armenia: $1,500 – $3,000
3. Legal Compliance Support
U.S.-based tech companies that make the decision to hire remote employees in Central Asia and Eastern Europe must still follow local employment laws — and when you hire employees as a legal entity or hire independent contractors, you are still responsible for ensuring your company follows the local labor laws. Tech companies that are not compliant with the local employment laws are subject to financial penalties and restrictions. When you partner with an employer of record, the employer of record accepts legal responsibility for compliance with local labor laws and will protect your company legally.
4. Protection of Intellectual Property
Tech companies that build state-of-the-art Artificial Intelligence applications, develop proprietary software, and create cutting-edge digital products face risk to intellectual property when expanding their global workforce. An employer of record helps minimize the risk of intellectual property theft by enforcing intellectual property transfer agreements that are legal across international borders. This helps protect your intellectual property when you build a remote global team.
5. Central Global HR and Administration
When you build a tech startup from the ground up, you can be left working within many different administrative systems and handling many different aspects of the company, from onboarding new employees to managing global payroll. This is where an employer of record can help your business succeed. Employer of record providers — like Truss — will handle finding and recruiting remote employees, onboarding new members of your team, managing global payroll, and overseeing remote employee benefits with a single, central platform.
READ MORE: Differences Between a PEO and an EOR
Why Choose Truss as Your Employer of Record Partner?
Tech companies that want to build and scale their tech team globally, may want to consider a strategic partner that goes beyond standard payroll administration. Truss acts as a gateway to elite and remote tech talent in Central Asia and other regions of the world — helping you find and hire world-class developers at a fraction of the cost of local hires.
The Truss end-to-end global hiring platform and EOR services simplifies the entire lifecycle of global employment by providing pre-screened candidates complete with initial video screenings, technical interviews, and all necessary onboarding processes. By handling global payroll and labor law compliance, Truss removes the administrative burden, allowing your leadership team to stay focused on building exceptional products and achieving goals.
By hiring remote software developers with an employer of record like Truss, you gain the competitive edge of untapped global talent pools without any of the legal or operational legal risks. Truss meets one-on-one with your hiring managers to determine exact technical requirements and deliver a vetted list of qualified job candidates within a matter of days.
