There are a variety of strategies that U.S.-based tech companies can employ to find, recruit, hire, and manage remote employees across the globe and an Employer of Record (EOR) may be the most effective and efficient. That doesn’t mean that hiring with an employer of record is without its own challenges and we know that many tech companies that want to create a global team have questions.
Truss is a global payroll and EOR provider with experience in Central Asian and Eastern European countries. We have created an employer of record platform that will help tech companies find, recruit, hire, onboard, and manage software developers, engineers, IT specialists, and more across the globe. We are here to help you find the right people that are the right fit for your company and we want you to understand the common difficulties when hiring through an EOR with this quick overview.
Contact Truss today to learn more about our global hiring and payroll services!
READ MORE: How To Recruit a Global Remote Team
What Are the Challenges of Hiring with an EOR?
No matter what method or service you and your company decide to use to hire global remote employees, you are sure to be faced with obstacles and challenges. An employer of record is no exception to the rule — even if it may be the most efficient and effective method to hire overseas. Before you hire global employees with an employer of record provider, it is important to understand what challenges you may face when you get started.
1. Global Compliance
Businesses that hire remote employees across the globe must remain compliant with the local labor laws in that country. Violation of employment laws can result in financial penalties and legal repercussions — making it important for companies to understand the law. An employer of record provider, like Truss, will handle a majority of compliance issues, but it is important that you choose an EOR that understands the laws in the country where you choose to hire.
2. Relying on a Third-Party Provider
When you choose an employer of record, you have to rely on a third-party provider — which can limit your ability to control employment practices. By comparison, establishing your own local entity in another country is another method of hiring that gives you total control, but it costs more and provides no compliance support. You can mitigate this challenge by finding an EOR provider that provides a wealth of employment and management features.
3. International Payroll
Payroll is a primary concern for any business in any country and when you hire global employees, you must have a clear understanding of payroll laws. Payroll in foreign countries can be complicated with distinct tax and social security systems with different exchange rates. Employer of record providers will help handle complex international payroll — but it is still a challenge that you need to face and the more experience your EOR provider has in that country or region, the better you will be able to handle international payroll.
4. Employee Misclassification
When you hire with an employer of record, you have the ability to hire full-time, part-time, or contract employees — which also increases the risk of misclassifying employees, leading to legal or financial penalties. EOR providers will manage remote employees as a representation of your company and it is important that your provider knows and understands local employment laws well, understands your business plan, and provides clear lines of communication.
5. Cultural and Language Differences
Tech companies that hire in another country will be faced with cultural and language challenges. How do you communicate with global employees? What is their work schedule in that country? Is the employee culture different? If you choose the right employer of record with knowledge of local languages and customs, you can minimize the challenge presented by these cultural differences.
READ MORE: Differences Between and EOR and an AOR
Why Choose Truss as Your EOR Provider?
Are you ready to hire global remote employees for your tech company? Are you considering an employer of record platform? When you decide to hire overseas, it is important to find a quality EOR provider that will work hand in hand with you to help you reach your global hiring goals and it is important to understand the common difficulties when hiring through an EOR.
Truss can be that provider for you and your tech company. We have knowledge and experience in several different regions across the globe including Central Asia and Eastern Europe that will help you remain compliant with local labor laws, maintain an accurate payroll, and manage the cultural differences.
Contact Team Truss today to learn more about our EOR services!
