Are you just getting started with your tech company? If you are — you have undoubtedly looked at the numbers and know that an estimated 90% of tech startups do not succeed, and an estimated 10% – 20% fail in the first year. Finding the talent your startup needs at an affordable salary can be a real challenge for U.S.-based tech startups, but hiring remote talent from emerging markets around the world has proven to be a viable solution, and an employer of record can help you achieve your goals.
U.S.-based tech companies that are just getting their feet off the ground may not be familiar with what it takes to find, recruit, hire, onboard, and manage talent that is half a world away, and may not know how a global employer of record can simplify the process. Truss provides tech startups with an end-to-end hiring solution and employer of record services in emerging markets like Central Asia — and we are here to help you find success with a remote team of engineers, and this Complete Guide to Global Employer of Record Services for Tech Startups will get you started.
Contact Truss today to learn more about our employer of record services!
READ MORE: Why Tech Startups Are Turning to Central Asia
What Is an Employer of Record?
Tech companies that are new to global hiring may want to know — what is an employer of record? When you hire employees in different parts of the world, you need to have a legal entity in that country — and investing in a legal entity can cost tech startups money they do not have. An employer of record provides an alternative to investing in a legal entity.
When you partner with an employer of record, they take on the legal responsibilities that go with hiring remote employees, protecting your tech startup by ensuring that local labor laws are followed, the appropriate taxes are withheld, employment contracts are legal, employees receive the correct benefits, and payroll is administered correctly. Truss takes this a step further by providing you with an end-to-end hiring platform that will help you find, recruit, and onboard talented employees.
What Are the Benefits of an Employer of Record for Tech Startups?
Armed with a better understanding of what an employer of record is and how it functions, it is important to understand why an employer of record is the right option for a tech startup and how it will benefit your growing company. When you make the decision to hire remote talent in different parts of the world as a tech startup, it is important to find cost-effective talent that will help ensure you achieve long-term and sustainable success.
Here is a better look at the key benefits of partnering with an employer of record like Truss:
Lower Costs
Hiring with an employer of record as a partner in an emerging market allows tech startups to reduce costs and pursue a more cost-effective solution. Hiring remote employees with an employer of record eliminates the costs tied to establishing a legal entity, eliminates overhead costs, avoids expensive compliance errors, and is more affordable than hiring in the United States.
Speed to Market
In a competitive tech industry, it is important for tech startups to get their products to market as quickly as possible, and an employer of record allows you to hire and onboard talent in weeks rather than months, allowing you to build a talented team quickly on a shorter timeline.
Access to Global Talent Pools
Partnering with an employer of record gives you access to a deep global talent pool. When you cannot find the talent and skills your tech startup needs in your own backyard, an employer of record expands the talent tool to emerging markets like Central Asia and countries that include Uzbekistan, Kazakhstan, Kyrgyzstan, and Armenia where the tech industry and tech-focused careers are growing.
No Need for a Legal Entity
A primary benefit of working with an employer of record is that there is no need to establish a legal entity. Establishing a legal entity costs time and money. It can take months to set up and initial fees can range from $1,200 to $15,000 depending on where you are hiring, and then you are responsible for monthly and annual costs.
Easy Payroll and Administration
Managing payroll for a team in the United States and for a global team can be a challenge for many human resources departments who are not familiar with the local employment laws. An employer of record can automate many aspects of global payroll, tax deductions, and employee benefits, saving you time and money.
Assured Legal Compliance
Non-compliance with local labor laws can result in financial penalties and economic sanctions for a tech startup. Tech startups that partner with an employer of record are protected from non-compliance errors by experienced providers that understand the local labor laws, tax filings, and employee contracts, ensuring you remain compliant.
More FAQs About EORs for Tech Startups Hiring in Central Asia
Question #1: How Does an EOR Protect Intellectual Property (IP)?
Answer: With an employer of record — like Truss — remote employees are hired with employment contracts that are specific to the hiring country, which include enforceable IP protections and clauses specific to trade secrets.
Question #2: Do Developers in Central Asia Speak English?
Answer: Yes. Many countries in Central Asia have established themselves as tech export hubs in the region and speaking English proficiently is a primary focus for many with government programs to incentivize learning the English language.
Question #3: How Does an EOR Handle Currency Fluctuations and Exchange Rates in Central Asia?
Answer: When tech startups attempt to handle global budgets on their own, and currencies fluctuate or exchange rates change, it can be a real challenge. When you partner with an employer of record, there is no need to worry about these fluctuations or exchange rates, you will pay a single monthly fee.
Question #4: How Do Tech Startups Manage the Time Zone Difference in Central Asia?
Answer: The time zone in Central Asia is 9 – 10 hours ahead of the United States. This time difference can be used as an advantage with a follow-the-sun production cycle, where applications are developed in the United States and then testing or deployment is done overnight by remote teams in Central Asia.
READ MORE: Benefits for Tech Startups Hiring in Central Asia vs. Eastern Europe
Are you a tech startup with a brilliant product you want to develop? Do you need talented developers and engineers that will fit your budget? Hiring remote workers in different parts of the world with an employer of record may prove to be the solution for your growing company, and this Complete Guide to Global Employer of Record Services for Tech Startups will help you get started.
Contact Truss today to learn more about how our employer of record platform can help you succeed!
