When you start a remote team and employ remote talent in different parts of the world, it is important to remain compliant with the labor laws in the country of employment. U.S.-based tech companies that hire remote employees around the globe have a few options available to them to protect them from potential financial and legal consequences — hire an Employer of Record (EOR), hire independent contractors, create your own foreign entity, or hire a Professional Employer Organization (PEO).
An Employer of Record is the preferred option for many companies and helps companies create a more efficient and effective global team. Partnering with an EOR provides tech companies with a wealth of benefits that are headlined by lower costs — but include many additional tangible and intangible benefits that go beyond salary savings.
If you have questions about the true ROI of an Employer of Record, Truss may be able to provide you with the answers to your questions as an Employer of Record provider in Central Asia and this breakdown of key benefits of an EOR.
Contact Truss today to learn more about how we can help your tech company find, recruit, hire, and manage remote employees in Central Asia and other parts of the world!
READ MORE: What Is the Cost of an Employer of Record Service?
4 Ways an Employer of Record Increases ROI
When you invest in an Employer of Record service, you expect to see a Return on Investment (ROI), and lower employment costs and improved efficiency tend to be the focus — but they are not the only way that an EOR provides a return. While an EOR provider will save employers money on establishing their own foreign entity, legal fees, accountant fees, and compliance penalties, the real ROI for an Employer of Record is intangible as well as tangible.
Here is a better look at the tangible and intangible ways that an Employer of Record increases ROI, beyond salary savings and reduced costs:
READ MORE: Employer of Record vs. Staffing Agency
1. Legal Protection and Compliance
The primary way that an EOR provides a return on your investment is by minimizing the stress and monetary costs that go hand in hand with remaining compliant with global employment laws. When you employ an EOR, the provider takes on the responsibility of compliance, allowing you to hire remote global employees with confidence and continue to pursue your operational goals. This added level of legal protection ensures that your company avoids potential fines, potential lawsuits, and potential damage to your reputation.
This legal protection and compliance is priceless for some tech companies.
2. Increased Access to Global Talent
When you partner with an Employer of Record, you can hire anywhere in the world — which gives you access to a deeper, global talent pool. With an EOR on your side, you will not only remain compliant with local labor laws, you can provide remote employees with competitive benefits that meet or exceed the local standard. This advantage may prove to be invaluable when trying to recruit and attract talented employees in different parts of the world.
3. Faster Global Hiring Process
When you are competing with larger tech companies for premium talent, speed can be a real advantage in hiring, and an Employer of Record provides companies with an accelerated hiring timeline around the world. When you employ an EOR service, you do not have to take the time to establish a local entity or find contractors that meet your specifications, you can start hiring remote employees for your company immediately and hit the ground running.
4. More Efficient and Effective Operations
U.S.-based tech companies that employ an EOR service to hire global talent will enjoy improved operational efficiency. The Employer of Record takes on the responsibility of onboarding, payroll, benefits, and operates as its own Human Resources (HR) department for global employees — which allows your internal HR team to focus on more important tasks. This increased operational efficiency translates to long-term success for your business.
READ MORE: Employer of Record vs. Independent Contractors
Hire Truss as Your Employer of Record
We hope this breakdown of the tangible and intangible benefits of an Employer of Record created by Truss has illustrated the true ROI of an Employer of Record beyond salary savings.
If you are ready to build a global workforce for your tech company, Truss is ready to help you accomplish your goals as your Employer of Record provider. Truss has years of experience as an EOR in Central Asia and other parts of the world, and we know how to protect your company from financial and legal penalties.
Truss provides tech companies with an end-to-end global hiring platform that will help you find the perfect fit for your company. No matter what you are looking for in terms of talent — Python developers, data analysts, DevOps engineers, UI/UX designers, SEO specialists, product managers, or something else — Truss will help you find, recruit, hire, onboard, and manage tech talent around the globe.
Contact Truss today to find out how we can help you grow your tech company with global talent!
