Employer of Record or Global Relocation? Which is best?
Introduction
Hiring international workers comes with many advantages, including tapping into a highly skilled pool, broadening services, and opening up fresh markets. Based on your company’s needs and requirements, you can use two main options for acquiring international talent.
For example, if you want to hire workers from Mexico, you can use either global relocation or employer of record Mexico. So which is an effective method? This article will provide the best solution to this question. Read on to learn more.
What’s Global Relocation?
Global relocation involves moving a department, sector or staff of a business to a new office in a foreign country. While global relocation can be a perfect strategic move in some situations, there are significant hurdles to consider. Below you’ll find the benefits and challenges of global relocation.
Benefits of Global Relocation
With global relocation, a business can enjoy full control over essential HR administration and onboarding processes. It allows businesses to establish themselves in brand-new markets quickly.
Also, it enables them to hire top global talent, reduce operational costs and lower tax rates. For instance, hiring workers in a foreign country can be affordable when a company has an already established entity.
Challenges of Global Relocation
Relocating local talent globally has always proven to be a complicated and laborious task for many businesses. A significant amount of resources, time and expenses are required to start operating in a foreign country.
The responsibility for everything, ranging from local law compliance and visas to benefits and payrolls, is placed on the business and its human resource department. It’s challenging to get everything right, which means there can be instances of costly consequences.
Also, it’s crucial to consider extra expenses and requirements associated with location, including travel, logistics, supplemental perks and benefits and language training expenses. While businesses can look for global relocation services, the process is still expensive, considering that the company will still pay for additional relocation needs for workers.
What’s an Employer of Record?
Understanding foreign labour laws can be a difficult task for legal and HR teams. You can imagine handling taxes, regulations, rules and everything in between in a country you aren’t familiar with. With the best employer of record services, you don’t have to.
The employer of record will take care of all legal and financial procedures required to operate in a foreign country, including taxes, employee benefits, and payrolls. In simple terms, an employer of record takes over all HR, hiring and employment responsibilities, allowing the local finance, legal, and HR teams to complete tasks they’re professionals in.
Why Use an Employer of Record Instead of Global Relocation?
Employer of record offers the best and most beneficial route when it comes to utilising global talent. An employer of record service provider provides numerous affordable maintenance solutions to international relocation challenges. These providers already have strong entities in different countries worldwide, meaning your business won’t incur administration corporate relocation expenses.
Instead, EORs handle different human resource aspects in foreign countries. They expedite the recruitment process, so freshly hired global employees can start working as soon as possible. Also, employer of record services allow businesses to exit certain markets if they discover excellent opportunities elsewhere.
Finally, EORs have highly qualified local experts that handle worldwide HR administration, ensuring that everything is done according to the law, rules and regulations.
