Introduction
Are you concerned with the current EOR service provider? Are you facing issues related to high costs and lack of transparency? Are you dealing with the unavailability of desired benefits, or suspect potential malpractice in the operations with your Employer of Record provider? Are you looking for a more reliable Employer of Record (EOR) partner?
Partnering with an inadequate Employer of Record can create more issues than resolving them. If your current EOR fails to meet your expectations regarding pricing structure, employee benefits, compliance, or professionalism, it is time to change your partner. Worse still, malpractices are a clear sign that you should switch your EOR partner.
We understand how difficult it is to find the right Employer of Record partner. In this blog, we will explain how it is important for you to recognize the concerns that affect the growth of your business and how switching to the right Employer of Recordpartner will solve them.
Unavailability of desired benefits
Employee benefits play a crucial role in retaining or attracting top talent. The EOR partner must facilitate access to benefits that suit employee expectations and the business’s objectives. However, many Employer of Record partners can not fulfill these expectations.
A lack of local expertise can lead to overlooking essential benefits such as provident funds, employee health insurance, or gratuity provisions.
Many EOR partners offer one-size-fits-all benefit packages that do not fulfill employees’ unique requirements. Time-consuming onboarding processes or bureaucratic obstacles can delay employees’ access to benefits.
If the Employer of Record fails to provide desired benefits, it directly impacts employee morale, productivity, and retention. Eventually, this behavior damages the brand image and the company may miss out on better talents.
Some Employer of Record providers might offer good insurance options, but that’s not the case with all EORs. Some EORs provide fewer insurance benefits that do not match your expectations, so it varies as the Employer of Record partner changes.
Inadequate Pricing Structure
Pricing is one of the most essential parts of selecting the right Employer of Record. However, many businesses later realized that the current Employer of Record partner’s pricing structure does not justify the value.
Some Employer of Record invoices may list general service categories without specifying what is included in the structure. Lack of itemization blurs the picture of the pricing of services for clients. Let’s understand the main concerns:
Hidden Costs
Hidden costs are the biggest surprises for customers. These costs often occur from services not clearly explained earlier or due to a complex pricing structure. Customers need to understand that when an Employer of Record presents a price quote that seems unbelievably appealing. They should also understand that it may only cover basic services and you will be surprised by incremental costs for premium services.
There are a few hidden costs such as:
- Benefit and tax management costs
- Compliance fees for critical situations
Currency conversion fees can also possibly be applied when the currency used for invoicing differs from the currency of employee payments. In such situations, one needs to be careful with the costs associated with country-specific benefits and taxes. Especially, during the sales process because the Employer of Record may understate it.
Due to these hidden cost surprises, and lack of transparency, companies consider switching Employer of Record partners. Same with service fees, let’s understand what you pay for.
Service Fees
Service fees are considered the backbone of the Employer of Record pricing structure. It covers important tasks such as:
- Payroll processing
- HR support
- Compliance
Service fees can vary significantly between providers, and when companies don’t receive commensurate value for these fees, dissatisfaction grows.
List of major concerns for service fees:
- Frequent adjustments,
- Tiered / percentage pricing with limited access,
- Add-on fees for important services
Some Employer of Record providers have complicated pricing structures that fluctuate with exchange rates or service usage. Due to this, the monthly price becomes unpredictable.
Businesses may feel pressured to have more costly packages to conduct essential functionality. Although Employer of Record partners may provide tiers of price packages with varying service levels which could result in wasteful spending.
Clients deserve a justification for these piled fees by corresponding service levels and end up being frustrated. Businesses expect fees to be aligned with deliverables that provide real value to clients.
Here is the complete guide for the cost of hiring remote employees
Lack of Transparency in Compliance and Payroll
Compliance and payroll are important responsibilities of an Employer of Record. Businesses hire the Employer of Record providers to ensure employees are paid on time and accurately while fulfilling compliance requirements. Unfortunately, many EORs fail to accomplish their promises of maintaining transparency. Uncertainty around being compliant, and processing payroll, taxes, and benefits are some common transparency issues clients face.
The cost of tax, benefits, and compliance differs by country. As the country changes the complexities of tax and compliance change. It becomes difficult for businesses to decide their budget without knowing country-specific costs. Some EORs lack the consistency in updating the customer about pricing updates which eventually surprises customers with unexpected cost increases without advance notice. If the Employer of Record is not transparent it impacts the customer’s decision to continue the business.
Furthermore, they can negatively impact the financial health of the business due to penalties or disputes. Employer of Record providers need to remember that companies are inclined to seek a provider that considers financial clarity the prime concern.
Lack of Professionalism
From your employees’ point of view, the Employer of Record is a part of your brand. Ineffective management or unprofessional conduct may harm employee relations and damage your image.
Employee dissatisfaction is brought on by inadequate handling of employee feedback or delays in responding to their inquiries.
A haphazard onboarding process can cause misunderstandings and reduce employee trust in the company.
EORs are unable to foster a positive atmosphere at work if they fail to organize or support engagement activities like as wellness initiatives, team-building activities, or training.
Employees’ trust in the company is undermined by a lack of professionalism. High turnover rates, a decrease in manufacturing, and harm to the company’s culture are all possible outcomes.
Malpractices Building Trust Issues
For an Employer of Record partner, integrity and malpractices cannot be sacrificed. Creating fake payroll data or regulatory paperwork to hide inefficiencies creates trust issues. Employee exploitation includes excessive expenses, delays in making payments, and a lack of assistance in resolving workplace complaints. Avoiding legal responsibilities, such as employee insurance, maternity benefits, or gratuity payments, is known as a non-adherence to labor laws.
The misuse or improper distribution of funds intended for tax payments or employee benefits. Partnering with an Employer of Record who engages in malpractice puts the company’s brand in danger, which creates employee dissatisfaction and distrust in addition to
unwanted legalities.
In the end, malpractices, unclear prices, less transparency, and concealed expenses all lead to a single problem: trustworthiness. The working relationship may quickly deteriorate if the company believes that an Employer of Record fails to be entirely truthful or puts profit above offering fair service.
Clients may start to question the relationship’s worth when an Employer of Record falls short of their requirements, for example, by not providing adequate assistance or not handling compliance well.
Due to miscommunication, customers lose trust in the Employer of Record partner and once the trust issues arise, companies decide to switch to an EOR partner who is reliable and transparent.
Why Remunance Stands Out as a Reliable EOR
Remunance recognizes all the concerns above and provides a comprehensive service that will make you relieved. Remunance has established itself as a trusted Employer of Record providers in India that stands out. Here are the reasons why Remunance is recognized as a top choice for businesses considering a switch:
The Reasons Remunance Is a Reliable EOR
Remunance is a trustworthy Employer of Record supplier, distinguished by its commitment to open pricing and focus on customer support. Remunance is considered an excellent choice for businesses who are considering making a move for the following reasons:
Transparent Pricing Model:
Remunance is dedicated to delivering prices that are clear and upfront. To prevent unexpected or unforeseen expenses later on, the business provides clients with a detailed breakdown of all services and their associated costs.
Service Packages with customized Add Ons
Clients can comprehend the items they pay for and confirm that each price corresponds with the services provided thanks to Remunance’s invoices, which offer a thorough description of services.
Remunance provides packages tailored to the specific needs of businesses, allowing customers to obtain the necessary services without needless upgrades.
Proactive Communication
Remunance’s customer service ensures a prompt response to customer questions concerning. Prompt Response and Delivery (2 working days or less)timely payments
360 Degree Support
- 360° Support Services (Recruitment, Onboarding, IT, Infrastructure support, and Compliance Management)
- 360° Support Services Global clientele (Clients spread across 16 countries)Global clientele.
- Tech-enabled solutions (transparent information exchange through self-service portals)
Commitment to Transparency and Trustworthiness:
Remunance is seen as a trustworthy partner that companies can rely on to handle their international hiring needs with ease. Remunance emphasizes establishing long-term relationships and upholding high ethical standards.
Click here to understand more about why you should choose Remunance.
Conclusion
In conclusion, factors such as overpricing, a lack of transparency, trust issues, and unstated fees frequently influence the decision to change EOR providers. Additionally, the unavailability of desired benefits and instances of malpractice play significant roles in this choice. These elements undermine confidence, leading you to look for Employer of Record partners who can provide a more transparent and dependable service experience.
We(Remunance) are perfect to meet the needs of businesses willing to move to a more trustworthy Employer of Record partner because of its commitment to clear pricing, customized services, and dependable support. Businesses may feel secure in an Employer of Record partnership with Remunance which always prioritizes trust, transparency, and reliability.
