How to Hire Employees Anywhere With an EOR?

“The World Has Come Closer” sounds like Nolan’s movie dialogue but here we’re talking about how geographical boundaries are no longer an obstacle to hiring. Technology is a real game changer for businesses because now you can hire anyone anywhere. However, hiring skillful talents from anywhere is easier said than done.

The global hiring process is filled with challenges such as managing complex laws, over expenses, infrastructure, and payroll compliance in different countries. Due to these challenges many companies back out from hiring internationally and miss out on the benefits of global hiring.

However, the employer of record (EOR) has become a game changer for business owners backing out from global hiring. EOR has simplified the process of hiring international employees. Now, the obvious question that arises is “how?”.

We have surveyed a few models such as freelancers, contractors, or staffing agencies. However, we found out that these options lack data security, quality of work, accountability, communication challenges, and benefits, leading to dissatisfaction. 

Through these pain points, we understand how these models generate the requirement for a solution that simplifies global hiring without having to compromise on cost, control over operations, stability, compliance, and employee benefits. 

So, here is our survey to understand reasons to hire talent anywhere in the world, the best ways to hire employees in India. How to hire employees with an Employer of Record service. Also EOR is a comprehensive option to hire anyone anywhere.

Before going further toward the ultimate solution, let’s first understand about employer of record (EOR).

What is an Employer of Record?

A strategic partner that serves as the legal employer of your employees is known as an employer of record. An EOR assumes all employment duties and liabilities on your behalf, managing payroll, benefits, taxes, and compliance.

EOR services are helping companies expand their businesses and hire the best talents in India. Many businesses have experienced immense growth and India is becoming one of the prime choices for many countries for employer of record services.

Important Facts About EOR services

Let’s understand the main facts about Employer of Record Services.

• EOR takes full responsibility for your workforce. It manages legal, compliance, and regulatory obligations
• Employer of record is one of the most cost-effective solutions that saves the cost of physical presence and compliance.
• Manages payroll in compliance with Tax regulations. Handles tax withholding such as TDS, Provident Fund, and Employee State Insurance (ESI) contributions
• Offers comprehensive HR support, and local expertise 
• EOR offers statutory and non-statutory benefits, including gratuity, health insurance, and retirement contributions. Moreover, it offers bonuses, meal allowances, and flexible work options that will attract and retain top talent

Who Should Use Employer of Record?

Let’s look thoroughly at who benefits the most from Employer of Record India services.

• Startups and Small Businesses

• Businesses Testing New Markets

• Businesses Facing Compliance Complexities

• Companies Switching EOR From Another EOR

We hope you have enough information about the employer of record. Further, let’s get back to the survey where we learn the reasons to hire anyone anywhere.

What are the Reasons to Hire Internationally?

Before understanding how to hire with EOR, we preferred to ask “why?” to understand the urgency of the solution. During the survey, we asked a few owners reasons they looked to hire talent outside their country. 

All of them gave a simple reason ‘These businesses want to grow and expand beyond boundaries.’ 

These days, businesses are open to any good solution that will increase the zeros of turnover and decrease the zeroes of expense. 

To contradict that, according to Henry Ford, “Business that makes nothing but money is a poor business.” So, here are more reasons businesses want to hire anywhere in the world.

• Tap into the Diverse Talent Pool

This gives a strategic advantage of accessing a wide variety of creative and skilled professionals. Tapping into the diverse talent pool makes you understand different demographics, locations, and cultures. If you’re looking for innovation in your execution, overcome challenges creative way, or want to strengthen your edge, exploring new countries for talent is worth it.

• Cost Effectiveness

The most important factor is cost which varies across regions. Simply, if a company hires talented resources from lower-cost-of-living regions, it would be profitable.

• 24/7 Service

Different time zones ensure continuous business operations. This improves productivity and customer satisfaction. 

• Global Expansion

With an international workforce, the company gets to explore different markets and gain knowledge across different regions. It also helps in understanding the culture, consumer behavior, and business practices of that region. 

It becomes easier to get an insight into how businesses can operate in that particular region. Also, establishing a global presence can improve your company’s reputation and attract top-tier talent worldwide.

Now that we know the reasons, let’s understand the ways of hiring internationally that are tried by these respected owners.

How to Hire Internationally With EOR

The term “Employer of Record” is made for international hiring. Select whichever country you want to hire from and EOR will help you understand the local market, cultural aspect, and cost. Employer of record simplifies the hiring process with its strong regional network. 

EOR identifies the role you need to fill and understands the requirements if you need contractors, project-based employees, or full-time employees and hunts accordingly. With its expertise and dedicated team, the employer of record performs a smooth onboarding process.

Since EOR takes the overall responsibility of the remote team, it becomes cost-effective in terms of compliance, infrastructure, and HR management.

Important Steps of Hiring Internationally with EOR

1. Acknowledge hiring needs and target market
2. Choose the right employer of record (EOR) partner

3. Prepare a list of your requirements and provide role-specific details accordingly

4. Recruit and select the candidate

5. Finalize the employment contract

6. Execute the onboarding process of the employee

7. Payroll and compliance management

8. Monitor and support the employee

9. Expand or conclude employment as required

Why is EOR Better Than Other Ways of Hiring?

Before understanding those ways let’s compare key aspects of international hiring using an Employer of Record (EOR), setting up a Local Entity, hiring Freelancers, and engaging Contractors:

Aspect	Employer of Record (EOR)	Local Entity	Freelancers	Contractors
Legal Entity Requirement	Not required. The EOR acts as the legal employer.	Required. You must establish a legal entity in the country.	Not required.	Not required.
Compliance Management	Managed by the EOR, including payroll, taxes, and labor laws.	You are responsible for all compliance requirements.	Minimal compliance is required (based on freelance contracts).	Basic compliance (contract laws and tax requirements).
Cost	Service fees are typically lower than setting up an entity.	High upfront and ongoing costs (registration, taxes, etc.).	Lower cost (no employment benefits or payroll fees).	Variable costs based on contract terms.
Speed of Hiring	Fast; EOR already has the infrastructure in place.	Slow; takes time to establish and register an entity.	Fast; direct agreement with freelancers.	Fast; depends on contract negotiations.
Control Over Work	Full control over employees.	Full control over employees.	Limited control; freelancers work independently.	Limited control; contractors are not full-time employees.
Employee Benefits	Provided by the EOR in compliance with local laws.	Provided by you, as required by law.	Not required (freelancers handle their own benefits).	Not required (contractors handle their own benefits).
Taxation and Withholding	Managed by the EOR.	You are responsible for managing taxes and payroll.	Freelancers are responsible for their own taxes.	Contractors manage their own taxes.
Scalability	Highly scalable; suitable for small or large teams.	Time-consuming and costly to scale operations.	Flexible, but limited scalability for large teams.	Flexible, but not ideal for scaling long-term teams.
Risk of Misclassification	None; employees are legally employed by the EOR.	None; you directly employ workers.	High risk if freelancers are treated like employees.	Moderate risk depends on the nature of the contract.
Duration of Setup	Days to weeks, depending on the EOR provider.	Months; involves legal, administrative, and compliance steps.	Immediate, based on mutual agreement.	Immediate to weeks, depending on negotiation.
Best Use Case	Long-term employment, and global expansion without local setup.	Large-scale operations or long-term presence in the country.	Short-term, project-based work, or specialized tasks.	Short- to mid-term projects requiring specific expertise.

 

“How to hire employees internationally” is the most important question that arises for companies. Businesses search for different options but end up not trusting many of them.

No need to worry, with our survey, all the options with comparison to an employer of record will convince you how EOR is the best option to hire anyone anywhere. Let’s understand them one by one.

Employer of Record

An Employer of Record (EOR) is a service that helps businesses expand internationally by hiring and managing employees on behalf of the main company. An employer of record takes the whole responsibility of the candidate. It takes care of all the employment tasks for eg. onboarding processes and compliance documentation. It manages the burden of international workers and stays compliant with local employment laws.

For businesses looking to tap into new markets or form an international team, Employer of Record (EOR) is the best option. You don’t need to set up a local entity in a new country. 

The cost varies by the EOR provider. Employer of record provides a clear and streamlined invoice including all services and taxes without any hidden expenses. Let’s understand the advantages and disadvantages of the employer of record (EOR).

Advantages

1. The EOR provider handles all the employment tasks, such as compliance documentation, the onboarding process
2. You can form a team without testing the potential local market
3. Employer of record (EOR) is the best solution for businesses looking for short-term projects or specific projects.
4. Local benefits and protections are provided to employees
5. Let you focus on your core business operations

Disadvantages

1. You might feel you’ve less control over the team
2. Higher costs compared to other services

Local Entity

In this, a company establishes a footprint in the new country to hire employees. In terms of long-term expansion of business, organizations often consider this as their prime option.

Advantages

1. Businesses have overall control over operations
2. It enhances credibility in the local market
3. Becomes easy to integrate employees into the organization’s ecosystem

Disadvantages

1. It’s a time-consuming and expensive setup process
2. It needs ongoing maintenance and compliance with the local laws
3. It won’t be a good option to test a new market or hire a small team

Having an entity in another country would be a risky step. It would be expensive for a business to establish an entity without having experience in the local culture and market. Taking small steps can lead to better growth.

In such a situation, I agree with Vincent Van Gogh, “Great things are not done by impulse but by a series of small things brought together.”

Freelancers

Freelancers are mostly specialists. Freelancers are hired on a project-by-project basis and get paid per hour basis. Freelancers have the advantage of having more clients at a time.

There are platforms such as Freelancer, or Upwork where you can hire freelancers. These sites are a great medium that provides job descriptions and receive applications from all over the world. But, always keep in mind that hiring a freelancer will need additional legal work if you want those workers to be exclusive to your company.

Advantages

1. Freelancers are available all around the world and available for remote work.
2. Freelancers pay their taxes and insurance

Disadvantages

1. You can not keep track of the freelancer’s work
2. You’re not the only client they are investing time for. The energy gets distributed and sometimes results in low-quality work
3. You can’t expect freelancers to follow the company culture
4. No guaranteed loyalty or long-term commitment
5. There is a potential compliance risk if the connection resembles traditional employment.

Freelancers are a great option for small teams that require small help with ad hoc projects. But, according to Coach Ludiah, “The work of a freelancer is never done”. It has so many meanings but I would like you to decide your perspective on this.

Contractors

Contractors are not considered as employees but independent workers. They have separate legal classifications and tax arrangements. Usually, contractors work with one company at a time. They can be hired for specific projects because the team gets filled with different skills, diversity, and knowledge. Also, the company has no legal relations with contractors.

If staffing flexibility is a concern for the business, contractors are a good option. While dealing with contractors or managing a team, the business does not need to worry about long-term contracts or benefits. Also, it is available 24/7 in different countries or locally.

Advantages

1. Contractors are mostly specialists of the project
2. Contractors need less management
3. Businesses are not responsible for paying local taxes or insurance costs

Disadvantages

1. Contractors work on a short-term basis
2. Contractors hardly form a relationship or build loyalty
3. It would be challenging to get approval for a mortgage without traditional full-time employment

There is a quote by Thom Browne, “When people have too many choices they make bad choices.”
But, I would say, if they have the right guide with them, they won’t make any bad choices and here this survey will guide you to hire anyone anywhere in the world.

The ways mentioned above are the options one can hire anyone anywhere in the world. As you have understood all the options above, as your guide, friend, or surveyor, let me tell you, that the employer of record (EOR) will fulfill all your requirements. EOR will offer compliance with laws, and cost-effectiveness, and mainly you can focus on your core tasks, and increase productivity. 

India is potentially the right country where you can find the best EOR provider who will help you find the most skilled and proficient talents.

Now that we know the right option and country, let us introduce you to one of the best Employer of record service providers in India— Remunance. Let’s understand how Remunance can help you excel in the business.

How is Remunance the Best Solution to Hire?

With experience in hiring 1000+ employees, and handling 104+ clients across 22 countries to date, Remunance sits amongst the best. 

Remunance’s tech-enabled solutions, global clientele, 360-degree assistance, and quick reaction make it a reliable employer of record partner. While you concentrate on your primary responsibilities, Remunance’s team of professionals and clear solutions can keep your team running. Remunance offers the greatest answer because it comprehends the needs of the client. Remunance is your long-term partner for facilities management, IT support, staff administration, and concierge services.

We hope you now know how businesses can hire anyone anywhere in the world with the help of an EOR provider. Therefore, select Remunance as your EOR provider if you wish to expand beyond boundaries while focusing on your core tasks.