Summary
When expanding, the question of “how to hire employees anywhere” automatically appears. Here we have an answer to your question— Employer of record. In this blog, we have addressed every niche of the topic. So, let’s make a firm choice for better future.
How to hire employees is the first question that pops into the mind when planning to look beyond the traditional borders. The very next question is how to hire employees anywhere and what is the right way to do it.
The global hiring process is filled with challenges such as managing complex laws, over expenses, infrastructure, and payroll compliance in different countries. Through this article, let’s try to look at the best ways to hire employees.
We have surveyed a few models such as employer of record, freelancers, contractors, or staffing agencies. So, let’s go in-depth to understand how to hire talent anywhere in the world and the best ways to hire employees (particularly in India).
Before going further toward the ultimate solution, let’s first understand the employer of record (EOR), one of the few models that we study and personally one of our favorites.
What are the Reasons to Hire Employees Internationally?
Before understanding how to hire employees 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 employees 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 employees 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 best way to hire employees internationally that are tried by these respected owners.
How to Hire Employees 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 Hire Internationally Employees with EOR
- Acknowledge hiring needs and target market
- Choose the right employer of record (EOR) partner
- Prepare a list of your requirements and provide role-specific details accordingly
- Recruit and select the candidate
- Finalize the employment contract
- Execute the onboarding process of the employee
- Payroll and compliance management
- Monitor and support the employee
- 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. |
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 how to hire employees anyone anywhere in the world.
The ways mentioned above are the options one can hire employees 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.
FAQs
Can you use an Employer of Record (EOR) and a staffing agency together?
It is conceivable to use a staffing agency and an employer of record simultaneously. For example, the EOR manages payroll, compliance, and legal employer responsibilities, while a staffing agency may recruit employees for temporary or specialized roles. Companies that need fast staffing solutions and have entered new markets without having a local presence could profit from this combination of solutions.
Is a staffing agency more expensive than an EOR solution?
The requirements of the company decide the amount it costs to use a staffing agency compared to an EOR. The long-term expenses may increase due to the large markups that staffing firms may impose on recruitment services and temporary personnel. On the other hand, the employer of record solutions offers affordable assistance with payroll, compliance, and benefits and concentrates on continuous employment management. The employer of record solutions is typically less expensive than using a staffing agency for companies with long-term employment intentions