Ever heard of an Employer of Record (EOR)? 

It might sound a bit technical, but it’s simple, really. It’s a helpful tool for companies that want to expand their operations globally without having to open up a legal entity abroad. It’s like a helping hand that takes care of all the legal and administrative tasks when you hire employees in a different country.

But here’s the thing: there are a lot of myths floating around about EORs. Some people think they’re just a button you press to hire anyone, anywhere. Others think they’re too complicated or expensive. Let’s clear up the confusion and see how EORs can really make your lives easier and better.

Myth 1: EORs limit control over employees.

One misconception is that EORs do all of the management of your employees. That is simply not the case. When you use an Employer of Record (EOR), they take care of all the legal stuff related to being an employer. You are still 100% in charge of how your employees work. 

You decide what they do, what projects they work on, and how well they’re doing. The EOR just helps with things like paying them, giving them benefits, and making sure everything is legal. For example, you tell your employees when to work and what to do, and the EOR makes sure that’s okay according to the laws in your employees’ country.

Myth 2: EORs are just for temporary workers.

Another common misconception is that EORs are only used for temporary or contract workers. 

But that’s not quite right. While EORs can definitely help with that, they can do much more. They can also be used to hire full-time employees, giving companies a way to grow their teams around the world without all the hassle. With an EOR, you don’t have to worry about the complicated employment tasks in different countries to make sure that your remote employees receive the same benefits as your local employees. 

Myth 3: EORs are expensive.

Some believe that using an EOR is too costly. But while there are fees to pay, the benefits are usually worth it in the long run.

When companies hand over EOR to handle your global employment requirements, they can save time and resources while ensuring compliance with local regulations. 

You can put the majority of your focus on your core activities and growth initiatives instead of working on a lot of paperwork. EORs can also help organizations avoid costly penalties and legal issues that may arise from non-compliance. 

Myth 4: EORs directly hire your employees.

It’s important to note that EORs are not a substitute for hiring in all cases. 

You should remember that:
Employer of Record ≠ Recruitment Agency.
Employer of Record ≠ BPO.
Employer of Record ≠ Outsourcing Company 

While EORs can definitely make the search easy for you because of its vast global network of connections, faster onboarding, compliance management, and payroll processing, you still make the choice of who you want to hire for the role you need. 

An EOR primarily acts as an employer of record on behalf of your company.  

How can an Employer of Record benefit your business?

• EORs make sure your company is following all the local laws and regulations about employment. This helps you avoid fines and legal problems.
• Setting up a legal entity in a new country can be expensive. EORs can help you save money by taking care of all the paperwork and administrative tasks— no need to open a local entity abroad.
• If you want to start hiring employees in a new country, EORs can help you do it quickly. They can assist you in handling the process from start to finish, so you can focus on your business.
• EORs have access to a network of talented people in different countries. This can help you find the best employees for your company.
• Doing business in a new country can be risky and EORs can help you manage these risks by handling the legal and administrative aspects of your operations.

When choosing an Employer of Record (EOR), it’s crucial to evaluate a few factors. First, make sure they know your industry inside and out. Look for an EOR with a strong track record in your industry or region. Next, see if they can handle all the stuff you need. Make sure they offer the specific services you require, including payroll processing, benefits administration, and HR support. Verify that the EOR is compliant with local labor laws and regulations in the countries where your employees are located. Compare prices to find the best deal. Finally, do some research. Read what their clients have to say about them. This will give you a good idea of what to expect.

It’s important for companies that want to grow bigger around the world to understand what an Employer of Record (EOR) can really do. By getting rid of those old ideas and seeing how great an Employer of Record is, companies can make better decisions to reach global success. 

If you’re on the lookout for an Employer of Record, consider checking out Filta. 

Filta’s Employer of Record helps businesses like yours grow and succeed in other countries. We take care of all the global employment requirements and adhere to local rules and regulations in different places, so you can be confident that your business and employees are secured. We can also help you find, hire, and employ the best people to work for you, no matter where they are.

We’re here to make your life easier. Head to www.filtaglobal.com to learn more.