Top 6 Reasons Your Company Needs an EOR
We talked about how there is a common misconception surrounding the EOR services- specifically in the area of cost. The reason it is a myth is because when you eliminate the hassle of outsourcing your payroll, facing non-compliance penalties, and legal responsibilities toward your employees, this then results in lower costs and time saved on your behalf. Very often, an EOR solution is a more cost effective alternative to the standard DIY approach.
Ease of Payroll
Whether you are currently using a payroll company or managing payroll yourself, an EOR solution can help by bundling the countless other functions of an EOR solution, this gives you the opportunity to save on major expenses that are linked to payroll and allocate your money elsewhere. The EOR solution also manages your employee's tax responsibilities and ensures proper tax compliance, saving you from more hassle long-term.
All employment contracts are between the EOR and the employee, meaning that the Employer of Record is legally responsible for handling benefits, claims, employee’s compensation and termination. You also can eliminate the risk of non-compliance in the markets that your employees are based because of ever changing local regulations. In addition, if you are hiring expats, work permits applications and renewal compliance are managed by the EOR, making it that much easier for your company.
Finding the right talent can be hard especially when you are competing with the every other company in one market. The good news is, using an EOR means that you gain access to top talent across the globe. It takes an average of 42 days and $4,129 to find a new hire, so cutting out the time delay and expense is a great reason to use an EOR.
New Market Access
Using an EOR helps you access markets that could otherwise be difficult to gain access on your own. If you are looking to expand into new markets, but don’t want the commitment of setting up your own entities in another country, you can benefit greatly from the EOR solution.
As we all know, time is money. Using an EOR saves you hours upon hours of time by managing multiple facets of your company's responsibilities for it's distributed team. You no longer need to spend all of your time to manage foreign entities, payroll and taxes, among many other things. You can rest easy knowing that the EOR is on it to save you time, hassle, and money.
There are many great case studies that we would be covering that leverages the EOR solution. If you want more information about how we can assist you, please do not hesitate to contact us!