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How To Utilize A Global Employment Solution To Grow Your Business

Despite the major challenges posed by the current global pandemic, many companies are looking to grow and expand their businesses abroad whilst mitigating these circumstances. Expanding the geography of your business is a challenge at the best of times, and without the correct support in place, it can be exceedingly difficult to do so.

Travel restrictions can make it difficult for companies to either expand their business or source specialist employees abroad; and with borders expected to remain closed for a significant time ahead, projects that rely on foreign labour or company expansions may suffer significant delays to their plans.

However, global employment solutions do exist to solve these problems. So what are these solutions and how can companies expand into new territories to get their projects back on track in the current climate?

What are global employment solutions?

Global Employment Solutions are new to many companies and can take many forms. One variant that can be especially helpful during these challenging times is “Employer of Record Services” (EOR).  An EOR solution helps companies do business or hire staff in a country where they don’t have an entity and therefore can’t sponsor work permits or handle employer liabilities. EOR solutions are beneficial to companies who want to:

  •  Expand globally to support strategic business growth  

  • Transfer specialist / management skills for a temporary period

  • Staff one or more project(s)

  • Create remote teams in a certain region

  • Explore new business opportunities

  • Hire a one-of-a-kind highly skilled specialist, who does not want to move to your location, but who lives in a country where your company does not have an established entity

What does an Employer of Record do?

Simply put, an EOR legally employs a company’s personnel on their behalf, allowing the company to operate in the new location without going through the lengthy and time-consuming process of setting up their own legal
entity.

When a client engages an EOR, they enter into an agreement that allows the EOR to legally employ personnel through their local entities or via one of their local partners. The EOR is then responsible for handling employer
liabilities and HR support.

The EOR will onboard, pay and manage the administration of the company’s employees on their behalf whilst the company retains the role of managing employer and executes the day-to-day management of the
employees.

The company still decides whom to hire, the compensation package, tasks and duties and when to terminate the contract, whilst the EOR takes care of the administration and in-country employer compliance.

Who typically uses EOR services?

EOR services are used by many different companies across all sectors and industries, including:

  • Multinational companies: Well-established global companies, who want to alleviate their administrative employer burdens in countries with little or infrequent activity by using an EOR to save costs and strengthen quality     

  • Internationals companies: Companies who have established an international business, but need support in countries where they are not yet present to manage their employer responsibilities during projects or start-up activities

  • Companies who seek global expansion: For companies who are beginning their global journey, an EOR partner can help them quickly set themselves up in new countries and test the market before they decide to establish a full entity

  • Businesses with a talent shortage: When your company operates in a country or industry with a limited talent pool, sometimes you need to hire your most specialised experts locally, disregarding any global expansion strategies

What are the benefits of using an Employer of Record Model?

Companies who use the Employer of Record model can benefit in many ways.  These include:

  • Saving the company the costs of setting up their own legal entity

  • Saving the company time enabling them to ‘hit the ground running’ and commence operations quickly

  • Allowing the company to test the market abroad before committing to setting up their own legal entity

  • Giving the company access to a local talent pool that is essential in the current climate

NES can be your Employer of Record

NES have over 40 years’ experience as one of the world’s largest engineering workforce providers, with industry and discipline-specific trained consultants across the world.

If you’re looking for support, we have a team of Global Mobility experts who can use their 20+ years of industry experience to support clients with their mobility programmes. We currently look after 12,000+ contractors
across the globe and are well placed to support clients with their mobile workforce needs. In addition, we can support you with logistics, including travel services, relocation and destination services, annual tax service in home / host country and provide input for your remuneration package.

NES Global Talent is proud to announce the strategic alignment between ourselves and the Fircroft Group to create NES Fircroft, one of the leading human capital solutions businesses for engineering and technical talent globally.