• Home
  • Services
    • OUR SERVICES

      We solve challenging market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.


      Ask Us
    • Overview

      Professional Services

      Software Dedicated Team, GEO, EOR

      Team Augmentation & Full team Outsourcing

      1. Python
      2. Node
      3. .NET
      4. React, Angular, Vue

      Enterprise Digital Transformation

      Application Support & Maintenance

      Devops Services

      Software Consultancy

    • Custom Software Development

      Android & iOS Mobile App Development

      React Native Mobile App Development

      Custom Application Development

      Web Application Development

      Product Development for Startups & Established Business

      Internet of Things (IoT)

      Industry Expertise

      Data Analytics & Intelligence

      BigCommerce

      Shopify

  • Process
    • OUR PROCESS

      We solve market challenges and build all varieties of custom and platform-based frameworks and provide comprehensive end-to-end software development and IT services.

    • Overview

      Fully Outsourced

      Dedicated Teams

    • Team Augmentation

      Fixed Scope Projects

      Time & Material (T&M)

  • Company
    • OUR COMPANY

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.


      contact us
    • About us

      What we do

      Our story

      Our core values

      Customer’s feedback

      What makes us different?

      Creative, Quality & Speed

      Project timeline

      Long term success

      FAQ

    • Portfolio/Case studies

      E-commerce

      Education

      Finance

      Hospitality

      HR

      Legal

      Logistic

      Marketing

      Operation

      Real Estate

      Retail

      Sport

  • Blog
    • BLOG

      Since 2016, we have been the first and last stop for companies worldwide that need support to develop digital products and custom software solutions. Our integrated resource model paves the way for your technology projects to be completed sooner, with less effort.

      View all blogs
    • Statistics for 2023 on Mobile App Growth and Usage

      RECENT BLOGS

      Statistics for 2023 on Mobile App Growth and Usage

      Finally, the year 2022 has come to a close. Furthermore, in this post-pandemic context, companies are still trying...

      Read the blog >>
      The Best Hybrid Mobile App Development Frameworks in 2022

      RECENT BLOGS

      The Best Hybrid Mobile App Development Frameworks in 2022

      Having a mobile presence has become essential for businesses to survive and reach a broader audience in today's...

      Read the blog >>
      Top 8 Helpful Web Usability Tips For Web Designers

      RECENT BLOGS

      Top 8 Helpful Web Usability Tips For Web Designers

      Making it simple for users of your website to locate the information they require when they require it is the...

      Read the blog >>
  • Careers
  • Contact Us
    • Link copied

    • Link copied

Contact Us
  • Home
  • Services

    Our Services

    • Professional Services
    • Overview Software Consultancy Team Augmentation & Full Team Outsourcing Enterprise Digital Transformation Application Support & Maintenance, Hosting Devops Services Hosting
    • Custom Software Development Services
    • Overview Android & iOS Mobile App Development React Native Mobile App Development Custom Application Development Web Application Development Product Development for Startups & Established Business Internet of Things (IoT)
    • Industry Expertise
    • Overview Education Technology Data Analytics & Intelligence BigCommerce Shopify
  • Process

    Our Process

    • Fully Outsourced
    • Dedicated Teams
    • Team Augmentation
    • Fixed Scope Projects
    • Time & Material (T&M)
  • Blog
  • Careers
  • More

    More

    • About Us
    • What Makes Us Different?
    • Contact Us
    • Case Studies
Home Blog What is an Employer Of Record
Blog Post
Matt Long CEO
September 03, 2022

What is an Employer Of Record

7 min read
Voiced by Amazon Polly
Table of contents show
1. What is an employer of record?
2. 5 Use Cases for an Employer of Record‍
2.1. Expanding without a legal entity
2.2. International hiring is simple and legal.
2.3. Making the switch to remote-first
2.4. Making independent contractors into employees
2.5. Greater degree of flexibility for your staff.
3. Benefits of an EOR
3.1. Time Saving
3.2. Keep Precision
3.3. Up-to-date records
3.4. Reduced Risks Of International Regulatory
4. How to Choose a Record Employer Partner?
5. Hire Talent Anywhere With an Employer of Record

When a company hires an employee, it takes on all the duties, expenses, and liabilities related to having that person on staff. But not every company wants to take on that duty. Using an employer of record is an alternative.

Recruiting people from abroad is a great way to enter new global markets, and a global employer of record (EoR) can assist you in that endeavor. This manual describes the function of an employer of record (EoR), how to use an EoR, and the advantages of working with a global EoR to meet your international expansion objectives. This article will provide this important information.

Groove Technology What is an Employer Of Record

Recruiting people from abroad is a great way to enter new global markets

What is an employer of record?

Simply explained, an Employer of Record is a third-party organization that handles a sizable portion of the labor associated with employing foreign workers. However, an EOR does not conduct recruitment but rather participates in the process once the organization has chosen a candidate.

An EOR ensures that the customer performs compliantly throughout and operates within the safety of the specified framework by supplying all relevant information. This framework addresses issues like minimum wages, collective bargaining agreements, taxes, social contributions, and other costs associated with the local workforce of the nation where the talent is situated.

An EOR is also the worker’s registered employer even though it does not have management responsibilities for them. The original employer is responsible for making decisions on salaries, job responsibilities, projects, and terminations.

5 Use Cases for an Employer of Record‍

For your firm, an EOR offers a number of significant advantages. An EOR can focus on certain areas and assist you in carrying out those activities based on your own objectives and challenges. A business will benefit most from an EOR when facing the complexity and regulatory risk of a new international market.

‍Here are 5 scenarios where having an Employer of Record will benefit your business:

Expanding without a legal entity

When growing, creating a local organization through incorporation and registration may be quite time-consuming and expensive. In order to remain compliant, you also require an understanding of the legal nuances of the new country. In this situation, a global EOR might be a preferable option, helping the business by managing payroll in addition to the labor and immigration laws of the host nation. Through its network and experience, the EOR would act as a go-between between the client-company and the assignee, assisting in ensuring compliance.

International hiring is simple and legal.

Geographical restrictions have been removed by the rising popularity of remote work, making it easier to access talent from around the world. Since people won’t have to move in order to work for your company, this is a fantastic chance for businesses to advance their diversity initiatives in terms of gender, disability, and many other categories, as well as in terms of race and origin.

Making the switch to remote-first

The pandemic hastened the trend toward remote work, with businesses preparing to switch to more adaptable workspaces. Furthermore, from before to after the pandemic, the percentage of executives surveyed who said that “at least one-tenth of their workers could work remotely two or more days a week” nearly increased from 8% to 15%. However, this is a complicated process that calls for several adjustments within your organization, particularly in HR-related areas.

Complying with regulations will also get more difficult as you have to take into account the legal systems of the nations where your employees are based, including social security, data protection, and compliance with tax and labor laws. Your business will be able to test this strategy out with fewer workers thanks to an EOR. This would lead to a seamless transition as well as significant time and money savings.

Making independent contractors into employees

An alternative workforce, like contractors and freelancers, benefits many businesses. However, you might think about turning freelancers into employees to lower turnover, get greater control. over working hours, and prevent compliance problems like misclassification, which puts businesses at risk of owing back taxes and benefits and can result in harsh penalties.

Your long-term workforce planning, including the transition time and HR procedures to maintain compliance, can be supported by an EOR, which can also assist you in keeping this talent.

Greater degree of flexibility for your staff.

Give your staff as much mobility, independence, and flexibility as you can after the pandemic. Don’t use an employee’s potential relocation to another nation as justification for firing them. Maintaining your talent even if they want to relocate abroad for an extended period of time will not only lower your turnover rate but will also improve your employer brand, which will help you recruit more talent. An EOR will be in charge of the labor laws, payroll discrepancies, and other factors that must be taken into consideration while trying to remain compliant. An EOR will be able to support you throughout the process.

Benefits of an EOR

A global EoR partner has many advantages for businesses. An EoR enables you to hire top talent from anywhere and support them according to their local needs because the majority of businesses lack the resources or in-depth knowledge necessary to hire legally in foreign marketplaces. As a result of a worldwide EoR, you can:

Time Saving

Your ongoing attention is required for all HR-related tasks, including payroll processing and hiring new staff. You must pay close attention to detail when doing time-consuming operations, including processing individual payments, taxes, commissions, reimbursements, and other employee benefits, in order to avoid facing severe fines. EOR gives you access to reliable services that can do these tasks on your behalf. By doing this, you can free up time for tasks on which you can concentrate to expand your firm.

Keep Precision

You gain the advantage of using the services of a highly skilled firm when you entrust EORs with significant responsibilities like employee administration, payroll processing, and other HR-based activities. EORs have the necessary expertise and understanding in this area. They are more than capable of providing accurate calculations for payroll and compliance thanks to their tried-and-true techniques.

Up-to-date records

All of your confidential information for each of your employees is kept up to date by the Employer of Record. The majority of the time, they have a dependable and effective system with specialized staff for data administration, making it simple to update your records.

Reduced Risks Of International Regulatory

Maintaining legal compliance in each of the operating countries is a requirement of international employment and payroll administration. Maintaining current knowledge of the numerous tax tables and labor regulations that their legal entities are subject to is one of EOR’s key services. EORs greatly lower the compliance risks for their clients by handling these tasks with professionals like attorneys and accountants.

EORs greatly lower the compliance risks for their clients

Groove Technology What is an Employer Of Record

How to Choose a Record Employer Partner?

When choosing an EoR partner, keep the following factors in mind:

  • Pricing that is open. Find an employer of record with transparent pricing, no additional fees or surprises, and easy budgeting for remote workforces.
  • Accurate estimations of the employer burden. Choose a provider who is knowledgeable and accurate about employer burden charges. An employer must factor in other social contributions such as health insurance, social security, and paid time off when determining payroll expenditures. Your EoR partner must give you precise prices on these criteria because these employer constraints vary by market.
  • Global reach in the markets you require. Make sure your partner has extensive knowledge and experience in the markets where you are hiring people. You waste time and money working with a partner who lacks competence, and you run the danger of not adhering to local labor laws.
  • Response and assistance. Pick a responsive partner who can react to your needs and the needs of your team quickly. On your behalf, your EOR partner will regularly communicate with both your current employees and new hires. Ensure that your EoR partner assigns a client account manager that responds to inquiries from your team promptly, onboards new supported personnel, and takes into account regional time zones and languages.

Hire Talent Anywhere With an Employer of Record

Each expansion into a new overseas market brings its own set of complications that call for an expert staff. As your global Employer of Record partner, Groove Technology guarantees the highest level of support for you and your distributed workforce. With the help of our multi-national reach, unmatched knowledge, and committed service, you can employ top personnel legally and swiftly.

We provide a full range of global workforce solutions that take care of risk management, local labor laws, and compliance while you concentrate on expanding your company.
Contact us right away!

CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business CEO - Matt Long - Groove Techonology - We Build Amazing Software For Your Business
Matt Long CEO AT GROOVE TECHNOLOGY
Matt Long is the founder and CEO of Groove Technology. Groove Technology recruit at the top of their market, providing cutting-edge software development services to partners located across the world through a unique, integrated resource model. You can get in touch with him here, or find out more about Groove Technology Services.
Recent Blogs
  • Statistics for 2023 on Mobile App Growth and Usage
    December 15, 2022

    Statistics for 2023 on Mobile App Growth and Usage

  • The Best Hybrid Mobile App Development Frameworks in 2022
    December 1, 2022

    The Best Hybrid Mobile App Development Frameworks in 2022

  • Top 8 Helpful Web Usability Tips For Web Designers
    November 16, 2022

    Top 8 Helpful Web Usability Tips For Web Designers

  • Design-First or API-First: What’s the Best Approach?
    November 12, 2022

    Design-First or API-First: What’s the Best Approach?

  • How to build a cross-platform mobile app?
    November 8, 2022

    How to build a cross-platform mobile app?

What it’s like working at Groove Technology?

View
START YOUR JOURNEY
TO AMAZING SOFTWARE

If you have any questions, our team is happy to support!



START YOUR NEW
CAREER AT GROOVE

If you have any questions, our team is happy to support!

Your Resume

App demo request

If you want to experience this app on iOS, please contact us to be added to the test environment.

Contact us
Refresh Page

Please rotate your screen horizontally for the best experience.

Career Contact
Business Request
X
  • Home
  • Services
  • Process
  • Company
  • Blog
  • Careers
  • Contact Us
Groove Technology - Software Company in Australia - Viet Nam - Singapore - VN Flag
VIETNAM

Floor 18, Havana Tower, 132 Ham Nghi, Ben Thanh Ward, District 1, Ho Chi Minh City, Vietnam.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - AU Flag
AUSTRALIA

Suite 115, 358 Clarendon Street, South Melbourne, Victoria, Australia, 3205.

Groove Technology - Software Company in Australia - Viet Nam - Singapore - HK Flag
HONG KONG

5/F, Yat Chau Building, 262 Des Voeux Road Central, Hong Kong.


Copyright ©2022 Groove Technology. All Rights Reserved.
Security Statement. Modern Slavery Statement.

BACK TO TOP