International Expansion: 5 Ways an EOR Will Help Your Business Scale (and Fast)

As more businesses shift to the remote-business model, company leaders are less concerned with their employee’s physical location, and more with the completion of agreed objectives.

However, even then, companies are facing obstacles, and hiring a high-quality global remote team isn’t easy. Building a successful international team starts with an employer of record (EOR) service, which provides the much-needed flexibility to build and scale a global team of remote workers.

An EOR, in so many words, is a legally established firm that helps with the burdensome tasks that most companies would find challenging or time-consuming to manage. From performing appraisals to handling insurance to managing visa applications, an EOR is responsible for all the duties involved with staffing an international employee.

This could also include other administrative tasks that often create logistical headaches for international companies. To avoid such never-ending paperwork and complex logistics, businesses are outsourcing the expertise of an EOR — thus enabling leaders and teams to focus on growth and scaling opportunities.

1. Facilitating Legal Payroll Management Abroad

As you look forward to scaling your business, the need for hiring international employees will become more of a priority. Fortunately, an EOR can help handle the global payroll management details. 

When it comes to employing international workers, there are a handful of legal implications. Issues like taxation will differ from country to country, and laws can be changed every year. Having the assistance of an expert can ensure you’re meeting all legal requirements and standards. 

An EOR will be responsible for staying up to date with any legal changes while ensuring you observe compliance with regulations involved with staff welfare, retirement, and salary benefits.

Additionally, an EOR service offers global payroll software for all of its employees. This guarantees correct payment methods and ensures each remote worker never misses a paycheck. As a bonus, this can also boost your retention efforts, since global employees will have stable pay and be more eager to focus on their job.

2. Automated Processes Enhance Employee Experience

Years ago, most EOR providers relied on a manual process, which often made onboarding new workers painstakingly slow and cost-ineffective. Now, EOR services are entering the age of automation, allowing them to acquire and build teams of highly skilled candidates much faster and with greater ease.

As their services become increasingly more tech-focused, EORs can offer all-in-one platforms or applications that automate key procedures and centralize data. And since some can integrate with existing HR systems, your company can obtain real-time access to important employee information.

Plus, if an EOR combines automated services with human expertise, you can ensure you’re staying on top of any legal changes concerning employment laws. Joining technological and human forces also ensures both accuracy and high-quality personal experiences — a key element to the entire employee lifecycle.

3. Eliminating Employee Misclassification Risk

Employee misclassifications typically occur when tax authorities determine that a worker has been incorrectly categorized. In some countries, this risk is also called “disguised employment” or “sham contracting.” For example, a freelancer or independent contractor being explicitly referred to as a full-time salaried employee would be regarded as employee misclassification.

However, the precise definition of employee misclassification differs between states and countries. In general, misclassification can result in substantial back taxes, financial penalties, or legal action from clients, employees, or insurers. 

That’s where hiring an EOR can help.

With an EOR provider, organizations can avoid risky classification issues and rest easy knowing their remote workers are receiving the correct tax categorization, pay, and benefits. 

As a company leader, attempting to stay ahead of evolving practices is a time-consuming job and can deter focus from more important company-related tasks. Using a reputable EOR allows companies to leverage the benefits of contractors while avoiding the effort and cost associated with their correct usage.

4. Optimizing Remote Employee Onboarding

Finding talented remote workers is one thing, but making sure those new employees have a clear understanding of core values and company procedures is a completely different obstacle to tackle.

An EOR can step in and make sure each international employee experiences a consistent and satisfactory onboarding process. This process involves handling complex contracts, legal paperwork, and tax preparation for new workers.

Since the first week of a new remote employee is arguably the most important, EORs can also help workers get set up with tools, equipment, and other training resources that are necessary to their role.

Not only does this free up HR’s time, but it also allows your new employees to focus on meeting team members, preparing for their position, and familiarizing themselves with company culture. 

Similarly, EORs can take care of off-boarding, providing a well-structured plan for terminating employees and ensuring compliance with global requirements such as notice periods and severance packages. 

5. Aiding In Talent Retention

As you project forward to the future expansion of your business, employee retention is going to be crucial to your company’s ongoing success strategy. In addition to the many tasks and compliance obligations, an EOR can also help with benefit programs, such as registering workers’ compensation, health insurance, and pension fund providers. Other benefits like dental, optical, and maternity leave are also covered under an EOR service. 

Having access to the benefits through an EOR can ensure your employees are receiving the best possible benefits, and they’ll be more likely to stick with your company as you carry out your growth and scaling strategy. 

As you search for the right EOR provider, keep your company priorities in mind. Details like payment schedules, insurance policies, or the number of staff-associated jurisdictions will determine which EOR provider you choose. 

Your EOR provider can ultimately make or break your growth strategy. If you’ve selected the right EOR, you won’t have to worry about employee misclassification, complex payroll management details, stressful retention strategies, or pesky onboarding (or off-boarding) processes. Even in areas where you might not be an expert, chances are your EOR knows when, where, and how to carry out certain procedures.

Then, your teams can stay focused on what matters most: building and scaling the business.


Author: Cesar Jimenez, myBasePay CEO
Cesar A. Jimenez is an entrepreneur, investor, and military veteran with over 25 years of staffing industry expertise successfully leading technology staffing organizations. His expertise in the IT industry allows him to use his experience as a thought leader for talent acquisition, staffing, IT, and recruitment technologies with a passion for contingent workforce solutions. Cesar has held various leadership roles for both a global staffing organization and technology solutions companies. This expertise has enabled him to develop alternative workforce models that provide the agility for organizations to be competitive in today’s marketplace. In his spare time, he enjoys spending time with hisfamily, working out, and coaching high school baseball players.

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