Gone are the days when a business had to establish a legal presence in a country to conduct its operations. With the benefits of employer of-record services a magnitude of businesses are globally functional.
If you are a business owner and aspire to globally scale your company, you are in the right place. With the help of EOR services, you can work from anywhere and manage a remote workforce that aids your growth. Read our blog to discover the one tool every ambitious business owner should know.
Topics Covered
- What are EOR Services?
- When should you get an Employer of Record?
- Benefits of Employer of Record Services
- How to Identify and Hire the Right EOR Service for You?
- Frequently Asked Questions
What are EOR Services?
An EOR, or employer of record is a legal entity that acts as a legitimate working employer, representing the real employer in a country different from their own.
For example: Asanify is the Employer of Record for various US-headquartered companies that are operational in India. These businesses enjoy the benefits of Employer of Record services and with Asanify’s assistance, they are scaling fast in India.
EOR ensures a business operates seamlessly adhering to compliance laws. They accomplish their goal by handling various HR-related tasks, including talent lifecycle management, payroll processing, benefits administration, and compliance management.
By partnering with an EOR, businesses can sidestep the administrative burden and legal risks associated with setting up existence in new markets, and start operating quickly.
Also Read: What Is an EOR – Meaning, Benefits, Purpose?
When Should You Get an Employer Of Record?
You are primed to benefit from employer of record services, when:
- You plan to expand into new markets without setting up a physical presence.
- You plan to test your viability in new markets but don’t want to commit big financial investments yet
- You want to create a workforce of local talent with the help of a local expert, knowledgeable in labor laws and compliance issues in the country
- You need to scale your workforce efficiently and quickly
- You want to focus on core business activities without getting caught up in local administrative complexities
Also Read: EOR vs Payroll Solutions – What’s the difference?
Benefits of Employer of Record Services
Businesses with global aspirations derive the maximum benefit of employer-of-record services. Check out how EOR enhances the four major pillars of growth and scalability.
Pillar 1- Legal and Compliance
- Legally validated acting employer: The EOR acts as the legal employer to new hires, validating the business to operate in a foreign country without establishing its legal presence.
- Compliance Handling: EORs stay updated with the latest local labor laws and tax regulations, ensuring your business remains compliant and hence functional through the financial years.
Also Read: Hire Employees in India Through EOR
Pillar 2 – HR and Payroll Management
- Managing Payroll and Taxes: EORs handle payroll processing, ensure taxes are paid on time, oversee the planning of employee benefits and mandatory statutory contributions.
- Overseeing Employee Benefits: Businesses can offer a comprehensive benefits package to employees aligning with local labour laws, local standards and expectations with the EOR’s guidance.
- Managing Human Resources: EORs manage the core HR functions on behalf of the business, handling the entire lifecycle of a new hire starting from talent search to conducting onboarding, performance reviews, time and attendance tracking, liaison between main employer and their hires, and handling offboarding as well.
- Ensure Cultural Fit: EORs help businesses understand the culture and social norms of a foreign country, assisting them to create a work culture that is in tune with local sensitivities and practices.
Pilar 3 – Infrastructure and Expansion
- Office and IT Infrastructure support: EORs can provide office space and IT infrastructure support whenever needed. From supporting new hires with official tools like laptops to managing a dedicated IT department, EORs take care of everything. One of the benefits of employer of record services is that, whether you decide to run a remote workspace or an in-office workspace they manage every mode of work that’s compatible with your policies and goals.
- Assisting Global Business Expansion: They help businesses navigate the complexities of expanding into new markets. For example, when Asanify is hired as an Employer of Record in India, we become practical eyes and ears for the business in India. Asanify helps in market research, provides a robust network of executive contacts in relevant industries, and guides through the Indian legal framework established for foreign businesses.
If you want a reliable and knowledgeable guide to set foot and scale in India, there is no EOR better than Asanify. Book a demo with us and find out.
- Catalyzing quick operation in a new market: EORs streamline the process of setting up operations in new markets – getting the relevant licenses and permits so that the business doesn’t miss any useful opportunity to expand its base.
- Access to a web of local executive networks: A great benefit of employer of record services is the business gets direct access to the EOR’s great network of local industry connections. Having the help of a known entity in a new market is a sure way of opening doors to new opportunities and partnerships.
Pillar 4 – Operational Efficiency and Cost-Effectiveness
- A cost-effective way to start operations quickly: Using an EOR is often more cost-effective than setting up a subsidiary. Setting up a legally compliant subsidiary with its own workforce means a business will need at least 6 months to start operations, given everything goes as expected (which it mostly doesn’t).
- Save Time and focus on core business: EORs handle HR and administrative tasks, allowing you to focus on your core business. Benefits of employer-on-record services work in your favor again – EOR works as your proxy admin unit, taking care of all secondary tasks, and making time for your business to solely focus on growth.
- Flexible and Scalable Operational Tool: Enabling businesses to start operations in a new country in just a day, without a legal subsidiary is a huge benefit of employer of record services. Setting a convenient tone for business expansion, EORS can help you increase the local workforce depending on your immediate and long-term goals.
- Reduce Administrative Burden: By outsourcing HR functions, you reduce administrative overhead in the new country. EORs take care of HR and compliance issues without tying up the time of your core managerial teams in boilerplate admin work.
- Reduce Financial Risks: With the help of EOR services, businesses avoid committing to a huge financial investment at the outset. Getting access to resources and letting EORs do the heavy lifting in a new market, in exchange for a fee that’s a fraction of the lump sum investment, is the benefit of employer of record services.
With Asanify EOR, businesses can start their operations in India in just a day. Book a demo and talk with one of our experts.
Also Read: Employer of Record India Cost – All That You Need To Know
How to Identify and Hire the Right EOR Service for You?
- Technology & Infrastructure: Evaluate the EOR’s technology platform and infrastructure to ensure efficient processes and data security.
- Industry Experience: Look for an EOR with experience in a relevant industry to understand specific compliance requirements.
- Range of Support: Verify the quality of customer service and ensure that they are equipped to provide all services and support they have claimed.
- Regional Familiarity: Choose an EOR with a strong presence in the regions where you want to operate.
- Reviews and Recommendations: Check reviews and ask for recommendations from other businesses.
- Pricing: Compare pricing structures and ensure transparency in fees.
By carefully considering these factors, you can select an EOR service that aligns with your business goals and provides the support you need to succeed in global markets.
Asanify’s EOR service is rated by G2 as one of the most reliable in the Indian market. With a strong-rooted network in India, a homegrown HRMS technology with a forex-friendly global payroll management software Asanify ensures every client can capitalize on their growth in the Indian market. Book a demo with an expert today!
Frequently Asked Questions
An Employer of Record (EOR) is a legal entity that acts as the employer of foreign workers, handling HR functions like payroll, benefits, and compliance.
EORs streamline international expansion, ensuring compliance, reducing administrative burden, and providing access to global talent.
EORs offer benefits like cost-effectiveness, scalability, compliance, and access to global talent.
EORs are responsible for handling HR functions, ensuring compliance, and acting as the legal employers of foreign workers hired by the parent company.
EORs handle tasks such as payroll processing, benefits administration, onboarding, offboarding, and compliance management.
An EOR in India is a legal entity that acts as the employer of Indian workers. It represents a parent company interested in expanding its business in the Indian market. EOR ensures the business is compliant with Indian labor laws and regulations.
An EOR platform is a technology-driven solution that provides EOR services, streamlining HR processes and offering a centralized platform for managing a global workforce.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
