Recent post-pandemic studies have shown that there is an increase in remote working jobs and virtual teams in the tech industry across the globe. The main reasons for this is the need for a wider talent pool and the eagerness to enter and operate in new markets. With the advancement in technology, it is now easier for companies to work with employees who are located in different parts of the world. Nevertheless, entering new markets, hiring a global workforce and managing them has its risks, increased costs and legal complexities. The Employer of record model is a boon for small as well as large businesses seeking to grow their talent pool quickly, maximize business advantages, and expand into new markets safely and compliantly without breaking their bank. 

What is Employer of Record ?

An Employer of Record model (EOR) is a service that provides businesses with a turnkey solution to hire and manage their remote workforce. EOR allows employers to outsource the Human resource, administrative, legal and compliance aspects of hiring and managing remote employees, while still maintaining control over their workflow and day-to-day job related activities. EOR services provide a convenient and cost-effective solution for businesses looking to expand to cut through bureaucracy and explore the potential of foreign markets and talent.

The EOR acts as the legal employer of the remote employees, assuming responsibility for HR, Payroll, benefits, compliance and risk mitigation. This allows employers to easily hire employees in different countries without the need to establish a legal entity in those locations.

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Range of services typically offered under Employer of Record model

Most of the EOR services typically offer Human resource, legal and administrative support to hire and manage remote employees.

HR Services:

EOR can provide HR services, including recruitment, Onboarding, Background checks, Performance management, and Termination.

Payroll and benefits administration:

Employer of record model can handle the payroll and benefits administration for global employees, including calculating and processing payroll, remitting taxes, and providing employees with access to benefits such as health insurance, provident fund and retirement plans.

Compliance support:

EOR can help employers navigate the complexities of global employment compliance, including local labor laws, tax regulations, and immigration requirements.

Legal support / Risk Mitigation:

EOR service can provide legal support, including assistance with Employment agreements, NDA, dispute resolution, etc..

When do businesses need Employer of Record?

Businesses can opt for an EOR …..

  • To Hire employees in a country without setting up a local business entity
  • To gain competitive advantage by attracting the best talent
  • To aid their global expansion plans, enter new markets and scale their business quickly 
  • To Avoid the administrative burden of managing remote employees.
  • To Avoid risks due to non-compliance and misclassifications due to complex labor laws and employee classifications in the country they want to Hire from.
  • When they lack expertise in the tax and employment law in the new market.
  • To retain talented employees who are relocating to another country.
  • When they want IP protection globally to prevent unauthorized access to confidential information

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What are the benefits of working with an Employer of record?

Benefits of EOR for employers

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Time Saving and cost saving :

When a business has expansion plans, establishing a legal entity in another country and managing it is both time consuming and expensive. With all the never ending paperwork and logistics, it can take months or longer to set up a legal entity and then build a team. EOR is a quick and cost effective way to hire international workers, on board them and get them to start working within days. Day to day management of employee related matters are time consuming too. EOR can remove that burden off the employer so that they can concentrate on more critical operational function and global expansion plans.

Remove market entry barriers: 

EOR can act as the local legal entity for a business that wants to explore new markets and talents. This allows the business to hire talent and start working on the projects right away rather than wasting precious time trying to cut the red tape

Free of all compliance risks and errors :

EOR services can reduce the risk of compliance errors for employers by taking on the administrative burden of labor laws, employee agreements, payroll, benefits, tax,insurance, legal compliance, data protection, NDA and IP protection.. This can free up employers to focus on growing their business and achieving their strategic goals.

Access to larger talent pool:

EOR services can help employers gain access to a larger talent pool and hire employees in countries that they want to without the need to establish a legal entity in those locations. This can be especially beneficial for small and medium-sized businesses that do not have the resources or expertise to navigate the complexities of global hiring.

Flexibility and scalability: 

Scaling a team is an important part of business growth. Talent recruitment, talent retention requires a lot of time and effort.EOR services can provide employers with flexibility and scalability in their workforce, allowing them to easily expand or contract their workforce as needed. 

Access to Expert knowledge:

Employer of record model will support the businesses with a network of local experts in payroll, accounts, local labor laws, legal responsibilities and regulatory compliance.

Employee retention:

The EOR service can provide remote employees with support and a wide range of perks and benefits that plays a major role in employee satisfaction and eventually helps retain employees in the company for a longer period of time.

Benefits of EOR for employees

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Employees who are supported and taken care of well are better engaged with a company, stay longer and perform better.

Access to full scale benefits and perks

Through EOR service the employer can build a secure and comfortable work environment for their remote employees. EOR services can provide employees with a range of benefits and perks, such as insurance, Provident fund, Gratuity and retirement plans, that they may not have access to as independent contractors. Other non monetary benefits may include Vacation & leave allowances, professional development and training to help them advance their careers.. 

Security and support: 

EOR services can help employees feel more secure and supported in their work, leading to increased job satisfaction and retention.

Global opportunities:

EORs often  have global presence and can help employees access global job opportunities which will attract bright minds looking for diverse, flexible and dynamic work experience.

e{dev} Employer of Record Service

Emerging markets like India and Latin America are the right place to hire exceptional talent to scale teams especially in the tech industry. 

Our flexible EOR solution enables you to hire and operate your business from anywhere across the world. e{dev} offers everything employers need to Hire, build and manage their remote software development teams. e{dev} handles Hiring, HR, payroll, accounts, benefits, equipment provisioning, IT admin, compliance, and much more. With our expert support employers can focus on scaling their business and achieving their goals.

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eDev EOR can,

  • Vet, Hire and onboard India’s top tech talent to build a dream team
  • Help employers cut through bureaucracy and enter the market in record time
  • Automate employee payroll seamlessly and accurately. 
  • Offer a human layer of expert support round the clock for HR, Accounts, IT Admin, Legal.
  • Equip remote employees with all the hardware & software they need to be highly productive. We provide Hi-end laptops, noise cancellation headphones, and much more.
  • Tackle the complexities of legal compliance and ensure full IP ownership in accordance with local Indian laws.
  • Offer employment contracts and agreements that are fully compliant.
  • Enable your remote team to meet and collaborate in a state-of-the-art office space with access to high speed wi-fi, conference rooms and refreshments

How does e{dev} EOR service work?

If you are ready to hire top remote talent from emerging markets then contact us. We will analyze your requirements, develop a business strategy, and tailor our EOR services to suit your specific needs.

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Why tech companies should hire remote talent from emerging markets

Emerging markets like India and LATAM have a large and well-educated workforce, with a growing number of professionals with skills in areas such as Information technology, engineering, and Computer science. This gives tech companies the opportunity to access a wide range of skilled workers to fit their needs. Hiring remote employees from India can be more cost effective than hiring from any other country. India has a rich culture and a long history of trading, outsourcing, communicating and working with people from different countries and cultural backgrounds. This rich history, technology expertise and strong work ethics among the people makes it easier for Indian employees to adapt to a global work environment easily.

Latin American countries on the other hand are located in a time zone that has maximum work hours overlap with countries in North america, Australia and Europe. This allows companies to setup nearshore remote teams with ease. India is also located in a favourable time zone with a significant work hours overlap. These markets will be convenient for companies that operate in multiple time zones to seamlessly manage a 24×7 workflow. 

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