Choosing Your Global EOR partner
Global expansion is the goal of every organisation. Is your company ready to scale up their operations and enter a foreign business environment? You can now hire candidates from all over the world, without the lengthy legal process or hefty price tags.
With a Global Employer of Record (EOR) like TG, you can enjoy the speed of entering new markets while retaining the flexibility of scaling your operations and keeping the costs of staying compliant and operations low.
Read more Partnering with a Global EOR (hyperlink to Partnering with A Global EOR)
Let us share more about what you can expect from a Global EOR partner.
How do you choose the right EOR for your business?
After deciding that engaging with an EOR partner is the best option for your organization’s expansion plans, you’ll need to select an EOR that best fits your requirements. With the large array of EOR partners in the market, here’s 5 points to look out for when narrowing down that selection.
1. Global Presence
Does the EOR you have in mind cover the locations and regions you are planning to hire in? Depending on the network and service coverage of the EOR, the number of countries the EOR operates in may vary. An EOR with extensive coverage would be able to support your current and future expansion requirements and provide you with the peace of mind throughout the partnership. Selecting the right EOR partner is crucial in helping you achieve the growth you seek.
2. Data Security
How robust is the EOR’s cyber risk mitigation, data privacy and compliance? You don’t want to risk a leak of your employee’s information and harm your company reputation instead. Assess whether the EOR has strict standard operating protocols before proceeding further.
3. Experience and Expertise in Compliance
Does the EOR have extensive experience in compliance management? Have they previously worked with other clients looking to enter this same region? Compliance regulations are subject to changes; with new mandates coming down from various authorities, making it difficult to constantly keep track of the regulations when operating in multiple countries. Non-compliance can have expensive and time-consuming consequences for your companies.
Your EOR should know how to help with your compliance concerns and be able to support your company by developing systems and processes to make compliance easier, from monitoring changes to better-ensuring compliance with regulations.
You will also want to find out if the account manager/HR consultant you will be assigned to has the same experience. This ensures a peace of mind that the EOR has the relevant expertise and experience for you to concentrate on other activities.
Finding an EOR with the right expertise for you to leverage on can significantly help your company maintain compliance and mitigate the risks that come with expansion into a foreign market.
How much can you put aside for an EOR partnership? What is the service-level agreement you expect from an EOR? Once you are clear with the budget, it is easier to select an EOR that fulfils your requirements.
5. Service Coverage
The services each EOR company offers may differ. You need to match the capabilities of the EOR to those of your requirements. Are you looking for payroll platform technology, complete employee lifecycle services, value-added HR consultancy services, etc.?
You should ensure that the EOR you choose offers services that perfectly fit your global expansion needs as entering unfamiliar markets without being aware of the risks and obligations will greatly affect the success of your company in that country.
What do you pay for when engaging with a Global EOR?
Before settling on an EOR partner, you will need to understand what you will be paying for and how you will be charged for the services. The cost structure should be taken into consideration as part of your entire EOR selection process.
There are 2 categories of fees you will be charged with:
1. Total Employment Cost – This refers to the actual amount borne by the employer for all employee wages and benefits under the respective country’s labour law regulations. For example: Gross salary, national social security, statutory benefits, etc.
2. EOR service fees that include:
a. Set-up fee
b. Service fee
Depending on the country’s labour legislations such as minimum wage, your total employment cost will vary respectively. As for the EOR’s fees, there are 3 ways in which you can be charged:
1. A percentage of the “Total Cost of Employment”
2. A flat fee per headcount
3. A customised (bundled) pricing – with additional HR or consultancy services
Thus, when engaging with any EOR partner, the requirement exploration stage is important for both parties to discuss the client service agreement and the approach in which you will be billed for the services engaged.
What is the value of a Global EOR like TG?
A Global EOR like TG creates a more cost-effective alternative for businesses to expand into a new market even without local HR resources, expertise, and a legal entity. With TG, you unlock a myriad of support systems to assist you on your global expansion:
Reliable services – TG will take on and focus on ensuring compliance and risk mitigation for your business.
Cost effectiveness and improved operational efficiency when operating and transitioning into a new environment.
Proven track record in solving diverse HR workforce issues with amassed 100+ Years of HR Experience.
Strong In-Country Expertise spanning over 50 markets.
TG enables you to enjoy the above and more without compromising on compliance or employee experience, all without the need of a large HR team. Additionally, with compliance and HR taken off your plate, you’ll be able to focus more on your core business processes.
As your organization starts to explore new markets and pursue global opportunities to be closer to talent, resources, and customers, you will need an employment solution that helps you surpass your ambitions. With TG as your Global EOR partner, you are set to expand globally at low cost and high operating efficiency without compromising on labour law compliance and risk mitigation.
Do you have any questions concerning labour law compliance for a particular market/region? Does TG offer a specific solution for your business?
Contact us at email@example.com for a Complimentary Consultation.
Find out more about our Global EOR Service and Employee Cost Calculator today: www.peoservices.tg-hr.com
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