There are over 100 million existing companies worldwide, and they continue to grow. According to Luisa Zhou, a global roundabout of 400 million businesses exists. Among those numbers, many people have established new small businesses. With the vast number of small businesses, the competition in the market becomes more challenging to handle and keep up with.
Along with the tough competition happening in the market, small business owners are finding ways to get through it. One of the ways they consider it is to have an Employer of Record (EOR), but why do these owners choose to have it for their business? This blog will walk you through the answers.
Why choose an EOR for small businesses?
An Employer of Record (EOR) is a helpful bridge for small and global businesses. When a company wants to hire workers in a foreign country where they don’t have an office, the EOR steps in. They become the official employers for these remote staff members, taking care of all the legal employment and administrative tasks on behalf of the company. This also makes it easier for businesses to hire internationally and ensures they follow all the rules and regulations in the foreign country.
Moreover, EORs offer various services that can benefit businesses, making them valuable to any team. Here are some of the reasons why you should consider obtaining an EOR for your business:
Streamlining HR: How EOR Manages Your Human Resources Department
The primary service that EORs offer is managing human resources and acting as legal employers for their clients’ companies. They handle responsibilities such as paying salaries, complying with labor laws, mandated benefits, and hiring talent locally or globally.
Cost-Effective Solutions: EOR Can Save Money for Your Business
Employers can significantly benefit from partnering with EORs, as it can help reduce the costs of managing human resources and complying with labor laws. Instead of paying for different services, you can save money by getting all the necessary resources from one provider. With an EOR, you don’t have to start from scratch since they already have the expertise and tools needed to help your business thrive.
Tax-Saving Strategies: EOR Reduces Your Small Business Tax Liability
EORs provide tax benefits by managing compliance with tax regulations and potentially reducing tax liabilities through strategic planning. Additionally, EORs can help companies expand internationally without setting up a legal entity in each country, which can result in tax savings.
Talent Acquisition Made Easy: EOR Helps Find the Best Talent for Your Business
As legal employers, EORs can assist businesses in finding and hiring qualified talent from around the world. They have access to a vast pool of candidates based on the business’s specific needs. EORs use various recruitment tools and partnerships with job boards and social media sites to search for potential candidates. It allows companies to tap into a broader talent pool and expand their reach beyond their local area.
Efficiency and Savings: Managing Employee Benefits with EOR
Employers who use an EOR make it easier for small businesses with limited resources or time constraints to handle important HR decisions like enrolling employees in benefit plans. They can help their clients provide mandated benefits, such as healthcare coverage packages, to their employees, ensuring they meet their rights, needs, and welfare. This not only helps the employees but also saves time for the business owners and allows them to focus on other essential tasks.
EOR for small businesses can help stay competitive in today’s market
Running a business in a competitive market can be challenging, and many competitors strive to succeed. Companies need all the help they can get to stay afloat in the industry.
EOR services can benefit businesses looking to remain competitive in today’s market. EORs act as legal employers and actively search for the best talent suited for your business.
In addition, most EORs have extensive industry experience that can help your business comply with regulations and streamline payroll processing. Their services also save time and money by handling employee data management, so business owners don’t have to worry about it.
Choosing an EOR provider for small business
You should seek an EOR provider that suits your needs as a business owner. Choose a reputable EOR that offers various talent solutions, has a user-friendly approach, is reliable, and provides cost-effective services.
To verify whether a provider meets these criteria, examine their website and social media pages to understand their services better. It is crucial to ensure that they are legitimate by researching the company and reading reviews from previous clients on their pages.
If you have questions about your EOR provider, contact them to gather more information, discuss your concerns, and negotiate a deal. After obtaining their services, you will witness the benefits of having an EOR provider in your small business.
The EOR process may initially seem complicated, but it is worth the effort, especially for small businesses looking to grow and compete in a fiercely competitive market. Acquiring an EOR ensures that your business’s HR responsibilities remain compliant with all legal regulations in the country.
Obtaining an EOR can help your small business flourish and become more significant. The services provided by EORs are undoubtedly beneficial, and investing in them is worth the money. With an EOR on your team, you will have someone who understands what it takes to run a small business.
Frequent Asked Questions (FAQs)
Q1: What industries can benefit from EOR services?
Small businesses across various industries, including IT, healthcare, and manufacturing, can benefit from EOR services.
Q2: Are EOR services suitable for startups?
Yes, EOR services are an excellent choice for startups looking to streamline HR functions without building an in-house team.
Q3: How do EOR services handle employee disputes?
EOR providers typically have established dispute resolution procedures to address employee issues promptly and fairly.
Q4: Can EOR services help with international expansion?
Absolutely. EOR services can facilitate international expansion by handling employment-related tasks in different countries.
Q5: What is the cost of EOR services?
The cost varies based on the size of your workforce and the specific services needed. It’s often more cost-effective than maintaining an in-house HR team.
Q6: How can I choose the right EOR provider for my small business?
Consider factors such as industry expertise, reputation, and scalability when selecting an EOR provider.
One CoreDev IT (CORE) is an EOR company in the Philippines that provides talent solutions for your company’s needs. We offer back-office, project management, and low-code software development talent solutions. With years of experience in the industry, we have a reliable and qualified team of professionals to help you. For any inquiries, contact us today!