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Many SMEs are choosing to utilize employers of record to handle their human resources functions. Their services are also essential for smaller businesses looking to expand into new markets without the financial or administrative burdens of founding a new legal entity. Here are four things to consider when choosing an employer of record.
You should always be selective about the other businesses that you partner with. Before you enter into any kind of formal relationship with another business, you first need to vet them and ensure that they are right for you.
You can easily check the reputations of any potential employer of record with a simple Google search. Most businesses are eager to generate online reviews and user reports as they are a significant source of new business. As a result, finding information about other businesses has never been simpler.
It pays to choose an employer of record who has experience working in the geographic area that you want to expand your business to. For example, if you are looking for an employer of record with experience acting as an Indonesia PEO, New Horizons Global Partners is an excellent choice. They have experience providing PEO and employer of record services to businesses looking to expand into Indonesia. They can hire employees and process payroll for businesses without the need for them to register a new legal entity in Indonesia.
The Benefits They Are Offering
Every employer of record is different. While they all offer the same core service, the additional benefits that they add on top vary from provider to provider. The most basic services will simply handle the local admin for your business, but more comprehensive services can include recruitment and additional administrative functions.
Some employers of record also offer employee benefits that your business is not in a position to provide. Many small businesses choose to use an employer of record specifically because it gives their employees access to the kinds of benefits that are generally only seen in larger organizations. If you shop around, you should be able to find a provider who can offer your workers additional benefits.
The Tech They Use
Conflicts between the IT systems your business uses and those that your EOR uses can cause headaches all round. You and your EOR are going to be exchanging a lot of data regularly. Unreliable tech and system conflicts are going to impact the quality of the service you receive severely.
On the other hand, if the EOR’s systems integrate easily with your own, you will find it much easier to manage everything you need to remotely. It is always worth requesting a demo so you can verify that your systems are compatible.
Employers of record provide a vital service for SMEs looking to expand their operations overseas. But pairing with the wrong EOR can turn a smooth expansion into a disaster. Don’t commit to the first EOR you come across; take the time to vet them and make sure they are the right fit for your business.