Expanding into new markets is now accessible to companies of all sizes and at any stage of growth. According to G-P’s 2023 Global Growth Report, 66% of leaders say building global teams is a part of their business strategy, confirming that expansion is essential for maintaining competitiveness in today’s market.
But global growth is multifaceted and requires developing a seamless onboarding program, mastering cultural nuances, and navigating varying compliance requirements.
Given these challenges, companies have sought alternative solutions to streamline global operations and discovered a strategic ally in the Employer of Record (EOR) model. In a recent webinar, Connie Diaz, Senior Director of Human Resources at G-P, explored how companies can leverage EOR solutions to power global growth. Let’s examine a few key takeaways from the discussion.
#1. An EOR can mitigate compliance risks in a new market.
EORs play a vital role in global expansion and growth by providing comprehensive HR and compliance solutions in global markets. An EOR can help mitigate risks by offering compliance expertise, an established entity infrastructure, and valuable insights into local market conditions and labor trends. “EORs, as the legal Employer of Record in the region, assume certain liabilities, such as employment disputes or regulatory concerns, shielding the company from potential legal and financial risks,” Diaz explains. Before embarking on a growth journey, Diaz says that companies should research the target market and potential risks, including regulatory compliance, cultural differences, political instability, currency fluctuations, supply chain disruptions, and market competition.
#2. The right EOR can elevate the employee experience.
In a global context, a strong company culture promotes unity, collaboration, and mutual respect among team members, regardless of their geographic location. It helps bridge cultural gaps, encourages open communication, and fosters a sense of belonging, which ultimately drives employee engagement and productivity. Diaz shared that it is important for company leaders to foster inclusivity across borders, including language support, customized cultural awareness training, and inclusive policies and practices.
EORs can play a crucial role in building a strong company culture across borders. By providing HR support and compliance expertise in different countries, EORs help ensure that employees receive consistent support regardless of geography.
With the global market that we’re in right now, a lot of companies are seeking top talent from across the globe.
Connie Diaz
Senior Director of Human Resources at G-P
#3. EORs help streamline global talent acquisition.
Recruiting and onboarding talent globally requires careful planning and consideration of legal and cultural differences. By leveraging an EOR, companies can successfully integrate talent across borders and drive success in new markets. Diaz explained that an EOR mitigates many of the challenges of global talent acquisition, management, and retention, including reducing the administrative burdens of reporting for payroll and taxes. Companies are granted access to regional expertise throughout the entire employee life cycle, which helps streamline critical junctures of preboarding, onboarding, and offboarding. “Having experts on the ground who know the local culture and the job market is invaluable,” Diaz shared.
#4. With an EOR, companies of all sizes can start hiring in minutes.
EORs have an established presence in multiple countries, allowing companies to leverage their entity infrastructure and expertise to navigate local regulations and set up operations quickly and effectively.
An EOR provide a compliant solution for hiring employees and independent contractors all over the world. From ensuring compliance with labor laws and tax regulations to advising on regional workforce planning, EORs handle all aspects of HR and employment administration, freeing up time and resources for global companies to focus on core business objectives. “We see many companies across different industries that use EOR services to facilitate their global growth efforts,” said Diaz. “For example, a technology startup based in Silicon Valley may partner with an EOR to access new markets and talent pools in Europe without setting up a new entity in each country.”
#5. EOR solutions improve operational efficiency.
By leveraging customizable EOR solutions, companies can enhance operational efficiency and accelerate the hiring process by bypassing entity setup and delegating key HR and payroll functions. “One pane of glass allows companies access to robust reporting for tax, payroll, and benefits administration – a key benefit when the goal is to ensure hiring compliance across borders,” Diaz explains. “EORs are scalable, and allow companies to adjust their workforce planning, scope, and global footprint rapidly in response to local market conditions.”
Discover more global insights with G-P.
To learn more about how our global employment products and EOR solutions can position and expand your company’s global presence in key markets, watch the full webinar on-demand here. For more information on how to hire and manage global teams quickly and compliantly, contact us today or book a demo.
