The employment landscape is changing, and it is critical to listen to economics, research, and payroll experts.
Last Wednesday, GCE Xperts announced its new specialist, Juliana Bustos. She leads GCE Global Solutions’ Business Intelligence Department. Additionally, she is an economist with data management experience and a broad understanding of labour payroll matters. She discussed the alternatives to hiring abroad in this interview.
As we analyze in our blog about remote work: opportunities and challenges, the way to work changed the last time significantly. These days, thinking of a presential work possible at home is vintage and old. Juliana knows that and explains the necessary technical concepts for this era.
First, she explained what Employer of Record (EOR) is. It is a market adaptation for labour actuality that works as an intermediary between the employer in one country and the employee in another. Generally, this EOR is in the worker’s country, knowing the local laws and processes. They take the responsibility from hiring to payroll. Because of that, the company can focus on its core business. Entirely without thinking, for example, in taxes, insurance, and international laws.
“EOR’s companies allow hiring internationally in a legal way,” detailed the economist to be more specific. However, doing this in another way could bring big problems for entrepreneurs. She gave an example of hiring in Uruguay from Europa. The risk is too high to do it. With EOR, you can avoid these problems and have other benefits.
With a legal presence, all the processes are more manageable. There is someone who takes responsibility, and that saves time. Our Xpert added the value of local experience. Knowing all the laws, the rights, the costs for hiring, and all the following steps help avoid problems.
Having a trusted EOR is a challenge. GCE Global Solutions knows that and offers this kind of service. The experience and having great networking around the world are fundamental. In addition, it is necessary to evaluate what companies need, to identify relevant benefits and manage them, and to have the know-how to administrate the payroll locally.
Pros and cons
The economist added more benefits, but she did not forget some difficulties. In the pros, the business Intelligence leader mentioned global expansion. With EOR, it is even possible for a small or medium company. You can be a worldwide company with international workers only using this formula. Another positive aspect is the time and money. Please focus on the core business; it can improve productivity and have better clients without spending time on administrative situations.
There are essentially two drawbacks for Juliana to think about. She began by discussing the ability to exert control: Having employees spread out throughout the globe is more of a challenge than having them in the same office. She also spoke on the impact of cultural variations on workplace practices. Communication can help to reduce these potential issues. Although it seems simple, working on it is challenging.
Despite this, you cannot stop because of the challenges and difficulties. We have to deal with them. New times are here, economics are constantly changing, and “EOR brings a huge opportunity with little money and time.”