The DON'TS and DO'S when going EOR

Marcel
15.09.22 08:46 AM Comment(s)

Better service levels plus reduced fees? 

When it comes to #hiring staff that will be working #remotely in countries where you don't have that legal entity yet, you can partner up with a so called 'Employer of Record' (EoR) to do this all for you. From now on you expect this legal employer of 'your' EoR-staff to be in #compliance with local laws and regulations. However, can you be sure that what you see is what you get in the most flexible way?  But first, what are the DON’TS and the DO’S here? 

DON’TS
  • Experiencing poor and inconsistent service levels (because when you complain about problems, responsibility and accountability is shifted to those who are actually providing these services). 
  • Problem solving takes longer than necessary because you are not allowed to contact these local providers directly. 
  • You cannot be certain anymore that provided services are always delivered in compliance with local law and regulations, making you exposed to being qualified as potential co-employer and/or permanent establishment (besides possible GDPR violations). 
  • You are experiencing a relatively high attrition from your EoR-staff because they don't get paid on time, or their performance and career development is completely unmanaged (because you can't deal directly with this legal employer). 
  • When you wish to instantly reduce your EoR-staff, there is not an easy exit, and that leads to high unforeseen costs. 
DO’S 
  • Making sure that you remain a sustainable company without negatively impacting your resources through others beyond your span of control. 
  • Contracting directly with leading and reputable EoR-service providers who have been operating in this industry for decades with local offices dotted all over the globe, who all know what they do as subject matter experts, and not in the last place, because they are here to stay. 
  • Having direct access to these providers at all times. 
  • Being supported by dedicated customer success managers on the ground doing this for you. 
  • Reducing your EoR-staff instantly for a convenient fixed all-in fee. 

A more recent added DON'T is making absolutely sure that your partner is not financing their company's #growth strategy and therefore often expensive #marketing campaigns with risky investors' funding, and dealing with the wrong banks. The DO here: not only check your partner's track-record (experience and skillset of their own staff), but also whether their GTM is based on organic versus stunted growth, and lastly whether one is privately funded hence more resilient in today's market. We can do the heavy lifting for you, and from there it's up to you how to proceed?! How about not only getting a better service, but also saving 200 euro or more per employee per month compared to what you are (or would be) paying now? When you disapprove the DON'TS and prefer the DO'S, then contact me now (via InMail) to either set you up correctly from your very first onboarding, or to renegotiate your existing conditions with all of your EoR-service providers. 

Marcel