If you want to expand your business without setting up a legal entity in another state, you’ll want to learn more about an employee of record solution (EOR). According to experts, the global market size of EOR services will reach around $6.8 billion by 2028. Now that EOR services are taking the world by storm, you’re probably wondering how this solution can help you ease your company’s expansion.
What You Should Know About EOR Services
Countless companies want to provide and showcase their innovative solutions to the world by entering the national market. Whether you’re planning on tapping into the talent market or growing your business through national expansion, it helps to understand what an EOR firm is and what it can do for your company.
What Is an EOR and What Does It Do?
An EOR refers to a third-party organization that hires and pays employees on behalf of another company. In most cases, business owners use EOR when they want to engage with out-of-state employees, transfer formal employment tasks to a third party, or avoid local employment law violations.
Furthermore, business owners can use EORs for employment contracts, the administration of employee benefits, compliance with local laws, payroll, tax documentation, employee relations resolution, termination, and other HR services.
Since the EOR service provider is licensed to act as the registered employer for the employee, it holds itself liable for employment issues and compliance with payroll and tax laws. However,
it’s worth noting that an EOR service provider doesn’t assume management or supervisory roles over the employee’s position. In other words, they don’t intervene in the company’s workflow and offer company owners total management freedom.
What Are the Benefits of an EOR Solution to Your Company?
Preservation of Resources
An EOR solution allows business owners to save time, money, and other resources that should be spent on research, looking for talent, and setting up subsidiaries. Additionally, EOR firms provide business owners with enough room to veer their resources toward other daily ventures because these firms handle the day-to-day running of your business and take additional responsibilities off your plate.
Growth and Expansion
Business owners who want to expand their business on a national scale will benefit from using an EOR because it eliminates the need to establish a legal entity wherever their employees are.
Furthermore, this shortened process allows the business owners to get their workers hired and settled immediately. Since an EOR enables your business to be in multiple locations simultaneously, it effectively promotes business growth.
Diversity and Innovation
Whether you like it or not, innovative solutions are crucial to business growth. Business owners achieve diversity by hiring talented individuals in their workforce. Moreover, diversity encourages employees to present different ideas that lead to innovation and business growth.
Considering Using Employment of Record Solutions?
Do you want to free up your time for managing your core business? Are you interested in saving money? Are you looking to shorten the time it takes to get new workers onboard and productive? Do you want to stay compliant with legislation?
At ClearPath, we employ our W-2 contingent workers, take over Human Resources and Payroll functions, and ensure compliance with labor laws and regulations. If you’re planning on outsourcing your back office Human Resources and Payroll functions, contact our office today to make an appointment.