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Employer of Record Solution: Taking the complexity out of International Expansion

04 Oct 12:00 by Capital GES

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Last month, Capital GES attended the NAPEO 2018 Annual Conference and Marketplace in Phoenix, Arizona. Our VP Business Development, Javier Romeu, was part of a panel of speakers which discussed 'Sales Analytics and Larger Deals'. The panel explored the need to use analytics to evaluate large deals focusing on deal complexity and financial analysis.

With recent statistics showing that 1 in three US companies have a medium to high potential for international employment needs, Javier spoke about the complexities surrounding international employment, and how using an International PEO/ EOR specialist can help solve international employment needs. 

Below we have summarised the key points from Javier’s presentation.

1. Immediate hiring needs

If you are planning a long-term commitment in country and are able to wait six months before hiring employees, then building infrastructure and setting up a foreign entity may be for you. However, if you can’t wait the six months and have immediate hiring needs, then an international employer of record solution may suit your business. Whether it’s testing a new market or hiring new people, with an EOR specialist you can have your workers employed legally in a foreign country in just a few days. 

2. Employment regulation needs

Employment laws can be complex. Each country has its own nuances and regulations. Holiday entitlements, termination policies, overtime and allowed work-week hours are different in each country, so it is important to have a thorough understanding of the employment regulations. If your business lacks the internal resources to manage the administration of global employees, then EOR solutions will help achieve this goal and let you focus more on the core business of products and services in country. 

3. Costs

While it may look like it costs a lot to hire an International Employer of Record (EOR) specialist, you must look at all the other costs associated with setting up an entity in a foreign country. Start-up costs like establishing an entity, registering with all the right tax and labour authorities, and opening a foreign bank account are some of the items to consider. If you lack the internal resources for global payroll, then you will also need to hire an international employment lawyer to assist on the employment contracts and local labour law requirements. On top of this, there are several ongoing maintenance costs. With an EOR specialist, there are minimal start-up costs, minimal ongoing fees, and your workers are compliant from day one. 

Choosing an International PEO/Employer of Record Specialist

Expanding internationally can be complex, as employment laws are inherently different around the world. Setting up a foreign entity may be a good long-term solution. However, there are factors like time-to-market, legal requirements, local customs, regulations and, of course, costs that need to be analysed properly and detailed in the business plan. By choosing to partner with an International PEO/ Employer of Record (EOR) specialist you will be able to expand your business internationally very fast and with minimum costs and risks.  

How Capital GES can help your business

Capital GES is an outsourced employment specialist that has been operating globally for 27 years and has helped thousands of clients achieve their goal of establishing a business presence overseas. Our team consists of dedicated international in-country specialists who are on-hand to provide round-the-clock support whenever our clients need them. 

If you are thinking of expanding your business and looking to hire internationally, contact us at info@capital-ges.com or via phone: +41 32 732 97 00 or +1 833 972 6346 to see how we can help.