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How Engaging with an Employer of Record Provider Can Help Organisations Retain Key Staff

Overseas relocation is a common reason for an employee to resign from their job. With increased work opportunities worldwide, many employees may decide to relocate to a new country to support their partner or spouse. When this happens, most companies have no other option but to accept their resignation.  

Talent retention is critical for businesses to remain competitive. Losing key employees can be extremely costly both from a financial and time perspective. After a company has put time, training and investment into hiring and supporting their best employees it can be frustrating to lose them due to personal reasons. In this post, we will discuss the options businesses have to retain key employees who may wish to move overseas.  

How does a company retain their valued employee 

If an employee is moving overseas to a country where you have an entity, then the process should be simple. However, if an employee is moving to a country where you don’t have a physical presence, you risk losing their services for good. If companies wish to retain their employee, there are several options to choose from: these include, converting the employee into an independent contractor (IC) or using an employer of record (EoR) solution.  

Convert into an Independent Contractor  

When employees move overseas, many companies believe that converting their worker into an independent contractor is the best solution. In the right circumstances this may well work, however the risks and penalties with misclassification of workers can be enormous. The rules around IC and employer relationships vary wildly from country to country, so before you decide to hire an IC it’s always best to seek professional advice to make sure you remain completely compliant.  

Use an Employer of Record (EoR) Solution 

The second option is to use an Employer of Record solution. An EOR solution allows a business to retain their overseas workers and operate and employ in a safe and compliant way. Companies who do not have an entity but want to retain their overseas worker use the Employer of Record solution to hire their workers legally. 

How Employer of Record (EoR) works?  

Employer of Record (EOR) also known as International PEO is a global employment solution whereby a third-party provider hires your employees on your behalf. The EOR provider becomes the legal employer and takes responsibility for the entire employment relationship. The end client still manages the day-to-day responsibilities. The EOR employs your workers directly on a local payroll and reports all relevant details to you as well as providing a monthly invoice.  

Reasons to use Employer of Record Solutions to retain your remote worker  

1. Your worker stays compliant 

With EOR, you can have your worker employed compliantly in a new country, in a matter of days. Through using Capital’s EOR solution, our team of dedicated international in-country specialists are on-hand to provide round-the-clock support whenever our clients need them. By choosing to use an EOR solution, companies have peace of mind knowing that they won’t be at any risk of misclassification or costly fines.  

2. Less disruption to your business  

Once a valued member of staff leaves, the workload increases for the remaining staff. The process to find a new replacement begins which can cost in time and money. Not to mention the cost of the onboarding process once you have found a potential new hire. With EOR, your worker is complaint and legally allowed to work remotely in their new country creating less disruption for your business and staff.  

3. Faster set up  

Unlike other options which can take time to organise, with EOR we can have your overseas worker working legally and compliantly in a matter of days.  

How Capital GES can help you retain your overseas employees using Employer of Record (EoR) 

If you have a worker that is moving overseas, Capital GES can help.  

Capital GES is an outsourced employment specialist that has been operating globally for over 25 years and have helped thousands of clients achieve their goal of employing their workers legally and compliantly 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 looking to hire your worker internationally, you can contact us at or phone +41 32 732 9700, and a member of our team will be in touch.

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