India has undergone a business revolution in recent years. And businesses all around the world are seeking to leverage this time. The first step, however, is to find employees that can make a difference.
But wait! There are many questions that crop up in this context.
How would you know who are the most capable candidates in a foreign country? You are not expected to be an expert of labour, tax, and employment, rules and regulations of a foreign land! And let’s face it – trying to manage the human resource operations of employees in a foreign country can seem intimidating (and it is).
But what if tell you there’s a smart way out? Well, there is!
Employer of records is the third party intermediary between the original employer and the foreign employees. Basically, they are the experts who take care of all the operations concerning human resources on behalf of the original employee.
The EOR formally becomes the employer of your employees.
A very common question here is –
So would the employer of record have all the rights to interfere in the working of the original company? –
But you can yourself hire employees in India, why do you even need an intermediary for that?
Here’s why – –
You are an expert in operating and running a business in your own country. But each country has a different set of rules and regulations when it comes to running a business. What is followed there will, most likely, not be followed here.
So you have two options
Each organisation has limited bandwidth. And though hiring employees from all over the world is what will make your business take-off, you cannot risk its success by making a mistake that has legal repercussions.
Let’s face the fact – handling payroll, administrative management of employees, and handling human resource is tough and requires a lot of time. And it’ll take you even more time because you’ll have to learn about the business intricacies of your target country and compliance standards first.
On the other hand, leaving all this in the hands of experts (EOR) will allow you more space and clarity to do your business. And you can utilize the time to focus on the working and management of your employees, and other problems that will make your business thrive.
Let’s accept – you don’t have the time or bandwidth to handle all the human resource intricacies when your main focus is to expand your business to a new country.
For starters, imagine the amount of time you (as an employer) will take to set up a team in a foreign land. Whereas, Employer of Record will not only do the required tasks efficiently but also save a precious resource of your business – time(!).
You’ll obviously end up spending more if you do not have complete knowledge about something.
Whether the cost is involved in hiring employees, managing other HR back end operations or being compliance to rules and regulations, Employer of Records will drop it to the minimum.
Being compliant with the labour laws is a serious business and heavy penalties are levied in cases of non-compliance.
Employer of Records offers an added advantage that you won’t run your business into trouble and remain compliant throughout.
From payroll to administrative management to contracts as per the Indian Labour Laws, your service provider will handle it all. What a relief that is!
As we just discussed, failing to adhere to the compliance standards can cost you beyond imagination. Penalties and increased cost is just a part of it.
Serious legal consequences follow in case of non-compliance, and no organisation intends to take that risk. Your employer of record, however, can help you nullify these risks.
The umbrella of benefits of Employer of records spread beyond the aforementioned ones.
So, basically, you can trust them with your Employer of Records Services for 5 major reasons
Whether you’re looking to test the waters of Indian market or are willing to establish your business in the Indian terrain, the best time to do it is – right now! Even better – now you know how to go about it.