We earn commission when you buy through affiliate links.
This does not influence our reviews or recommendations.Learn more.
So, how does this work?
Who is an EOR Employee?
An EOR employee is an individual who is legally employed by the EOR organization, not the organization itself.
These tasks may vary depending on the organizations needs and location.
Tax deductions, employee benefits, currency conversions, etc.
They also handle paid leaves and terminations and track time on and time off to create timesheets.
However, they cant offer the same policies to Spanish employees.
Considering the responsibilities under their hood, here are the benefits of working with EOR employees.
Ensures Compliance
Businesses can find it challenging to navigate compliance and employment laws across geographical locations.
EORs are responsible for handling every legal, compliance, and HR process that may arise in their jurisdiction.
They also manage changing laws and tax regulations, so businesses dont conflict with the authorities.
Similarly, employees might need further information about the companys work culture and responsibilities.
EOR serves as the bridge between the two parties.
It assists companies in the international hiring of top talent and onboarding candidates with excellent skills.
An EOR operating in a certain jurisdiction is also accountable for payroll processing and tax management.
This brings more transparency into the business accounts since they can segment the employee compensation based on location.
EOR employees specializing in that jurisdiction have better knowledge of classifying employees as contractors or full-time workers.
Using the right classification of employees keeps businesses in line with the regulations so they dont face penalties.
This can limit how much it can directly oversee or customize these processes.
Employee Experience
The quality of service the EOR provides can greatly impact the employee experience.
A poor employee experience may lead to lower retention rates and could affect your business.
Sharing such data with a third party poses a high risk of data breach and misuse.
How to Manage EOR Employees Effectively?
The EOR must have a target to achieve within a prescribed timeline.
Conduct regular meetings and use messaging apps like Slack to communicate with your EOR about possible updates and issues.
Businesses should consider regular meetings and leverage work silos to organize the tasks.
ensure to establish a joyous work culture for your overseas employees.
Conduct weekly meetings to establish relationships with your employees.
Another good practice is to send encouraging emails to the employees and share their achievements with your team.
Lastly, consider talking to your EOR provider about any issues they encounter.
The EOR assumes legal responsibility for employment compliance, tax filings, and employee benefits.
This reduces the administrative burden on the companies and ensures that business operations are streamlined.
Direct employees are directly employed by the company and answerable to them.
The company is responsible for compliance with employment and taxation laws within that jurisdiction.
It establishes communication with the EOR employees and tracks their work progress.
This gives the company direct control over its HR policies and the ability to communicate with clients.
EOR employees are connected with the company through EORs.
Therefore, every communication related to compliance, the onboarding process, and payroll passes through the EOR.
Direct employees typically experience a more unified company culture and closer engagement with company values and policies.
Employees can directly communicate with the company about any issues they encounter.
This can divert your focus from the core objectives and incur higher costs.
It allows you to streamline the global workforce and remain carefree of adherence to laws and the hiring process.
