Employer of Record: Managing Your Remote Software Engineering Workforce Part 2

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In our previous blog, we emphasized the need for companies to work with a reliable Employer of Record to manage their remote software engineering workforce, as the opportunity to work remotely has become one of the most in-demand job benefits requested by job seekers globally. We also noted that remote work is no more perceived as a futuristic idea, but a phenomenon that has come to stay!

This article delves deeper into the concept of the Employer of Record, and how to choose Employer of Record solutions that can help you simplify the complexities that come with building and managing a remote software engineering workforce.

The Employer of Record (EOR)

An Employer of Record (EOR) is a third-party organization that provides global employment solutions which enable a client company to legally hire software engineers and remote talents in a foreign country without having an existing footprint or local entity in that country.

While the client company determines the schedule and performance of the employee hire, the EOR plays the legal employer role in the foreign location. In other words, the Employer of Record (EOR) is a third-party organization that serves as the employer for tax purposes, while the employee performs work at a different company.

Also known as Professional Employment Organisations (PEO) or Foreign Enterprise Service Company (FESCO) in China, the Employer of Record (EOR) takes on the responsibility of traditional employment tasks and liabilities which could range from creating and maintaining employment contracts to sponsoring work visas, processing, and managing payroll, depositing and filing taxes, immigration, maintaining certificates of issuance, and making sure all labor regulations are being followed.

How To Choose an Employer of Record Provider

In selecting the Employer of Record of your choice, it is important to identify a provider that you feel the most comfortable with. Don’t rush into the selection process and if you get confused, we have prepared some questions below to guide you in making a decision:

  • Do they have expertise and operations experience in the designated country?

Not every Employer of Record has experience working in every country. The perfect scenario is for the EOR to possess substantial experience working in-country with local expertise.

  • Are they internationally compliant with local employment laws?

The major advantage of using an EOR is mitigating the dangers of violating local payroll, tax, and immigration laws. In-depth knowledge of such legislation is critical when selecting a provider.

  • Will you be assigned a single point of contact or an online portal?

When managing people, you don’t want to be treated as a part of the numbers, with little human interaction. You would want to ensure that the Employer of Record will ensure end-to-end communications with you and the hire.

  • Do they have experience with similar business owners in your industry?

If they understand the business, they can tailor a solution to fit the needs of the company.

  • Is the Employer of Record service part of their core business?

If the EOR is an ancillary part of their business, it’ll not be a core focus. This can impact performance and employee morale.

Why Go Borderless?

Expanding into new global markets take time, incure costs and require expertise. The complexities of global, regional and local compliance require a trusted partner, like an Employer of Record (EOR), to eliminate the hurdles that come with global expansion and drive successful revenue growth.

Looking to hire Top Software Engineering Talents around the World?

Borderless has vetted strategic partnerships with renown international benefit providers to ensure there is a solution for all your requirements. This includes pensions, medical coverage, Employer of Record payroll, and employee assistance programs among other benefits.

Here’s why you should go Borderless for your Employer of Record (EOR) needs:

Fast market penetration

Borderless helps you speed up the establishment of your company in foreign countries in as little as 48 hours, by appearing as the legal employer of your international hire. This allows your organization to hire the best global talent and leverage on new market opportunities as soon as you need them.

More flexibility & convenience

Borderless (EOR) solutions are flexibile. Businesses can test new markets or engage in short-term projects without setting up a physical office or presence. This is especially helpful for smaller companies that don’t have the corporate infrastructure or budget required to handle local payroll, immigration, and tax requirements. Borderless provides you with a legal entity that can handle all these commitments. We also take steps to ensure that you are fully compliant with the laws and regulations of the host county.

Saves overhead costs

Borderless (EOR) Services allow you to avoid the overhead costs that always accompany managing and maintaining remote software engineering tams in a foreign location. From sourcing international talent to maintaining compliance issues, Borderless allows you restructure your income and allocate these resources towards escalating your growth plans.

Minimizes unnecessary risks

Borderless manages all legal functions and helps your company to take responsibility for the liabilities that accompany hiring and operating internationally. Human resources issues concerning employee benefits, payroll and taxation, administrative operations, and compliance are taken on by Borderless, thereby protecting you from the risks that evolve from the mismanagement of such complexities. We also guarantee peace of mind as we take measures to ensure these responsibilities are being properly managed.

Manages back-office tasks & maintains compliance

Borderless manages employee onboarding procedures, payroll processing, etc. on your behalf. We also ensure you comply with different state and federal government regulations. This includes overseeing a remote employee’s compensation, ensuring timely payment, and withholding all necessary taxes.

Save time and unnecessary expenses

From payroll to handling local regulations, Borderless saves you time by handling all the bureaucracy on your behalf. By removing the necessity to line up an area entity within the host country your employees are based in, Borderless also saves you thousands of dollars. We also free you from having to take a position money into hiring internal teams to manage administrative functions starting from finance to legal procedures surrounding local employment law.

Ready to Go Borderless?

Have your remote software engineering team built globally, managed locally, and 100% owned by You!

Get in touch with us today to learn more about how we can help!

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