No Entity, All Talent: The Game-Changing Approach to Building a Global Team

In today’s global landscape, businesses are redefining how they hire talent, especially with the boom of remote working. With Employer of Records (EOR), companies can employ individuals worldwide without the hassle of establishing their own entities in each location. This streamlined approach allows for greater flexibility and efficiency in building a global team.

The Pits & Falls of Hiring Directly, Even Temporarily

Before delving into the advantages of employing without setting up your own legal entity, it’s essential to address the potential pitfalls associated with hiring talent directly, even on a temporary basis.

• Registering your own legal entity can already be very challenging in many countries, with endless delays.
• Navigating the legal and regulatory landscape of each country. Employment laws vary significantly from one jurisdiction to another, and compliance can become a complex and time-consuming endeavour.
• Finally, managing payroll and benefits in a country you are unfamiliar with, likely using very different systems.

How Employer of Records can help you

Despite the potential obstacles, relying on an Employer of Record offers numerous advantages that can outweigh its challenges.

Compliance: Utilising an Employer of Records (EOR) can streamline compliance with global employment laws. Instead of navigating the complexities of establishing legal entities in each country, companies can leverage the EOR’s expertise to ensure adherence to local labour regulations and customised employment contracts, minimizing the risk of legal disputes and penalties. For more details on how EORs work, refer to Employer of Record (EOR): The Ultimate Guide.

Pay:

In the USA, the IRS estimates that one-third of employers make a payroll mistake each year. From paying the wrong tax rates to miscalculating overtime, any error can cost you a lot. The risk of making any mistake is heightened in a country you aren’t familiar with. An Employer of Record will process payroll compliantly based on your instructions. To understand the intricacies of global payroll, check out Global payroll management: How to pay remote employees. Feeling Included By Sharing the Same System: You still want all of your employees to feel included, even when they are working remotely in a different country. With Employment Hero, you can easily manage all aspects of your employees’ leave, documents, expenses, and payroll, no matter where they are located. Plus, by using one unified system for all employees, including remote workers, you ensure everyone feels included and avoids the confusion of different systems and processes across countries.

Costs & Admin: Establishing and maintaining legal entities in multiple countries can be costly and complex. However, the no-entity approach facilitated by an EOR significantly reduces overhead costs associated with entity setup, taxation, and compliance, enabling efficient resource allocation, particularly for startups and small enterprises. EORs centralise administrative tasks such as payroll, benefits administration and HR management, enhancing operational efficiency. Cloud-based platforms such as Employment Hero simplify the management of a global workforce from a single interface, eliminating manual processes and streamlining operations.

Leverage on Many Countries: By partnering with an EOR, you can tap into talent pools across multiple countries, enhancing innovation and adaptability. Accessing diverse skills and expertise enables companies to respond quickly to market dynamics and customer demands, driving competitive advantage. Learn how global teams can transform your business in this insightful resource.

Depending on the Activity, You Might Need to Set Up an Entity.

Despite its numerous benefits, the no-entity approach may not be suitable for all business activities. Certain industries and jurisdictions may require a physical presence or legal entity to operate effectively. For example, companies engaged in manufacturing or retail may need local facilities or storefronts to serve customers efficiently. Similarly, regulatory requirements for specific professions or services may necessitate the establishment of a formal corporate entity.

Hire Talent Anywhere, Reach Out to Global Teams!