August 13, 2024 | Michael Warne
In an age where remote work has become a staple rather than an exception, businesses are increasingly challenged to onboard talent from various parts of the globe.
While the prospect of a diverse workforce brings numerous benefits, it also complicates the onboarding process. This is where Employer of Record (EOR) services step in, as it unfailingly offers a comprehensive solution that simplifies hiring and onboarding remote employees.
Did you know?
Tarmack helps you easily hire international talent as your full time employees without opening international subsidiaries. Find out more about our Employer of Record services
Learn MoreIf you are already contemplating the necessity of EOR services for your company, here are several compelling reasons to consider.
It goes without saying that each country has different employment laws, tax codes, and compliance requirements.
For example, a US-based tech company hiring software developers from Brazil may encounter Brazil’s intricate labor laws, which are different from those in the US. Understanding guidelines for minimum wage, severance pay, and employee rights can be overwhelming.
An EOR like Tarmack specializes in these matters, and ensures compliance with local regulations, such as helping the company to set up legally binding contracts tailored to Brazilian law.
Payroll management is often one of the most daunting aspects of onboarding remote teams. So, in the case of a marketing firm with team members in Canada, Germany, and India., each country will have different tax rates, reporting requirements, and currencies.
An EOR can manage these complexities seamlessly. They ensure that the employees in Canada are paid in CAD, while their counterparts in India receive INR. This reliability enhances employee satisfaction and builds trust in the company, crucial for maintaining a motivated remote workforce.
Onboarding new employees typically involves a significant amount of paperwork. For a startup that employs customer support agents from various countries, handling multiple contracts, tax forms, and compliance documents can be a logistical nightmare.
Here, an EOR can provide a centralized platform where all necessary documentation is stored digitally. This reduces time spent on manual paperwork and ensures that every document is filed correctly, without any compliance issues.
Offering a competitive benefits package can be challenging, especially with remote employees spread across multiple countries. Generating a benefits package that meets the local standards while also being competitive can be complex.
An EOR provides access to pre-established benefits plans, such as health insurance and retirement contributions that comply with local laws. This ensures your remote hires feel valued from day one!
Here’s a list of prevalent benefits packages across different countries. Please note that these benefits can vary widely even within these countries, reflecting local labor laws, cultural expectations, and market standards.
Country | Common Benefits |
United States | Health insurance (medical, dental, vision) Retirement savings plans (e.g., 401(k) with employer matching) Paid time off (PTO) including vacation and sick leave Work-from-home stipends Employee assistance programs (EAP) |
Canada | Universal healthcare coverage Paid parental leave (maternity and paternity leave) Retirement savings plans (Registered Retirement Savings Plan – RRSP) Flexible working hours Wellness programs |
United Kingdom | National Health Service (NHS) coverage Statutory sick pay and parental leave Workplace pensions Annual leave entitlement (minimum 28 days) Employee discounts and perks |
Germany | Statutory health insurance coverage Paid parental leave (Elternzeit) Vacation entitlement (minimum 20 days plus public holidays) Occupational pensions Work-life balance initiatives |
Australia | Medicare system for healthcare access Paid parental leave and sick leave Superannuation contributions for retirement Flexible work arrangements Employee wellbeing programs |
Japan | Health insurance and pension schemes Paid leave (minimum 10 days after 6 months of employment) Annual bonuses (variable) Commuter allowances Childcare leave and benefits |
Brazil | Public healthcare system (SUS) Paid maternity and paternity leave Vacation entitlement (30 days) Meal and transportation vouchers Health and safety training programs |
EOR services can facilitate tailored orientation programs that address the specific cultural nuances of each employee’s location.
For example, they could coordinate virtual training to introduce company values and expectations while also providing specific guidance on local practices. This helps create a welcoming environment that, in turn, supports long-term success.
With remote teams often spread across multiple time zones, scheduling onboarding sessions can become a logistical challenge. An EOR can manage this complexity by offering flexible scheduling options for training sessions that accommodate all employees, ensuring no one is left out.
They could organize a rotation schedule for onboarding sessions to minimize inconvenience.
In a rotation schedule, onboarding sessions are scheduled at different times to accommodate various time zones, ensuring all team members can attend. It minimizes conflicts and allows participation from everyone, regardless of their location.
Now you can easily hire & employ international remote talent in full time jobs without opening international subsidiaries. Find out more about Tarmack's Employer of Record services.
Get StartedIf you are contemplating expanding your remote team, investing in EOR services is not just a smart choice, it’s a necessary one! So let a reputed and reliable Employer of Record like Tarmack handle the reins of your globalizing team, and take care of everything from scratch to success. Contact us today!
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