Expanding overseas is never easy, and the logistics of people are always particularly challenging. It can also be costly. Turning to Employer of Record (EOR) services can provide:
● A streamlined approach to managing and retaining international workforces
● Ensuring compliance with local laws
● Reducing the administrative burdens associated with global operations
Read on, and we'll explain why global expansion solutions like EOR services have become increasingly important for international brands.
What is an EOR?
An EOR is a third-party organisation that assumes the legal responsibilities of employing staff on behalf of your company.
Their work can include hiring and firing staff, managing payroll, taxes, and benefits and ensuring compliance with local employment laws.
Your EOR will typically work on the ground within the expansion territory, which means they can provide more than legal understanding; they'll also intimately appreciate culture. Cultural understanding helps you establish
● HR policies that respect spiritual and social differences
● Inclusive working practices
● A stronger employee engagement and retention plan
For a more detailed picture of how EORs operate, visit our blog post,"EOR (Employer Of Record): What Is It?"
Why EOR services became vital to globalisation
Businesses have been expanding globally for centuries, even before the Silk Road. In the last century, however, global brands and "globalisation" have exploded as technology and industry grew to meet consumerism.
Rapid expansion brought with it three critical problems for businesses:
● The practical use of time
● The effective use of money
● The successful engagement of staff
Many businesses struggled, and global EOR services were born as a direct response.
EORs already understand a country and its various regions, which gives you immediate insight into legal compliance and access to broad talent pools. They also understand their processes, significantly benefiting your costing and timeframe management.
EORs also have a clear perspective on the people who become your staff, allowing them to develop a stable and supportive work environment critical for employee satisfaction, engagement, and retention.
Example: How Samsung streamlined its Iraqi expansion using mselect's EOR services
Because of the social and political complexities, two years is typically considered an ambitious timeline for expanding into the Middle East. However, it's widely achievable with a reputable EOR on your side. And that is what happened for Samsung in this instance.
By working with mselect as their EOR, they gained immediate
● cultural, social and geographical understanding
● regulatory and compliance appreciation
● access to top-tier talent
● supplementary support for infrastructure and procurement
As a result, Samsung was able to infiltrate a new market, grow its brand recognition and consumer base and even overtake market competitors.
You can read more about the story in our "Samsung case study: Smooth sales force management outsourcing by mselect".
Are you considering working with an EOR in the Middle East?
We work with expanding organisations to mitigate risks in time, cost and people problems by providing high-quality, tailored EOR services.