How to Choose the Right EOR Partner

As companies grow, they often seek to expand globally. This move previously required companies to be of considerable size. However, in the wake of telecommuting, international expansion is becoming closer and easier. As we saw in our previous article, one of the most recommended models for hiring internationally are Employer of Record (EOR) service providers.

There are several factors to consider when selecting the right EOR partner. Getting this selection right will make our operations much easier. Knowing our supplier well will help us reduce legal risks and maintain compliance in foreign territories.

Know the role of an EOR provider

Before diving into the common issues when choosing a suitable EOR, it is important to understand the role of an EOR partner in your business. This company is going to be the legal employer of your foreign workforce. As such, it is going to take care of the responsibilities to the workers: payroll, taxes, benefits and compliance with local labor laws. This will allow companies to focus on their core business functions while the supplier handles the complexities of international employment.

In return, the company that hires an EOR provider will pay the payroll of the employees to the provider, in addition to a fee for managing these contracts.

Factors to consider when choosing an EOR provider

In-country experience

It is essential that the EOR provider has extensive experience working in the country we want to hire. Each labor law throughout the world has its own specifics that differentiate them from one another. The same goes for tax regimes and other issues that the EOR will have to deal with.

A common mistake companies make is not prioritizing local expertise when selecting an EOR partner. In many instances, companies engaging EOR look at the cost of the service as a key factor in making the decision. However, hiring an EOR provider with experience in that country can save the company a future cost overrun. Knowing the idiosyncrasies of the country in which we are going to establish an employment relationship is essential to avoid problems in the future.

Employee experience

The EOR partner will be the employer of your employees. As such, he or she will handle payroll, benefits and various employee relations issues for your team. That’s why it’s important to know what the employee experience is like with this employer.

If there are good employee references, chances are that the workers will also be happy with whoever hires them and, therefore, with the final company. Conversely, if these aspects are poorly managed, they could lead to a dissatisfied workforce.

When selecting the company that will provide the EOR service, we will have to take into account the benefits it offers to its employees. Employee satisfaction will always translate into better and more efficient work performance.

Financial stability

An EOR partner handles the critical financial aspects of your operations, including payroll and tax remittances. Therefore, it is necessary for our supplier to have sufficient financial stability to take care of these obligations. The financial stability of the supplier is one of the most essential factors in selecting whom to contract with for these services.

When dealing with such delicate matters as the payroll of our employees, a financial problem can quickly dismantle the international structure we are trying to create. As with all other factors, good management of these matters can contribute to a better performance of the employee’s duties. On the other hand, a failure can lead to dissatisfaction on the part of the employee, resulting in a drop in performance.

Mancoyser: the EOR of Vasalto

Mancoyser is one of Vasalto’s subsidiaries, which specializes in registered employer services. It is an EOR that transforms the payroll into an invoice. Thanks to the work of our experts, we enable companies from all over the world to hire workers in Spain in a matter of minutes.

Mancoyser helps growing companies unleash their full potential by enabling the development of highly specialized teams in a matter of days. We help hire, onboard, pay and manage team members quickly and compatibly to expand growth opportunities in Spain, without the hassle of setting up a legal entity.

Do you need help with your company’s labor management?

At Vasalto, we are payroll experts. We specialize in helping other companies with services such as managing the hiring and dismissal of workers, outsourcing payroll and all processes related to labor relations management. Our more than 30 years of experience have given us a great expertise in the sector. In addition, we are a company very involved with technology. Throughout these years we have developed a series of proprietary computer systems that allow us to manage more than 40,000 payrolls every month. In addition, we also have the best legal and accounting advice to offer our clients the best possible service.

At Vasalto, we believe that communication between people is fundamental. We make technology available to people, never the other way around. We work with technological automation solutions so that IT takes as much work off our hands as possible. This way, we have more time to dedicate to our customers.

If you are interested in learning more about international recruitment or any matter related to your company’s payroll or accounting, at Vasalto we will be happy to help you. Contact us to get to know us and see how we can help your company.