Debunking Common Myths About Employer of Record Services
It’s no secret that the modern business landscape is continuously shifting with the times and dealing with brand new ways of employment services. Whether it’s borne out of confusion or misconception, there seems to be an increasing number of myths surrounding Employer of Record (EOR) services which can detract from the true value and potential of this said service. In this article, we’re going to be debunking some of the most common myths and misconceptions associated with EOR services and give you an insight into whether an Employer of Record is the right employment service for you. To learn more, carry on reading!
Myth 1: EOR Services Aren’t A Cost-Effective Solution
Perhaps one of the most pervasive myths out there about Employer of Record services, is that they are more costly than they are worth. Contrary to popular belief, EOR services are actually one of the most cost-effective investments out there for your business – especially when expanding internationally. Due to the streamlined nature of EOR services, it tends to work out as the more affordable option when taking into account the potential costs of an in-house HR employee, or having to outsource to multiple different companies for payroll services, legal documents, tax compliance and more. You can read about the benefits of a bespoke Human Resource Management Software (HRMS) here, which is included in our EOR service. This is also taking into the consideration the risk mitigation when it comes to non-compliance, and your company is already reducing the risk of incurring fines and penalties.
Myth 2: EOR Services Aren’t Suitable For Small Businesses
As we discussed recently in our article on the benefits of a PEO for small businesses, the same can be said for EOR services. Possibly worsened by the myth that EOR services are not cost-effective, small business owners may have never considered this type of employment solution as suitable for their business. Instead, it is quite the opposite. Not only just in monetary terms, but the time it takes to deal with administrative tasks like payroll, benefits, employee contracts, offboarding an employee and more compliantly can take a huge toll on small business owners. EOR services can provide small businesses and startups with a springboard to expand their company in a way which allows them to focus on other important business aspects, aside from the aforementioned.
Myth 3: EOR Services Remove Your Control
While we understand how this could be interpreted, it is not the case. EOR services are brought in on the basis that your provider will alleviate you of the stresses which come with employment, not the day-to-day management of your employees. Their role enables you to be more flexible in how you choose to delegate your time within your operations. It’s important to note here that EOR partners such as ourselves work collaboratively with your company in order to support your global expansion and provide you with the best tools to manage your employees quickly, effectively and compliantly.
Myth 4: Outsourcing and EOR Services Are The Same
Though there may be a general overlap across both outsourcing and EOR services, they are fundamentally different in the respect that an EOR will deal with the HR and compliance side of business management, rather than the more individual task-based jobs underpinned by outsourcing. Yes, both are third-party service providers, but outsourcing is mainly used for competencies which are typically outside of your company’s scope. This could be on an ad-hoc basis, or a 6-month contractual basis, for example.
Interested in How an EOR Could Benefit Your Business?
In a world of EOR myths and misconceptions, we hope we’ve managed to debunk some of the most common myths. As the best-value EOR partner, Leap29 can help your business expand rapidly and compliantly, with decades of experience in the industry. Contact us today to see how an EOR could benefit you.
