As an executive, have you ever thought about hiring overseas? If your answer varies between cost considerations and your network in the country, chances are you’re in for expansion.

laptops 593296 1280 1024x682 - Why is global employment outsourcing crucial for medium-sized businesses and startups?

Today your company’s in-country expertise or resources do not determine how fast you can get in to test the market for your product or service. If you’re aiming for a foreign market, there is plenty you can do, and employers of record services are here to help.

What is “employer of record”?

An Employer of Record (EOR) is an organization that hires and pays an employee on behalf of another company and takes responsibility for all formal employment tasks.

A global EOR provider has already done the burdensome and costly job of networking around the world with professional employer organizations – ensuring all banking, insurance, tax, HR, facilities, and contract requirements are taken care of.

So what you’re getting from an EOR provider is the ability to employ in a foreign country without having an entity set up on-site, and the in-country expertise to hire in full compliance with local laws.

How is EOR beneficial to SMEs?

Accounting for almost 70% of employment worldwide, SMEs are hiring employees globally more than ever these days.

Micro, small and medium-sized businesses simply cannot capacitate expenses associated with opening a new legal entity in a foreign country. They have to look for other ways to satisfy the urge to go global.

Since this urge is usually led by strong incentives:

We’ll go over when an employer of record service may become essential for a small startup or a medium-sized business.

Factors that impact international expansion

Companies have to consider a variety of factors when deciding to enter a foreign market. They include:

When should SMEs hire overseas?

Medium-sized companies as well as smaller ones, like startups, usually operate extremely cost-effectively. In simple words, they are making every penny count by going low key:

Today hiring remote talent is mainstream for companies of all sizes rather than something outstanding. Companies hire the preferred staff rather than prospects they are limited to locally. Remote and fully remote have grown to be the rule rather than the exception. 

These are the top reasons for SMEs to consider global employment outsourcing:

This world is becoming more and more globalized. By not taking advantage of the opportunities companies would needlessly be giving their competitors an edge.

SMEs that are eager to open up their hiring processes to international candidates should be aware of the benefits of professional employment organizations, as this will be the most feasible route for most employers:

Bottom line

We urge you to be challenged by the option of hiring overseas. Do not sweat the expenses, see a bigger picture. Invading a new market on time could be your business’s only chance to thrive and stand out in a new location like never before. The market history is full of examples of a brand or a product being mediocre in one country and booming through the roof in another, making it 100 times worth the effort for the company.

As you move forward, keep in mind that professional employment organizations or EORs are usually the most feasible option for small companies. Drop us a line today and we will get back to you right away with an attainable plan for your company’s international expansion.