What is a global hiring platform?
Global hiring platform
A global hiring platform is a software-as-a-service (SaaS) product that allows companies to recruit, hire, onboard, and manage HR functions for employees located in other countries. As more companies tap into the international workforce and expand their teams to include individuals living abroad, using a global hiring platform makes it possible for companies to adhere to local employment laws and pay workers appropriately without needing to establish entities in those countries.
Despite the benefits of hiring globally, many companies are reluctant to do so because of the complexities inherent in managing tax and labor laws. It’s very easy to run afoul of the law in another country when you don’t know the intricacies of their rules. Doing so can cost time and money, not to mention the effect on your company’s reputation. But investing in an international hiring platform can help eliminate these risks.
How a global hiring platform works
Human resources and management teams use international hiring platforms to handle typical HR functions in accordance with the individual laws of an employee’s country of residence. These include:
- Locally compliant contracts
- Payroll in the local currency
- Local payroll taxes
- Benefits management
- Time off according to local regulations/customs
- Administrative tasks
Companies looking to grow their team beyond borders can contract with global hiring platforms, usually via a subscription, to take on the legal and administrative tasks associated with hiring overseas workers. Instead of absorbing the expense of establishing a legal entity to employ individuals or hiring a team of lawyers to ensure compliance, you can let the hiring platform take care of everything for you. Employees benefit from a hassle-free experience that aligns with the legal and cultural standards of their country, and employers get peace of mind thanks to a streamlined hiring and human resources service.
How is a global hiring platform different from an EOR or PEO?
Some companies use an employer of record (EOR) or a professional employer organization (PEO) to handle international employees. An EOR is a legal entity within a foreign country that serves as the legal employer for global employees. The individual may perform tasks for the customer company, but the EOR operating in their country serves as the actual employer who handles their payroll, benefits, and other HR needs.
A PEO is similar and typically operates as a co-employer, meaning the primary employer and third-party organization share certain administrative duties. For example, the employer would determine the scope of the job and related tasks while the PEO handles personnel matters.
An international hiring platform offers a more automated experience that doesn’t rely on co-employment arrangements. It’s a completely digital solution that brings together all the elements of employee management, including payroll, benefits, and workforce management. It's a simplified approach to compliance and international employee management that gives employees everywhere the same streamlined and consistent experience.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
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