With so many companies turning to remote employment, many are facing the complexities of international employment law for the first time. Complying with employment laws in one country is difficult enough, but with a globally distributed team, companies have to find a solution that will enable them to stay compliant in multiple jurisdictions. This is where a global employment solution can shine.
What is a global employment solution?
A global employment solution is a software platform or service that enables companies to hire across borders, while staying compliant to local employment laws. These solutions adopt a few different models, for example:
Employer of Record (EOR)
‘EOR’ is a term used to describe a third-party local entity that takes full responsibility for employment of an individual on behalf of another company. This enables companies to use EORs located in other countries to hire staff based on local laws and norms to offer services to them in another (see ‘GEO’ below).
Professional Employer Organization (PEO)
With a PEO, both the employer and the PEO co-employ team members. While the PEO can help reduce the administrative burden of global employment, the company must be an established entity in the country from which it hires staff.
Global Employer Organization (GEO)
A global employer organization (GEO) or global PEO (GPEO) is a term used to describe an EOR that can enable a company to hire team members in jurisdictions where that company has no established entity.
The best employment model for your company depends on where your company is based and where you plan to employ team members. Check out our guide on these different global employment models for more information.
The benefits of using a global employment solution
A global employment solution doesn’t just enable you to hire from overseas; it also reduces your administrative burden. If you were to manage the whole process on your own, at a minimum, you would have to incorporate a local entity in the countries in which you wanted to hire, employ lawyers and financial experts in each jurisdiction, and set up local payroll. This would be a costly exercise fraught with several legal and compliance hurdles along the way.
Using a global employment solution means that for a fee, you can have all of these hurdles removed and compliantly hire new employees or contractors to your business in a matter of days.
Before choosing the global employment solution, you should consider a few things.
How many employees do you intend to hire?
Once you have your hiring roadmap set out, you need to look for a solution that will enable you to hire at your desired rate. If you plan to hire quickly, look for a solution that can keep pace with your target hiring rate.
Does the solution cover a wide enough range of countries?
With talented knowledge workers located all over the world, access to the global talent pool unlocks significant advantages. However, due to the legal complexities of global employment, some solutions are severely restricted in terms of their country coverage—the number of countries you can hire from. A solution like Oyster, however, works with local experts in many countries to overcome these issues and enables you to hire in over 180 countries so you can find your dream hire, wherever they are.
Are you looking to hire independent contractors in foreign countries?
If your company could benefit from hiring contractors, it’s a good idea to make sure the global employment solution you choose enables this. Just like with employees, Oyster’s global employment platform, for example, enables you to hire contractors in 180+ countries and onboard them in minutes. The software offers contract generation, quick and easy invoicing, IP protection, and a lot more. Check out Oyster’s contractor features in more detail.
Are you looking to provide benefits for your global team members?
The benefits you offer can be a deciding factor for talented candidates weighing out which company they choose to work for. There are several options to consider, from health care and equity to PTO and well-being. Finding a global employment solution to manage employee benefits from the same system you use to hire and pay can streamline your processes and create a rich experience for your candidates.
There are other advantages to administering benefits through a global employment platform. For example, Oyster works directly with health insurance carriers to help teams access more robust plans and coverage typically only available in the large group market. We also offer localized benefits to team members based on their region, which helps to build confidence through local brand names. Take a closer look at localized benefits in Oyster.
Can you afford to take the DIY approach?
Although a global employment service will charge a fee for their service, the cost of hiring globally, including incorporating entities, running foreign payroll, and legal expenses, would tend to be far higher. A global employment solution will enable you to hire a lot more quickly, with employees and contractors hired and onboarded in days rather than weeks. Take a look at our pricing page to find out more about the costs of using Oyster as your global employment solution.
Disclaimer: This blog and all information in it is provided for general informational purposes only. It does not, and is not intended to, constitute legal or tax advice. You should consult with a qualified legal or tax professional for advice regarding any legal or tax matter and prior to acting (or refraining from acting) on the basis of any information provided on this website.
Oyster is a global employment platform designed to enable visionary HR leaders to find, hire, pay, manage, develop and take care of a thriving global workforce. It lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world with reliable, compliant payroll, and great local benefits and perks.