Employer of record and remote work: Supporting distributed teams worldwide

A distributed team comprises multiple employees working from different cities or countries. Distributed teams may comprise a mix of office-based team members and remote workers. However, managing a distributed team can be a challenge. That is when EOR (Employer of Record) services become an ideal solution.

Here, we will examine the exceptional role of EOR(Employer of record and remote work) in managing your globally distributed teams. You will also learn how they help ensure compliance and create a productive work culture.

Drastic growth in remote work

For workplaces all over the world, the 2020 pandemic marked a historic change. Businesses quickly switched to remote work after closing their offices. Although this was initially a stopgap measure, it soon became the norm as people thrived and started preferring remote settings. Workers reported a better work-life balance, and productivity stayed stable. Consequently, companies began to explore long-term, flexible work schedules.

The ability to work from anywhere while still having opportunities for face-to-face collaboration was valued by employees. This not only popularised remote work but also brought the concept of distributed teams into the limelight.

However, it can be challenging to hire and manage remote talent, particularly when multiple nations, currencies, and regulations are involved. Payroll, employee benefits, and legal compliance with local rules can be expensive and time-consuming. An EOR can be useful in this situation.

Continue reading to learn how EOR services can help overcome the challenges of managing distributed teams.

 

3 Most common challenges in managing distributed teams

Despite numerous benefits, distributed teams have their own set of challenges that need to be addressed. Let’s examine the most common challenges for managing distributed teams:

Communication and collaboration: Effective communication is a significant challenge for distributed teams, as they often span multiple time zones and diverse cultural backgrounds. Language hurdles, cultural disparities, and the absence of in-person communication can all lead to misunderstandings.

Ensuring compliance: Maintaining compliance with local employment and labour laws is essential. However, navigating the complexities of local laws presents a significant challenge, and noncompliance can result in severe financial, legal, reputational, and/or operational penalties.

Ensuring data security: Having remote teams increases the risk of data breaches and unauthorised access to private data. Protecting company data requires implementing robust cybersecurity measures, including data encryption, secure networks, and employee training on best security practices.

 

 

How Employer of Record (EOR) becomes a global remote workforce solution

 

Hiring and managing remote personnel can be done efficiently with a reputable EOR service provider. They take care of payroll, tax, compliance, and human resources matters so you can concentrate on managing your company. You can hire remote workers from anywhere in the world with an EOR, eliminating the need to worry about local regulations, exchange rates, or payment options. They ensure that you can get your new hires up and running quickly, often in the shortest possible time, by making the onboarding process efficient and straightforward.

Simplified International Employment

It can be challenging to manage the employment needs of a globally distributed team, which can lead to errors, inconsistencies, delays, and missing data. EOR suppliers take care of your new foreign hires’ legal employment documentation and needs, such as:

 

• Work permits and visas 
• Employment contracts 
• Residency details 
• Non-disclosure agreements (NDAs) 
• Background checks

Global compliance with local regulations

Every nation has local laws that encompass a range of regulations, including employee benefits, payroll, termination procedures, and more. For businesses hiring overseas for the first time, understanding and complying with these laws can be stressful. The consequences of non-compliance may be expensive.

By performing necessary duties in accordance with local labour laws, such as creating employment contracts, onboarding staff, and overseeing global payroll, a global EOR helps address these problems.

Efficient global payroll management

EORs keep abreast of constantly evolving rules in their region and specialise in payroll administration. Working with an EOR provides access to their expertise, ensuring accurate and compliant payroll processing. This lowers the possibility of mistakes, fines, and non-compliance.

 

Additionally, payroll management for distributed teams can be a time-consuming and resource-intensive process. Your HR and finance teams get enough time for core business operations by outsourcing payroll to an EOR, which frees up valuable time and resources. Payroll administration, taxes, and payroll computations are handled by the EOR, saving you the trouble.

Most importantly, EORs place a high priority on data security because payroll data is sensitive. To safeguard sensitive employee data, they have implemented reliable systems and adhere to applicable data privacy laws such as the UAE’s Personal Data Protection Law (PDPL). You may feel secure knowing that your payroll data is protected when you outsource to an EOR

Comprehensive employee benefits and support

 

You can effectively manage the entire process of providing employee benefits with the assistance of an EOR. They handle employee benefit-related administrative duties, saving businesses the trouble of negotiating disparate systems and processes across borders.

While international employee benefits vary from nation to nation, they typically include paid time off, healthcare, maternity leave, and childcare benefits. Health insurance is one of the most significant benefits an employer can provide, aside from pay. An EOR has the authority to recommend standard coverage levels, assist with plans and pricing, and offer health insurance to distributed teams.

 

There are numerous advantages to using Employer of Record services for your global hiring requirements, since the EOR will:

 

• Lower the risks of severe penalties.
• Assume full responsibility as the legal employer of the remote workers in other countries.
• Simplify and standardise payroll and HR procedures while still ensuring compliance with local labour laws.
• Allowing companies to grow and hire international employees without establishing local entities.
• Manage the legal hurdles of hiring people from other countries to save your organisation time and money, so you can concentrate on expanding your business.

 

Benefits of using EOR services for companies [A quick look]

Now, let us explore how EOR services can help companies looking to expand globally and hire remote workers in foreign markets:

 

• Minimal to no legal headaches

As global organisations, EORs serve as the lawful employer, thereby relieving their clients of the need to establish a local entity. Instead of waiting for your legal entity applications to be approved by local governments, you can start your talent search and hire new employees.

 

• Save you time.

By offering straightforward, organised, and paperless onboarding and HR data gathering, EORs can also save time. 

 

• Reduce overhead costs.

Payroll management, compliance research, and other internal responsibilities that constitute a substantial overhead are among the typical tasks that EORs assist with. When streamlined by an employer of record, companies can better manage their time to develop innovative cost-cutting and expansion ideas in new foreign markets.

 

• Accurate, on-time payroll processes

EORs ensure your business stays current on payroll duties by offering comprehensive payroll management services. Perhaps most significantly, after employee onboarding is finished, employers of record can finish these duties without frequent assistance from internal HR or finance personnel.

 

• Access to cutting-edge HR platforms

Since an EOR’s primary selling point is its proprietary platform or software, they are always making changes behind the scenes. Employers of record also invest in their employees, training them to become proficient in their software and providing superior technical support.

 

Looking for the best EOR services in the UAE?

For many years, Connect Resources’ teams of HR and compliance specialists have been assisting global companies in growth, market expansion, and financial success. Additionally, you can plan future personnel investments, effectively onboard employees, monitor compliance efforts, and much more with our comprehensive, user-friendly platform. Contact Connect Resources to discuss your goals.