Hiring workers for your business is one of the most difficult tasks you could do. For this reason, many businesses opt for Employer of Record for independent contractors so they can fill their open positions easily.
In this article, you’re going to learn the difference between hiring employees by using EOR services and by contract. In addition, you can gain a better understanding of which solution could be the best one for your business. Let’s observe:
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- Everything you need to know about Employer of Record for independent contractors
- How can you hire abroad? (EOR or independent contractor)
- What is the difference between an independent contractor and an employee?
- What are the differences between an EOR and Independent Contractors?
- When should you use an Employer of Record?
- What are the benefits of using EOR services?
- Why is Connect Resources your best option for hiring staff?
1. Everything you need to know about Employer of Record for independent contractors
As a company, you want to hire the right employee for the job. However, it’s a complex task and you may want to get some help from experts. For this reason, you have considered a third-party solution to obtain a fast and reliable result.
In this case, you may have thought about an Employer of Record for independent contractors because you would like to get a qualified candidate and have access to a variety of working methods. But, it’s important to note that many businesses don’t know how an EOR works or how to hire independent contractors.
Therefore, you should understand each one so you can make the best decision that will benefit your business.
Learn more about the most important aspects about an international employment contract
1.1 Why should you hire staff with a service provider?
When it comes to hiring, your fist choice would be to use your resources and HR team to carry out the process. Perhaps you’ve never hired an external provider to help you with this matter. For this reason, it’s important to know why it could be a great solution for your business.
There are many reasons why a service provider could be the perfect ally for your business. Let’s observe the following:
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- Helps you overcome challenges and issues
- Ensures compliance
- Allows you to find staff from all over the world
- Provides a pool of high-quality candidates
- Saves you time and money by not having to deal with paperwork or immigration
- You can focus on your core activities while they handle your human resources
As you can see, there are many benefits of partnering with an EOR. This is particularly true when it comes to hiring internationally, since you’ll need to have compliance with local laws and regulations. If you’re considering the UAE as a destination for your expansion, you should contact Connect Resources to help you with your Employer of record contract.
Learn more about the best strategies to improve your employee retention.
2. How can you hire abroad? (EOR or independent contractor)
Many businesses look for Employer of Record for independent contractors when they want to hire internationally. However, the truth is that these are two different solutions. It’s important to know that with an EOR you get employees, but an independent contractor is different since they work as freelancers.
However, with some EORs you can get independent contractors, but it’s not something quite common. In this regard, it’s important to understand how you can hire abroad, and you can use EOR services or opt for independent contractors.
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2.1 Hiring abroad with an EOR
By using EOR services, you can hire workers for your company when you’re planning your expansion. You contract an outsourcing firm that handles all of your HR services such as payroll, benefits, training and more.
An Employer of Record, also known as Global PEO, becomes the employer of your employees and it enters into a co-employment contract with you. It’s the perfect solution for small and medium-sized businesses that don’t have enough resources to carry out their international hiring.
Learn more about the crucial challenges you may face with your HR management.
2.2 Hiring independent contractors abroad
Another solution you can use to hire workers for your business is hiring independent contractors. It’s a great solution for all company sizes, however, it requires a lot more effort from your in-house HR team since you have to deal with taxes, compliance and many other aspects that relates to your international workforce.
Learn more about how to select the best PEO provider for your organization.
3. What is the difference between an independent contractor and an employee?
When you’re looking for Employer of Record for independent contractors it’s essential to know the difference between these two types of staff. With an EOR you get employees, but when you hire an independent contractor, they’re not your employees.
In this regard, there are some differences between these two, so you have to know them so you can choose the best one for your organization.
3.1 What is an independent contractor?
An independent contractor, often called contractor, it’s a person that offers their professional services to clients. Usually, they’re self-employed owners of a small business and they look for working with their clients in a specific project or to carry out a particular job. Therefore, when you hire an independent contractor, you do it for a fixed period of time.
Some of the additional characteristics of an independent contractor are the following:
- Their dependence is defined by their own country set of regulations
- The client doesn’t control the independent contractor’s work, it only directs the result
- An independent contractor doesn’t have to follow a strict schedule of working hours or activities
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3.2 What is an employee?
An employee doesn’t have as much as flexibility as an independent contractor. It means that the company controls the employee’s performance as a whole. Some of the features that identify an employee are the following:
- There’s an employment contract
- The company provides tools, offers benefits and paid vacations, does expense reimbursement and more
As you can see, there are several differences between having an employee and having an independent contractor. For this reason, you should evaluate which solution is the best one for your business. With an Employer of Record agreement, you can employees.
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4. What are the differences between an EOR and Independent Contractors?
As a business owner, you may be considering an Employer of Record for independent contractors, so it’s important to know if these are the same or if they’re different approaches for hiring workers.
Once you know that an employee is different from a contractor, you should know the difference between these two alternatives. In addition, it’s important to know how you can hire these workers for your business.
4.1 How does an EOR work?
An EOR is a service provider that takes care several tasks for your business. It becomes the go-between the client and the employee. In addition, it handles payments, onboarding and other areas of your HR.
Businesses opt for EOR services when they’re planning a global expansion, and it’s a great choice because they don’t need to establish a physical entity in their target country. With the help of an EOR, an organization can have an international workforce.
If you’re planning on getting employees, an EOR can help you as follows:
- Assistance with job description and job offer
- Compliance with employment laws
- Find the proper match for your open position
- Process the immigration paperwork
- Onboarding and training
As you can see, is a comprehensive solution. You can get employees for your business but you won’t have to worry about anything since the provider takes care of everything.
4.2 How to hire independent contractors?
If you think that hiring an independent contractor could be the best solution for your business, you can do it as follows:
- Find the independent contractor that offers the service that you’re requiring
- Draft a written agreement
- Establish the payment method
- Analyze and understand your responsibilities for reporting income and tax
As you can see, with an independent contractor you’ll have to deal with several other tasks. If you don’t have enough knowledge about laws and regulations in your target country, you’re at risk of doing something wrong. However, you can hire an independent contractor with an Employer of Record agreement if it offers this service.
Learn more about the top recommendations to recruit manpower and save time and money.
5. When should you use an Employer of Record?
Once you know how an EOR works, you may be considering an Employer of Record for independent contractors. It’s important to know when EOR services could be the proper solution for your business.
Perhaps you’re not sure if you should contact an EOR to get workers for your business. So, the following are some of the scenarios when you could consider contacting an EOR:
- Your business is expanding to global markets
- You need to hire people for your international workforce
- Get compliance with regulations and labor law in your target country
- You need workers for a specific project but independent contractors are not a choice
- Reduce risk associated with independent contractors
- You lack resources and capacity for research and hire employees and independent contractors
- You’d like to have access to several kind of employees: permanent, temporary, contractors, etc.
- Hire permanent employees without opening a subsidiary
Learn more about the Recruitment Agency in Dubai by Connect Resources.
6. What are the benefits of using EOR services?
Using an Employer of Record for independent contractors could give you many benefits. You can gain access to a vast pool of talent where you can select the right employee for your vacancies. For this reason, it’s important to know which kind of benefits you can receive.
Whether you’re looking for permanent employees or you just want to hire a contractor, you have to use EOR services because it’s the solution that provides most benefits for your company.
Some of the best things you can get by working with an EOR for getting workers for your business are the following:
6.1 Save resources
With an EOR, you can save substantial resources that you can later invest in your business:
- Save time: you won’t have to go through the sourcing, shortlisting, interviewing and onboarding of your employees.
- Save money: with EOR services you’ll save money in training, recruitment, legal counsel, immigration processes and more.
6.2 Reduce risk
Working internationally means that you have to comply with local law, and if you don’t do it you may incur in liabilities.
With an EOR you won’t have to learn sets of rules and regulations and the specialists ensure total compliance for your business.
6.3 Onboarding process
If you want to decrease your turnover rate, you must have a solid onboarding process. However, it may be difficult to achieve it. With an EOR, you can ensure an outstanding onboarding for your new employees and contractors. Your new workers will be prepared for the job and you can trust that you’ll receive their best performance.
Learn more about the best strategies you can implement to attract top talent.
7. Why is Connect Resources your best option for hiring staff?
Once you’re ready to partner with an EOR, you have to find the best service provider for your organization. Here in Connect Resources we can help you by offering a comprehensive service that will meet all of your requirements. We have been providing our recruitment service for the past 20 years so we can understand your needs.
We can offer you an Employer of record contract that will ensure an outstanding deliverance of our service. You just have to contact one of our specialists and they will readily answer all your inquiries about our work.
Would you like to contact Connect Resources for recruitment services? You can call at +971 433 166 88 or send an email to contact@connectresources.ae, and you’ll talk to one of their representatives that will gladly answer all of your questions
