In our latest Global Mobility (GEM) webinar, we dig into risk mitigation in the face of global employment
As organisations venture into international markets, complying with local employment laws and navigating foreign visa and work permit procedures can present formidable challenges and risks. Avoiding these risks and ensuring every step of the process is compliant with local laws not only makes businesses more productive but also saves money.
Featuring Colby Clark (Vice President, GEM - Airswift), Steve Jenkins (Global Sales Director, GEM - Airswift) and special guest Scott Finkelstein (Chief Revenue Officer - eSkill) this webinar explores the role of an Employer of Record (EOR), the multitude of benefits that come with partnering with an EOR and how it can become a powerful asset for businesses aspiring to conquer new territories overseas.
Risk mitigation refers to the process of identifying, analysing, and taking steps to reduce or control the exposure to risks that may negatively impact an organisation's operations and objectives. This process is essential in business and project management, as it helps to minimise the potential negative effects of uncertainties on a project's goals or an organisation's strategic objectives.
Effective risk mitigation helps ensure the smooth operation of a business or the successful completion of a project by minimising the impact of potential threats. It's a proactive approach that prepares an organisation to handle unexpected challenges more effectively.
Labour laws change in a daily basis. Having experienced people with local presence is crucial to avoid problems such as taxes or even fines. At the end of the day, we allow companies to hire in different countries with peace of mind. Expertise can go a long way.
When it comes to global employment, risk mitigation refers to identifying in advance possible obstacles to the process such as taxes, labour laws, complex bureaucracy and other types of regulations.
The EOR emerges as a beacon of guidance in the labyrinth of global employment laws. Our experts highlighted how the EOR, by acting as the legal employer in foreign jurisdictions, shoulders the responsibilities of legal compliance. This role is crucial, given the diversity and complexity of employment laws worldwide.
For example, the panel discussed how employment regulations in European countries can be vastly different from those in Asian markets, where cultural nuances also play a significant role. The EOR’s expertise becomes invaluable in such scenarios, ensuring companies don’t inadvertently step into legal minefields.
Key advantages of engaging an employer of record
Navigating the global business landscape presents a unique set of challenges, especially when it comes to managing international employment and compliance. This is where the role of an Employer of Record (EOR) becomes a game-changer for many businesses looking to expand beyond their borders.
The Employer of Record model allows you to utilise our entity as a footprint to get your business access into any country as fast as possible.
In our previous webinar, "Employer of Record, Explained", we discussed the key benefits of hiring an EOR and how each of them can improve and help your business. Watch the full webinar HERE.
Benefits and objectives of international employment
Hiring internationally offers numerous advantages and fulfils key objectives for businesses looking to expand their reach and capabilities.
One of the primary gains is access to a diverse talent pool. By recruiting globally, companies can tap into a wide array of skills, perspectives, and experiences that may not be readily available in the local workforce. This diversity fosters innovation, enhances creativity, and improves problem-solving within the organisation.
Additionally, international hires bring a global perspective that is invaluable for companies aiming to establish or strengthen their presence in foreign markets. These employees come with an inherent understanding of various cultural nuances, market dynamics, and business practices across different regions.
Their insights into local consumer behaviours and strategic approaches to different markets are essential for tailoring business strategies and achieving competitive advantages.
Grasping the cultural nuance of global employment
When expanding into international markets, one crucial factor to consider is the cultural aspects of global employment. Collaborating with a global employment and mobility team can ease the process of entering new markets and managing international employees while allowing the company to maintain its own culture and values.
The key thing with EOR is that we hire the employees on your behalf. So you determine who is hired, salaries, work schedules, all of those things. We want to make sure that these international employees have the same experience as your local ones.
As a trusted partner, an EOR can ensure that international employees have a comparable experience to local employees through the mirroring of the company's policies, procedures, and company culture. This creates a cohesive and intertwined experience for employees worldwide, which is vital to the overall success of the organisation.
In summary, understanding the cultural aspect of global employment is essential when venturing into new international markets. Partnering with an EOR can facilitate this process, allowing companies to maintain their culture and values while expanding their global presence efficiently.
Finding the right mix: balancing in-house services with an employer of record
Achieving equilibrium requires meticulous planning and strategic choices. Businesses should begin by distinguishing their core activities from ancillary ones. Key functions, like product innovation and strategic planning, which are crucial to the company's identity, ought to be managed internally to retain control and safeguard the unique aspects of the business.
Conversely, peripheral tasks such as payroll, tax compliance, or HR administration, especially for international operations, are prime candidates for delegation to an EOR.
By allocating administrative responsibilities to an EOR, companies can focus more on their primary areas of expertise such as growing the business and operational efficiency.
Grow your business with Airswift's Global Mobility services
If you're pondering whether engaging an Employer of Record could be beneficial for your business and require professional advice, feel free to reach out to us. We're ready to offer the support and insights necessary to help you make well-informed decisions and drive your business towards greater success.
This post was written by: Tomás Battaglia, Content Marketing Coordinator