Welcome to a new world where companies of all sizes can take advantage of the increasingly accessible pool of global talent. This is a boon to businesses looking for top talent, but how can you pay and manage these employees compliantly?
Last week the Global Payroll Association (GPA) hosted a webinar on global payroll compliance, and it’s a valuable resource whether you’re just getting started or looking to expand. Our own Rick Hammell and Caroline Arora of Blinkist joined Melanie Pizzey of GPA to field your most pressing questions. From the sheer number of questions they received, this is a topic that is top-of-mind for many businesses.
Your Global Expansion Cheat Sheet
We’ve grouped three of the main areas of inquiry into a quick cheat sheet to give you answers to those pressing questions. Consider it your introduction to payroll compliance and the Employer of Record model.
Let’s get into the questions!
How Does a Company Navigate Global Employment Regulations?
From parental leave to mandated vacation time, many nations have employment laws that differ from standard procedures in your home country. In the U.S., in fact, labor laws differ from state to state. How can your company plot a course through these minefields?
One way is for an individual company to establish legal entities in each country, staffed with people who understand and comply with employment regulations. This process is time-consuming, complex and expensive, often taking months to implement and drastically lengthening your timeline.
The answer is to use a direct Employer of Record (EOR) to hire in your target country. An EOR model allows you to expand into the global talent market rapidly and takes responsibility for adherence to local labor laws. There is nothing standing in the way of you and your new employees getting to work in a fraction of the time – no third parties, no multiple subcontractors, just one solution that understands and implements compliance with employment regulations.
An EOR like Elements establishes a legal entity in-country specifically dedicated to knowing and accommodating any local laws surrounding employment rights, benefits and limitations.
How Can I Assure Compliance with International Tax Laws?
Nothing can get your company into hot water faster than violating a country’s tax code. Even if you’ve gone through the expensive hassle to invest in creating local entities everywhere you hire, you’re facing a complex and costly task with high-stakes outcomes.
A direct EOR ensures that your organization is always on top of international tax codes without bringing on staff to oversee and implement best practices. An EOR handles taxes in full compliance with local tax regulations, no matter how complex – the EOR hires the tax specialists, not your company.
This model provides the freedom to hire and retain talent globally, allowing you and your new global workforce to tackle business goals from day one. There’s nothing in between you and your hires – you’re free to implement your company’s strategic vision, not get bogged down by complicated regulations.
How Does My Organization Recruit and Retain Talent Globally while Remaining Compliant?
In this post Great Resignation world, hiring and retaining top talent is growing increasingly challenging. Employees are seeking ways to expand their own horizons, and the “work-from-anywhere” future has already arrived.
In addition to catering to the globetrotters in your organization and improving retention, a direct EOR not only helps you retain existing talent – it puts talent from all over the world at your disposal.
An EOR removes the guesswork and the intervening third parties to allow you to connect directly with remote employees, leaving the administrative and compliance tasks up to the direct EOR. Flexibility is the new normal, and talent-minded businesses need to keep up with this trend to use the global talent pool and to retain valuable employees.
You Asked, We Delivered
The global payroll compliance focus of the webinar provoked many questions and much lively conversation. So, in response to the many attendees who asked us, we’re posting the replay for you to watch anytime. On the same page you’ll find a bonus resource: a new whitepaper entitled “Beyond the Great Resignation: Ensuring Global Payroll Success in a Work-from-Anywhere Future.” The whitepaper examines the Great Resignation, putting it in its historical context and delivering immediately actionable information on how to surmount this talent obstacle.
When you consider global talent expansion, the right partner means everything. Remove roadblocks with an EOR solution and reap the benefits with none of the expense and hassle. Find out more in the replay and whitepaper.