When organizations look to grow their business, they often seek to tap into talent pools from overseas. This can be down to a myriad of different factors, from a skill shortage in their own country, to reduced rates being available abroad, casting the ‘talent net’ beyond your own borders can be the difference between failure and success.
But with this comes inherent risk. An organization can run into trouble if it isn’t well-prepared to compensate multiple employees across different geographical locations. Expanding into foreign areas requires different approaches. Local labor and tax laws, regulations and how to remain compliant differ from country to country. You and your organization must be savvy to foreign laws and stay abreast of any changes.
Regardless of the sector you work in, these obstacles come into play, but how you navigate them may differ. Our all-encompassing Direct Employer of Record model allows you to expand on a global scale with ease while remaining compliant and in adherence with local labor and tax laws. One sector that relies on hiring from overseas is the Government contracting sector; more often than not, these organizations will need to hire from overseas and deploy their workforce at speed.
GoGlobalGov – Your Golden Ticket for Cracking the Government Services Sector
While there is enormous value in working alongside the government, and expanding business growth, the sector is also hugely demanding with expectations of long-term success. Government contractors face many challenges, from stringent regulations and bureaucracy to the highly competitive nature of securing government contractors. However, doing business in the government sector can offer companies the opportunity for significant growth, and the opportunity to expand into new and foreign markets.
In addition, government contractors are facing unexpected and changing complexities thanks to the global pandemic. Social distancing is influencing how companies approach office space and personnel growth, and how contractors are making the right connections in an industry that has, in the past, been driven by networking. It has become a complex journey; navigating new ways of connecting with agencies and opportunities without face-to-face engagements has influenced how contractors find work and how they find and pay talent.
This sector requires access to specialized skills and managing a diverse and distributed workforce to deliver exceptional service, both of which are complicated by the restrictions introduced by the pandemic, such as limited visibility into local talent and skills.
Then, of course, the usual challenges accompany the role of a contractor for the government. Regulation is an important consideration for any business entering the sector. For example, in the US, contracts are tightly managed by the Federal Acquisition Regulation (FAR), Cost Accounting Standards (CAS) and Defense Federal Acquisition Regulations (DFARs) and all of these can be difficult to fully understand. This is further complicated by bid protests, an unpredictable market and client – government budgets are mercurial and can change at a moment’s notice – and ongoing relationship management.
There are key differences between paying an employee and paying a contractor. One major difference is the classification status. This may vary from region to region, but often considers whether the worker is a full-time employee, part-time, freelance of contractor, as well as the location of the worker and the amount of time the worker has been with the company. Additionally, full-time employees may be entitled to certain benefits and compensation that freelance or contract worker are not entitled to. Each classification status has its own tax implications. If a worker is not classified correctly it can result in legal ramifications, which is why it is best to consult an advisor on this topic.
This is a complex and challenging space, but one that can be immensely rewarding. With the right partnerships and support, a company with the right resources can thrive within this volatile market. High-growth organizations within the government contracting sector are agile, proactive and flexible. You need the proper support to help you navigate the route to success.
The EOR Solution
An Employer of Record is a workforce management solution that allows a contractor or an employee to operate without the need for an entity or business registration. Instead, the EOR takes on the employer’s role, hiring the workforce directly under its local entity, while the organization retains full day-to-day and supervisory oversight.
Under the eyes of the law, the Employer of Record is the legal employer and, as a result, is fully liable for all employer-related functions such as: managing payroll; administering benefits; following labor laws and policies; employer taxes and social security contributions; compliance with global, regional and local policies as well as other obligations.
This partner eliminates the confusion and difficulties of not understanding local norms and best practices, as they possess extensive experience in operating in the area. They will work with both the employee and the business owner to educate the team on local customs in each host nation. While the Employer of Record remains the legal employer and therefore retains the legal liability, they will still act as an advisor for best practices around recruitment, hiring and terminating contracts.
As the sole legally liable party in each country, the Employer of Record must comply with all applicable global, regional and local regulations. This is why you should use an EOR; it reduces the organization and employees’ burden of risk, and allows them to focus on their core business, delivers on projects, and boosts their reputation within their sector.
Hire Anyone, Anywhere, Anytime!
Our proprietary payroll technology uses the cloud to pay employees across the world. We do this by simplifying global payroll to just a few clicks of a button. With our integrated HRIS platform, essential HR processes like employee onboarding, benefits management and payroll can be executed quickly and in total compliance. Even if there are unique requirements for employees, they may require specific health benefits or relocation services.
Our clients use our SaaS platform to gain insight into global payroll and HR functions to help inform and support their global expansion. Our platform empowers your HR functions and processes by removing time-consuming processes that delay your global onboarding strategy and ability to expand on a global scale. With data driven intelligence and insights, our clients are supported to make more informed business choices, which can only help to expand around the world.
With Our Cloud-based Tech You Can:
- Preview and approve payroll with just one click
- Review your previous payroll cycles
- Empower employees with self-service options for PTO tracking, document storage, performance management, invoicing, onboarding and offboarding
- Manage and administer global employee benefits
- Automate your expense reporting process
- Run reports on salaries, employee census, open tasks and more
What are Some of the Key Benefits of Using our Cloud-based Tech Solution?
Technology is transforming HR, bringing efficacy, insight and innovation to critical HR functions and supporting progressive and agile ways of working. Elements has put technology at the forefront of its growth and development with its industry-leading proprietary HR tech platforms to elevate your compliance and governance: ApprovPay and Expandopedia.
With these platforms – designed specifically to complement our EOR offering – we’ve combined high-level payroll execution, internal data and reporting an international company needs with access to unparalleled insights and HR intelligence.
HR tech automates many critical processes or makes them quicker and more efficient. It streamlines and automates your HR functions, saving valuable time that can be spent on other aspects of business operations. It also reduces staffing needs because HR processes are faster and require fewer hours to complete. Furthermore, it offers competitive advantages by providing insights that allow companies to formulate better processes and make better and more effectively allocate resources.
HR tech fosters company culture and improves employee experiences by empowering effective collaboration and communication. It provides more transparency and control for employees into areas like onboarding, performance, benefits and payroll. It also frees up time and resources within HR departments so HR leaders can focus on other ways to improve company culture. With HR tech, companies can also expand their talent pools by exploring new markets and attracting the right people for the job—no matter where they are.
Peace of Mind
Compliance with local labor, tax and data privacy laws is paramount when expanding and employing in multiple countries. The right HRIS technology makes it easier to keep compliance on track by automating many processes and streamlining key tasks to ensure you feel confident you’re always operating according to regulations.
When managing employees across borders, and with remote work becoming an accepted part of the new normal of working, it’s more important than ever for companies to arm themselves with the appropriate cybersecurity architecture to protect and prevent serious breaches of sensitive data. Employing HR technology with robust security measures helps companies ensure data is protected and secured.
About Elements Global Services
Elements Global Services is a global tech firm, focused on software built to go beyond country borders and simplify a company’s ability to expand their business, onboard employees, manage compliance and pay globally. Headquartered in Chicago, Elements offers customers 100% direct Employer of Record services in over 160 countries, powered by proprietary HR technology that simplifies everything from payroll, benefits and human capital management to HR outsourcing, local compliance, and visa & mobility.