Remote: Choosing the Right Employer of Record

When expanding a business globally, partnering with the right employer of record (EOR) is crucial. An EOR not only provides compliance with employment legislation but also takes care of employees’ payroll, benefits and overall employment experience. 

Here, Remote walks through the key factors to consider when choosing an EOR in India and the Southeast Asia – detailing the green flags to seek and the red flags to avoid. 

Choosing the right EOR: Green flags 

Firstly, Remote highlights the importance of clear and transparent contract terms, which should be present before your business enters into an EOR agreement. 

Transparency is crucial when agreeing on pricing and contract terms with an EOR. Businesses should seek providers that are upfront and willing to answer all questions, that issues a clear and comprehensive contract to help a firm understand the services provided and involved costs. This first step is critical to establishing trust and a smooth working relationship. 

Secondly, businesses should seek an EOR that owns its attributed entities in the country where it hires. Some EORs rely on a network and third-party providers for global hiring – giving much less control over the management of workers. 

Working with an EOR that manages its own entities will enable your business to address any issues quickly by speaking with a company representative, as opposed to a third-party network, which typically leads to delays and additional costs. 

Costs are typically lower too, at EORs which own their own entities, as there are no expenses associated with third-party providers. 

The third is to ensure your business is partnering with an EOR provider with positive reviews. Feedback should indicate excellent customer support services, accurate payroll processing and high overall satisfaction rates. 

A final green flag businesses should seek in their EOR provider is comprehensive customer support. Hiring globally can be a complex process, so a reliable customer support service is vital. 

Businesses should seek an EOR that deliver support throughout the entire process, from pre-contract discussions to ongoing assistance. 

Don’t choose the wrong EOR: Red flags to avoid

There are, of course, red flags businesses should be wary of when choosing an EOR. 

The first is perhaps difficult to pick up, but a major red flag: Evasiveness and generalisation. If an EOR is vague and avoids answering questions directly, particularly queries concerning pricing and contract terms, this is an area of considerable concern. 

If an EOR provider is not transparent from the introduction, it may indicate potential issues in the future. An EOR should be open and transparent, as mentioned above. 

Second, if a clear lack of local knowledge is displayed by an EOR, it could land a business into compliance issues. An EOR should have global HR services backed by a team of experts, tailored to the unique set of rules and regulations to the market the business is seeking an expansion into. 

Compliance is a proactive concern, and businesses should look for an EOR that is ready and informed to adapt to any changes in local employment laws. 

Third, businesses should look out for inadequate data protection measures. EORs that do not prioritise data protection should have a red flag put against them. An ERO should have robust data protection processes in place, including encryption, restricted access and compliance with local data protection laws. 

An EOR that neglects data security can lead to serious consequences for a business, including data breaches and legal issues. 

Lastly, businesses should be wary of EORs with slow onboarding and customer support services. EORs that do not offer timely, responsive customer support during the pre-contract phase demonstrates a lack of commitment to customer satisfaction.

Poor customer service leads to delays in resolving issues, which will affect your business operations and employee experience. 

Choosing the right EOR is crucial

Choosing the right Employer of Record (EOR) is crucial for expanding your business. By seeking green flags such as clear contract terms, positive customer reviews, robust data protection processes, and comprehensive customer support, you can ensure a successful partnership. 

Make an informed decision and partner with an EOR that aligns with your business goals and values, ensuring compliance, efficiency, and a positive employee experience.

About Remote

Remote is a globally trusted leader in EOR services. Supported by team members on the ground in every available country, Remote owns its own entities, always offers fair and transparent pricing, and provides customer service that is fast, informed, and accountable. Visit Remote online to learn more about how Remote can help you grow your business with the power of the right EOR partner.

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