Finding the right people can be one of the most decisive factors in a company’s success. After all, the right talent can not only affect a company’s performance, but it can also attract motivated employees who aspire to working alongside the top talent in their industry.
As we know, engaged, highly trained employees don’t grow on trees, and those trees don’t just grow in one country. Over the past few years the search for talent has become an international race, with big players scouting their talent from a global marketplace.
Many years before we had heard of COVID-19, remote work and virtual meetings were becoming the new standard. The new global employment trend offered realms of possibilities for both employers and employees, but it also came with its challenges.
Compliance, payroll, international payments, sponsorship of employee visas and applying for work permits are still just a few of the hurdles global employers are faced with.
The advantages of global employment
There are many reasons why companies may be looking to work with talent from all over the world. Research from the Korn Ferry Institute predicts that, by 2030, there will be a global human talent shortage of more than 85 million people – with more than 85 million jobs going unfilled because there aren’t enough skilled people to take them. This is particularly relevant in the ‘high-tech’ sectors, and could result in approximately $8.5 trillion in unrealised annual revenues.
Globally distributed teams help fill this talent shortage, offering employers a large, flexible workforce. They can also allow companies to explore potential new markets, whilst staying flexible and reacting quickly to any changes within their marketplace.
Finally, a remote-working culture not only attracts top talent from all over the world, but it can help companies retain the key people already working within their business.
Tools for managing global talent
One of the biggest hurdles companies face when embracing a more flexible, remote workforce is how to operationalise it.
Working efficiently with global teams, spread across different time-zones, can require intuitive virtual software and project management solutions. Globally distributed teams need to work smart, whilst ensuring they are operating in a safe digital space.
Employers could benefit from tools to help streamline their HR duties; such as handling payroll and benefits, training, recruiting, screening and interviewing. By streamlining the onboarding process companies can welcome new employees from across the world, whilst introducing them to their company culture.
Employer of Record: The easy way to hire full-time global talent
Ensuring compliance with contractors from a wide range of countries can be complex. In addition to paying taxes and social security benefits for global employees, companies may be required to open a legal entity in their country of residence, and this can be a time-consuming and expensive exercise.
In recent years we’ve seen the rise in so-called ‘Employers of Record’, or EOR for short. An employer of record is a company that either holds offices in countries all over the world or collaborates with local partners, helping companies hire talent.
As a third party entity, the EOR becomes the legal employer of the new talent, paying taxes and social security benefits, whilst ensuring all local compliance is adhered to. This allows the company to focus on managing the day-to-day activities of the employee.
An EOR service is ideal for companies looking to break into a new market quickly with a small team of employees, addressing a specific short-term opportunity. Or for companies testing the viability of a product or service in a foreign market. There is little risk involved since the EOR assumes the liability for the employees and handles all payroll compliance.
For most companies, the EOR is a short-to-medium term solution. If the business appears viable, they tend to move on to opening entities, establishing a more permanent presence.
EOR services can help with the following areas:
- Onboarding talent in a compliant manner;
- Payroll & benefits;
- Ensuring timely invoice and bill processing; and
- Sponsorship of employee residency Visas & Work Permits.
Overcoming the challenges of global employment
We live in a rapidly globalised and digital world, where borders have become more of a concept than an actual stopping point. This has become true for global employment, with companies aspiring to work with the most talented people in the world, no matter their location.
While governments are yet to install comprehensive solutions to these new economic demands, some software providers are taking it into their own hands to offer smart and intuitive solutions to help businesses overcome their global employment challenges.
Aurel Albrecht is Founder and Managing Director of Global Employment Platform Lano, which offers businesses smart tools to onboard, manage and pay their international contractors and full-time employees.