Hiring employees abroad does not always require setting up a legal entity in the target market. Instead of going through the lengthy incorporation process, businesses can also opt for a so-called global employment solution.
But what exactly is a global employment solution? What are the benefits of using such a service? And what types of global employment solutions can businesses choose from?
A global employment solution is an employment outsourcing service that enables organizations to compliantly hire employees in different countries without having to open a legal entity in each location.
Services covered by an international employment solution typically include:
Provision of compliant international employment contracts
Benefits management
Payroll tax administration
Payroll processing
Legal onboarding
Employee payments
The solution can either be offered as a direct service, where the organization enters into a contractual arrangement with the service provider that will employ the new hires, or in the form of a global employment platform that serves as the connection point between the hiring organization and several different service providers. The latter usually results in a wider country coverage.
Read next in the Lano Academy: Global employment models: owned-entities vs. partner-dependent approach.
Global employment solutions can be a great way to hire international employees in the following cases:
The organization has little to no expertise in the field of international hiring and employment.
The organization needs to hire workers quickly and has no time to set up a local legal entity.
The organization is not familiar with the country-specific employment laws and payroll rules and therefore requires external advice and support.
The organization is not ready yet to fully commit to the new market and establish a local legal entity.
The organization is looking for particular skills and expertise and has found a suitable candidate in a foreign country where it has no legal establishment.
The organization wants to test a new market, but has ruled out the use of independent contractors due to the planned project scope and duration.
The different scenarios provide guidance as to when an organization should consider the use of a global employment solution. However, there are some limitations regarding the suitability of such solutions. For instance, the legally permitted duration of the arrangement may be limited.
The same goes for the number of employees. Since international employment solutions are generally not intended for hiring large numbers of employees in one country, organizations should be prepared to establish a legal entity in such cases.
Global employment solutions are designed to facilitate cross-border employment and global expansion. Organizations that opt for this global employment option benefit from:
High level of flexibility: Hiring employees through a global employment solution instead of through its own legal entity allows the organization to exit a foreign market easily in case of a negative outcome of the market validation.
Guaranteed compliance: Employment outsourcing services are experts in their field of business and know how to navigate employment laws, payroll regulations, and more.
Full-service solution: Global employment solutions cover all employment-related administrative tasks and legal responsibilities, from drafting compliant employment contracts to processing payroll to generating payslip.
Fast hiring option: Since the service provider is already fully established in the target market, hiring local employees is usually only a matter of weeks.
No big upfront investment required: Unlike establishing a local legal entity, the use of a global employment solution does not require any registration fees; nor are there any capital requirements. The only costs businesses need to cover are the monthly service fees.
Quick onboarding of new hires: Hiring new employees through a third-party service provider enables a quick and easy legal onboarding process.
Fewer risks: Hiring employees compliantly through a third party can help mitigate common global employment risks such as employee misclassification.
Easy transition to own legal entity: Should the organization decide to set up its own legal entity after an initial test phase, the global employment solution can be used to start building a local presence in the new market while the incorporation process is still underway.
International hiring and employment needs differ depending on an organization’s expansion targets, the level of commitment to a new market, the available internal knowledge and resources, and other factors. There are different global employment solutions organizations can choose from to meet their individual needs.
Employer of Record (EOR): An Employer of Record acts as the legal employer for employees hired in a jurisdiction where the contracting organization does not have a legal entity. The company that uses the EOR services meanwhile manages the employee’s day-to-day activities.
Professional Employer Organization (PEO): A Professional Employer Organization is a co-employment solution that provides employment management services to businesses. The service model has its origins in the US, but has since been adapted to support businesses with their global employment needs.
Global Employment Organization (GEO): A Global Employment Organization, sometimes also called an international PEO, is an employment solution that covers a variety of countries. In this sense, it enables cross-border employment arrangements around the world.
Global Employment Platform: A global employment platform is a software solution for global hiring and employment that allows businesses to organize and streamline all their international employment activities through one single platform.
We will talk about each of these four solutions in more detail in the following chapters of the Lano Employment Academy. So read on.
The Lano Academy is for informational purposes only and should not be construed as legal advice. Lano Software GmbH disclaims any liability for any actions you take or refrain from taking based on the content contained in this article.
EMBAUCHEZ N'IMPORTE OÙ
Embauchez des employés à l'étranger sans créer d'entités juridiques
Embauchez, gérez et payez des freelances dans le monde entier
PAYEZ PARTOUT
Consolidation de la paie à l'international
Standardisez vos opérations de paie dans tous vos pays
Services de paie internationale
Externalisez votre gestion de paie multi-pays
Payez votre équipe dans le monde entier
Devenez un partenaire
Rejoignez notre réseau de partenaires de paie locaux
X
Devenez un partenaire affilié de Lano et commencez à toucher des commissions
Découvrez l'écosystème d'intégrations et de partenaires de Lano
Découvrez comment Lano peut vous aider à développer et à payer votre équipe internationale.
EMPLOI MONDIAL
Recrutez les meilleurs talents n'importe où
Recrutez des employés dans des pays où vous n'avez pas d'entité légale
Se développer à l'international
Testez de nouveaux marchés sans les risques ou les coûts de l'ouverture d'entités locales.
Délocalisez et fidélisez vos employés
Conservez les talents qui partent vers d'autres pays
Transformez les freelances en employés
Incorporez des freelances à temps plein en conformité
PAIEMENTS GLOBAUX
Consolidez la paie à niveau mondial
Gérez les salaires de vos entités et de vos prestataires en un même endroit.
Créer un service de paie dans de nouveaux pays
Mise en place et gestion de la paie en toute conformité dans n'importe quel pays
Changez de prestataire de paie local
Remplacez les prestataires peu performants par des partenaires de Lano.
Effectuez des paiements internationaux
Payez votre personnel en devises locales
TÉMOIGNAGES
Découvrez comment PrestaShop s'est étendu dans quatre pays en à peine six mois grâce à Lano.
RESSOURCES
Tout ce que vous devez savoir pour embaucher des personnes dans le monde entier
Apprenez les meilleures pratiques pour gérer la paie à l'échelle mondiale
Tout ce que vous devez savoir pour embaucher des personnes dans le monde entier
Couverture de paiements de Lano
Comparez les coûts de paiement à l'échelle mondiale avec Lano
FORMATION
Apprenez à utiliser et à profiter au maximum de Lano
Restez informé de l'actualité de Lano, de son contenu et de plus de choses
Parcourez notre glossaire de termes relatifs à la paie et aux ressources humaines
Learn all you need to know about global payroll and hiring
Devenez un expert en recrutement et en gestion de la paie mondial
Gain insights into how much it costs to hire remotely in a country
Tarifs
EMBAUCHEZ N'IMPORTE OÙ
PAYEZ PARTOUT
Devenez un partenaire
EMPLOI MONDIAL
PAIEMENTS GLOBAUX
RESSOURCES
Tarifs
English
Français
Deutsch
Español
© Lano Software GmbH 2024
English
Français
Deutsch
Español