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Sandra Redlich
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Getting hired through an Employer of Record (EOR) is a great way to enjoy the stability of a fixed income, while still keeping the flexibility of choosing your place of work. But those are not the only benefits of being a remote employee through an EOR. Being hired through an Employer of Record puts you back in charge. Read on to learn how you can benefit from working with a company that hires you through an EOR.
An Employer of Record is a company that hires talent for their clients. They basically function as a third party, managing all the official processes from contracts, benefit management, and local payments for their clients.
This enables companies to work with the best talent from all over the world, without the need to open a local entity in their employee’s market to comply with local labor rules and regulations.
And while this solution is mainly designed to match a company's hiring needs, it also comes with a lot of benefits for the international employees.
We are living in globalised times, and even if the Corona virus has put a temporary hold on a lot of travel plans and international movements, we can still communicate and work over vast distances thanks to the magic of the internet. So, when employees were forced into home office, many were wondering: why not take this a step further, and work wherever I want?
This is exactly what being hired through an Employer of Record looks like: You get to choose who you want to work for, and don’t have to limit yourself in your choice by sticking within regional or national boundaries. You can set your eye on the most interesting and overall attractive employers in the world, and work with some of the most talented individuals in your field of expertise, all without being forced to move half way around the world and spend endless amounts of money on relocating and obtaining working visas.
Contractors usually have to take care of their benefits themselves. That includes getting on a health insurance plan, taking time off, and calculating sick leave or maternity leave into their freelance rates. When working through an Employer of Record, you don’t have to do any of that, as you will be legally employed in your country of residence, and receive all the benefits you deserve based on local labor laws.
This includes potential paid leave and sick leave, health insurance, pension schemes, notice deadlines and so on. And you will be protected by your local labor laws as well!
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One of the biggest risks contractors take is not knowing where their income will come from next month. Freelancers often work on a project base, and once the task is done, they move on to the next client. But that means, in order to keep your cash flowing, you always have to have another project lined up. This is not only extremely stressful, but also leaves little to no time for breaks and time off.
However, being employed by a company more often than not also means you are limited in your movements, being stuck in an office or having to be on location to perform your work.
An Employer of Record allows you to combine the freedoms of contractual work with the security of a steady income and a secure employer. You will get a proper contract adapted to your individual circumstances, as well as a guaranteed income and all the aforementioned benefits.
Companies working with Employers of Record tend to understand the unique demands and challenges of remote employees very well. They are aware that communication is key to successfully collaborate across different locations and time zones, and therefore have specific workflows and tools in place that support distributed teams in working and socializing over a distance.
Additionally, the quite challenging remote onboarding process tends to be way more streamlined when working with an Employer of Record, as they understand how to combine the employee’s needs when starting a new remote position as well as the demands from an HR manager’s perspective.
Finally, if you are working with clients located in a different market than you, chances are you have scratched your head more than once when thinking about how to get your money in the currency that is best for you. Usually, clients will pay their contractors in a previously agreed upon currency, which tends to be the currency of the location they operate from. This can result in high exchange rates to move the money into your local currency, and adds additional administrative work.
When being hired through an Employer of Record, you are in charge when it comes to your payment. You are getting paid in the currency that is best for you, with no additional rates or any of the hassle of moving money around. The Employer of Record process is putting you back in charge.
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