Adapting to current challenges and market demands has created a catalyst for innovation and increased reliance on technology. This has also seen agile businesses look at alternative engagement and employment strategies. Current trends of remote work, the wider gig economy and an increased utilisation of a contingent workforce means traditional employment practices have been supplemented with a more agile labour force in today’s ever-changing landscape. In fact, today’s fluctuating financial market has seen 32% of organisations replace full-time employees with contingent workers in 2020 and 2021. Businesses are seeking best in class methodologies such as EPG’s Employer of Record (EOR) model, which allows for increased flexibility and reduced costs. It also opens the possibility for employers to easily engage international talent based on imminent business needs and ongoing strategic goals. International and local businesses have long been able to benefit from international talent pools for specific skills and despite restricted travel, visa delays and temporarily closed borders, the advantages of tapping into overseas skilled talent should not be overlooked. With remote working now part of the new norm, in-country labour licences and outsourced employment are proving a fast fix solution.
Let’s clarify what the employer of record model entails. As the legal employer, an employer of record manages all human resources, safety and risk mitigation, payroll processing, employer payroll tax, benefits, insurances and workforce management. The employer of record service model has proven popular with both start-ups and established businesses as an entry mechanism to a new country, as a way to engage remote workers within their host country or to simply supplement a permanent workforce – all with assured compliance. A technology client wished to expand into Australia to explore current demand for their technology solution in the market. By engaging their first worker using EPG as the employer of record, they entered the Australian market within a matter of days of signing off on the decision. A few weeks later and having seen success in the local market, they onboarded further sales heads to continue their growth in the region. All of this happened under the guidance of EPG’s Australian-based advisory team and with their support around managing the local employment of the client’s in-country workers, allowing the client to stay focused on their core business. In a differing scenario, a large fintech organisation needed to supplement their permanent workforce in a number of countries across Europe, Asia and ANZ. Acting as their staffing partner, EPG facilitated a global footprint of employer of record solutions leveraging best in-country practices to onboard the workers with compliance.On-hire labour agreements and Employer of Records are providing an alternative model to open borders allowing continued access to overseas skilled talent.
What exactly is an Employer of Record?
Benefits
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