How to choose the best global employer of record in 2021


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How to choose the best global employer of record to hire and manage your international workforce and mitigate risks in 2021?

Since 2020, global employment rules have changed, forcing multinational businesses to tackle new challenges when implementing international expansion strategies. Selecting the right employment outsourcing partner to handle the hiring and oversight of teams in foreign markets requires to be more demanding than before. What do you need to know before partnering with a global employment service provider to handle your staff abroad and continue your cross-border growth?


2021 EOR solutions Vs. PEO services in the light of the international working models’ transformation

To counter the spread of the Covid-19 pandemic, governments worldwide have put in place restrictions that alter trade, travel, or immigration, but also international employment administration. In this context, outsourcing global employment tasks to specialists is a must for multi-country operations support. Compliance with labor regulations abroad, for example, has become more complex, while localized policies further complicate the setup and mobilization of your international workforce. Therefore, multinational organizations are now advised to turn to employers of record, like XML International, instead of hiring professional employment organizations to recruit and oversee their workforce abroad efficiently.

EORs have obviously become more relevant than PEOs for global workforce management since they propose more comprehensive services. For instance, an EOR is the legal employer for staff based in a foreign jurisdiction, saving their clients’ time and reducing their expenses, whereas professional employment organizations mainly focus on particular HR and payroll tasks. Global employers of record legally represent you abroad and are allowed to act on your behalf through a specific service level agreement. EORs take on the additional responsibility of ensuring real-time compliance with local employment regulations and labor laws, among several competitive advantages. They also remove the burden of creating a local legal entity.

In 2021, for successful global growth, EOR services must be flexible, personalized, and scalable

As pandemic-imposed restrictions slowly lift, multinational companies progressively get back to business, but global expansion remains uncertain. For company owners having multi-country activities, overcoming the struggle of handling teams abroad requires the appropriate employer of record’s support. Your business continuity and success are at stake.

Employers of record service providers worldwide propose very similar services, so how to decide? XML International has put together some elements to consider before selecting your EOR and stay nimble despite the ever-changing business conditions brought about by Covid-19 and the transformation of global employment systems.

Consideration 1 – The EOR’s Global Coverage

Is the EOR a good fit for the destination country or the region you are targeting? Are they already active in such foreign markets? Do they utilize local partners, or do they have a physical in-country presence?

• Global employers of record usually work under two models. Either they work with local partners in aggregated partnerships. You deal directly with the EOR — this model allows you to expand on-demand quickly into new locations; either they have a local office, and they operate as a single company. Depending on your business strategy, local needs, and the jurisdictions involved, it’s up to you to decide the model that works best for you. In any case, your EOR should have in-country experience.

• XML International has a long and significant international experience in multiple regions and countries across the globe, leading to unparalleled local expertise. For instance, we have account managers and offices in every single location so that our clients can expand or develop activities even in very remote areas. In addition, we have extensive knowledge of compliance regulations, local cultures, and languages, and, therefore, we can anticipate our clients’ expectations everywhere.

Consideration 2 – The EOR’s Scope of Services

How does the EOR operate? Are EOR services their core service line? Do they handle the end-to-end cycle of services? Can they assume on your behalf the full responsibility for your international teams?

• A PEO can perform a series of HR functions, including payroll, benefits, and compliance, but they don’t assume all the related liabilities and legal responsibilities. An EOR like XML has the capability to go beyond that and offer a broader scope of services since they become the legal employer of your workforce abroad on your behalf and take full responsibility for your employees. In short, you have to ensure that the EOR you are planning to engage is not just a PEO and is ready and able to mitigate all the risks.

• EOR services have been one of XML International’s core activities for decades, and for that matter, we’ve been acting on behalf of our clients since inception. We recruit and manage staff via single service level agreements (SLA); the bottom line is that we are legally liable for your employees abroad. We ensure compliance with local regulations related to remuneration, compensations, benefits, and welfare. We also comply with labor laws for payroll taxes, leaves and holidays, or severance and terminations.


Consideration 3 – The EOR’s Service Delivery

Is the EOR available whenever you need to get in touch with them? Do you prefer interacting with a human or a computer? Can you approach the EOR teams personally for specific local inquiries?

• Leave no room for uncertainty. The EOR’s processes should be designed to address in real-time the particular requirements of your international workforce. Therefore, you need to ensure that you have direct contact with dedicated account managers and not only an online platform. Communication and availability are crucial for service personalization during challenging times, as they help solve issues as they arise. Thus, it’s essential to know who you will be dealing with regularly.

• XML International proposes fully customizable and scalable services with ad hoc delivery focusing on human interactions. We can then ensure alignment with your global operations’ objectives — even in the most remote geographies, providing you with personalized answers while you keep control of your HR. We guarantee 24/7 support, regardless of the time zone, with dedicated teams acting as your single point of contact and knowing your company, personnel, and market inside-out.

Consideration 4 – The EOR’s Risk Mitigation Capacity

Does the EOR understand what you need? Do they have experience with clients in your industry? Does their contract protect your business interests in foreign markets?

• A good EOR should allow your company to enter new markets and increase the size of your staff abroad without the burden of opening a legal entity in a foreign country while making this personnel your international team members, immersed in your culture and controlled by you. They should also keep abreast of local law changes and, with your oversight, provide risk-free solutions to empower the growth of your HR globally.

• At XML International, we take the necessary measures to understand your business and your corporate mindset quickly. This is how we can propose tailored solutions to help you achieve your objectives seamlessly. The most significant upside to using our EOR services is the risk mitigation of violating local payroll, tax, and immigration laws. In-depth knowledge of such legislation is critical for us, and we make compliance our never-ending mission.


Looking for a leading global employer of record? Talk to XML International

If you are expanding your business operations internationally, we can help with our integrated employer of record services, working side-by-side with you. Our EOR services cover a wide range of essentials that can be customized to your needs. Some of our trusted services include payroll management outsourcing, ensuring compliance with labor laws, tax filing, and employment constraints like visas. We are a truly global service provider with a local approach to cutting-edge global workforce solutions.

The legal employer for your teams abroad, we act on your behalf and take on the responsibility of complying with local employment regulations, labor laws and business etiquette. We offer flexible, cost-effective, scalable solutions to reduce the financial and administrative risks in essentially every market in the world. Our agile methodologies enable you to test markets and exit quickly if the business environment or working conditions change. If successful, you adapt quickly to seize new opportunities while retaining a dedicated workforce abroad.

• Flexibility in hiring and handling personnel anywhere in the world

• Financial, legal, and administrative risks mitigation worldwide

• Simplicity in payroll and benefits management across geographies

• Compliance with local employment regulations in any jurisdiction

• Real-time adjustment to labor laws and taxes in different countries

• Improved employee experience for remote working and mobilization

XML can provide you with cost-effective yet flexible, personalized, and scalable solutions.

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