Global Expansion Simplified: 5 Key Benefits of Onboarding Via an EoR for Startups

EORMany startups desire to expand overseas. While this is certainly a lofty goal, it is often easier said than done — especially when onboarding remote employees from outside your home country.

Fortunately, there’s a key solution that can simplify global expansion for startups : an employer of record (EoR). An EoR is an in-country partner who hires employees on behalf of a startup, so the startup doesn’t have to make a locally registered entity.

According to data obtained by Papaya Global, the CAGR for international EoR market growth is approximately 28%, with total market size poised to exceed $1 billion in 2024 — after barely exceeding $250 million in 2019.

The key benefits an EoR can provide to the international onboarding process are clearly behind this growth and are worth considering for any brand looking to expand its hiring pool internationally.

1. Ensure Regulatory Compliance

One of the most important aspects of working with an EoR is ensuring regulatory compliance in the countries where you hire. Tax and labor laws vary dramatically from country to country, including how a worker is classified as an employee or independent contractor.

In the United States alone, it is estimated that 30% of employers have misclassified an employee. Employee misclassification in the U.S. can carry heavy fines, such as 3% of misclassified employee wages, 100% of FICA taxes you failed to pay for the employee, up to 40% of back taxes, and payment penalties of $1,000 per misclassified employee.

With an EoR, you can have confidence that employees are hired and classified in a way that complies with local regulations, so you don’t have to worry about such penalties in the U.S. or elsewhere.

2. Speed Up the Hiring Process

Working with an EoR can also speed up the hiring and onboarding process. Working with an EoR means you don’t have to set up your own physical entity to begin making hires in a new country. You don’t have to wait to go through the various hurdles associated with setting up your own business entity — you can use the EoR to begin sourcing candidates immediately.

An EoR also ensures faster onboarding because it will address all administrative tasks associated with onboarding, such as setting up payroll and managing employment contracts. This can be especially helpful for countries where contracts and payroll are managed differently. With fewer administrative worries, you can instead focus on getting new hires up to speed.

3. Expand Your Talent Pool

Regardless of which countries you hire from, using an EoR to access that area’s talent pool makes it easier to scale your operations. Opening a position to international talent can increase the number of applications you get exponentially, making it easier to find top talent and fit that role quickly.

This can be especially helpful for sourcing high-demand roles that can be hard to fill when competing exclusively for local talent. Skills shortages or increased competition for a particular position among other area businesses could result in a prolonged hiring process if you only hire locally.

Instead, by working with an EoR, you can quickly find and onboard quality international talent who can start contributing to your business goals.

4. Outsource Payroll Management

The work of payroll processing and administering benefits like healthcare and paid leave can be especially complex during global expansion when requirements for each country can vary so drastically.

For example, as data from Visual Capitalist reveals, while the United States only mandates that employees get ten paid vacation days per year, countries like San Marino, Madagascar, Monaco, Bahrain, and Yemen all mandate over 40 days of paid vacation per year. On the other hand, Micronesia has even fewer mandated vacation days, at just nine.

Payroll processing and benefits requirements can become quite complex, especially as you begin to hire from more countries. An EoR handles these administrative tasks so you can instead focus on helping your hires succeed.

5. Reduce Business Expenses

Trying to open a new business entity overseas is complex and time-consuming. Worse still, it also costs more to shut it down if things don’t work out. With an EoR, you can save money by avoiding that process and keeping costs low for starting and ending operations.

Hiring internationally can also help you lower business expenses, as not all talent needs to be paid at the same high levels expected in a San Francisco-based startup. While you must still compensate international employees fairly, differences in cost of living and pay expectations can help you lower your operating expenses while still paying competitive wages.

Competitive compensation relative to the local market can prove key in retaining top talent — and keeping that talent around for the long run will further boost your bottom line by enhancing productivity and minimizing hiring costs.

Is an EoR Right for You?

If you plan to hire internationally, an EoR is well worth considering. By streamlining many legal and compliance issues associated with international hiring, you can access a broader talent pool and scale your business operations without worrying about increasing your administrative workload.

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Uneven Bars: Diversity, Inclusion and Age Discrimination

 When we think about the issues associated with “ageism” in today’s job market, we largely tend to first think of older, more experienced workers who live their lives – and livelihoods –  in a somewhat precarious position, plagued by the widespread misperception that they are somehow past their professional prime.Older workers should be valued for their extensive experience and proven expertise, but instead, find themselves with the sword of Damocles perched perpetually over their heads (and headcount), seen largely as Luddites, stuck in the status quo, past their prime and imminently disposable.Time seems to be running out once workers reach a certain tenure, and while they say wisdom comes with experience.  In the workforce today, however, the conventional wisdom among many newly minted Millennial managers is that more or less anyone over 40 (or anyone seen as relatively “old,” at least compared to their colleagues) represent what’s essentially a depreciating, disposable asset that’s likely long overdue for a trade-in.Junior Division: A Double Standard That’s Getting OldWhile age might be nothing but a number, it’s a significant workplace liability, too – and the more mileage you have on your resume, the likelier it is you’ll find yourself replaced by a newer model, so to speak. Look at most layoffs or reductions in force; inevitably, involuntary turnover disproportionately impacts established workers over their emerging colleagues.The fact that ageism runs rampant in the workplace is not news; at this point, it’s common knowledge bordering on corporate cliche. While the perception is that much of this phenomenon is driven by aspiring, driven younger workers proactively pushing out their older colleagues, the truth isn’t so simple and straightforward.Fact is, age-based discrimination can be just as pervasive, and just as detrimental, among less experienced, less tenured workers, too – particularly those who work within the tech space. While 2 out of every 3 older workers report having experienced some sort of age based discrimination at work, according to a report published by the BBC, a new, acute and equally pernicious form of ageism is increasingly impacting younger employees, too.For Gen Z, “Zillennial” and the youngest members of Gen Y, the rise of reverse ageism seems like a true Catch 22. In this lose-lose situation, the harder younger employees work, the more likely they are to be seen as doing too much, and thus, find themselves labeled as “overly ambitious.” On the other hand, if they do too little, or who eschew corporate politics and conventional career ladders are seen as lazy, apathetic, and, infamously, “entitled.”Younger workers, like generations before them, inevitably go against the status quo and challenge longstanding workplace norms and conventions; “how it’s always been done” doesn’t much matter to workers who want to do things differently. The emerging workforce, largely, is looking for change; veteran workers, by contrast, tend to stay well within their comfort zone. Passing the Torch: A Lesson Plan for Legacy SystemsThere has to be a happy medium, of course, one that can only be achieved when generations at work come together not as adversaries, but as professional peers. Younger workers’ insistence on staying on the cutting edge and constant change might well provide the nudge that older workers need to start thinking outside the box, and taking the sort of calculated risks that not only benefit their bigger businesses and bottom line results, but also, solidify their job security, too.Older workers tend to be dismissive of their less experienced colleagues and counterparts, yet that attitude of not taking younger employees seriously can aversely impact both the business impact and technological advancement of companies across industries, functions and sizes.The younger generation, conversely, also needs to realize that their “older” counterparts in fact have invaluable technological acumen and expertise, the type that can only be developed over time and honed with hands-on experience.They possess a foundational knowledge of critical business systems; while some of these legacy tools might seem anachronistic and antiquated, they remain foundational tools that remain at the core of business processes and policies.Minds are, after all, far easier to change than infrastructure – which is why every end user could use the institutional knowledge and insights of coworkers who have been there, done that – and done it well enough to ensure, at least, enough sustained growth to necessitate the hiring those same emerging workers who would see them put out to pasture.Major healthcare companies, the banking sector, the federal government and countless enterprise employers continue to rely on legacy systems that require, well, legacy knowledge.And while recent grads may be entering the workforce with differentiated tech skills and experience leveraging the most cutting edge tech and advanced software on the market, this is largely irrelevant for an employer whose business remains reliant on established enterprise systems and last-generation solutions.These instances are often highly customized and configured for each company’s business processes and policies. These seemingly obsolete technologies represent, in fact, years of large scale internal development and significant capital investment by a company to extend the lives, and legacies, of their Tier One tools.There’s no way this can be taught in any computer science classroom; not even the most advanced engineers and innovative developers can figure out, independently, how these stacks actually stack up. The only way to learn is by doing, and that lengthy experience many older workers have represents, in fact, years of extensive experiential learning. As long as companies continue to rely on proprietary platforms, outdated tools and otherwise obsolete technologies, emerging professionals are at an obvious disadvantage when compared to their more tenured counterparts. These younger workers would be wise to realize that working with, instead of against, experienced colleagues would create a significant competitive advantage, both personally and professionally.Going for Gold: Winning The Team Competition in Workplace Technology While these systems may seem stuck in the past, understanding these platforms will prove critical to informing and inspiring the company’s future tech stack and strategy – and only those emerging workers who actually know how things have always been done will have any insight – or influence – into how things can actually be done better.As I’ve been thinking about age discrimination in the tech industry, I was recently reminded that tech isn’t the only place with a pervasive ageism problem.All I had to do was turn on the Olympics, and sit back and listen.The commentators, and the crowds, roundly celebrates the 16 year old outlier whose 100 meter dash time crushes the competition, or the elite athleticism of the US Gymnastics team and the cutthroat competitors with the talent to somehow make this elite team. In a sport where competitors peak before their teen years are even over, we recognize how remarkable – and ephemeral – their athletic accomplishments truly are.But then again, as always, there are outliers – like 27 year old Simone Biles, whose reemergence onto the Olympic scene after over a decade of dominance has seen many dismiss her as too old for the competition, the media labeling her the team’s “grandmother” and wondering if her spot should have gone to an up-and-comer rather than an established star. After all, she’s already had her opportunity, said many commentators; maybe its time to move aside and let someone else have a place at the podium. And yet.Biles might be the most experienced gymnast on Team USA, but she’s also the most iconic. She’s been here before, and she knows what it takes to win gold, for both her team and as an individual. Much like older tech workers, she might not be what’s new or what’s next, but she has the ability to go for Gold right now.I think we can glean a few nuggets of wisdom from this disparity. Ageism is both too young and too old. When you hire young tech talent and recognize a special skill set early — foster it. The more support you give a promising younger employee, the more likely they will feel like a crucial part of the team. Encourage younger people to share their thoughts in meetings and actually listen to them. You just might discover an amazing new way of doing something.However, we must also encourage them to embrace their 40+ year old colleagues and learn from them. Over 40 in the tech industry is far from old, with many of these professionals holding critical skill sets that younger workers simply don’t possess.We can also learn another lesson from our U.S. Olympic teams in Paris — the power of teamwork. These athletes know that a teamwork mindset is needed to succeed. They know they are strongest together, regardless of age, and will rely on each other for success. Where a younger athlete will fill the skill gap in one area, an older teammate will fill the gap in another. Imagine a work environment where the vast experience and wisdom of older employees meet the new skill sets and fresh perspectives of younger employees. There, you have a winning scenario that benefits the employees, the team, and the company as a whole.  The technology sector can take a page from the Olympics regarding ageism. When you play as a team, you win as a team—regardless of your teammates’ ages. About the Author: Angela Hood is a serial entrepreneur and visionary leader in artificial intelligence (AI) and machine learning (ML), focusing on talent acquisition and workforce diversity.Following four years of R&D at the University of Cambridge in England, in 2014, Angela returned to foundThisWay Global Inc. ,a company focused on leveraging AI and business automation to unlock human potential.It has since become one of the fastest growing SaaS automation companies in the world.Hood is a well-respected thought leader and international keynote speaker on the topics of mitigating bias using artificial intelligence, the ROI of diversity and human-centric automation.

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How — and Why — to Track Your Employee Training Program

Training is a vital part of any business’s long-term growth plan. In fact, a study from the American Society for Training and Development found that organizations that invest the most in employee training have 218 percent higher income per employee.And to make matters even better, employees actually want to be trained. In a 2017 Randstad US survey, 82 percent of employees said lifelong learning is important, 67 percent said they need more training and development opportunities from their employers.But if you want to be sure that your training and development programs are actually delivering these kinds of results, you need to start by tracking employee progress. Otherwise, you won’t have any window into how things are going — and how they could be better.How to Track Employee Training ProgressEvery business leader wants to know whether the time, effort, and money being invested in a project is paying off — and that includes employee training. Training programs can generate tons of value for both your business and employees when done right.You should never put employee training on autopilot! It’s important to be proactive with your efforts so you can make improvements on the fly to make training more engaging and more worth your while.There are typically two ways to track your employee training: using a learning management system or doing it the old-fashioned way with a spreadsheet. Here is a brief overview of each:1. Using a Learning Management SystemA learning management system (LMS) is a tool employers can use to manage employee training programs. As an added bonus, most LMSs come with built-in tracking and reporting capabilities.Here are the pros and cons of using an LMS to deliver and track employee development:Pros:• Cost-effective due to remotely accessible nature — no need to pay for trainers or travel.• Consistent training of employees across all locations.• Contributes to continuous employee development because learning materials can be accessed regularly.• Best used for compliance training, as LMSs can provide proof of course completion.• Tracking is built into the LMS.Cons:• When not used properly, LMSs can become more like administrative software to simply store videos, manuals, and training content, rather than dynamic training solutions. Studies show that employees can forget 70 percent of what they’ve within just a couple of days after taking a course on an LMS, suggesting many LMSs are not used to their full potential.• An LMS is best used as a tool to deliver courses with a clearly defined goal, like compliance, security courses, or training about specific products and services.• LMSs are not necessarily suitable for all work environments. For example, hourly workers in frontline industries cannot access job training through a desktop-focused LMS. Mobile-first solutions may work better for these types of employees.• A company admin controls every aspect of training through an LMS, including content and pacing. Without autonomy over how they learn, employees may find LMS content dull and repetitive. Adaptability and end-user customization are particularly important for younger Gen. Z employees, who have come to expect a certain level of personalization from technology.• Research proves that struggle and failure are critical components of the learning process, but many LMSs are centered around a more passive delivery system of watching videos and checking boxes, which may not be conducive to optimal learning.• Reporting capabilities can vary from LMS to LMS. Some systems have robust tracking options, but others only track employee progress through simple scores that lack granular insight.• An LMS may be expensive to scale as your company grows.2. Using a Manual SystemThe second most common way for employers to track their employee training programs is through spreadsheets, like Excel. Manual tracking is an ideal solution if you only need a small amount of data, lack the budget for a more focused reporting software solution, or have no other options availablePros:• Very easy to implement.• Little to no overhead costs.• No need for additional hardware or software.Cons:• Can be incredibly time- and labor-intensive, depending on the size of your organization.• Manual systems can be easily applied to all forms of employee training, especially more complex and dynamic training.—As the employee training technology space continues to grow, we’re seeing new solutions for managing and tracking employee development every day. My advice? Research the available tools and figure out which ones meet your needs in terms of budget, headcount, functionality, and more.The success of your employee training program depends on getting your tracking system right.Sam Caucci is founder and CEO of 1Huddle.Get the top recruiting news and insights delivered to your inbox every week. Sign up for the Recruiter Today newsletter.

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Keeping Employees Connected and Projects on Track in a Remote Work Environment

Before the pandemic, 17 percent of US employees  worked remotely full-time. Now, it’s closer to 44 percent.More businesses than ever before are operating without physical headquarters or offices, giving their employees lots of flexibility around their work schedules and workplaces. And it is safe to say that these remote work policies are here to stay, with 73 percent of workers saying they’d like to continue telecommuting in some capacity after the pandemic.There was a time when remote work wasn’t even a possibility, mainly due to the lack of technology and tools necessary for distributed teams to stay connected and collaborate efficiently. These days, that’s no longer a problem: Plenty of apps now exist to improve the remote work experience and increase employee productivity.Adapting to the remote work world has not been easy for everyone, but I believe many companies could overcome the challenges of telecommuting by investing in the right tech tools. There’s no perfect equation for a flawless remote work tech stack, but here are some platforms and programs that can surely make your remote team more efficient and organized:Tools for Staying ConnectedOne of the biggest concerns about remote work is effective communication between employees. After all, communication is foundational to an optimal collaborative environment. Therefore, reliable instant messaging and video conferencing platforms are necessities.One of the most popular instant messaging apps in the market, Slack offers a simple way for teams to stay in touch. It integrates with other business applications, like customer relationship management (CRM) tools, for added ease of use. Meanwhile, GoToMeeting offers a reliable video conferencing program, with some important features like a “smart meeting assistant” that allows users to record meetings in the form of both audio/video and written transcriptsLoom is another useful tool that blends video conferencing with instant messaging. Loom allows users to record and share short video messages, which can be a much more efficient communication channel than emailing and instant messaging.Tools to Manage ProjectsEffective project management is vital to keeping work on track in a remote environment, but it can also be challenging to manage a project when everyone isn’t in the same room together. As a result, leaders need tools to help them track the stages of a project, follow up on tasks, and delegate to team members.Basecamp is a project management platform where users can create different spaces and timelines for different departments and projects. In addition, admins can create checklist templates to ensure the same steps are followed consistently between projects, and members of each project team can manage their past, current, and future tasks in one place.Asana is another popular project management tool. What I like about Asana is that it offers three main views to choose from: list, timeline, and boards. Teams can select the views that best fit their projects, and no matter which they choose, admins can define workflows and add insights and instructions for team members. Asana also includes some handy reporting tools that help leaders keep track of the team’s progress and workload with real-time charts and status updates.Trello is a good choice for those who prefer a visual representation of projects and tasks. A Trello board consists of lists and cards that contain detailed information about tasks, including who is responsible for the task, when it’s due, related attachments, and relevant productivity metrics.Technology + Talent = Remote Work SuccessRemote work brings new freedom and flexibility to companies and employees, which is why so many have embraced it. However, employers will need to put some new standards in place to ensure employees continue performing at their best while telecommuting.Luckily, the technology is now available for employees to enjoy the benefits of a remote role while staying connected with colleagues and staying on top of their tasks. As a result, companies can continue offering remote work options while minimizing the challenges of overseeing a distributed team.As companies continue building remote teams of talent from around the world, they’ll need to rely on the right tools and platforms to encourage productivity and teamwork in the virtual work environment. It is important to note that the tools highlighted above — and any other tools your company may adopt for remote work — are most effective when employees adopt them with accountability, trust, and discipline. Given the inherent autonomy of remote work, employees must do their part in leveraging the right tools to reach higher levels of productivity and get the most out of working remotely.Lesley Pyle, MSc, is founder and CEO of HireMyMom.com.Get the top recruiting news and insights delivered to your inbox every week. Sign up for the Recruiter Today newsletter.

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4 Ways to Advance in Your Industry Without an Internship

Working an internship is good for more than just earning college credit — it’s also an opportunity to make valuable connections in your preferred professional field and gain real-life work experience.However, many college students have a tough choice to make this season: accept an unpaid internship to get a foot in the door of their target career, or find a summer job to help pay for school.If financial constraints mean an unpaid internship is off the table for you, don’t worry. There are plenty of ways to boost your resume and advance in your career, even if you can’t take an internship.1. Leverage Your Work ExperienceRoughly a quarter of Americans have participated in an unpaid internship, according to a recent survey from Student Loan Hero. What’s more, almost half of them (47 percent) took on debt as a result.If you’d rather have a paying gig than go into debt for an internship, look for ways to reframe your experience working a traditional summer job to your advantage.“If people have been working any kind of job, even if it’s a restaurant job, you’re developing a skill set,” says Daisy Swan, career and executive coach. “A resume really needs to be built around those skills.”Look back on your summer jobs and think about how the skills you honed in those roles might translate to the kinds of jobs you’re seeking now. Swan recommends avoiding vague, general descriptors that fall flat on the page when adding those skills to your resume. In particular, steer clear of  more tentative language like “worked,” “helped,” “supported,” or “assisted.” Instead, opt for more active descriptions, like:• Provided excellent customer service• Resolved complex problems for customers• Managed busy phone lines and emails2. Play Up Skills You Learned Outside of WorkYour work experience is a vital component of your resume, but the education section can also give employers a good idea of your capabilities. Reflect on relevant school projects or clubs you were involved with. Might those experiences be sources of transferable skills, too? For example, if you took a course where you learned to build a website, you could highlight that fact when applying to jobs that involve web design and programming.Don’t limit yourself to formal schooling, either. Swan says you can draw on coding bootcamps, one-off online classes, and personal professional development courses you may have taken.Volunteer opportunities can be another great way to pick up valuable skills that add extra punch to your resume. While volunteer work may be unpaid, it usually has a flexible enough arrangement that you can volunteer while still holding down a paying job. Just like an internship, volunteering can also result in full-time work down the line, and it may make you eligible for student loan assistance after graduation, depending on your degree and the volunteer work you do.3. Consider an ApprenticeshipInternships aren’t the only way to gain relevant work experience in your future profession. Many employers across a variety of industries use apprenticeship programs to train and recruit new hires — and, unlike internships, apprenticeships offer competitive wages in addition to on-the-job training, course work, and mentorship. The US Department of Labor maintains a database of nationwide openings.Your target employer may lack a formal program, but that doesn’t mean they won’t be open to the idea of taking you on as a paid apprentice or post-graduate intern.“Get very proactive and targeted about who you want to work for,” says Swan. “If you find a company and you want to offer yourself as an apprentice, you can reach out to them.”4. Include a Profile Section in Your ResumeThe average recruiter only spends about 7.4 seconds reviewing each new resume they come across, according to Ladders. That underscores just how important it is to make sure your resume stands out immediately.Swan recommends tailoring your resume to each individual job opening that’s a potential fit for you in the employment market. “Use the job description as a kind of map for your resume,” she says. “You really write it for the position.”Swan also suggests adding a brief profile section to the top of your resume, which can be a particularly effective strategy for candidates who lack formal work or internship experience. This profile gives you space to highlight characteristics that make you special — like the fact that you’re a go-getter who self-financed part or all of your education.—If you have to take summer jobs in lieu of unpaid internships, that doesn’t necessarily mean you’re at a disadvantage. In fact, you may be able to spin your work experience as a positive thing. Some employers will see your choice to take a paying job as a testament to your work ethic and character.Marianne Hayes is a longtime freelance writer and content marketing specialist.Get the top recruiting news and insights delivered to your inbox every week. Sign up for the Recruiter Today newsletter.

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