Which option is preferable: Employer of Record or Global Relocation?

 Employing international staff brings various advantages, such as accessing new markets, expanding services, or reaching a diverse talent pool. Based on your business requirements, you can explore different approaches for hiring global workers. One approach involves moving existing employees to the new market through global relocation. Another option is to identify and attract talent in the new location using an Employer of Record (EOR) solution. However, determining the more effective route poses a critical question.

In this article, we will examine the advantages and disadvantages of both global relocation and Employer of Record (EOR) providers as potential solutions for businesses seeking to hire top international talent.


What does the term “Global Relocation” entail?


The concept of global relocation is straightforward; it involves transferring employees, a sector, or a department of an organization to a new destination in a foreign country. While global relocation can be a strategic and advantageous business decision, there are noteworthy challenges that need careful consideration. The following points highlight key aspects to ponder when evaluating the feasibility of global relocation.

The advantages of engaging in global relocation include

Global relocation provides a company with comprehensive oversight of critical processes such as onboarding and HR administration. It empowers businesses to leverage opportunities in new markets, including recruiting top international talent, cutting operational expenses, and potentially reducing tax rates. For instance, the expense associated with directly hiring employees in a new country can be diminished when a business possesses a pre-existing entity from which to make hires. This dual advantage can positively impact a business from both tax and payroll standpoints.


The difficulties associated with global relocation include

Transferring local talent overseas through the relocation process can be intricate and time-intensive. The operational setup demands a substantial investment of time, resources, and expenses. Your business and HR department bear the responsibility for various aspects, ranging from payroll and benefits to visas and compliance with local laws. Precision is crucial in these processes to avoid potential costly penalties.

It’s crucial to take into account the additional costs and requirements that may not be readily apparent in employee relocation. Considerations such as language classes, supplementary benefits and perks, relocation logistics, and travel expenses for each transferee should be integral to your initial planning. While some of these aspects can be outsourced to a relocation company, it’s important to note that global relocation services themselves can constitute a substantial expense, adding to the already significant costs associated with international relocation.

Global immigration has become increasingly intricate and is evolving rapidly. Navigating immigration compliance has become more challenging, necessitating businesses to adopt a strategic and advisory approach to global immigration and mobility. The ongoing complexity in legislation concerning work permits, visas, and residence permits further compounds the unique challenges encountered by immigration professionals.

In the quest for talent, immigration professionals are exploring alternative strategies such as Global Parking and/or leveraging Employer of Record services.


Opting for an Employer of Record instead of pursuing Global Relocation


Choosing an Employer of Record over relocating employees may prove to be the most advantageous path, particularly when initially exploring opportunities in a new location. An EOR offers a range of low-maintenance solutions to address the challenges associated with international relocation.

Employer of Record (EOR) services operate with established entities in numerous countries worldwide, eliminating the need for your company to bear the costs and administrative burdens of corporate relocation. Instead, the EOR takes charge of various human resources aspects in the new location, encompassing the recruitment of top local talent, payroll management, benefits administration, and compliance with local labor laws. EORs streamline the hiring process, enabling newly recruited international employees to commence work much more expeditiously.

An Employer of Record (EOR) also empowers businesses to strategically withdraw from a market if more favorable opportunities arise elsewhere. This level of global mobility can prove immensely beneficial when exploring new markets for entry.

Moreover, ensuring compliance with local employment and labor laws is crucial. An Employer of Record (EOR) provider employs local experts to manage global HR administration, ensuring that all processes align with the requisite regulations.


Relocating globally in conjunction with expanding globally

At Panda work global, we provide a comprehensive and customized Employer of Record (EOR) service to cater to the corporate relocation requirements of your organization. Our experts grasp the intricacies of international mobility, encompassing HR administration and regional laws, while recognizing the significance of the unique needs of each business we support.

Contact our team today to discover how we can assist you in confidently hiring and onboarding global team members.

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