Why Employer of Record is a Model for Global Working

Key takeaways

• Employer of record means working with a partner organization services to hire, pay, and employ global workers for a multitude of reasons.
• Organizations choose to partner with an employer of record to streamline and speed up processes, lower costs, receive valuable expertise, and experience less risk.
• Safeguard Global is a full-service employer of record that has supported such international companies as Cloudway, Drexel University, and Poshmark.

A revolution in global hiring

Employer of record has modernized the way organizations hire, pay, and employ workers around the globe. Now, instead of having to set up your own legal entity in a new country, organizations can hire employees in full compliance more quickly, easily, and reliably with employer of record services. Using their existing entities and relationships, employers of record act as the legal employers for your workers, while you focus on the rest. Here are more reasons why employer of record has become a model for global working.

Fast speed

Hiring people in a foreign country through an employer of record is usually the quickest route to having work-ready, fully compliant employees. One such example? A well-known rideshare innovator who worked with Safeguard Global to hire workers in 34 new countries. When the rideshare company tried to set up their own entities, their timelines became compromised. But by partnering with Safeguard Global as their employer of record, they were able to enter new markets in as little as two weeks — increasing their speed to market by 1,400%.

Predictable budgets and timelines

When hiring team members in a new country, a huge challenge that organizations face is that it’s nearly impossible to predict timelines and fees for setting up a legal entity in a foreign country. That’s not true when it comes to partnering with an employer of record. A reputable employer of record like Safeguard Global will provide you with upfront costs on a per-employee or flat-fee basis. This makes it easier for companies like tech consultancy Cloudway to budget and plan.

Lower costs

Partnering with an employer of record doesn’t just mean predictable costs — it means more affordable costs, too. Using employer of record services can cost hundreds less per employee than employing them yourself, thanks to the fact that the employer of record already has entities set up and payroll processes in place. 

Breadth of HR services

When Bandlab Technologies acquired a company with employees in the UK, it partnered with Safeguard Global as its employer of record for more than just compliant employment. Safeguard Global provides full HR support, including benefits, taxes, and payroll, and has come to feel like part of the team. According to Holly Bishop, their UK country director, “We’ve gone through a number of restructures and changes in the organization over the last couple of years, and Safeguard Global has been on hand every step of the way.” 

Easier workforce management

No matter how many countries your employees work from, an employer of record can help streamline your processes and make oversight easier with technology. Safeguard Global’s workforce management platform makes it simple for employers to approve payments, track time, and manage employee documentation across continents. 

One global partner

Another great benefit of partnering with an employer of record is that you can employ workers around the globe — Safeguard Global offers employer of record services in nearly 190 countries. This is especially beneficial for organizations with remote workers, like Drexel University. With Safeguard Global as their employer of record provider, they were able to easily transfer an employee from Philadelphia to Qatar.

Less risk

Partnering with an employer of record means that, they act as the legal employer of your workers (similar to how a staffing agency works). Because the employer of record is the one who hires and pays your workers, they take on the legal risk for compliance with local laws and regulations. This is a huge benefit to companies who are expanding into new countries — instead of worrying about complying with unknown or confusing regulations, they can focus on their core business knowing that the employer of record has it handled.

Local expertise

The HR pros at a full-service employer of record can also provide expertise in worldwide employment law, which can help your leaders make strategic decisions and streamline processes. Social marketplace Poshmark experienced this first-hand when they partnered with Safeguard Global to expand into India. Safeguard Global explained costs, requirements, and next steps, and ultimately helped Poshmark establish a local entity through assistance preparing documents, applying for the necessary licenses, and obtaining tax IDs. The ability to support clients with entity setup in addition to employer of record services is invaluable (especially if you need to transfer employees from an employer of record after your entity is set up) and is a unique benefit of working with Safeguard Global. 

Better employee experience

The integration of an employer of record’s HR team with its partner business creates an employee experience that resonates. Team members around the world get HR support from an expert who speaks their language, lives near their time zone, and understands the business etiquette and cultural norms of their area. One of these supported team members is Francisco Robles Bolanos, whose employer, the American Institute of Research, partnered with Safeguard Global as their employer of record in Mexico. “I am very happy. I would recommend Safeguard Global,” he told us.

The global working solution you need

Interested in learning more about partnering with Safeguard Global for employer of record services? We support some of the most innovative organizations in the world and can help you hire workers in nearly 190 countries — all without the risk. Schedule an appointment today to get a free demo and talk to an expert.