Hiring employees in different parts of the world is not new, but globalization and the rise of remote work have made global hiring much more popular. Many employees prefer their company to have some form of remote work policy. About 87% of Americans opt for remote work opportunities, according to McKinsey & Company’s American Opportunity Survey. Access to remote work attracts global employees and opens doors of opportunity to workers worldwide.
Companies can now hire talent from any part of the globe, making for a globally distributed workforce where you can hire for skill rather than proximity. But with global hiring comes many challenges, including compliance with local employment laws and payroll management. The many administrative and legal tasks required to hire employees in other countries can quickly become a drain on your company’s money and human resource.
That’s when a Global Employment Organization (GEO) like Skuad can help. With expertise in global hiring across 160 countries, Skuad is your global employment and payroll partner in hiring, onboarding, and managing your remote workers globally as simply as possible.
What Is a Global Employment Organization?
A Global Employment Organization is a third-party company that hires employees abroad on behalf of a client company by acting as the Employer of Record (EOR) for the hired employee. That means that the Global Employer Organization is the legal employer and assumes all legal responsibilities and administration for the hired employees.
The client company manages the work schedule and duties for the employee, such as setting terms for their contract, compensation, and project timelines. While the GEO becomes the legal employer on record, the client company still controls the business, no matter where the company is.
A GEO, also known as Global Employment Outsourcing, is a way for companies to hire employees from other countries without setting up a local entity or subsidiary. When you want to hire an employee from another country, you can do so by partnering up with a GEO. You sign a contract with the GEO, and then the GEO hires that employee for you. Once the employee is officially hired, the GEO becomes the Employer of Record, meaning they are now the legal entity in that country.
The GEO focuses primarily on employment administration, like figuring out global payroll and drafting employee contracts. Skuad helps you quickly hire, onboard, and pay your international employees in over 160 countries on just one unified platform.
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What Does a Global Employment Organization Do?
A global employment organization helps companies with global employment and recruiting. A GEO provides global employment services such as hiring, onboarding, paying, and managing employees abroad. Perhaps most importantly, a GEO helps companies stay legally compliant with labor laws in the employee’s country. Maintaining legal compliance is essential to avoid legal consequences, such as paying extra taxes to the local government or compensating your employees for damages.
Hiring, onboarding, and eventually setting up payroll for your global employees require many administrative steps. A GEO can help you with that. Other global employment solutions that a GEO can help you with include:
- Advising you on relevant employment laws such as severance, termination, and statutory leave
- Handling tax administration and insurance
- Creating employment contracts that meet local standards and laws
- Coming up with employee benefits
- Transferring money across borders as payments
- Arranging work permits and requests for visas
- Coordinating between all parties in the working relationship
Hiring employees abroad requires various teams in your company to work together to ensure the process goes smoothly. A GEO has its teams that may also help you with global employment solutions for multiple teams in your company:
- Tech teams. Being able to employ remotely lets you access the best talent in every corner of the world. A GEO may help you hire global talent to join your tech team, so you’re not restricted to the talent in your area.
- HR teams. A GEO may free up time for your HR teams by doing most of the legal administrative tasks, so your HR teams can focus on other essential responsibilities.
- Finance and legal teams. A GEO manages payroll and needs to know local labor laws well. It will also have strong financial and legal teams so that you don’t have to hire more people or assign people from your company to take on these responsibilities.
Welcome your international team compliantly by working with a Global Employer Organization today. Navigate the entire employment lifecycle seamlessly with Skuad’s global employment platform.
Why Should You Use a Global Employment Organization?
Larger companies may be able to afford to set up local incorporations for expansion and employment purposes, but many smaller companies don’t have the means to do that. These companies then miss out on exploring new markets, making more sales, and working with global talent. Using a Global Employment Organization allows businesses to access a global talent pool easily and gain direct access to a foreign market without having to spend time, energy, and expenses on setting up local incorporation.
Instead of sending employees on international assignments as expats, companies can now hire people who already live in the designated country and may want to work with a foreign company. That opens doors of opportunity to employ skilled workers with specialized talent that many companies did not have access to before.
GEOs help you hire, and onboard global workers with ease. They ensure that your local payroll meets the local country’s legal and regulatory standards. Save time, money, and energy by avoiding compliance issues and having to hire a local legal team.
What Are the Benefits of Using a Global Employment Organization?
A global employer organization is a simple, fast, and cost-effective way to hire talented employees worldwide.
GEOs help you hire diverse and distributed global talent
Global Employment Organizations give you access to a richer talent pool because you can choose from talent across the world, not just near your company. For many employers, allowing for remote work addresses talent gaps. For employees, remote work means more flexibility from where and how they work, which positively correlates with productivity and employee retention.
GEOs help you stay compliant with local employment laws
Employment laws for countries vary across the world. From taxes to employee protection, staying up to date with all the labor laws and changes can be very challenging. Global employment organizations help you easily remain compliant by staying updated with local labor laws, from tax compliance to payroll management. GEOs can help you make tax calculations and withhold the appropriate amount from an employee’s paycheck. Since GEOs can run payroll locally, they’re better able to manage required withholdings and contributions.
GEOs save you money, energy, and time
Another way for companies to hire employees abroad is to set up local incorporation, which can be costly, time-consuming, and hard to navigate. By contracting with a global employment organization, companies do not have to set up local incorporation for hiring employees from that country. That makes global hiring possible for companies that may not have the budget or the workforce to set up a legal entity.
GEOs are also cost-effective in that they run payroll locally. That means they can help you with currency exchanges when paying employees in their local currency. Working with a GEO may also save you money by preventing incurring transaction charges that arise from using other payment platforms.
GEOs increase your team’s productivity
Since global employment organizations are primarily tasked with administrative duties, they can help free up time for your HR teams so they can focus on managing employee work instead. If issues arise, the GEO acts as a global HR service to resolve payroll, taxes, compliance, and more problems related to legal administration.
GEOs provide attractive employee benefits
Global employment organizations may be able to provide more attractive employee benefits compared to what your company can provide. A good benefits package makes your job offers more attractive, therefore drawing in more candidates for from whom to choose. A good benefits package also lets you negotiate with candidates during the hiring process.
Start building a global remote team on one central dashboard that supports all aspects of the employee lifecycle. Use Skuad’s streamlined platform to easily pay your global employees while staying compliant.
Manage Global Employment Easily With Skuad
Skuad is a global employment and payroll organization that enables companies to employ full-time employees and contractors in over 160 countries without setting up a local legal entity. With Skuad, you can easily hire and onboard top talent worldwide. Additionally, Skuad helps you manage global employment easily with on-time payments and legally compliant documents.
Skuad’s unified platform allows you to:
- Attract top talent from all over the world
- Hire anyone from countries that Skuad services in minutes
- Onboard new hires seamlessly and compliantly
- Run global payroll with one click
- Stay fully compliant with local labor laws
- Manage contracts, work permits, benefits, and more
Want to hire global talent and expand your company across the world? Book a free demo today to start building your globally distributed and diverse team.