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International employer of record

Updated on:
16 Jan, 2024
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Table of Content

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Introduction

International hiring is a major trend in most regions. However, some places favor remote employment more than others. Although extensive research may offer you helpful information on the best locations for remote jobs, consulting an international employer of record is the simplest way to get answers and professional assistance.

An EOR will provide crucial information, including the necessary documents and forms to fill out when offering international employment. Contact an international EOR like Skuad for your global hiring needs.

With ongoing operations in more than 160 countries, Skuad can provide in-depth information on how to operate a business in specific regions abroad.

Let’s introduce you to the best regions for remote employment and valuable tips for choosing the ideal international EOR for your business needs.

Best regions for remote employment

There are currently over 30 countries with special visa categories for remote workers. This is in addition to the many other regions with employee-friendly labor laws for remote workers. Although the world now gravitates toward international employment, especially since the global pandemic, some regions lead the race as the best for remote jobs. You may want to consider the following areas when hiring remotely:

Europe

Europe remains the best all-around destination for remote employment due to the high living standards, top-class infrastructure, reliable internet, and relatively formidable cybersecurity protocols.

It has the features of an ideal holiday destination with the amenities to enable you to work when you want. For example, Germany, Portugal, Denmark, and Malta have topped lists of the best countries for remote employment on many platforms.

The cost of living in some European countries is less than in some Middle Eastern nations. For instance, Malta offers digital nomads a tax-free stay, while you can enter Georgia without a visa if you’re from these countries.

South America

Most South or Latin American countries cannot compare with European nations when considering their infrastructural development. Thus, you may not have access to high-speed internet except in major cities. However, countries in this region make up for this deficiency in many other ways.

For instance, living costs are significantly less expensive than in Europe. High-speed internet in capital cities is also cheaper, as well as food and entertainment. The top destinations for digital nomads are Brazil, Colombia, and Argentina.

Although Brazil is currently the only South American country offering a digital nomad visa, Colombia is working on launching theirs. The cost of hiring in this region is also meager, favoring establishing foreign companies.  

Asia

Many Asian countries are also joining the digital nomad visa bandwagon lately. While Japan and Singapore are significant holiday and remote work destinations, Indonesia plans a five-year validity nomad visa scheme. This would be the most extended duration for any visa in this category.

Taiwan offers employment programs for highly skilled individuals from other countries. While these are attempts by the government to encourage tourism, these Asian countries have high-quality basic amenities such as high-speed internet speed for uninterrupted virtual work.

North and Central America

Although there aren’t many countries in this region for remote workers, it consists of some of the top destinations for virtual work. The U.S. and Canada are the best places for remote employment in North America. Many U.S. cities, including Minneapolis, Cincinnati, and Atlanta, are some of the best for remote work.

Costa Rica is another Central American country with flexible immigration requirements for digital nomads. It’s also a relatively less expensive option than Canada and the U.S.

The Caribbean islands

The Caribbean is more than a place of relaxation and fun. More digital nomads are considering it their favorite place to live and work. From sunny isles to serene residential areas, work and leisure can go hand-in-hand in the Caribbean.

Presently, more than seven countries in this region offer digital nomad visas for remote workers who also wish to enjoy a vacation lifestyle.

The major drawback of this scheme is the high income you need to prove. For instance, to get a digital nomad visa for two years in Caribbean countries like the Cayman Islands and Antigua, you must prove you earn up to $50,000 yearly.  

Africa

Currently, Africa only has a handful of locations suitable for remote employment. With limited power supply and poor internet connection in many African regions, remote work options are few.

However, people looking for a luxury location for their virtual endeavors have three solid options. Cape Verde, Mauritius, and Seychelles offer remote workers an experience similar to island countries in the Caribbean.

These countries have special programs for digital nomads to boost tourism. For instance, while Seychelles has the  Seychelles Workcation Program, Cape Verde offers Remote Working Cabo Verde, and Mauritius has a peculiar nomad visa category valid for one year.

The Middle East

The U.A.E. is the first choice for people who wish to work remotely in the Middle East. With world-class industrialized cities like Abu Dhabi and Dubai, foreigners can enjoy the marvelous sights of these innovative locations while working virtually.

Dubai offers a one-year virtual work visa for remote workers. Besides the U.A.E., not many parts of this region suit remote workers. It. is a relatively expensive place to live. For those looking to work remotely in a foreign land on a budget, the Middle East may not be the ideal choice.

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How to choose the right international EOR

You’ve probably heard about how an EOR can support your business, and you May wonder how to find one. Finding an EOR is a piece of cake – they're everywhere. Choosing the right one for your business needs and expectations is the tricky part. Rest assured, these tips can help you find that ideal international employer of record:

  • Look inward. Before hiring, see what you're working with internally. Assess your human resources department to know what their challenges and needs are. This will guide you when browsing through a list of eligible EORs you believe you can work with.
  • Know what the EOR can offer. After identifying your risk management and HR needs, you want to ensure that the EOR you wish to hire can meet them. Have a discussion with them about your business needs, expectations, and what solutions they can provide.
  • Vet their expertise level. While many are great, not all EORs specialize in achieving your company’s goals. The problem is this; everyone says they're great, and it's up to you to find out for yourself. Don't only consider experience; ask if they've worked for companies with similar HR and payroll challenges to your own.
  • Are they licensed or regulated? Many developed countries have an association or body which governs the affairs of every EOR in the country. Make sure the EOR belongs to a recognized body.
  • How do they fund employee benefits? It's usually the EOR's job to figure out how to provide employee benefits. To be safe, ensure they have enough funding to perform this task.
  • Learn how they operate. An EOR may look great on paper, but not in reality. Before agreeing to partner with an EOR, ensure their payroll and benefit plans favor your employees. Likewise, read and understand the terms of the agreement before signing a contract with them.

Benefits of working with an international employer of record

Many small and medium-sized companies are turning to international EORs for global hiring. From expert HR services to specialized payroll management, here are some of the benefits of partaking in international EOR services:

International business exposure

Virtually every business owner dreams of taking their business global. Working with an EOR can make this a reality. An EOR simplifies company establishment processes in the countries where you want to hire employees.

They identify and file the necessary documents for incorporation and taxation according to local laws. For instance, working with an EOR like Skuad allows you to expand your business to over 160 countries.  

Reduced hiring costs

Besides paying employee salaries, training, onboarding, benefits, and monthly deductions make up the total hiring cost of each employee. Total hiring costs can be high, depending on the country.

For example, employers in Brazil remit about 68.1% of the employee’s salary to the government monthly. This figure excludes mandatory employee benefits. An EOR takes care of many of the extra costs of hiring, especially these benefits.

Tax and labor law compliance

Compliance is vital to operating a business long-term in a foreign country. Failing to comply with tax and labor laws often results in penalties, especially fines.

In some regions, non-compliant business owners and their representatives may go to jail and incur substantial fines. In many cases, non-compliance is due to limited knowledge of the country's laws regarding hiring, paying, and taxing employees. An EOR has ample knowledge of these laws and can help you avoid breaching them.

Achieve your international hiring goals with Skuad

Establishing your business in a remote work-friendly region makes international hiring easier. However, you must be familiar with the best geographic locations for this work arrangement.

Although you can achieve international hiring with the information in this guide, it can take too much time and may stall your business establishment goals. For this reason, many companies outsource their international hiring duties to experts like Skuad.

At Skuad, we can help you identify, collect, and process vital documents for your payroll operations. We leverage cutting-edge technology for faster, easier, and more accurate processing activity.

We also provide expert advice to help you comply with labor laws in any region you choose. With an established presence in over 160 countries, Skuad has innovative physical and skilled human resources to help you easily hire staff anywhere in the world. Request a demo today to discover the future of your international business operations.

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Employ contractors and employees in 160+ countries

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