Employer of Record (EOR) hiring is set to surge again this year as companies seek more efficient talent management tools and access to a global workforce, according to a recent Deloitte report. But here’s the catch: while demand for EOR services is skyrocketing, many businesses are still struggling with their current hiring models.
The same Deloitte report reveals some alarming insights: 68% of hiring managers report difficulties in tracking and managing their global workforce. At the same time, 64% face challenges with time and resource allocation and 62% are burdened by high costs.
With so many EOR providers flooding the market, it’s no longer enough to settle for a one-size-fits-all solution. The key to success lies in choosing a partner that truly understands your unique needs and delivers a customized approach to global workforce management.
So, if your current EOR provider isn’t cutting it, now is the time to consider making a switch. It’s essential to partner with a provider that combines personalized service with deep expertise to help your business thrive in the global marketplace.
Evaluate the Need for a Transition
Transitioning from one EOR to another is a significant decision that requires careful consideration. Start by evaluating your current provider’s performance:
- Identify Issues: Are you experiencing difficulties in tracking and managing your global workforce? Is keeping up with statutory employer obligations or costs becoming unmanageable?
- Define Objectives: Clearly define what you expect from a new EOR, such as better compliance, improved employee experience or enhanced scalability.
If you identify gaps with your current provider, it may be time to engage a provider better suited to your needs.
Select a New EOR Provider
Choosing a new EOR provider requires thorough research and comparison. Here’s how to find the right fit:
- Research and Compare Providers: Look into potential EOR providers, comparing their scope of services, geographical coverage, compliance expertise and costs. Focus on those who offer customized solutions rather than one-size-fits-all services.
- Request Detailed Proposals: Ask for detailed proposals from shortlisted EORs, including their approach to onboarding and transitioning existing employees.
- Conduct Due Diligence: Verify each provider’s credentials by checking references and understanding their compliance capabilities. You should also evaluate their technology platforms.
A provider that offers flexibility, robust compliance processes and excellent user experiences can help your business thrive in the global marketplace.
Plan the Transition
A smooth transition requires meticulous planning and coordination. Here are the key steps:
- Develop a Comprehensive Transition Plan: Work with both your current and new EOR to create a detailed plan that includes timelines, responsibilities and milestones.
- Legal and Contractual Review: Review all legal and compliance requirements in the contract, outlining a roadmap for them to be met.
- Communication Strategy: Develop a communication strategy to inform and reassure employees about the transition, addressing any concerns they may have.
Clear communication and planning are essential to minimizing disruption during the transition period.
Safeguard Data Transfer and Facilitate the Onboarding
A critical aspect of transitioning to a new EOR is the secure transfer of data and seamless onboarding of employees:
- Coordinate Employee Data Transfer: Ensure the transfer of all necessary employee data, including payroll records, employment contracts, benefits information and compliance documentation.
- Facilitate Onboarding: Work with the new EOR to properly set up workers in the new system. This should be achieved with no disruption to their pay or benefits.
- Conduct Compliance Checks: Verify that the new EOR conducts compliance checks for each jurisdiction to prevent any legal issues.
An effective EOR provider will prioritize a smooth onboarding experience and maintain compliance across all regions.
Prioritize Employee Communication and Support
Effective communication and support for employees during the transition are both important for maintaining morale and productivity:
- Inform Employees About the Transition: Clearly communicate the transition process, including the timeline and any changes to employment status.
- Provide Ongoing Support: Offer support to employees throughout the transition. Introduce them to their point of contact, who can address any concerns about changes to payroll, benefits or compliance requirements.
- Establish a Feedback Mechanism: Create a feedback loop to quickly address any issues employees may encounter during the transition.
A responsive EOR provider will help you maintain employee confidence and satisfaction during the changeover.
Terminate Your Current EOR
Finalizing your exit from the current EOR requires careful management:
- Finalize the Exit Process: Work with your current EOR to settle any outstanding payments and retrieve all necessary documentation.
- Maintain Compliance: Align the termination with the terms of the agreement and local laws. Your new EOR may be able to support this process.
Properly managing this process helps prevent any potential legal or financial issues.
Conduct Post-Transition Review and Documentation
Once the transition is complete, it is essential to evaluate the new EOR’s performance:
- Monitor and Gather Feedback: Closely monitor the new EOR in the initial months to verify they meet your expectations. Collect feedback from employees and internal stakeholders on the transition experience and the new provider’s performance.
- Document Lessons and Update Processes: Record what worked well and note any challenges encountered during the transition. Update your internal processes to align with the new EOR’s operations, creating a smoother experience in the future.
Regular reviews, feedback collection and thorough documentation will help achieve long-term success with your new EOR provider.
Conduct a Legal and Financial Audit
Conducting a post-transition audit promotes compliance and financial integrity:
- Final Audit: Perform a legal and financial audit to confirm all obligations with the previous EOR are met and the new EOR is fully compliant.
- Ongoing Compliance Monitoring: Set up ongoing compliance monitoring with the new EOR to advance long-term success.
Regular audits and monitoring are essential for maintaining compliance and financial accuracy.
Are you ready for a new EOR partner?
Switching to a new EOR provider is a significant decision that can impact your business’s success. It’s worth taking the time to evaluate whether your current EOR arrangement truly supports your company’s global ambitions and meets all your needs. The right EOR partner is out there—one that offers the expertise, flexibility and support you need to succeed.
It all starts with a conversation. Take the first step today by reassessing your current EOR arrangement and exploring other options. By choosing the right partner, you can unlock new opportunities, drive growth and manage global talent seamlessly.
Contact us to talk with an international HR expert about how GoGlobal’s EOR and cross-border solutions can support your business goals.