Why choose EOR service when expanding the market
To reduce the burden on internal human resource management, while improving compliance with specific labor management rules of each country, the priority choice of businesses today is to turn to outsourced human resource services. A typical example of this is the EOR service group that S4B Vietnam will mention throughout the following article.
1. What is EOR?
EOR stands for Employer Of Record Service – roughly translated as Human resource management service with labor contract. This service is provided by companies specializing in consulting, human resource management, also known as HR outsourcing service companies.
Once a business chooses EOR service, it means that the business submits its human resource search request to the service company and entrusts the service company to carry out recruitment work as well as manage and pay salary, benefits, insurance, work permits, etc. for the recruited employees.
After that, the EOR company will re-hire that employee to the business. Thus, the business still owns the working capacity of the newly recruited employee without having to worry about any legal issues related to the management and benefits of that employee.
Employer of Record (EOR) vs. Subsidiary: Which is Better?
>>>Read more: Employer of record enables businesses to effectively manage their workforce
2. Why should you choose EOR service when expanding the market
EOR also belongs to the group of forms of human resource outsourcing, but the scope of specialization of EOR is mainly aimed at:
2.1. Continuously update local labor laws
EOR takes on the role of guiding and supporting businesses to ensure that they do not encounter any errors, complaints or lawsuits regarding human resource management between them and their employees. Therefore, being proficient in every aspect of local labor laws is the top standard that EOR must ensure.
2.2. New employee management
After the business finds a suitable new employee, EOR will support the business in managing the labor contract and all necessary procedures so that the new employee can start working at the business in the most legal and convenient way. Thus, the business will do the talent hunting and recruitment interviews, EOR will only accept the selected employees and manage them on behalf of the business.
2.3. Paying wages, tax obligations
The relationship between employees and employers will arise issues regarding wages, insurance, taxes, etc. according to the regulations of the country where the business operates. Therefore, the payment of wages and benefits for employees will be undertaken by EOR, this is certain. But it does not stop there, the taxes or insurance that the business must pay to the local authority when employing that employee will also be managed and completed by EOR in accordance with the law. The business does not have to worry about anything.
2.4. Managing benefits, compensation, and contract termination
EOR will receive and handle everything related to employee benefits, including benefits (leave, housing, transportation, medical examination and treatment, etc.), compensation (injury, damage to personal property, etc.), or procedures for terminating the labor contract (due to self-resignation, dismissal, etc.). Any problems that arise with employees, businesses just contact and forward to EOR.
3. Which businesses are suitable for EOR human resource outsourcing?
Foreign businesses that need to recruit workers in the host country are the most common customers of EOR services. Because when foreign businesses invest in Vietnam, their primary concern is the core production opportunities to seek profits for the entire enterprise.
Therefore, they will spend a lot of time researching investment policies and long-term professional development opportunities. As for human resource management issues according to Vietnamese labor law, they can still do it themselves but it will take a lot of time and money, so choosing EOR is the most perfect solution. Typical example:
The Definitive Guide to Employer of Record (EOR) Services
A business headquartered in the US proactively hunts for talent, interviews and recruits. After that, they will sign a contract with EOR in Vietnam to manage the employees that the business has successfully recruited.
These employees will work in Vietnam for US companies, and EOR Vietnam will be responsible for paying and handling all legal issues and employee benefits. Therefore, US companies do not have to worry about violating labor laws in Vietnam, they only need to focus on investing in expertise for employees to complete their work tasks well.
4. What should businesses pay attention to when using EOR?
Talents will contact and discuss with EOR more about human resources benefits, while these benefits are important factors in the decision of employees to stay or leave the company.
To ensure satisfaction in the employee experience, secure talent retention and develop a sustainable recruitment brand, choosing a quality EOR provider with rich experience in the industry in which the business is operating is very important.
S4B Vietnam finds that the choice of outsourcing human resources in the form of EOR is very suitable for medium and large-sized enterprises, especially multinational enterprises. Complex legal issues related to employees – including political impacts – will be continuously updated and fully handled by the EOR company, ensuring the best compliance with all legal issues so that employees and enterprises can feel secure in long-term cooperation.
If the audiences still have any concerns about this topic, please contact S4B Vietnam for consulting service for EOR
S4B Vietnam
- Address: Unit 602A, Tower A, Handi Resco Office Building. 521 Kim Ma Street, Ba Dinh District, Hanoi
- Tel: + 84 24 3974 4181
- Email: service@s4b.com.vn
——————————————–
We Will Show You The Way To Success!