Cross-Border Employment is More Than Just International Banking Transfer
Why don’t all remote jobs welcome international applications?
• The importance of employment contract to hire overseas talent
• Potential employment risks that employers and employees should know
• How an Employer of Record is a more cost-efficient solution with better risk management
🌏Understanding Global Mobility and Cross-Border Financial Issues
In this day and age, job boards are more accessible than ever. Technology has connected us to more opportunities beyond borders. But have you ever come across a job opening that specifies only hiring within the company’s state or country despite providing remote working options? To you, often you might be thinking; why couldn’t the employer just wire the wage and salary directly to your bank account? To the extreme, you might also start to question if your race, gender, location, give you disadvantages and that you don’t have the capacity to perform the role simply because you are not located within their country base.
If you ever have those questions in mind, you should know that it has nothing to do with your attributes as someone coming from the outside of the hiring country.
These complexities tend to grow manifold when an organization’s geo-distribution requires managing payroll services across multiple countries. So, you need to know the bitter truth that hiring overseas is complicated. Despite abundant opportunities, legal employment does acknowledge borders.
🏢Enterprises and Businesses Perspective
To the employers and enterprises, there are some other factors that need to be taken into consideration when hiring overseas talent, aside from just international bank transfer. From the perspective of enterprises, there are actually a lot of potential risks involved in the entire employment process, ranging from compensation for work-related injuries to death at work (similar regrettable incidents have occurred in the past). The challenge is finding the balance between cost savings, protection, motivation, and remuneration of employees and observing obligations.
Through compliant hiring, companies not only protect you but also themselves from potential negative issues that might arise in the future, including intellectual property disputes, data leakage, local labor regulations, and other issues. If the employer hired you under another contract by enterprise contract, the risk will be difficult for enterprises to control. Especially under the cross-border remote labor services, things will become even more complicated.
➡ Outsource Employment Risk to EOR Service
Companies with sound internal management processes and risk awareness generally seek third-party assistance to provide services like EoR where the company will partially outsource their human resource management function to manage your remote employment. From the perspective of enterprises, the service fees that the company pays every month are, to some extent, transfer any possible employment risk that might occur.
Simply put, when the enterprise is leveraging EOR service, the above risks mentioned are transferred to third-party companies. EOR, as experts in the local country, provide a framework that both the employer and employee work within which doesn’t break any rules.
This is why third-party companies that provide EoR services generally require more accurate information to provide quotations. The EOR service provider will be able to assess any possible risk through the information provided. After all, different job positions carry completely different work risks. And different industries will also carry different types of risk factors.
Let’s take a look at the following picture that briefly illustrates the service structure provided by Slasify for multinational employers and remote workers. Employers have transferred the employment and the human resource management of a particular group of talent (especially foreign talents) to Slasify. This also automatically means that Slasify will take full responsibility for any future foreseeable risk that will occur regarding the employment.
Through this employment model, the employer still has 100% control over the remote talent, just as how it would be when the talent is employed directly by the company. The only difference would be now that the risk from the employment will be handled by Slasify.
From the employee’s perspective, the employment process might entail only as simple as sending and receiving wages between the employer and the employee. But it is actually more complicated from an employer’s perspective as an enterprise owner. Through this article, we hope to shed some light on certain employment matters that are not always made known by the employer such as risk management, especially when employing overseas talents. EoR works for businesses looking to truly go global. Slasify as an EoR expert, can simplify your needs to test local markets and access international talent. Slasify will take care of any legal and tax compliance risks, to streamline the entire onboarding process as fast as 48 hours for you and your enterprise.
Interested in expanding your team globally and accessing the global talent market? Connect with Slasify. Leave your inquiries here to allow us to help you assess your employment risk.
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Slasify is designed for remote worker. We provide payroll calculation, social security payment and tax filing in more than 150 countries around the world, allowing business owners/talents to seamlessly connect with the world. We have practical experience in serving the world’s top 100 companies. If you have relevant needs, please feel free to contact us.
In addition, if you are a “remote worker” or are on the way to becoming a “remote worker”, and if you want to know more about it, you are welcome to visit Slasify’s website. If you have any questions, you are welcome to write an email to us!
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