Imagine one of your top employees pulls you aside and has news for you. They let you know that they are going to have to move out of state, and they are they want to work remote. They ask you if they can keep their role with the company, but you are unsure. So many questions need to be answered in order for you to be able to keep them on board. This is especially true because the costs of losing an employee can cause many problems that will reverberate throughout the company. “The cost of replacing an individual employee can range from one-half to two times the employee’s annual salary”, according to this Galup survey. In this age of technology, each company should have a way to keep their employees no matter where they decide to physically work.
Questions to answer when an employee is moving:
- What state are they moving to?
- Is your organization set up to employ people in that state?
- How high is the tax rate in that new state, county, city?
- Are there any employment laws in that location that we are unfamiliar with?
- How long will it take to get set up in that new state? Do we have that much time?
Many HR Leaders are struggling with these questions due to the rise in remote work. COVID-19 created a new environment for workers that wanted to work from anywhere. Many moved to new cities, or just started traveling the country as they worked. In fact a recent Gartner survey found that “82% of company leaders plan to allow employees to work remotely some of the time”. However, the rise in remote work has caused a myriad of issues for employers who are trying to remain compliant with ever changing employment laws.
Retaining your top employees is a goal that most HR leaders have. Solving attrition issues is difficult already, but adding the growth of remote work is making it even more difficult. This is especially true in departments such as accounting, software engineering, human resources, sales, and any role that requires only an internet connection for workers to perform their roles.
Employment and Legal Requirements
When an employee moves, and their employer retains them, the company needs to ensure that they understand how to handle all the legal, tax, and employment requirements in their new location. Crossing state lines can create a big difference. The overall cost to employ the employee can go up due to higher taxes, mandatory sick time laws, or other burdens. Some states also require new trainings like Sexual Harassment training, which is required in states like New York. That’s not all, there many requirements that might be different from the company’s home state that employers will need to be prepared for.
Legal and Financial burdens of employment
- State, County, and City employment registration and compliance
- State, local, and federal tax calculation and remittance
- Insurance and benefits for the relocating employee
- Location specific trainings
- And more…
Many companies dealing with employees that are moving come to the realization that the above burdens may be too costly or time consuming. However, they still want to retain employees that are moving. This is when they start looking for solutions. Good news is that there is a solution!
How an Employer of Record can Help
For HR leaders, an Employer of Record (EOR) like FoxHire can be the solution to retain employees that want to move away, but also want to stay with the company. An EOR will take care of the above requirements so that HR leaders can simply focus on limiting any disruption caused by employees moving. The key to this being possible is that the EOR becomes the W2 employer of the employee that is moving. This allows them to take care of the above employment and legal requirements.
Having an EOR partnership allows HR leaders to deliver good news to employees that are moving. Not having to worry about the above tasks ensures that HR leaders can focus on keeping vital employees in their positions so that the company can continue to be successful. Without an EOR many HR leaders are forced to let high performing employees go to competitors and on to new jobs. Figuring out how to become an employer in every state, managing the changing tax requirements, and navigating new legal requirements is typically too difficult and time consuming for HR leaders to do once they know an employee is moving. At that point, many HR leaders find that it’s too late. That doesn’t have to be you! You can retain your employees by simply beginning a partnership with an EOR.
FoxHire is a technology-enabled Employer of Record (EOR) service designed for staffing firms, recruiting firms, and corporate HR Departments. FoxHire’s HR services are all leveraged through a cloud-based portal, which allows users the ability to quote, on-board, and track employee metrics.
FoxHire handles everything necessary to employ temporary, contract, and other employees including onboarding, payroll funding, payroll administration, benefits, insurance, time and attendance, invoicing, collections, and more through the FoxHire platform. A team of HR professionals guide each candidate through the onboarding process as they complete onboarding steps through their own FoxHire portal.