If your company is hiring, being placed on the payroll of an employer of record (EOR) organization like FoxHire, offers some big benefits. But there are a lot of misconceptions out there about EORs versus other types of employee arrangements. This blog will help you understand the ins and outs of an EOR and how it can help your business.
What is an EOR?
EOR is a third-party company that assumes responsibility for sourcing, recruiting, and HR processes. These companies can handle everything from payroll and compliance to all the minute details of interviewing, background checks, and more. Many of these firms, like FoxHire, are licensed as employers in all 50-states, so smaller companies that lack a presence in some geographic territories, can still hire remote workers to do the job.
Some of the tasks an EOR can provide include:
- Sourcing, hiring, and onboarding new employees.
- All administrative functions related to hiring, no matter where the employee is located.
- Managing benefits including workers’ compensation, health insurance, vacation, retirement, and more.
- Managing payroll and payroll taxes.
- Employee management and supervision up to and including termination.
- Handles the expenses related to all of these tasks.
While the benefits of leveraging an EOR are high for the employer, how do you explain to a new employee how being placed on an EOR could also benefit them?
How Can an EOR Help My Hiring Practices?
If you have a small company, talking to a candidate about the benefits of working with an EOR is a no-brainer. Most EORs are larger organizations with many clients, so the candidate would be placed in a larger pool of employees than if they worked for your small company. That means they’ll receive big company benefits like health insurance and retirement—something that you may not even offer quite yet.
EORs are also experts at one big thing that matters to your workforce: Getting paid. Companies that are just starting out or that are smaller in size may have an office or HR manager that is pulled in a lot of different directions. HR may even still be handled by the owner of the business. If you are an employee, would you rather trust your paycheck to a company that does one thing really well or to an untrained small business owner or manager who may have too much on their plate?
EORs also benefit new workers because they can do business in states that companies may not have registered in yet. This allows these companies to use an EOR to build up a pool of remote employees that are best qualified for the job. That means even the smallest of companies don’t have to rely on a talent pool that is hindered by geography. If the job can be done virtually, an EOR can open the door to the best candidates no matter where they’re located.
Partner With the Best
FoxHire has a track record of helping companies like yours find, hire, and manage the best talent around the country. Talk with our team today about how we can help your business.