Many business owners have utilized the services of a staffing agency, however most may not be familiar with the benefits of an Employer of Record (EOR) and how they work. One key difference is the full scope of services offered by an Employer of Record (EOR). While a staffing agency can match employers to employees, an Employer of Record takes on a much greater ongoing responsibility. Although a staffing agency brings a new full-time employee or a temporary worker to a company’s door, an EOR manages the administrative elements of that relationship on an ongoing basis, taking on the vast majority of human resources and personnel functions.
From both a tax and insurance perspective, an EOR takes on the role of a company’s official “employer.” Beyond processing payroll and direct deposit funding, an Employer of Record handles tax deposits and filings. Also, much like a staffing agency, an EOR can also handle all pre-employment screening, including background checks and drug tests.
Working with an EOR = Freedom to Do Your Company’s Real Business
Working with an Employer of Record means that a business owner no longer needs to get lost in the nuts and bolts of managing the HR side of the business. Moreover, Employers of Record address and mollify employee complaints. If employees do not fit in with a company’s culture and prove detrimental, an EOR will perform terminations as requested. As a result, executives and top managers can focus on what they do best: Growing profit streams and expanding the company’s external business interests.
Employer of Record: Responsible on Paper, Provides Service in Reality
Although an Employer of Record appears on paper and from a liability perspective as the official “employer” of a company’s employees, it is paramount for business owners to understand that an EOR is a service provider at heart. The goal of an EOR is to provide services to business owners that save them money and time. By taking on HR management and personnel functions, an EOR delivers freedom and focus.
An EOR is not only there during the recruitment and selection process, but remains a partner throughout the employment process, continuing the management process from day one through the end of the employment life cycle.
Therefore, it makes sense for employers to consider working with an Employer of Record. For an employer, partnering with an EOR means outsourcing benefits and HR administration. Such outsourcing leads to significant savings when it comes to both the financial bottom line and the clock. After all, as a business owner, your time is extremely valuable and therefore needs to be protected.
An EOR Optimizes the Potential of Each Employee
Furthermore, through training options both during the onboarding process and throughout the employment lifecycle, an Employer of Record expands on employee talents. An added goal of an EOR is to improve the value quotient of each employee. By being experts on both in-person and virtual training options, including online modules and the latest employee development software, an EOR can optimize the productivity of your employees, thus improving your business in the long run.
When you consider all of the options, working with an Employer of Record makes a lot of sense, given the fast-paced, unpredictable nature of today’s world. To learn more about how an EOR can help your small to mid-sized business, please contact Strategic Contracting Services today.