Businesses can count on one thing in when it comes to the economy: change. But uncertainty brings with it a promise of opportunity if they remain flexible in their thinking and planning. Being able to pivot can help avoid the turmoil of disruption — an essential ability in a rapidly moving marketplace.
The recently released “Workforce Solutions Buyer Survey” results indicate that for companies looking to lead, budgeting and onboarding remain primary focuses. A full 14% of participants said keeping costs in check was their top priority, while 18% wanted to fill their seats with incredible people more than anything else. However, keeping an eye on fiscal matters while bringing in superstars can be daunting, particularly when it’s tough to predict what the future might hold.
For this reason, businesses determined to meet the demands of tomorrow are protecting their businesses by generating plans for the future based on the information they have in the present. Often, an outcome of this planning includes partnering with an employer of record (EOR) to avoid sudden outlays of cash while simultaneously attracting and retaining high performers.
How managers can effectively plan in today’s dynamic environment
So how can you proactively shield your operations from unpredictability by using EORs to your advantage? Several key practices can help:
1. Allow the EOR to employ your talent.
Once companies recruit and find their exceptional candidates, EORs can help bring them into the business by handling a variety of tasks, from managing their benefits and compensation packages to dealing with unemployment and workers’ compensation claims. EORs have the internal structure to take on these responsibilities on your behalf, which can offer you an added layer of protection and peace of mind.
Best of all, they can help you avoid shelling out unnecessary cash to cover employment practices. At the end of the day, an EOR does the hard work of dealing with risks and standardizing onboarding for you while your organization retains the ability to choose the best of the best temporary, full-time, part-time, and contingent workers.
2. Give EORs the ability to customize pay and benefits.
Companies ultimately decide what workers will be paid, but EORs can provide information to help companies figure out salaries and perks. EORs can tailor compensation packages to specific roles, presenting a win-win result for both the business and employees.
And in the case of temporary or gig economy workers, having this kind of personalization can be advantageous. Hiring an EOR helps you avoid altering pay and benefits structures by instead leaning on its model.
3. Offload formal onboarding and offboarding duties to the EOR.
Bringing in new employees, training team members, and even letting go of personnel can be time-consuming and pricey. An EOR with a proven track record can take on these tasks, effectively serving as a third-party arm of your HR department. This option can be particularly useful if you want to recruit talent in states or countries where you’re not registered but the EOR is.
4. Test scaling into international waters by working with an EOR.
Organizations looking toward the next few years may want to expand into foreign markets. Not only is taking the sudden plunge potentially risky, but it can also cost a lot to get up to speed. If an EOR is already comfortable working in another country, you can rely on its expertise to test new territory. For instance, if an American company wants to move its operations to Canada, it can set up an office with the assistance of an EOR that’s familiar with Canadian laws, regulations, licenses, and other concerns.
5. Ask the EOR to play a consultant role.
From knowing the most reliable workforce retention strategies to knowing how to align workforce strategies with business objectives, EORs have a wealth of knowledge to share. Their boots-on-the-ground education makes them an incredible resource, and businesses should avail themselves of the consultation services they offer. A great example would be a startup exploring 401(k) options for some but not all of its people. To avoid being discriminatory, the startup might need to see how other organizations have successfully worked through an EOR’s 401(k) package to offer plans that meet ethical and legal standards.
Businesses can’t anticipate every change the future might bring, but with forethought followed by actions, those changes won’t seem so abrupt. Establishing a lifeline with an EOR can be a great way for you to strategically plan in a dynamic environment that will invariably shift.
Check out this blog post to learn more about how working with an EOR may be the right choice for you.
