Teresa Lewis
Ireland Country Representative & Business Development Co-ordinator, Mauve Group
Fliss Sykes
HR Advisor, Mauve Group
Employer of record is helping businesses attract the best talent from anywhere in the world, while supporting better work-life balance – a win-win for companies and staff.
For many businesses, the term ’employer of record’ is something of a mystery. “Not everyone fully understands what an employer of record (EoR) is, or does,” admits Teresa Lewis, Ireland Country Representative & Business Development Co-ordinator of Mauve Group, a provider of global HR and employment solutions and expatriate services. “On the other hand, the services that an employer of record provides are becoming more prevalent in many business quarters.”
Lewis believes that the popularity of EoRs is only going to grow, which is why she is on a mission to demystify the term. Essentially, she says, any company that wants to engage workers in new global markets should consider engaging the support of a third party employer of record organisation. This employment model helps them avoid the unnecessary risk and cost of having to establish an entity in those markets themselves. Instead, it’s the EoR’s role to onboard employees in foreign countries with compliant employment contracts, and then support all of their HR, payroll and tax needs.
However, it’s also important to define what an employer of record is not, says Lewis. “An EoR is not responsible for the day-to-day management of those workers,” she points out. “That remains the company’s job.”
Getting businesses into new markets rapidly and cheaply
Mauve Group provides EoR services to businesses of every size, from sole traders through to multinational corporations. “EoRs can be used in different ways,” says Lewis. “For example, an SME might only need to use our services for one worker testing out a new location. Whereas multinational organisations might use us across multiple job functions and regions – to ensure that they are complying with the labour laws of the country in which they are operating, that they have the right HR information and that all of their employment contracts are correct.”
EoRs get companies on the ground in new countries rapidly and cheaply, so no wonder they are particularly popular with small to medium-sized businesses that may lack the financial and personnel resources (not to mention local knowledge) to perform certain functions themselves. “It’s a huge undertaking to set up a branch in another country,” says Lewis. “It can take months in some cases. However, an employer of record solution can be up and running within two to four weeks, which is a huge time-saving.”
Finding the best talent from anywhere in the world
Another big benefit of using an EoR is that businesses are able to fish in a much wider talent pool. “A key challenge for organisations in Ireland is the skills shortage in their home market, which is affecting their ability to deliver,” says Fliss Sykes, HR Advisor, Mauve Group. “With an employer of record, they are able to widen their search and find staff who can work for them remotely and flexibly from anywhere in the world.”
That flexibility also promotes equality of opportunity and better work-life balance — which, in turn, means happier, more productive staff. “Companies have realised that to entice new talent they need to be more flexible and adaptable – and offer the best benefits and packages,” says Lewis. “For instance, it’s important for marginalised groups, working mothers, or parents who want to spend more time with their children to have the opportunity to work flexibly, remotely or in a hybrid way. That’s what an employer of record facilitates, maximising opportunity for the worker and for the company. It’s a win-win for both.”
While an employer of record can help an organisation expand globally, one challenge that remains is increasing awareness of the value the services can provide to growing companies. Lewis says: “Once they engage with a trusted company, they will immediately see the value of an EoR partnership, and how it improves their compliance and international processes. It’s the future of work.”
