Today’s guest blogger is Javier Romeu, business development manager with Capital Consulting. Javier’s background includes experience in general operations, sales, business development, marketing and profit and loss (P&L) management, with focus on international markets. Capital Consulting offers Employer of Record and Agent of Record services for temporary and contract personnel, placed by independent recruiters and staffing companies choosing to outsource human resources and payroll processing responsibilities. Independent recruiters utilize Capital Consulting’s services to expand their business to include temporary and contract placements.
Is your workforce being deployed globally also being managed legally & compliantly?
The use of contingent labor and local workers in international markets has been on the rise in recent years, due to both globalization as well as a response to the unstable global economy.
Recruiting, hiring, and onboarding local workers in countries where an organization may not have local entities, payroll processing, ongoing HR management, and implementing compliant solutions are not easy tasks. Finding a partner who can help is a tremendous asset. Capital Consulting has experienced payroll professionals who have been working hard developing multinational payroll solutions. We have also gained unprecedented levels of knowledge relating to local regulatory bodies, dealing with complex payroll calculations and understanding cultural differences. We can provide contingent labor solutions to facilitate global expansion, even without setting up a legal entity in the foreign country. Our business model is similar to a worldwide PEO (professional employment organization) offering the Employer of Record solution.
Employer of Record (EOR) solution
If your company or your client cannot yet justify the cost of setting up a local subsidiary (with its HR department, benefits, and many other pieces of today’s employment puzzle) in Latin America, you may wish to consider global employment outsourcing . Instead of a simple payroll company, choose the Employer of Record solution. Legally, a local provider is the employer of your employees, whom you essentially rent. You, the client, recruit your people and set the pay scale. The Employer of Record handles benefits – as stipulated by local laws – and employee taxes and reporting. The EOR solution allows your clients to assess the market in the growing economies of Latin America by having their own dedicated people promoting their products and services, without having to set up a local company until they are ready to establish permanently.
The EOR solution offers the flexibility of working in a foreign country without establishing a base locally, but with the assurance that the administration, tax, and social security are being managed efficiently and in full compliance with relevant legislation, allowing you to concentrate on your core business. With our worldwide PEO services, we work hand-in-hand with recruitment agencies and clients, providing a compliant set of solutions beginning with the need to hire a local or foreign worker, right through the worker’s employment contract and, if needed, eventual termination. We guide our clients through the process step-by-step to ensure full compliance with existing labor laws.
8 Reasons to Consider Global Employment Outsourcing
- Quickly deploy your workforce around the world. Hire one employee or a global team without establishing local entities.
- Mitigate global employment risks. What makes global employment risk management such a challenge is the lack of local information about individual countries. The regulations are often only written in the local language, the social costs and tax calculations are foreign and sometimes very complicated, and diverse cultural and business practices are sometimes difficult to navigate.
- Onboarding, HR issues, and termination managed by a team of multilingual professionals.
- Gain easy entry into new markets, with streamlined processes that lower your costs.
- Have better control over your international business employment investment by knowing and budgeting your costs in advance.
- EOR solution provides you with all the payroll functions of an international employer, managing payroll services for employees and contract workers, both expatriate and local.
- Paying salary promptly at the end of each month, and reimbursable expenses on receipt of funds.
- Calculating the income tax and social security due and ensuring that the correct amounts are remitted to the relevant authorities, plus ensuring full compliance with local regulations.