One positive thing to come out of recent times is the realisation that you are no longer limited to just one pool of potential hires as an employer. Gone are the days where your employee catchment area is dictated by the geographical location in which your business is based.
You can now look for the best employee globally, which can ensure that you secure the strongest possible people for your company or project. This new era of technology-based remote work we are experiencing has created golden opportunities for employers, but it’s not without its challenges.
Operating as a company in one country and employing staff in another invites many legalities, lots of effort and sometimes even problems. Managing taxes, governmental costs, liabilities, and other bureaucratic processes can be tricky enough for local entities, let alone foreign businesses looking to strengthen their workforce.
If you are running a business and you want to have the option to hire employees all over the world, without HR and payroll hassles, then an Employer of Record (EOR) service might suit you.
What is an Employer of Record service? Why should you use one? How will it make life easier? Below you can read more about this model and why you should choose Swapp Agency as your Employer of Record (EOR) provider in Iceland.
What is the Employer of Record?
In its most simple terms, an Employer of Record or EOR is any third-party entity that will handle all the employment-related tasks on behalf of another business. An EOR will handle all the taxes, employer’s costs and all other things related to the employee.
This is attractive to an employer because this powerful tool allows your company to put more focus into managing an actual project rather than having to spend the time setting up an employee infrastructure.
It’s like hiring other companies to take care of these details for you. Payroll, HR, onboarding can all be outsourced in a situation like this; the main difference is that an EOR is the complete all-in-one firm to facilitate this.
Say, for example, you are with a company based in the US, and you are looking to hire some people from Iceland to take part in a local project. Everyone knows how time-consuming it can be to hire within their own country; imagine how much more time consuming it’s going to be internationally.
First, you need to figure out how to find the employees, hire them, figure out the tax system (which in Iceland can be so complex locals have joked that even the tax department doesn’t know how it works) and a myriad of other tasks before you can even get the project off the ground.
In this scenario, you could engage the services of an EOR, and they can take care of this for you. An Employer of Record will source the staff from their pool of candidates, take care of taxes, payments and HR. Your project will be able to commence much faster than if you had to take care of these elements in-house.
You will get the best talent available in Iceland without really having to lift a finger.
This is the easiest way to hire employees worldwide.
What is the Role of the Employer of Record in Iceland?
An EOR in Iceland or any other country will generally handle the following things; however, the specifics can vary depending on the firm.
- They are a registered entity that will handle all taxes, payments, and other financial elements regarding employees.
- They will meet with representatives from all the countries involved with the project and ensure you follow each country’s legal specifications when making your deals.
- They will handle all the notice periods, termination rules and can also address the payments and salary if you desire.
- They can say that they act as a host country between the employee and the law.
- They maintain all insurances and permits necessary for your project.
- They will arrange all visa and work permit requirements if you need the employee to relocate to your office. They will also handle and issue all official forms.
- They will help you offer administrative benefits.
- They will assist with all employee terminations.
To put it simply, an EOR will handle all employee-related affairs for you. All you need to do is send them your requirements, and they will source you the best staff. An Employer of Record works like a bridge between your company, your base country and the employees you are searching for.
Why Should You Use an Employer of Record?
There are many benefits to engaging the services of an EOR to fulfil your employee needs. To break them down, it’s easier to group them into four main points.
No Local Incorporation
Even if you have the most enthusiastic and innovative team member in charge of recruiting, it can be virtually impossible to get results if you don’t have local incorporation.
Getting this can be time consuming, costly and can at times even difficult. It’s also not always necessary or cost-effective for a business to seek local incorporation for a project.
Using an EOR can eliminate the need for local incorporation. The employees are still your employees; you just don’t have to worry about the legalities.
Of course, if your business is looking to gain local incorporation, you can still use an EOR until your company has finished the process; that way, you don’t lose any time on the ground.
Laws and Rules
Every country has specific laws companies must follow when operating. Navigating local rules and regulations can become an overwhelming headache when all you want is access to a country’s available talent.
An Employer of Record is well versed in all legal regulations for employment at all times. Regulatory bodies are constantly changing guidelines for employers, and it’s vital that businesses are aware of them at all times.
Using an EOR will make sure all your dealings are entirely above board.
Payments and Payroll
This is one of the most important elements of any business. The last thing any company wants is the slightest upset to the payroll cycle. As an international business, it can sometimes be challenging to set up a payroll process.
Many countries require a business to become a local legal company to initiate payments. Some countries won’t allow remote payroll altogether.
If you are not able to register as a company in the country you are sourcing your employees from, an EOR is the perfect solution. They can handle all elements of payroll completely or just more minor aspects of it.
Time and Effort
Time is often the most crucial element to any project or business transaction. When you have decided that you would like to utilise a more global approach to procure staff, the last thing you want is for the process to be time-consuming and resource-draining.
An EOR is the surest way you can get you from your initial decision to hire in a foreign market to the completion of a project or the reaching of a business goal with the least time and effort required.
They know all the elements involved in getting you your employees so you can get the results you’re after.
How to Find an Employer of Record in Iceland
At the risk of sounding like we’re tooting our own horn, you’ve come to the right place.
Swapp Agency works as an Employer of Record in Iceland. Swapp Agency was founded a few years ago and has since helped numerous companies secure the best employees Iceland has to offer.
In the same way, Swapp has also helped many job seekers and individuals to land incredible jobs. We work with companies to understand their specific needs for the nature of business or project.
Swapp Agency was founded in Iceland and understands the complete workings of the local laws and labour requirements.
When it comes to a successful EOR, you need three things; the legal details, the employee base and excellent company communication.
Using Swapp Agency as your EOR in Iceland will ensure you have all three of these covered while receiving impeccable service that is second to none. We know the job market of Iceland and how to get the most out of it for you.
There was once a time when embarking on a foreign project was an endeavour only a handful of businesses had the capital, time and energy to undertake. Thanks to the interconnected world we live in and the innovation of things like Employers of Record, working on an international stage and recruiting abroad is a more levelled playing field.
If you would like to know more about EORs or would like to find out what Swapp Agency can do for you. Drop us a line.