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Undoubtedly, the 2020s will be remembered as the decade that mainstreamed remote work and global workforce rise. Spectating the current trends, we can see that establishing mixed teams proved itself as a viable approach that will last for years in the business world.
However, there is a catch: global hiring complicates things for HR, legal, and accounting. Your team needs to navigate the legal intricacies of the countries you are hiring for, ensuring that everything is compliant. Many companies outsource this scope to Rippling and other EOR platforms that will gladly take care of these responsibilities. And while such providers might be helpful, sometimes, you should consider other options, and in this article, we will review why.
Rippling is one of the popular providers of compliance and payroll services for international hiring. They offer a comprehensive suite of services from employer-of-record, contractor hiring, risk shielding, and background checks, relieving their clients from burdensome legal liabilities.
However, before signing up with Rippling or any other EOR platforms, you need to understand one important thing: these are self-service solutions. You receive access to a truly powerful tool to effectively manage global payrolls, taxes, benefits administration, health insurance and retirement benefits, but it won’t do everything for you. You still need to figure out how it works and dedicate your time and efforts to control the operations.
The EOR platform allows you to set everything up independently, which can streamline the processes, but it also means that you don’t have a dedicated consultant who can guide you through complex issues or check the correctness of processes. If something goes wrong and there is a mistake, e.g., your developer from another country didn’t receive their compensation in time for unknown reasons, you need to contact support and bring them up to date. Of course, this will also take some time and delay the problem resolution.
At the same time, EOR platforms usually have very little space for customization. In your inquiries, you are limited by the default platform functionality, which is rather generic. Limited customization here means that you have, for example, one healthcare plan, a pre-made template for invoices, etc., which you cannot change to match your internal requirements and standards. This can make your experience with EOR platforms somehow disappointing.
So, let’s sum up: while being loved by many companies, Rippling, and other EOR platforms might not be the match for your business. If you want to fully delegate legal and payroll scope when hiring international developers, we suggest you consider the other option.
The market is full of other EOR providers who can help you navigate the difficult world of international hiring, and TurnKey Staffing is one to stand out in this field.
We are a 1-shop stop company that offers a 100% custom approach to every client. You don’t need to adjust, as you would do with EOR platforms — we are adjusting to your processes and tools (we can use them by your requests, by the way), ensuring worry-free payroll, compliance, and tax.
So how does TurnKey’s EOR service work?
When you start cooperation with TurnKey and hire offshore software developers with our help, you also receive a robust legal and employment backup. Our legal team has set up all the mechanisms in place to mitigate any potential risks of hiring offshore and continually monitor changes in the law in each country to eliminate any exposure. We also connect you with a legal counsel, who will be in permanent contact and ready to answer any of your questions.
We also ensure full protection of your IP: every developer we custom recruit for your company signs an agreement that assigns all IP rights to you. Of course, every contract is aligned with the local laws of the country the developer is based.
We also free you from any administrative hassle that eats a huge chunk of your time. You don’t need to do any paperwork for payroll, accounting, taxes, or compliance for your offshore hires — TurnKey’s dedicated teams do everything that is needed. You only get one monthly invoice that covers your developers’ compensation and a flat fee for our services – that’s the only thing you need to take care of yourself.
We don’t use a one-size-fits-all legal approach – we always come up with a custom solution that will match our client’s needs on the highest level possible. We are here to handle any legal or employment concerns of offshore tech hiring, so you can focus on what really matters – expanding your company, building top-class software solutions, and exploring new business opportunities.
Get a strong legal backup when hiring offshore developers
For a deep legal dive into the subject, we asked our general counsel Irina Fesenko to explain the comparison between the services provided by EOR platforms and boutique companies like TurnKey.
“One significant limitation of EOR platforms is their inability to accommodate specific amendments to Master Service Agreements (MSAs). While these platforms offer standardized contracts, the lack of flexibility prevents customers from redlining or making unique updates to meet their individual needs. TurnKey, on the other hand, recognizes the diversity in business requirements and allows clients to tailor contracts ensuring that the contractual terms align with the specific needs of our clients. This is a game-changer for businesses with industry-specific requirements, additional security needs, or confidentiality clauses that demand customization.
When examining the MSA proposed by such platforms, the absence of provisions for tailoring to individual needs becomes evident. TurnKey, in contrast, empowers clients to enhance their contracts to reflect their distinct business considerations.
One noteworthy issue with EOR platforms is the non-compete terms they offer, typically set at a blanket duration of 6 months. This can pose a significant risk as the platform’s recruitment team or their group companies with recruitment capabilities may approach the talent hired by your business after the non-compete period ends. This opens the door for these platforms to leverage the information they possess about your talent, creating a potential conflict of interest. TurnKey Staffing, however, avoids such pitfalls by providing a dedicated team to address concerns, fostering a more transparent and trustworthy partnership.
Furthermore, the absence of a responsive support system within EOR platforms can be a significant drawback. Clients and candidates alike may find themselves with unanswered questions or concerns, as these platforms lack dedicated specialist teams to address specific queries, you will speak either to the customer support manager, or to the sales manager who will reply with template answers they have in the database, but never to a legal or HR specialist that knows everything about the local regulations and local mindset. In contrast, TurnKey ensures that both clients and candidates have a dedicated team available for communication, allowing them to discuss concerns, seek clarification, and negotiate terms as needed. Our commitment to open dialogue enables a more collaborative and mutually beneficial working relationship.”
When you face the question: “What vendor to choose for global payroll and EOR services when hiring an offshore team?”, we suggest you explore different options instead of choosing the mainstream EOR platforms on the spot. While Rippling and similar platforms are strong options, you can struggle with the lack of tailoring, and this might play a bad joke for you in the long run.
On the contrary, a boutique-like approach of TurnKey Staffing provides you with a lot of space for customized requirements and a responsive support system, which guarantees that your experience will be smooth and worryless. Take the world our clients for that.
An EOR platform, standing for "Employer of Record," is a service that allows businesses to employ individuals in a different country without having to establish a legal entity in that country. Essentially, the EOR platform acts as the legal employer on behalf of the client company. This includes handling all local employment-related legal compliance, payroll, taxes, and benefits for the employees.
EOR platforms are particularly useful for small to medium-sized enterprises (SMEs) or startups that want to test new markets without significant investment or long-term commitment. They also benefit larger corporations looking to streamline their international employment processes.
Choosing a boutique Employer of Record (EOR) provider over a larger, more standardized EOR platform can offer several distinct benefits, particularly for businesses with specific needs or those looking for a more personalized approach:
Personalized service. Boutique EOR providers often offer more personalized service compared to larger platforms. This can include tailored solutions that better fit the specific needs of your business, particularly if your industry or employment needs are unique or complex.
Flexibility and customization. Smaller, boutique providers may offer more flexibility in their services and be more willing to adapt to the specific requirements of your business. This can be especially advantageous when dealing with complex employment scenarios or in countries with intricate labor laws.
Local expertise. Boutique EOR providers often possess deep knowledge and expertise in specific regions or countries. This local expertise can be invaluable in navigating the nuances of local employment laws, cultural practices, and business norms.
High-quality relationships. With a boutique provider, you are more likely to have direct access to senior experts and decision-makers. This can lead to stronger business relationships and a deeper understanding of your business goals and challenges.
Niche market focus. If your business operates in a niche market or has specialized employment needs, a boutique EOR provider might have more experience and better-suited services for your industry.
Quick and agile response. Smaller EOR firms can often respond more quickly to client needs and changes in local regulations, providing a more agile service compared to larger, more bureaucratic organizations.
Competitive pricing. Without the overheads of a large-scale operation, boutique EOR providers can sometimes offer more competitive pricing, while still maintaining a high level of service and compliance.
TurnKey provides comprehensive administrative support with offshore hiring, focusing on removing the complexity and legal risks associated with finding, hiring, and paying tech talent in Eastern Europe and Latin America. Here's a summary of the key administrative supports TurnKey offers:
Legal support and risk mitigation. TurnKey shields clients from employment and tax liabilities, ensuring no legal exposure. They handle all legal aspects of offshore hiring, including ongoing monitoring of legal changes in each country to prevent any potential risks.
Compliance assurance. The service ensures that your offshore team is fully compliant with local employment laws and tax regulations. This compliance is critical for businesses to operate safely and legally in foreign markets.
Intellectual Property (IP) and confidentiality. TurnKey guarantees that all intellectual property developed by your offshore team is legally yours. They achieve this by having team members sign agreements, based on local laws, that assign all IP rights to you. Additionally, comprehensive background checks are conducted on all candidates to ensure reliability and trustworthiness.
Simplified administration. TurnKey simplifies the administrative process by handling all aspects of employment. This includes legal, tax, pension, benefits, compliance, payroll, and accounting. Clients receive a single monthly invoice for their entire team, eliminating the hassle of managing multiple administrative tasks.
Customization and flexibility. Recognizing that every country is unique, TurnKey offers flexible solutions tailored to the specific legal environment of each offshore location. This approach ensures that the services provided are appropriate for the specific requirements of the country where your offshore team is based.
Complete coverage in target regions. TurnKey has extensive coverage across Eastern Europe and Latin America, offering a wide range of support for businesses looking to hire in these regions.
TurnKey handles global payroll as part of its comprehensive Employer of Record Services, which are designed to simplify and secure the process of hiring and paying tech talent in Eastern Europe and Latin America. Here's how they manage this process:
Legal and tax compliance. TurnKey ensures that all payroll activities are fully compliant with local employment laws and tax regulations in each country. This involves staying updated with the changing laws and regulations to mitigate any potential legal or tax risks.
Simplified billing process. Clients receive one monthly invoice for their entire offshore team. This approach consolidates various payroll-related costs (like salaries, taxes, pensions, benefits) into a single, manageable expense, reducing administrative hassle for the client.
Handling of all payroll-related activities. TurnKey takes care of the entire payroll process, including legal, tax, pension, benefits, compliance, and accounting. This comprehensive service means clients don't have to worry about the intricacies of payroll management, especially in the context of international employment.
Customized solutions for different countries. Recognizing the uniqueness of each country's legal framework, TurnKey offers flexible payroll solutions tailored to meet the specific requirements of each location. This flexibility ensures that payroll processing is always in line with local laws and practices.
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