ntroduction
Technology is currently present everywhere and plays an important role in the success of almost every business. The necessity of IT staffing solutions which make businesses more efficient has become almost mandatory for every business.
Even when IT is not the core function or a profit center for the business, it plays an important role. However, forming a local IT team would be difficult or costlier. The trend within non-IT companies has been to outsource the IT work. This outsourcing culture also made some companies explore offshore teams.
On seeing the success of these offshore outsourcing work, some companies have started exploring more cost-effective ways. The search for a more cost-effective solution than outsourcing has been utilizing Employer of Record (EOR) service.
Knowing this upcoming trend, this blog is for non-IT companies wanting to build an IT support team with the help of an Employer of Record service. The blog explains how an EOR can be the most cost-effective solution in building the IT team for a non-IT company.
Challenges a Non-IT Company Faces While Building an IT Team
Hiring IT professionals, the cost of the IT team, and retaining the team are three key challenges in building an IT team in a non-IT company.
Since the company’s primary function has no relation with the IT industry, the preference is to build a small team with a small budget.
Retaining the IT talent in a non-IT company is a challenge as the staff needs to see a career path. In such situations, companies tend to outsource the talent. Since outsourcing can boost efficiency by up to 25%. However, outsourcing outside the country became a successful option for organizations. With time, forming a remote team with consultants appeared as a better option to save costs.
Why Form a Remote Team in Another Country?
Diverse Talent Pool:
A company gets access to a wider range of skills and expertise that may not be available locally. This brings different perspectives and innovative ideas to solve the problems.
Cost Efficiency:
As the country changes the cost varies for the salary expectations. According to Time Doctor, transforming to 100% remote work can save over USD 10k. A company can save a lot of money by saving on labor and other expenses.
24/7 Support:
A company can ensure continuous support and operations due to different time zones. It will help you gain customer satisfaction by reducing the response time and increasing the efficiency.
Expansion:
The expansion allows the company to gain knowledge about different markets, cultures, and customer behavior.
In terms of growth, It is always better to widen the boundaries of the business. However, forming a remote team in another country requires an entity which is a costlier option. Employer of record service can solve this challenge and take the whole responsibility of your IT remote team.
How Does EOR Work As An IT Staffing Solution?
The employer of record assumes full responsibility for the employment and becomes the official employer of the workforce. EOR performs various tasks on behalf of the company. These tasks include payroll processing, benefits administration, tax compliance, and legal requirements.
Simplifying the recruitment process, laws and regulations can be difficult and complex, especially in a different country. EOR ensures all legal and regulatory requirements are fulfilled. With EOR the organization gets access to global talent. A company gets a cost-effective solution to build an efficient remote team in uncertain times.
EOR solves major non-IT organization issues, leading to a seamless process. Let’s understand all the functions one by one.
How Does EOR Simplify the Process of Hiring IT Professionals?
Hiring IT professionals requires a deep understanding of IT skills and qualifications. The recruiter must know everything about the IT field which is mostly a non-IT business that needs more expertise to identify. Due to this, a company may not attract the right talent. But EOR services solve these issues and help the organization hire the best talent.
EOR provides a wide range of talent pools. EOR can leverage its knowledge of the IT job field. EOR can help you find the best talents by sourcing, screening, and interviewing candidates. EOR for remote IT staff can also find a candidate who is not actively seeking the opportunities but would prefer opting for the right offer. Once the selection process is done, the EOR partner handles the transition process and ensures a smooth onboarding.
How Does EOR Handle Legal and Regulatory Compliance?
Handling legal and regulatory compliance in other countries can be complex. No compliance may result in heavy fines and legal issues. But, EOR can be a shield against of all the legal and regulatory requirements, let’s see how:
EOR drafts and manages employment contracts that comply with the country’s labor laws. EOR for remote IT staff handles payroll taxes, social security contributions, and overall tax-related issues to be compliant with local tax regulations. Moreover, EOR manages employee benefits such as health insurance, retirement plans, and paid leave by local laws.
How is EOR a Cost-Effective IT Staffing Solution?
It would be expensive to form an in-house HR staff to manage the IT team, especially for those who are looking for a small IT remote team. Partnering with an EOR is an inexpensive option let’s see how.
Partnering with EOR reduces overhead costs and the need for an additional HR team. EOR for remote IT staff provide scalable solutions that allow businesses to decide the size of their IT team based on their budget constraints. EOR keeps transparency which gives them a clear understanding of the costs associated with hiring and managing IT staff. Also, the company can plan a better budget.
EOR Provides Access to Global Talents
IT professionals can work remotely and EOR services facilitate the hiring process from various locations of the world. EOR has access to a diverse range of skills and talents. A company gets a competitive advantage by getting access to international talents. These talents bring unique perspectives and skills that may not be available locally. An EOR ensures compliance with these legal requirements and simplifies the process of hiring IT professionals and managing a global talent pool.
EOR helps organizations focus on their core competencies
Having an HR team and managing functions can be hectic. It is very time-consuming and may distract from the core functions of the business. EOR reduces all these worries and businesses can focus on their core functions, let’s see how.
Since EOR takes the whole responsibility for the employment of the IT team, it automatically saves the time and effort of the organization. The businesses can operate their profit centers and dedicate more time and resources. An EOR service sets the organization free from the burden of HR management and companies can easily focus on innovation and growth.
Conclusion
In today’s technology-driven world, to remain competitive it is important to build an IT team. Partnering with an Employer of Record (EOR) vanishes all the challenges and is a strategic solution for all the issues. Because of the Employer of Record services, non-IT companies can easily form an IT team out of the country by saving costs and mitigating legal and regulatory compliance.
The companies seeking to harness the power of technology need a game changer like EOR. With the help of a cost-effective solution EOR, businesses can thrive in the international market. A comprehensive solution such as EOR will help you form a competent IT team in other countries, take all your worries, and let you focus on your core competencies.
