Myth 1 – Employer of Record Solutions Are More Expensive Than Setting Up Your Own Company
Some individuals believe that opting for an EOR solution comes with a price tag compared to starting their business. However this assumption is not accurate. While setting up a company may appear cost effective, at glance the ongoing expenses can accumulate significantly over time. In addition to managing payroll and employee benefits you will also be responsible for recurring costs such as office rent, banking charges, business insurance premiums, corporate taxes, utility bills and local professional services. Moreover lacking local expertise could lead to expenditures like penalties, for non compliance or delayed payments.
When you opt for an EOR you make a payment, to the service provider, who takes care of all employment responsibilities using their local infrastructure. Mold Group has its compliance team. Works with local partners to ensure that every task is carried out accurately. Choosing an EOR is a cost alternative if you wish to explore the market without committing term or incurring high expenses.
Myth 2 – There Are Hidden Costs Associated with Employer of Record Solutions
Many people mistakenly believe that utilizing EOR solutions comes with expenses. At Mold Group we apply a setup fee once. A monthly margin tied to the employees salary. These fees are bundled together eliminating any costs. Our initial proposal includes a breakdown of the solution and the financial obligations guaranteeing transparency.
At times you may need help to ensure that you are following the rules.. Any charges involved would only apply if the customer agrees beforehand. This ensures that you know what you’re spending on without any surprise costs appearing.
Myth 3 – Employer of Record Solutions Are Only for Long-Term Assignments
It’s commonly misunderstood that EOR servicers mainly, for long term projects. Thats not entirely true. While EOR is definitely advantageous for roles it can also work well for short term positions. Whether you need to bring someone, on board for a months or even a couple of years EOR offers the adaptability to accommodate job durations.
Myth 4 – Employer of Record Is Only Used for Workers Going Overseas
A lot of folks believe that EOR is mainly, for expats who work overseas. While EOR is often used by expatriates it can also be used to recruit workers in their country. This comes in handy especially when a company doesn’t have a foothold or operations, in the workers home country. So whether your team is local or global EOR can be a choice.
Myth 5 – My Company Is Too Small; Employer of Record Is Only for Big Multinationals
Some individuals think that Employer of Record (EOR) services are only designed for companies. However this belief is not entirely accurate. Medium sized businesses (SMEs) also need support when it comes to hiring employees. In todays world the scope extends beyond big corporations. Mold Group, which started as a business broadened its services to cater to a clientele. EOR solutions bring benefits to SMEs by providing access, to resources without burdening them with infrastructure demands.
At Mold Group we don’t have an employee count requirement. Our services cater to the needs of businesses of all sizes whether they are looking to hire one worker or multiple making EOR a flexible and adaptable choice.
That covers the five misunderstandings surrounding EOR solutions. I hope you found this information helpful.
