Staff relocation is a complex task, which is why so many multinational organizations turn to Relocation Management Companies (RMCs).
RMCs take care of everything from visa paperwork to liaising with legal services, tax providers, and other on-the-ground immigration service providers. But how can they work in tandem with an Employer of Record (EOR) to better serve their clients?
EORs help companies hire workers remotely within a country where that company doesn’t have a legal presence.
In this article, we will explore what RMC and an EOR are and show how these organizations can work together to smoothly facilitate the cross-border movement of people.
What is an RMC and how do they work?
A Relocation Management Company (RMC) is a business that specializes in helping companies of all sizes move their employees and their families to new destinations, whether domestically or internationally.
An RMC provides a wide range of services to help make the transition successful, including handling immigration documentation, making sure household goods are shipped adequately, and providing assistance in navigating international relocation and tax laws.
Companies might outsource these services to an RMC since they have the experience and can work with both government agencies and third-party service providers to make sure everything goes smoothly.
Even for large companies, relocating employees isn’t an everyday activity so outsourcing is typically a more efficient and cost-effective option.
What is an EOR and how do they work?
An employer of record (EOR) is a third party that takes over the technical aspects of employment for businesses that need to outsource employment for staff based in another country.
An EOR takes on the responsibility associated with hiring, onboarding, and payroll administration, allowing companies to focus on the work they do best, without the hassle of opening a legal entity in that location and managing employees there.
By utilizing EOR services, companies are able to quickly and efficiently expand their teams into worldwide markets without a legal entity there and typically benefit from greater efficiency, improved cost savings, as well as legal protections.
An EOR is an ideal option for smaller businesses that aren’t ready to expand or companies that only want to hire a few staff abroad.
In addition, an EOR allows you to seamlessly hire and retain staff in countries where you’re not registered as a business. Full operational administration and liability of the employee lie with the EOR.
In comparison, a Professional Employer Organization (PEO) can also support companies in a similar way, but the liability of the employee remains with the company, and the company needs to have a legal presence in the country where the employee is based.
By utilizing EOR services, companies are able to quickly and efficiently expand their teams into worldwide markets without a legal entity there and typically benefit from greater efficiency, improved cost savings, as well as legal protections.
How can an RMC better serve clients by partnering with an EOR?
At a high level, RMCs enable their clients to maximize their global operations by helping them move their employees to other offices worldwide.
EORs provide an invaluable service in assisting companies with hiring abroad where they don’t have a legal presence — handling everything from tax to HR compliance to immigration if needed.
By partnering together, RMCs and EORs can streamline international personnel management for organizations of all sizes.
Here are some ways RMCs can partner with EORs to better help their clients:
Hire local employees remotely in a country they don’t currently have a presence in
Expanding into a new country or market is a big step. There are legalities and processes which the company may not be ready for, or it may not be the right move financially.
With the help of an Employer of Record, companies are able to hire staff without having to open up their own entity in that location.
The EOR takes care of all hiring needs as well as the technical aspects of global remote employment, meaning companies can test out that country as a new market or be closer to existing customers.
Relocate key existing employees to a new country where the company doesn’t currently have a legal entity
If a company needs to get a key employee up and running in a country where they do not currently have a legal entity, an EOR can help.
Because the EOR is able to handle the immigration side of things, employees can be relocated efficiently and compliantly.
Employers are able to strategically relocate existing employees in order to explore new business opportunities within that country, provide a benefit for employees who may be looking to work abroad, or develop a long-term company strategy.
Because the EOR is able to handle the immigration side of things, employees can be relocated efficiently and compliantly.
Handle administrative aspects of employment in another country
Many EORs also offer PEO services which, as mentioned above, can support companies who already have an existing office and employees in a particular country.
This means they can outsource everything from HR to tax and payroll to make operating in that country easier. RMCs can connect their clients to a PEO to simplify their global operations.
Syndesus provides both EOR and PEO services in Canada
Syndesus can help you with both PEO and EOR services including immigration, benefits, HR, and payroll. Administrative processes are taken care of for you while companies can focus on expanding their workforce and moving the company forward.
Our team of experts can help companies that don’t have an office in Canada leverage Canada’s talent, strong tech hubs, and favorable immigration laws, whether those companies are small startups or large corporations.
Or, if the company already has a Canadian entity, Syndesus can manage the technical aspects of employment and help them grow and maintain their team.
If you are an RMC and want to better serve your clients with the relocation of their employees, then reach out to us to learn more about how our EOR and PEO services can help.
