91% of the business population is being represented by small and medium-sized companies. With 52% of SME entrepreneurs complaining about labor quality, the chase for talent is becoming really tough. Let’s explore solutions that may aid SMEs to thrive instead of failing
What is an employer of record?
It’s a part of HR services outsourcing that significantly simplifies global expansion for companies of all sizes. It’s a great solution for both big enterprises interested in covering new markets, or smaller companies looking for a skillful workforce overseas and rapid growth.
In this article, we’re going to discuss how employer of record services can be beneficial for growing businesses: SMEs.
Management Skills and Human Factors
Managing a growing SME is a complex task, and the prospect of tapping into new markets adds to the complexity. Rapid changes in the business environment require a robust management team that is willing and able to respond to changes. With a growing demand for quality, cost optimization, service, and delivery, the range of required capabilities, techniques, and skills within the SME will grow. Top managers of SMEs may be under pressure to remake their businesses to meet anticipated demands. This is when HR outsourcing comes into play.
Risk and Innovation
To succeed in the changing market environment, SME management must be willing to take carefully evaluated risks to promote innovation and maintain their company’s competitive advantage. Sometimes, trying to maintain the status quo and avoiding risk is, in itself, a risky strategy. Pursuing a diverse customer base can help an SME mitigate some business risk, while the added customer base will inevitably create additional growing demand.
Sourcing has become increasingly independent of location. The days of high-stake vacancy matching with a few local talents are going as we speak. Many SMEs now compete with a multitude of competitors worldwide. Increased global demand for customized products and services flows throughout modern markets, requiring flexibility, responsiveness, and the ability to customize.
As your business grows and you are starting to figure out your target audience, catching the moment and tapping new appearing markets is crucial. A timely leap you make at the moment of boost can make your business worth it in the long run.
SMEs have to expand their operations internationally, providing products and services wherever they can be most competitively consumed by their target audience.
SMEs seeking to expand into foreign markets should carefully analyze the full costs, risks, and benefits of such a strategy. Political requirements regarding local content, sales ventures, and repatriation of funds, and much more. Acvian employer of record provider takes care of all the hassle mentioned above while you just manage your international employees as you would any other.
Companies worldwide are creating alliances that are reshaping the basis of competition. Remaining competitive in these changing business environments requires the ability to create appropriate types of partnerships as you go. Partners are companies that agree to work together to achieve specific objectives and share the risks and rewards of their relationship. This is exactly what Acvian offers you today.
Employer of Record for SMEs
Now, let’s see what tasks Acvian solves for the small and medium business owners:
- Ensuring the legal rights of the employees to work in the state where the EOR is located. It includes arranging visas and work permits, avoiding delays and refusals;
- Keeping the client updated in terms of local labor laws and organizing all the working processes in compliance with them;
- Managing all payroll-related matters inside the offshoring country;
- Bookkeeping and accounting administration;
- Tax planning and consultation;
- Administration of employee benefits, such as medical insurance, day-offs, sick leaves, and more;
- Operating as a shelter for a client during the interaction with authorities of the host country.
At the expansion stage, it is paramount to choose the right partner, a reliable and competent EOR provider that will guide you in the process.
By choosing Acvian as your EOR provider you will get:
- Adaptability and flexibility in solution selection
- Swift processing and setup (within 72H per setup)
- Single point of entry with access to 118 countries
- Professional consulting
- Discount system for loyal clients and non-profits.
Connect with the Acvian team today and start growing your business tomorrow.