Why Recruiters Should Use Employer Of Record Services In Germany?

An Employer of Record, or EOR, is a company that takes over the legal responsibilities of employing your employees thereby decreasing the burden on the client to take care of HR functions,paying employees internationally and market access.  In short, the EOR becomes the primary employer on paper.

This arrangement comes especially handy during international expansion where laws and regulations regarding benefits and taxes become even more complicated in a foreign country. Domestically also, it helps in expanding your business accommodating all the growing needs of the company keeping in check the added costs, risks and additional work.
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There are many reasons why Recruiters should go for Employer of  Record Services in Germany.

Helps in Increasing Profit Margin

It is done in two ways - by saving cost on the added work and by not wasting energies on non-productive work and thereby generating valuable business during that time. Imagine a company which helps you be Compliant in your Payroll in Germany as well as that helps you manage your employees. That would be a one stop shop allowing you to run your organisation and taking it to heights of success. Hiring an EOR, would help save you cost and time with all your solutions flowing out of one place thereby helping to increase profit margins for the company.
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Pumps Up Productivity

By not wasting time on complex legal matters the company knows nothing about, the Employer of Record takes all this headache from you and allows you to divert your energy to the betterment of the company thereby helping to increase your productivity. The EOR takes care of all the legal matters and shoulders all the problems in hiring. The highly updated technology and software helps in a speedy and efficient process so basically it helps both sides.
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Tremendous Cost Reduction

You must be thinking how can this be possible. You are expanding, the organisational needs are growing yet cost of operation is getting reduced. This is possible because the cost of administering foreign employees is often underestimated. The time spent on this matter can be more profitably invested in other things while you let an expert take care of such mundane tasks such as hiring and payroll. So yes, the Employer of Record (EOR) will charge for his services but overall you may well find that your costs are actually reduced.

Help in Reducing Risks

An EOR not only takes care of your payroll but also makes sure that employee benefits are in place, taxes are being deducted, employees are released properly etc. In short the whole employee cycle is taken care of by them, keeping in mind all the rules and regulations laid out by the government. This reduces your risk of fines or running afoul of the law.
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All this helps not only domestic firms but in particular international firms as they have less idea about how the employment system works in Germany. It also helps domestic firms to recruit from other countries and take care of the labour laws in their native country thus helping in a successful deployment of valuable resources hand-picked in the foreign countries.
Location: Germany

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