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Unlock Global Talent: Harness the Power of an Employer of Record!

Whether it’s opening a new entity or hiring talent from around the world, expanding your business to a global level can be beneficial in many ways. But unfortunately, expanding internationally also comes with a lot of challenges and legal hurdles that can turn your expansion into a paperwork nightmare. Luckily though, there are companies that take care of the process for you: employers of record like Lano can legally hire talent for you, while you still manage the day-to-day activities of your new employee. Not sure if this is the right solution for you? Here’s when and why you should consider an employer of record for your company. 🌐📝

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The advantages of hiring global talent ✨🌍

Embracing a global mindset in your business can be the key to unleashing its full potential and achieving the desired success. Why confine your recruitment efforts to a single location when talent knows no borders? By welcoming individuals with diverse perspectives and varied work experiences into your workforce, you invite the secret ingredient that can propel your business towards new heights.

Granting your employees the freedom to work from any location they choose not only demonstrates your commitment to their happiness and wellbeing but also positions you as an appealing employer, capable of attracting top-notch talent from across the globe. By increasing the flexibility and autonomy for employees who highly care about that, you fuel their motivation, enabling them to thrive in their roles. 

Also, when you tap into the global talent pool, you equip your business with the necessary resources to effortlessly penetrate new markets. Your ability to swiftly adapt to global changes and expand your operations will become an inherent advantage to you, ensuring that your business remains agile and responsive now and in the future.

So, break free from conventional limitations, broaden your horizons, and seize the countless opportunities that come with embracing a global workforce. The world is your talent marketplace; embrace it and propel your business to new heights by embracing diversity, and empowering your employees. 🚀💪

The hurdles of expanding internationally 🌍❌

Unfortunately, the process of hiring people from a different country is not always easy. If you are planning on hiring a new employee, you will be legally required to pay local taxes and social security benefits like health insurance, retirement payments, or unemployment insurance for them. You will also be required to make these payments in your employee’s country of residence. And in order to do that, you will need to have a legal entity established in the employee’s country.

A problem arises when the employee doesn’t live in a country in which your company already has an established legal entity. Opening a new legal entity usually requires a lot of paperwork and financial investment as well as exposure to often yet unknown legal risks, such as labour law regulations, because you will need to ensure that you adhere to all local labour laws when employing your new employee in that new company location of yours.

Since hiring employees internationally without borders can often be accompanied by additional burdens, employers must thoroughly understand their legal and financial obligations to make informed decisions and proactively address the intricate requirements associated with employing individuals from different countries. 📋💼

The solution: Employer of Record 🤝

Once you have made the decision to onboard global talent, navigating the complexities of employing individuals from different countries can be a daunting task. But you can skip the headache of figuring out how to employ global talent by working with an employer of record, such as Lano, which is a trusted third-party provider that offers a global employment solution. 

An Employer of Record (EOR) is a global employment solution that enables businesses to hire employees in countries where they don’t have a legal presence. As an employer of record, this company will assume the legal responsibility of being the official employer, take over all the administrative tasks and legal responsibilities linked to the employment relationship, while you still retain control over the day-to-day activities and management of your new employee. This arrangement ensures that all local legal requirements are diligently met, including the crucial aspects of tax payments and social security benefits, and that the company contracting the EOR service remains the de facto employer of the worker and maintains control over the employee’s daily activities, projects and workload. 🌍👥

By partnering with an employer of record you can effectively navigate the intricacies of employing global talent without having to establish a legal entity in each respective country. It will alleviate the burden of paperwork and financial investments, allowing you to focus on what truly matters—harnessing the skills and capabilities of your international workforce to drive your organization forward. You will also be able to embrace the full benefits of a global workforce, empowering you to concentrate on fostering a productive and thriving professional relationship with your new employee, while minimizing the administrative complexities and letting the employer of record handle the legal and compliance aspects.✨🌐

When considering a global employment solution, there are two main scenarios that make outsourcing the hiring process beneficial for your business.

Scenario 1: You aren’t familiar with local employment laws

If you hire someone in a different country, you are legally obliged to ensure their contracts are fully compliant with local labor regulations. For example, you have to include the right legal notice period for contract terminations, which varies from country to country. If you fail to do that, you can be fined and there might be other legal consequences.

In these cases, employers of record can handle compliance and assume legal responsibility for the various aspects of the employment relationship, eliminating risks for you when hiring global talent. Partnering with an employer of record guarantees compliance and allows you to focus on managing your international workforce effectively without too many distractions.

Scenario 2: This is your first time hiring international talent

Another good reason to use an employer of record is if you have never hired international talent before and are new to the intricacies and complexities of things like global payroll, international labor law, cross-border agreements, and the like. Salary expectations can also vary significantly from one country to another and in some places, there might be specific labour law requirements you need to consider, such as annual bonuses or holiday compensation, which may come into play in certain regions. 🌍💰

Conducting thorough research into these diverse regulations and laws demands a considerable amount of time and effort, leaving room for potential errors. However, by using a global employment solution such as an employer of record, you can reduce such risk because the responsibility for your talent's hiring process lies with the employer of record.

Which Employer of Record should you choose? 🤔

An interesting EOR startup I currently partner with is called Lano. Currently, Lano is one of Germany’s premier EOR solutions and was founded back in 2018. They are headquartered in Berlin and have Spotify and Gitlab among their client base. Here’s a couple of key aspects that set Lano apart from the competition:

  • Lano is the no 1. partner-powered platform in the market, ensuring the most comprehensive country coverage in over 170 countries. Lano's partner network consists of employment, tax and compliance experts, all accessible via the Lano platform. That way you can easily get multiple local offers and compare costs and included services without effort, enabling you to be adaptable and flexible when taking on even the most complex international hiring or payroll cases. 💪🌍







  • All-in-one platform: Lano provides you with all the essential tools to onboard, manage and pay your international team, be it contractors, employees on payroll or employees hired via Lano's employer of record model. 🛠️💼

  • Lano has strong expertise in European compliance (GDPR, employment law etc.), which can be a huge benefit when you’re onboarding employees from EU countries. Every Lano partner also has to go through a rigorous quality assurance check and is expected to match all of Lano’s partner and local compliance standards. 🇪🇺✅

  • Lano offers global customer support: 24/7 in multiple languages 🌍🌐 (EN, DE, FR, ES, PL). This can come in super handy when your EOR hiring efforts scale and you start having various stakeholders in different countries.

  • Dual Focus: In addition to business services, Lano offers free administrative features for employees (e.g. payslips & document management) and contractors (invoicing app and timesheets) – thus when you use Lano as an EOR provider, you can potentially save on other 3rd party tools and keep your workflows more lean. 💼💡​

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  • Lano supports all employment types: Remote Employees, contractors and freelancers are all supported. 👥🖥️

  • Lano has an easy to use UI and generally easy-to-use admin platform which is well suited for a quick onboarding of your internal HR team. 🖥️👩‍💼👨‍💼

Are you interested in learning more about Lano and potentially working with them? Feel free to reach out to Lano directly to learn more.

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