Having a diverse, multinational team is no longer just a nice-to-have, it’s an absolute necessity for organisations looking to remain competitive in today’s global market. From expanding operations into new international markets; to attracting talented individuals located overseas; to offering flexible, remote work options to retain top talent – there are so many reasons that modern businesses are looking to enable international employment.

As such, business leaders have some big decisions to make when it comes to their international workforce strategy; manage it in-house or outsource to an EoR? Use an EoR as a quick fix or embed them into your long-term HR strategy? Choose a low-cost EoR or prioritise experience and quality? These are all important considerations, but today we’re going to take a look at costs and try to answer the question; “What does ‘value’ actually mean when it comes to international workforce management?”

One of the challenges currently facing the EoR industry is a “race to the bottom”, with many new entrants offering an extremely low-cost service. Great, right? Well, hold that thought while we dig into this a bit deeper.

Opting for a cut-rate EoR provider can be a tempting option – it’ll certainly save a few bucks upfront, but it often comes at the cost of quality and experience and will usually end up costing more in the long run.

The hidden costs of employee churn

One of the biggest hidden costs of cheap EoR services is employee churn. When your international team members don’t feel properly supported or valued, they’re more likely to jump ship – and that can be incredibly expensive. Did you know that The Society for Human Resource Management (SHRM) estimate the cost to replace a salaried employee is 6-9 months of their salary? Based on the average salary of a UK employee, that means that the cost of replacing an employee could range from anywhere from £15,000 to £22,000+.

Recruitment and onboarding costs

Every time you have to replace an employee, you’re looking at significant recruitment and onboarding costs. And if you’re constantly dealing with turnover, those costs can add up fast.

Lost productivity and knowledge

But it’s not just about the money. When an employee leaves, they take their knowledge and expertise with them. That means you’re not just losing a warm body – you’re losing all the time and resources you invested in training and developing that person.

Impact on team morale and culture

And let’s not forget the impact on team morale and culture. High turnover can be a real downer for your remaining employees, especially if they have to pick up the slack – this can often make them start to question their own future with the company.

The long-term impact on business success

Ultimately, the true cost of cheap EoR services is the long-term impact on your business success. If you’re constantly dealing with employee churn, legal issues, and low morale, it’s going to be tough to build a thriving international team that can help take your company to the next level.

So, while it may be tempting to go with the cheapest option, it’s important to think about the big picture. Investing in a quality EoR provider may cost more upfront, but it can save you a whole lot of heartache (and money) in the long run.

But what does it really mean to get value from an EoR provider?

Alright, so we’re all now a bit clearer on some of the hidden costs and pitfalls of low-cost EoR providers, so let’s look at the word “value” through a different lens.

Prioritising employee well-being and satisfaction

First and foremost, a valuable EoR provider is one that prioritizes the well-being and satisfaction of your international employees. They understand that happy, supported team members are more productive, more engaged, and more likely to stick around for the long haul.

Think about it – when your employees feel like they’re just a number or a cog in the machine, it’s hard for them to do their best work. But when they feel valued, respected, and supported, they’re more likely to go above and beyond for your company.

The benefits of a well-supported international team

And that brings us to the benefits of having a well-supported international team. When your EoR provider is truly invested in the success and well-being of your employees, it can have a ripple effect throughout your entire organization.

Increased productivity and innovation

For starters, a well-supported team is a more productive team. When your employees have the resources and support they need to do their jobs effectively, they’re able to work more efficiently and creatively. And that can lead to some serious innovation – after all, it’s often those on the front lines who have the best ideas for improving processes and products.

Improved retention rates

But perhaps even more importantly, a well-supported team is a team that sticks around. When your international employees feel like they’re a valued part of the company, they’re less likely to start looking for greener pastures. And that means you can spend less time and money on recruiting and onboarding, and more time focusing on growing your business.

Positive brand reputation

Finally, having a well-supported international team can do wonders for your brand reputation. When your employees are happy and engaged, they become natural brand ambassadors, spreading the word about what a great place your company is to work. And in today’s interconnected world, that kind of positive buzz can be invaluable.

Balancing cost with quality and expertise

Of course, I’m not saying that cost doesn’t matter at all. I get it – every company has a budget to stick to. But when it comes to EoR services, I truly believe that it’s worth investing in quality and expertise, even if it means paying a bit more upfront.

Think of it this way – would you rather pay a little extra for a service that’s going to help your international team thrive, or save a few bucks now only to end up dealing with the headaches and hidden costs of a subpar provider down the line?

At the end of the day, it’s all about finding that balance between cost and value. And in my experience, the EoR providers that prioritize employee well-being, have deep expertise in local markets, and offer flexible, tailored solutions are the ones that deliver the most value in the long run.

So, as you’re evaluating potential EoR partners, don’t just look at the price tag. Look at the whole picture – the level of support they offer, the quality of their services, and their track record of success. Because when it comes to building a successful international team, you can’t afford to cut corners.

Now, I know what you might be thinking – “This all sounds great in theory, but what does it look like in practice?”

Well, allow me to introduce you to Peak PEO – a shining example of what value-driven EoR services can look like.

Peak PEO’s unique approach to employee care

At Peak PEO, we believe that employee care should be at the heart of everything we do. We understand that your international team members are more than just numbers on a spreadsheet – they’re real people with real needs and aspirations.

Comprehensive onboarding and support

That’s why we offer comprehensive onboarding and support services to ensure that your employees feel welcomed, valued, and set up for success from day one. From helping them navigate the complexities of international relocation to providing ongoing training and development opportunities, we’re there every step of the way.

Localised assistance and cultural awareness

But we don’t just stop at the basics. We also offer localised assistance and cultural awareness training to help your team members feel at home in their new country. Whether it’s helping them find housing, navigate the healthcare system, or understand local customs and norms, we go above and beyond to make sure they feel supported and empowered.

Competitive benefits and compensation packages

And of course, we believe that your international employees deserve competitive benefits and compensation packages that reflect their value to your organization. We work with you to create customized packages that not only meet local legal requirements but also help you attract and retain top talent.

Expertise in navigating international regulations

But employee care is just one piece of the puzzle. As an EoR provider, we also have deep expertise in navigating the complex web of international regulations and compliance issues. Our team of legal and HR experts stays up-to-date on the latest changes and requirements in each of the countries we serve, so you can focus on running your business with peace of mind.

Getting the basics right, every time

Payroll, tax filings, contracts – not the most glamorous of topics, but it’s absolutely essential that these are done correctly – month in, month out. Imagine if you’ve asked an employee to move to the other side of the world, but your EoR provider misses a payroll, or misses something essential in their contract. It just doesn’t bare thinking about.

Building trust through transparency and communication

Finally, we believe that trust and transparency are essential to any successful EoR partnership. That’s why we prioritise open, honest communication with our clients and their employees. We provide regular updates and reports on our services, and we’re always available to answer questions or address concerns.

At Peak PEO, we don’t just talk the talk – we walk the walk when it comes to value-driven EoR services. And we’re proud to have helped countless companies build thriving international teams that drive their business forward.

Strategies for Selecting the Right EoR Provider

So, how can you find an EoR provider that delivers the same level of value and support as Peak PEO? Here are a few key strategies to keep in mind:

Assessing alignment with company values and culture

First and foremost, look for an EoR provider whose values and culture align with your own. Do they prioritize employee well-being and development? Do they have a track record of ethical, responsible business practices? These are important questions to ask.

Evaluating expertise and experience in your industry

Next, evaluate the provider’s expertise and experience in your specific industry. Do they have a deep understanding of the unique challenges and opportunities facing companies like yours? Can they provide relevant case studies or references from satisfied clients?

Considering the provider’s reputation and track record

Of course, reputation matters too. Look for an EoR provider with a strong track record of success and positive feedback from clients and employees alike. Don’t be afraid to ask for references or do your own research online.

Finally, make sure the provider has clear communication and reporting processes in place. Will you have a dedicated point of contact? How often will you receive updates on your international team? What kind of metrics and insights will be provided? The more transparent and communicative the provider is, the better.

Positioning your business for global success

Ultimately, investing in your international team through EoR services is about positioning your business for global success. By tapping into the skills, expertise, and diversity of a global workforce, you can drive innovation, expand into new markets, and stay ahead of the competition.

As we come to the end of this article, I want to leave you with a few key takeaways:

The importance of looking beyond cost when selecting an EoR provider

While cost is certainly a factor to consider, it shouldn’t be the only factor. When evaluating EoR providers, look beyond the price tag and consider the value they deliver in terms of employee care, compliance expertise, and long-term business success.

Embracing the value of investing in your international team

Investing in your international team through value-driven EoR services is a smart business strategy that can pay dividends for years to come. By prioritizing employee well-being, fostering a positive culture, and tapping into global talent, you can position your company for success in an increasingly interconnected world.

Peak PEO’s commitment to supporting businesses and their employees

At Peak PEO, we’re passionate about helping businesses build thriving international teams. We believe that by putting employee care at the heart of everything we do, we can create value not just for our clients, but for their employees and the communities they serve.

So if you’re looking for an EoR partner that shares your values and is committed to your success, we’d love to chat.

Let’s work together to build a brighter future for your business and your international team.