Expanding a business into a new territory can bring about a host of HR, payroll, legal and even cultural challenges. Employer of Record (EoR) services have been a highly preferred method when growing a business, allowing companies of all sizes and from various industries to circumvent many of these challenges.
With EoR saving businesses a great deal of time and costs by taking on the hiring and onboarding of staff, it has gained increasing popularity over the years. In its Employer of Record Market Insights and Forecast to 2029 report, market researcher Valuates Reports stated that the global Employer of Record Platform market was valued at US$ 4450.5 million in 2022. It is anticipated to have significant growth this decade, reaching US$ 6604.4 million by 2029 and achieving a compound annual growth rate (CAGR) of 6.8% during the forecast period of 2023-2029.
A popular e-commerce platform for luxury brands and boutique shops headquartered in London with over 7,000 employees had plans to venture into a several new regions. In 2015, the company had entered China and soon became a household name, raking up massive investments in early 2020. After being in the industry for 15 years, they wanted to grow the business into other parts of Asia and identified 5 new markets to enter.
Expansion Into New Regions Without Setting up an Entity
The company, however, was unfamiliar with these markets and due to that, it was likely to face several challenges such as:
- not being able to enter the new markets in a speedy manner
- figuring out setting up and operational costs
- preparing employment contracts without being accustomed to local labour laws
- complying with local payroll practices
- having a language barrier with employees, customers, and stakeholders
Primarily, the company had the requirement of being able to expand the business into its target markets without having to set up their own entity. The most viable way for the company to move forward with its plans was to use an EoR service that could hire and onboard staff on their behalf.
A Strong Local Presence
Not all EoR service providers, however, are the same. For the e-commerce company, there were other requirements that it wanted from a vendor, such as:
- one that had local entities in the countries it was expanding into
- for the vendor to be the same time-zone
- a vendor that could provide quick on-the-ground support for their staff
These requirements would make it easier for the EoR service provider to solve any issues in a timely manner and ensure zero to minimal compliance issues.
READ MORE: Guide to Hiring in Asia
Hire, anyone, anywhere, in 48 hours!
Hiring and onboarding staff can typically be a lengthy process, so speed-to-market was another key specification that the e-commerce company put forward. If possible, they wanted the EoR provider to be able to get their staff onboarded in a matter of days.
In short, to meet all their expansion needs, they needed an EoR service provider that was agile and flexible. The company decided to use Links’ EoR as they could get staff on the ground in under 48 hours, and Links also had a local presence in the company’s target markets.
At Links, we are happy to provide tailor-made solutions for you when expanding into Asia. Regardless of the size of your company or industry you’re in, we’re able to assist in your business expansion efforts. Contact us today to find out more on our EoR services across Asia!