Using an EOR for international hiring: 5 things for Singaporean companies to consider

As more companies recognise the benefits of hiring employees from different countries, it’s also important to understand the challenges. Hiring, paying, and managing workers in foreign countries can be costly and time-consuming, especially if you lack a legal presence there.

Fortunately, there is a simple and cost-effective solution: partnering with an employer of record (EOR) provider, like Remote. By using an EOR, companies in Singapore can effortlessly expand and manage their workforce internationally without needing to establish legal entities in these countries.

In this article, we‘ll explain what an EOR does, how it can allow you to easily hire global employees, and the main steps you’ll need to take. Whether you’re a startup, a small business, or a large enterprise, an EOR enables you to hire, pay, and manage top talent outside of Singapore, so here's what you need to know.

1. Decide which approach is most suitable

When hiring an international employee, you must decide whether to establish your own legal entity in that employee’s country or region. This process can be costly, time-consuming, and inflexible, especially if you only plan to hire a small number of employees or you want to expand into multiple countries.

Opening an entity is more appropriate for major business expansions or long-term operations, rather than just hiring purposes. For many companies, partnering with an EOR is a far more efficient alternative. With an EOR, you can quickly hire employees in multiple countries without the need to establish legal entities, saving you time, costs, and significant administrative headaches.

Before making your decision, carefully evaluate your business goals and expansion plans. If you aim to hire a small number of employees or you want to test a market, partnering with an EOR is the most flexible and cost-effective solution.

2. Select a reliable EOR partner

When evaluating EOR partners, be sure to consider the following:

• Does your potential partner cover your target markets?

• Does it fully own all its own infrastructure? This ensures greater control and reliability, and reduces the chances of hidden fees.

• Does it have good feedback? Check review sites like G2 and Trust Pilot to get a more objective assessment of performance and customer support. Most EORs will even provide a customer reference to speak about their experience.

Work through these considerations to make a more informed selection of an EOR partner that aligns with your specific needs.

3. Evaluate your internal resources

Assess your company’s existing HR capabilities and your familiarity with local employment laws, payroll regulations, and compliance requirements.

When hiring abroad, it’s crucial to have in-depth knowledge of those things. If you don’t, an EOR becomes more than just a HR function; it becomes a genuine value-adding partner. It enables you to leverage your internal team more effectively and benefit from the expertise and support of your EOR, ensuring compliance and smooth operations in each country of operation.

4. Work with your partner to provide fair and equitable compensation packages

Collaborating with your EOR provider is crucial for ensuring fair and equitable compensation packages. An EOR provider has local knowledge, allowing you to determine competitive salaries, role leveling, and benefits packages in each country. After all, it's essential not just to comply with legal requirements, but to meet the cultural expectations of the best talent in those regions.

By leveraging your EOR's expertise, you can design compliant compensation packages that attract and retain top talent. This collaborative approach ensures that you’re competitive in the global talent market, and fosters a positive employee experience from the start.

5. Make sure your partner will protect your intellectual property and maintain data security

Another key criteria is the protection of your intellectual property (IP) and data. As mentioned, you should only use EOR providers that own their own infrastructure, as this minimizes data security and non-compliance risks.

Remote IP Guard also provides maximum protection for IP transfers, safeguarding customer assets when working with international employees.

Protecting both data security and IP is crucial for globally distributed teams. Strength in this area provides a platform to confidently employ internationally, whilst safeguarding proprietary information and maintaining the trust of your workforce.

Hiring outside Singapore with Remote’s EOR service

Remote's EOR services enable Singaporean companies to hire and pay international team members, as well as manage their benefits and their day-to-day HR needs. It also ensures that the process is managed safely and securely, with full IP and data protection.

With Remote's extensive global presence and ownership of legal entities in every country of operation, customers receive a best-in-class employee experience for their international hires — with the confidence and peace of mind that everything is being conducted and managed in full compliance with local laws.

For Singaporean companies that are looking to hire internationally with speed, simplicity, and scale, consider using an EOR: it’s often the simplest, fastest, and most cost-effective solution for Singaporean companies looking to grow.