Businesses often seek opportunities to expand their reach globally, widen their audience, and recruit international talents who can take their companies to new heights. But it is not as simple as it might sound. There are a series of challenges that companies face when trying to enhance their reach to a global level, one of them being work permit delays and visa rejections for their international employees.
According to reports, work visa rejection rates these days are quite high. In 2024, the UK granted 37% fewer work permits. (The Economic Times: UK Work Visa)
But this doesn’t mean that companies cannot employ skilled individuals outside their own countries, because Employer of Record (EOR) serves as the perfect solution for this issue.
Curious to know more about it? Read on to discover how еmployеr rеcord sеrvicеs can help companies hire employees from all around the world.
The whole procedure of recruiting individuals from different countries can be quite challenging. It includes various steps and formalities including, visa application, navigating complex immigration laws, permit delays, etc. The hiring companies often struggle to manage all this on their own, which results in work disruptions and costly delays.
To help in such scenarios, the Employer of Record (EOR), a third-party organization, takes the responsibility of employing workers on behalf of the client company.
So, EOR-supported visas are work credentials that a company sponsors for a foreign worker via the employer of the record.
The employer of the record market was valued at $4.42 billion in 2024, and it is projected to reach $8.59 billion by the end of 2031.
Visa application can be complicated for many, especially since each country has different permit rules and regulations. On top of that, delays and rejections are not an uncommon occurrence in this sector.
Both companies and employers might face several challenges in this process, leading to prolonged recruitment timelines, uncertainties, and business disruptions. EOR helps navigate through this complex procedure, providing the following benefits:
EOR services keep up with the ever-changing laws of different countries, helping their clients with the right approach to obtaining a visa.
For example, Canada uses a point-based system for express entry for workers’ visas. On the other hand, for certain work visas, like H-1B for specialized workers, the United States follows a lottery-based system for application. EORs tailor their approach to meet the requirements based on different countries.
The networks and connections established by EORs over time can support speeding up the whole procedure, helping employees obtain visas and work permits faster than any other way.
Some EORs are even known for expediting their client’s permit approvals within a week, depending on their profiles. This way, these services can reduce a huge burden on their customer’s shoulders.
Since EORs are always up-to-date with the changing local laws, they can manage the necessary documentation, staying compliant with all the regulations. This will save individuals from penalties, work restrictions, and avoidable troubles related to non-compliance with working laws.
Partnering with an EOR service is an excellent move for businesses wanting to expand their reach and target a global audience. These services allow them to acquire international talents without needing to worry about the legal and administrative aspects, as they take complete responsibility for it all.
This encouragement allows businesses to enter new markets and scale their business with lesser risks and low administrative burdens.
Every year, thousands of visas get rejected due to missing paperwork or errors in documents. In the case of companies employing foreign workers, these rejections can lead to significant delays and losses.
Employers of record services can considerably reduce these risks by managing the client’s paperwork with precision and leaving no room for errors. Their experience allows them to foresee the possible reasons for documentation rejections and hence rectify them in advance.
Since there are various types of visas, individuals often struggle to choose the best for them. EOR firms with their expertise easily identify the right visa for them depending on their roles, duration of work, and other rules and regulations of the host country.
This way, these companies guide their customers with the most efficient solutions to suit their situations and secure the best deals.
DO YOU KNOW?
Certain work visa categories in some countries have a limited number of visas available each year, creating a competitive application process where applicants must apply early to secure a spot.
The story does not end once the visa and permits have been received by the employee, they also require timely renewals and extensions. Employers of record services can provide their assistance here as well.
By monitoring their client’s timelines, they manage their renewal processes on their own. Not only that, but they also provide guidance on tax and immigration compliance to avoid any legal complications.
Hiring talents from different corners of the world is not easy for companies, especially since the visa rejection rates are quite high in the current times. However, employers of record or EOR services prove to be the perfect solution for them by helping them navigate through the complex visa laws and legal requirements.
With expertise in immigration laws, EORs can significantly reduce the administrative burden on their customers and also help them ensure compliance with the laws, minimize visa application errors, and provide the right guidance on the type of visas. Not only that, but these firms also help businesses expand globally by making it easier for them to onboard applicants from all around the world.
In the end, we can say that, as businesses step into different sectors and explore more international opportunities, the Employer of Record will prove to be a powerful tool for them to ensure smooth and compliant workforce mobilization.
