The Impact of an Employer’s Record on Employee Performance

Employer

As a growing business, attracting and retaining high-performing global talent is essential for scaling successfully across borders. An employer of record (EOR) can have a profoundly positive impact on overseas employee performance by enhancing engagement, productivity, and alignment.

  • Localization enables engagement.

Employees who feel understood and connected are far more engaged, motivated, and loyal. An EOR localizes the employment experience by operating as the legal employer entity in the country. Rather than reporting to a foreign headquarters, overseas employees have a familiar local contact for queries and communications.

The EOR also regionalizes onboarding, payroll timing, workplace policies, and engagement initiatives. This shows employees that prioritize in APAC, EMEA, or LATAM, for instance, are respected. According to a global survey, 86% of engaged employees say they are happy in their roles, versus just 32% of the disengaged. An EOR can significantly move the needle on engagement through localization.

  • Cultural personalization drives productivity.

Each global region has unique cultural norms, workplace expectations, and motivational triggers. An EOR helping to embed your global expansion strategy with cultural awareness is invaluable. For instance, the average US worker expects direct feedback, and extra vacation time may be less motivational than a bonus.

However, the opposite may apply in EMEA locations. By working with a regionally focused EOR, overseas teams can be onboarded and managed with local cultural nuances in mind from day one. The result is always higher productivity. After all, a “one size fits all” rigid approach rarely delivers results across global regions.

  • Compliance protection enables security.

Employees inherently perform better when they feel secure and protected by their employer. However, if not managed properly, overseas expansion can expose global teams to compliance risks around payroll, immigration, termination rules, and more based on local labour laws. This leads to disengagement and attrition over the long term.

An EOR fully undertakes employer compliance in every market you expand into, profoundly reassuring overseas employees. Local teams are also trained early on regarding work eligibility and payroll protocols by the EOR as the formal in-country employer. The result is employees who can focus on driving business outcomes without distraction, protected from compliance pitfalls or Embassy inquiries.

  • Admin support enhances the experience.

Letting administrative challenges like insurance enrolment, visa renewals, and payroll errors fester results in a severely negative overseas employee experience. An EOR serving as an in-house HR function expertly resolves such issues for global teams, providing helpful local guidance.

Whether queries relate to parental leave eligibility, pension contributions, or termination terms, overseas employees have a dedicated contact point. By relying on EOR admin support, global employees have a smoother experience and remain satisfied. This keeps voluntary attrition low, despite cross-border complexities.

  • Analytics allow alignment.

Operating globally leads to scattered teams, language barriers, and cultural nuances, making alignment around business objectives difficult. An EOR gives centralized visibility into overseas team engagement via analytics on sentiment, retention likelihood, and performance enablement.

Conclusion

As highlighted, an employer of record is invaluable for globally expanding enterprises to manage overseas teams and unlock their productivity. By facilitating localization, personalization, protection, and alignment, an EOR drives higher engagement, happiness, and business results from international employees. Investment in an EOR is certainly an effort that delivers exponential returns.

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