Understanding Employer of Record (EOR) for Global Expansion

This chapter dives into the concept of Employer of Record (EOR) and its significance in facilitating global expansion for businesses. It explains the role of an EOR in managing legal responsibilities, employment tasks, and diverse requirements when hiring a global workforce. The chapter also covers key considerations for CEOs and CFOs when evaluating international expansion strategies, including the benefits of having a local presence and the complexities involved in setting up entities in different countries.

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Simone Nardi, the CFO of Globalization Partners, one of the largest providers of Employer Of Record (EOR) services, joins CJ for a masterclass in expanding internationally. Simone explains the concept of an Employer of Record, how it handles employment-related tasks and obligations for companies going abroad, and how it differs from a Professional Employer Organization (PEO). Together they flesh out a framework for CEOs and CFOs looking to build teams internationally. They talk about everything that goes into hiring great people abroad and doing it in a cost-efficient and strategic manner, including how to budget for an international workforce, staying abreast of changing regulations, using EORs to move employees between countries, considering the fluctuation of currency values, and even exit cost considerations. Simone also sheds light on Globalization Partners’ business model, the different revenue lines that they forecast for, and the metrics they track.

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@cjgustafson222 (CJ)

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TIMESTAMPS:

(00:00) Preview and Intro

(02:12) Sponsor - NetSuite | Maxio

(04:47) Definition of Employer Of Record (EOR)

(06:51) Definition of Professional Employer Organization (PEO)

(11:19) Key Considerations for Expanding Globally

(15:16) Use Cases for an EOR

(16:01) Costs That People Overlook When Hiring Abroad