EOR vs. PEO: The best choice for your global growth

Expanding your business globally presents numerous challenges - managing compliance, handling payroll, and onboarding international talent being just a few. For companies exploring global growth, two key models are available:  Global Employer of Record (EOR) and Professional Employer Organization (PEO). But how do you determine which one fits your business? It depends on your specific goals, size, and the markets you’re entering.

In this guide, we’ll explore the critical differences between an EOR and a PEO, dive into real-world scenarios, and help you make an informed choice tailored to your growth needs.

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What is a Professional Employer Organisation (PEO)?

A PEO partners with companies to provide HR services such as payroll, benefits administration, and compliance. The relationship operates on a co-employment model, meaning that while the PEO manages HR functions, your company retains legal responsibility as the employer. As per a report, the PEO industry's market size is all set to surpass $158.99 billion by 2031, expanding at a CAGR of 10.9%.

PEOs are especially useful for businesses that already have a legal entity in the country and are looking to outsource HR operations. However, PEOs generally work within specific countries, limiting flexibility if you’re expanding into multiple new regions.

Example: A mid-sized tech company based in the UK may use a PEO to outsource its HR functions within Europe. While the PEO manages payroll and benefits, the company is still legally responsible for the employees.

‍Related Resource: Employer of Record vs Staffing Agency article.

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The advantages of PEOs

In HR outsourcing, Professional Employer Organizations (PEOs) have emerged as a popular choice for many businesses.

Their comprehensive services and shared responsibility model offer a unique blend of benefits.

A Professional Employer Organization (PEO) provides several benefits:

• Comprehensive HR Services: PEOs offer various HR services, including payroll processing, benefits administration, and compliance management.

• Shared Responsibilities: PEOs share employment responsibilities with the client, allowing businesses to maintain control over their workforce.

• Scalability: PEOs can quickly scale their services to match the growth of your business.

• Access to Expertise: PEOs have experts in various HR disciplines, providing businesses with access to knowledge and skills that may not be available in-house.

• Cost Savings: PEOs can offer cost-effective solutions for benefits administration and other HR services by pooling resources from multiple clients.

The limitations of PEOs

While PEOs are a boon for many businesses, they come with their own set of challenges. Businesses must be aware of these limitations to make an informed decision.

However, there are some limitations to consider with PEOs:

• Legal Entity Requirement: PEOs require the client business to have a legal entity, which may only be feasible for some companies.

• Shared Liability: In a PEO arrangement, the legal liabilities from employment are transferred between the PEO and the client business.

• Less Control: While PEOs share responsibilities, they also share control, which may only be ideal for some businesses.

• Cost: PEO services can be expensive, especially for small businesses.

• Dependent on Business Size: PEOs work best for small to medium-sized businesses. Larger organizations may find a PEO's services less tailored to their needs.

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What is an Employer of Record (EOR)?

An EOR takes on full legal responsibility for your employees, acting as the official employer in the country of operation. This is particularly valuable when you want to expand into new markets without the need to set up a legal entity. The EOR handles payroll, compliance, benefits, and taxes, while you retain control over day-to-day operations. The EOR market is growing rapidly. It's projected to grow at a CAGR of 6.8% from 2023 to 2029, reaching $6604.4 million.

Pro Tip: EORs are ideal for businesses looking to scale quickly and compliantly across borders, particularly for those expanding into multiple countries where they lack a legal presence.

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The advantages of EOR

Companies constantly seek ways to gain a competitive advantage in the cutthroat global business environment.  An EOR brings several advantages to the table:

• Global Talent Acquisition: EORs empower businesses to recruit talent globally without establishing a local legal entity.

• Compliance Management: EORs ensure compliance with local labour laws, tax regulations, and compliance measures, reducing the risk of non-compliance.

• Payroll Management: EORs manage all aspects of payroll, including wage distribution, tax deductions, and benefits administration.

• Risk Mitigation: As the official employer, the EOR takes on all employment-related risks, offering a safety net for the client company.

• Streamlined Operations: By handling HR and payroll, EORs allow businesses to focus on their core operations.
  

With some EOR services providers, you also benefit from a combination of fast onboarding with human touch and competitive pricing, ensuring a seamless and cost-effective experience. Have a chat with us to find out more - Talk to us.

The limitations of EOR

While EORs offer many benefits, it's important to consider certain limitations when opting for their services.

Here are some considerations when using an EOR:

• Limited Control: As the EOR assumes the role of the legal employer, businesses may have limited control over certain aspects of employee management.

• Dependency: Businesses may become reliant on the EOR for critical functions, which could pose a problem if the EOR fails to meet expectations.

• Cost: EOR services come with a price tag that must be considered in the overall HR budget.

• Cultural Differences: Many EORs rely on computer-automated onboarding, which may not fully grasp the unique cultural nuances of your business. This could affect employee engagement and satisfaction

• Legal Entity Restrictions: Businesses with an existing legal entity in a foreign market cannot use an EOR service to hire local employees.

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EOR vs. PEO: The key differences

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1. Legal responsibility

• PEO: Your business remains the legal employer, and the PEO provides HR support. You must have a legal entity in the country to use a PEO.

• EOR: The EOR is the full legal employer, eliminating the need for a local entity. You avoid legal exposure, while the EOR manages all employment-related compliance.

‍For more details: Read more about the ease of staying compliant whilst hiring globally in our casestudies.

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2. Global Flexibility

PEOs are excellent for handling domestic HR needs or in countries where your business is already established. However, if you’re expanding into multiple countries, managing multiple PEO relationships can be complex.

In contrast, an EOR allows you to hire in multiple regions without the need for legal entities in each country. This gives businesses entering new markets unparalleled flexibility.

Example: A US-based startup looking to enter five European countries can use an EOR to manage hiring and compliance without needing a legal entity in each country.

Related Resource: Check out our Guides and insights for detailed advice on navigating the global hiring landscape.

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3. Compliance and risk management

One of the major differences between an EOR and a PEO is how they handle compliance. A PEO provides guidance but does not assume full legal responsibility, which leaves your business open to legal risks in the event of non-compliance.

An EOR assumes full legal responsibility for compliance, ensuring that local regulations, labour laws, and tax filings are met in each country. This significantly reduces risk, especially when navigating complex international labour laws.

Related Resource: Learn how to avoid employee misclassification and other compliance risks with our Employee misclassification blog.

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4. Costs and scalability

PEOs tend to charge a percentage of payroll or flat fees based on the services provided, and their costs are often lower than EORs. However, businesses still need to bear the costs of setting up and maintaining a local legal entity, which can add up over time.

An EOR, while often more expensive upfront due to the comprehensive services provided, eliminates the need for a legal entity, streamlining long-term operational costs, particularly for scaling globally.

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Pro Tip: Companies that expand into 5+ countries with an EOR model see a 50% reduction in administrative overhead compared to those using PEOs with local entities. Speak to our team today to see what's the best option for you.

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The right option for your business - When should you choose an EOR or a PEO?

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Scenario 1: A Growing Startup Expanding Globally

Use an EOR: A tech startup based in the US wants to hire talent in Spain, Portugal, and France. By using an EOR, the company can onboard employees quickly without worrying about local legal complexities or setting up multiple entities. The EOR handles payroll, compliance, and taxes, allowing the startup to focus on its core growth strategies.

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Scenario 2: A Mid-Sized Business Expanding Regionally

Use a PEO: A mid-sized business already operating in the US and Canada wants to outsource HR tasks within these countries. Since the company already has legal entities, it can benefit from using a PEO to manage payroll, benefits, and compliance, while maintaining control over its employees.

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Related Resource: Discover how other businesses have successfully moved to global hiring via an EOR arrangement over PEO on our moving to Teamed page.

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Elevating your HR strategy with us

Whether an EOR or a PEO is the right choice depends on your global growth strategy and the complexities of the markets you’re entering. If you’re expanding into multiple countries or need to hire quickly without setting up legal entities, an EOR offers the flexibility, compliance, and risk management needed. On the other hand, a PEO is ideal for companies that already have a legal presence and are looking to streamline HR functions within specific regions.

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fI your business is looking to expand globally without the hassle of setting up legal entities in every new location, an Employer of Record (EOR) could be the ideal solution. With Teamed, you can leverage our global EOR solution to hire, onboard, and manage your international workforce with ease and confidence. Elevate your HR strategy with Teamed and take your business to new heights.

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Further Resources:

• Compliance: Global Compliance Solutions

• Case Studies: Teamed Success Stories

• Pricing: Teamed pricing

• Blog: Everything You Need to Know About Employer of Record

• Hiring Guides: Explore Country-Specific Hiring Guides

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• Nick Waller, founder of Global M, shares key insights on today's top talent priorities and current global investment trends.
• We also talked about a specific concept: ‘Having the right people and their talents is more crucial than a business plan itself’.
• He highlights the immense potential Africa holds for business growth. “Africa is a prime spot for business expansion and talent acquisition”.

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Global M is an international recruitment consultancy helping start-ups and large technology corporations recruit top professionals to rapidly scale their tech teams. It’s specially dedicated to supporting clients by seamlessly integrating with their cultures, environments, and tools. Recently, we had the opportunity to interview Nick Waller, the founder of Global M, who shared insights into their unique approach and vision.

Nick from Global M mentions that "supporting the client daily and integrating with their culture, environment, and tools is crucial. Being on-site allows us to integrate on a personal level, enhancing mutual understanding." This approach underscores Global M’s commitment to aligning closely with their clients.

One of the main topics was the current investment landscape, where Nick shared with us an interesting perspective: “While investment has reduced, it’s leading to more positive outcomes in the long run and better recruitment strategies”. “Investments are now given with the expectation of profitability, not just growth for the sake of growth”, he added.

Part of our conversation focused on Africa and the wide opportunities for companies to expand their teams there. Nick believes that “Africa is a fantastic place for us and other organisations to grow. The strong university systems produce very smart and eager people”. He also added that “Africa's rich natural resources attract global investment, providing economic advantages without compromising on talent quality.” Regarding today’s top talent, Nick notes that "the benefits are the top priority. ‘Is the organisation going to pay me what I deserve? Are they going to give me a good salary? Are they going to offer benefits that provide flexibility and support my environment?’”.

Nick further emphasises the importance of having the right people, stating that "having the right people and their talents is more crucial than a business plan itself. Your business will be successful when you start testing it in the market with the right people who can adapt to changes and see opportunities."

Lastly, Nick points out how AI enhances the interview process: "AI makes the interview process fairer by using video software and AI tools that analyse keywords and what people are saying, reducing subjectivity." This use of technology ensures a more objective and efficient hiring process.

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Highlights from Nick

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• Being on-site allows Global M to integrate personally, enhancing mutual understanding.
• Africa's rich natural resources attract global investments from countries like China, the US and Russia.
• Benefits are a top priority: ‘Is the organisation going to pay me what I deserve?’
• Having adaptable people who can see opportunities is more crucial than the business plan itself.
• Investments are now given with the expectation of profitability, not just growth for the sake of growth.
• AI makes the interview process fairer by reducing subjectivity.

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Full interview

What’s the main thing you aim to achieve at Global M, and how does this set you apart from other firms?

‍Global M is an international talent consultancy. We work with startups, scale-ups, and corporates, supporting them in finding, hiring, and analysing top talent.It really depends on a case-by-case basis, the size of the business, and the type of roles they're hiring for. We tailor our solutions specifically to each client. This usually involves providing a recruiter from our experienced talent acquisition team. This recruiter finds profiles, analyses them, and provides succinct feedback to hiring managers and internal teams. They are embedded in the organisation, supporting the client daily and integrating with their culture, environment, and tools. They have access to an email address, applicant tracking system, and other tools, and often work on-site.

‍Being on-site allows them to integrate on a personal level, such as going for a coffee and discussing daily events, or attending conferences to learn more about the organisation. This deep integration gives us a thorough understanding of the client and vice versa, leading to excellent service delivery. We enjoy this approach as it makes us feel part of the team and enhances our accountability.

On top of this, we've been going for 12 and a half years now, and we've got international employees. We've got people based in Ukraine, South Africa, and the US. This gives us a good understanding of different cultures since we employ people from diverse backgrounds. Having offices in these locations gives us a great perspective. Our Spanish office provides a good overview of Europe, our South African presence offers insights into Africa and parts of Asia, and our US office covers Canada and South America. These different elements give us a well-rounded global view.

Could you describe a typical scenario Global M encounters in global hiring?

‍I think nowadays, especially with the current climate, it has really shaken up recruitment and people's views on it. Recruitment activities have become a bit more inconsistent. We've found that it's not so typical anymore. Although that's part of your question, we find that companies usually come to us because they don't have the speciality in that specific sector. They've done some cost savings and planning, which means they didn't need to hire the number of people they actually do need. So, they come to us and say, "Look Nick, we are struggling to meet our numbers. We need your support."

So actually, it really varies why people come to us, but dominantly, it's because they are behind their hiring goals and need additional external support. The second reason is that they see us as a partner who can help and support them, not just in finding talent, but in providing insights as well. They see us as a potential partner, and it gives us a chance to learn from them too. It’s a two-way street, which is why many see us as an integrated partner rather than just an external agency.

What inspired Global M to open offices in South Africa and Ghana, and how has this expansion impacted your growth and partnerships?

‍I think there are a couple of elements in this question. So, personally, being born and raised in Kenya was a wonderful experience, and I'm very grateful to my parents for giving me that. It gives you an international perspective. Growing up in a country with significant social and class divides, as you get in Africa, you soon pick up on these disparities. I think this awareness becomes a part of you, and you start to question why such divides exist in the world. This perspective has stayed with me throughout my life and career, and it's a core reason why Global M focuses on supporting people in finding jobs and enhancing their careers.

From a personal perspective, my background has shaped my career and our business. We wanted to invest in Africa because of my personal connection. People from Africa are incredibly resilient and positive despite facing significant hardships and infrastructural challenges. They are friendly and optimistic, which is an admirable way to look at life. We invested in the continent by opening an office in South Africa and employing South African staff. We also have employees in Ghana and East Africa.

It's been a good experience. There are cultural nuances and environmental factors we've had to learn, but embracing these elements has been rewarding. We've had very positive experiences with our African team members, particularly in South Africa and Ghana.

We're looking to build on these experiences by growing partnerships in Africa and working with more companies there. There's great talent in Africa, supported by strong university systems, with very smart and eager people. We believe Africa is a fantastic place for us and for other organisations to grow.‍

What benefits do companies gain by hiring in South Africa, Ghana, or Kenya?

‍The benefits of hiring in South Africa, and Africa in general, are numerous. In Africa, the principal countries where much of the business is conducted are South Africa, Kenya, Nigeria, and Morocco. These countries produce a significant amount of talent and business, making them focal points for commerce. We have offices in South Africa and Ghana, which gives us a solid understanding of these specific locations.

‍South Africa is particularly interesting because many people there have a European cultural synergy, partly due to historical ties with Dutch colonizers. This cultural fit makes it easier to hire and integrate them into teams. Despite facing hardships such as government issues and unreliable internet access, South Africans have developed resilience, an essential trait for the workplace. This resilience makes them adaptable and client-oriented employees.

‍Similarly, Nigeria is a wealthy country with many fantastic entrepreneurs and a burgeoning technology scene. There's increasing investment in Nigerian startups, with venture capital firms specifically created to invest in African businesses. This trend is fostering a vibrant entrepreneurial ecosystem.

In Kenya, Tanzania, and other locations, we see similar patterns of growth and talent. French companies also benefit from working in Morocco and Tunisia, where French is widely spoken, providing a cultural connection that facilitates business operations.

Additionally, the cost of hiring in Africa is generally lower compared to places like Copenhagen, offering economic advantages without compromising on talent quality. The lower cost of living in Africa means you're not having to pay as much in salaries, which reduces expenses related to infrastructure. This is a significant benefit for some companies, making Africa a cost-effective choice for many businesses. Because you can get highly effective people for less money, Africa is an excellent place for building a cost-based operation. However, it’s important to remember that working in Africa may not be the same as working with Nordic countries, DAC (Germany, Austria, Switzerland), or the UK, where infrastructure and work environments might differ.

Overall, Africa is a diverse and dynamic continent with immense potential for growth, making it a strategic location for businesses looking to expand and tap into new talent pools.

Could you share some information about which countries are investing the most in Africa?

‍Africa's rich natural resources attract global investment, including significant infrastructure projects by countries like China, Russia, and the US. This investment enhances the business environment and creates more opportunities for skilled workers. However, the most notable growth is in the tech sector.

What are the top three things that influence top talent today?

‍I think the number one concern is always the benefits. While people often say it's about the opportunity, the role, or the progression, the benefits are the top priority. “Is the organisation going to pay me what I deserve? Are they going to give me a good salary?”

Everything needs to be perfect, even though it rarely is. “Are they going to offer benefits that provide flexibility and support my environment?” With COVID, flexibility has become incredibly important, whether that's being fully remote or hybrid. There's a bigger push for hybrid now because many people feel burnt out from being fully remote and want some time in the office. If you're in the office, even for just a day or two a week, it can benefit your communication and career more than being fully remote. Top talent wants a good salary, benefits, and flexibility. Secondly, they look for opportunities for growth and leadership within an interesting company.

Lastly, we're seeing a growing concern for sustainability and the good an organisation does for the world. Top talent wants to work for a company with a good ethos and sustainability agenda. They want to be proud to talk about their company with family and friends. Even if the company isn't in the energy or climate sector, it can still provide good to the world. This is becoming increasingly important for top talent.

Could you expand on the concept that “having the right people and their talents is more crucial than a business plan itself”, and how this philosophy shapes your approach to team building and pitching to investors?

‍Business plans are important, as they ensure you have your ideas, concepts, and commercial aspects backed up. However, the true test of whether your business will be successful comes when you start testing it in the market. This means selling, pitching, and showing your product to see if customers are willing to pay for it. Your original idea might not be what customers are willing to pay for; it might be an incredible idea that the market isn't ready for yet, possibly for another 10-20 years.

It's crucial to test your business to ensure it's viable. Many people talk about minimal viable products (MVP) or proof of concept, but even simple businesses, like selling something online or making food for someone, need to find out if people are willing to pay for it. That's when you know you have a real business.

‍Having the right people is vital because they will be on the front lines, seeing opportunities and adapting to changes. It's important to have common-sense, entrepreneurial people who are ready and adaptable. Some people struggle with change because they have a fixed idea of how things should go, but life and business are unpredictable. Things change, move, and alter, and it's essential to be prepared for that.

How are current trends in investor interest affecting the global talent landscape, and what implications does this have for talent development and recruitment strategies?

‍We've seen a significant dip in investment in startups and scale-ups over the last 18-24 months. Post-COVID, there was a surge in investment as many people were working remotely and relying more on technology, causing metrics for tech companies to soar. This led to a lot of venture capital (VC) investment in technology startups. It was also a favourable climate for borrowing money, as it wasn't hard or expensive.

However, over the past 18-24 months, interest rates have increased, making it harder and more expensive to borrow money. This has changed the landscape, leading to a decrease in investment. But this shift is positive, as it encourages companies to be more sustainable. Investments are now given with the expectation of profitability, not just growth for the sake of growth. This change is pushing organisations to adopt more sustainable working methods.

Founders are now more cautious about how they spend and use their money. This cautious approach is beneficial for recruitment, as companies come to us with more specific and detailed business needs, leading to more successful partnerships. It's something I really enjoy seeing—companies with a clear plan and way of working.

Overall, while investment has reduced, it’s leading to more positive outcomes in the long run and better recruitment strategies for organisations.

What’s your opinion about AI recruiting systems?

‍AI systems are going to be really helpful in recruitment, and their impact is largely positive. Currently, AI is used for generating emails to candidates and clients, helping us explain what we do more effectively. It speeds up the process of reaching, attracting, and engaging candidates. Additionally, AI makes the interview process fairer by using video software and AI tools that analyse keywords and what people are saying, reducing subjectivity.

‍Recruitment has always been quite a subjective process and likely will be for some time. However, AI software helps eliminate some of the natural biases, making our industry better. Despite this, the human element in recruitment remains crucial. Speaking to people on the phone and helping them through the process is something AI will struggle to replicate.

AI can significantly improve the outreach and interview processes, but the human touch will always be important in recruitment.‍

After global recruiting what is next?

‍After successfully recruiting globally, the next step is to ensure seamless employment and optimal onboarding of your diverse team. At Teamed, we are witnessing a significant increase in hiring top talent from Africa, especially in tech companies.

One of our top countries for employing employees from our clients is South Africa, where we partner with global recruiters like Global M and have local specialists ready to help you with regulations, payroll, and more to simplify your hiring processes. With Teamed as your Employer of Record (EOR), you can build a world-class team no matter where they are located, while we handle the complexities of hiring, paying, and taking care of your remote workforce. The Teamed difference lies in our top human support for both companies and employees, ensuring everyone feels valued and supported throughout the employment process.

‍Let's focus on growing your business with the right people, without borders!

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The importance of maintaining strong connections with team members cannot be overstated. Building trust in remote teams through unique communication strategies is key to ensuring these connections are meaningful and lasting. Regular check-ins have emerged as a vital strategy for fostering trust and inclusivity in virtual teams. 

As Paul Arnesen, a seasoned Global HR expert, shared in a recent interview with Teamed, “In a remote setting, regular check-ins are very important… make sure that you have some sort of strategy in place to ensure that everybody is being seen and heard.” This insight, coupled with data from recent studies, highlights how intentional communication can make or break remote work dynamics.

A report by Buffer's "State of Remote Work 2023" found that 24% of remote workers cite loneliness as their biggest struggle, and 21% report difficulties with collaboration and communication. These results highlight a strategic need to enhance employee engagement. A key approach to achieving this is through structured employee check-ins and one-on-one meetings. When conducted effectively, these strategies help bridge the gap between isolation and engagement, ensuring that team members feel connected and supported—an essential foundation for building trust.

By addressing individual needs and preferences, a more inclusive and valued workplace culture is cultivated, which is foundational to trust in remote teams. 

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Watch this video where Paul Arnesen, Global HR expert, and Calum Lyle, founder of Zest, explain how to build trust in remote teams through different communication approaches and what it truly means.

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What sets remote managers apart 

Paul also noted that effective remote managers excel in communication, such as scheduling regular check-ins, which fosters a unique kind of trust. “The best remote managers I’ve seen are the ones who really understand communication.”

“Those remote managers who stand out are those who manage to transition from being good at face-to-face communication to being just as effective online. This ability is what makes them unique. It builds a different kind of trust,” added the Global HR expert. This trust is the bedrock of high-performing remote teams, where communication isn’t just frequent, but also meaningful and supportive.

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Creating connection and belonging in remote work through human experience

But beyond just connecting team members, these check-ins touch on something more profound: the human experience. Remote work, by its nature, can strip away the small, everyday interactions that make work feel personal and human. It’s these moments [an informal chat over coffee, a quick check-in at someone’s desk] that are often missing in a virtual setting. These interactions are key for creating a sense of belonging and psychological safety within a team, which are essential components of trust.

‍Calum Lyle, a Tech Sales & Marketing recruitment specialist and founder of Zest, reinforces this idea, stating in an interview with us, “You don’t need to be in the same room… but you do need to push that culture and put a few small things in place which enable people to be their true authentic self.” 

This perspective aligns with findings from the Society for Human Resource Management (SHRM), which indicate that employees who feel their managers care about them as individuals are 86% more likely to stay at their jobs. Regular, thoughtful check-ins are a crucial element in demonstrating this care and in fostering trust.

By focusing on the human experience, managers can elevate their check-ins from mere routine to a powerful tool for empathy, connection, and trust-building. Paul’s emphasis on having a structured approach to check-ins also resonates with data from Gallup, which shows that teams that have regular, meaningful communication are three times more likely to be engaged at work. This engagement is not only about productivity; it’s about creating a work environment where employees feel valued, trusted, and part of a cohesive unit.

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The role of psychological safety in building trust

Psychological safety is key to building trust in remote teams. It creates an environment where team members feel safe to express ideas and take risks without fear of judgment. This is especially important in remote settings, where the lack of face-to-face interaction can lead to feelings of isolation and misunderstanding.

‍Google’s Project Aristotle, a study on team effectiveness, found that psychological safety was the most critical factor in determining a team’s success. In remote environments, where communication barriers can be more pronounced, fostering psychological safety is essential. 

By creating a supportive atmosphere during check-ins [through active listening, encouraging feedback, and acknowledging challenges] managers can build stronger trust and engagement. This ensures that communication in remote teams is not only frequent but also meaningful and supportive, fostering more connected and trusted teams.

How your EOR perfectly aligns with the essence of the Human Experience

As previously highlighted, effective remote managers excel by adapting their communication strategies to meet the unique challenges of a virtual environment. This approach not only reinforces the importance of meaningful and supportive interactions but also ensures that the human element remains central, addressing individual needs and preferences. This focus on the human experience is fundamental to creating a cohesive and inclusive team culture.

At Teamed, we understand that the human experience is at the heart of every successful remote team. We place it at the top of our priorities, ensuring that our support and services are designed to help companies build and maintain trust through thoughtful and tailored communication strategies. 

By partnering with Teamed, you are not only simplifying global employment but also investing in the well-being and success of your remote workforce. Chat with our team today! 

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When hiring and managing global teams, transparency and cost-effectiveness are key. Many companies are discovering that the real cost of using Employer of Record (EOR) platforms can be higher than expected due to various fees. These fees can accumulate, turning what seemed like a cost-effective solution into a financial burden. Additionally, the efforts to find and recruit global talent can make these processes even more costly for many companies.

EOR services are essential for companies looking to hire talent in countries where they don’t have an official entity. From payroll to taxes, benefits, and compliance with local employment laws, an EOR takes on the legal responsibilities of employing staff on behalf of another company. This arrangement allows businesses to quickly and compliantly hire employees in different regions.

However, many companies end up frustrated by the high fees associated with certain EORs. In this article, we will examine some common fees in popular EORs to help you understand these risks from the outset.

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The 5 Most Common Fees in EOR Platforms

Using an EOR platform can introduce several potential fees that can accumulate quickly:

1/ Management Fees: Many EOR platforms charge a standard management fee per employee, which can significantly impact your budget, especially when managing a large team.

2/ Handling Fees for Agreements: Some EORs charge for executing hard copy agreements with wet-ink signatures. While these fees may seem minor, they can add up if you frequently onboard new employees.

3/ Payroll Service Fees: On-demand payroll services can be costly, especially if you require frequent payroll adjustments or assistance.

4/ Legal Fees: Handling complex terminations can incur high hourly fees. These fees can quickly escalate in complicated legal situations, adding unforeseen expenses.

5/ Off-boarding and Setup Fees: Termination of an employee can incur additional fees. If an employee is terminated within the first few months, you may face further setup fees.

These are just a few examples of fees that can accumulate rapidly, leading to higher costs than initially anticipated. This lack of upfront transparency can be frustrating and financially straining for companies aiming to manage their global workforce efficiently.

It's essential to have this knowledge from the moment you contact an EOR. Your global hiring provider should inform you from the beginning about all the requirements, specifications, and risks associated with hiring in each region. At Teamed, for example, both you and your global hires will be assigned a local specialist who will make you aware of these potential scenarios from the moment you contact us, without any commitment on your part.

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Transparent Pricing from the Start

At Teamed, we believe in transparency and honesty from the very beginning, providing a close and accurate price from the first meeting. There are no hidden fees, no unexpected costs—just clear, straightforward pricing.

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"No hitches, all straightforward and without a hefty price tag! Thank you!", mentions Julia Mardell, Operations Director at Classic Folios.

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Our team is dedicated to providing human-centric service, ensuring you have the support you need, exactly when you need it. This approach not only enhances the overall experience and helps you navigate the complexities of international employment with ease but also keeps you informed about all the details relevant to hiring in each country, depending on salaries and the positions of your new hires. 

Our goal is to ensure a transparent and trustworthy relationship from the very beginning, which means clearly showing you all potential risks.

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"Teamed's proactive approach flagged potential issues with employees we weren't even aware of. Their service has been absolutely brilliant", highlights one of our clients, Shivani Phu, VP of Finance & Investment at Pixelynx.

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At Teamed, we provide you with accurate costs upfront and assign dedicated regional specialists to support your every need, ensuring a seamless and efficient global employment experience.

We finish this article by sharing some of our discoveries regarding Deel’s fees for hiring an employee in the US. This is just an example of what you might encounter. Our purpose here is solely to share this data, which might be updated by the time you read this. We just want to give you all the info you need to pick the right EOR for your company.

Understanding the Unexpected Costs from Other EOR

When choosing an Employer of Record (EOR), it's important to consider all potential costs. Among all EORs, we have chosen one of the most popular, Deel, for this example. We have noticed a significant number of migrations from Deel to Teamed. Deel’s fee structure includes various additional charges that can quickly accumulate. Here’s a simplified breakdown of some of these fees*: 

*Note: Data was collected in June 2024.

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Ready to check if you could be better off working with an EoR with superior service and without the hidden costs? Chat with our team today! 

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• Isabel Strijland, Chief Growth Officer and Co-founder of Acelr8, explains that hiring globally is also about understanding the requirements and benefits of hiring in different locations.
• She highlights the “importance of partners like Teamed in navigating global hiring complexities”.

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Isabel Strijland, Chief Growth Officer and Co-founder of Acelr8, is transforming how companies hire. Acelr8's mission is to make quality hiring seamless by deeply

integrating with clients, making their talent partners an extension of the client's team. By embedding into recruiting teams from the start, Acelr8 leverages market insights to ensure a perfect fit.

Isabel identifies the top three factors attracting top talent: flexibility, purpose, and strong compensation. "Flexibility has become incredibly important," she notes. "There's also a significant need for purpose in people's roles, especially among our generation." Competitive pay reflecting employees' value and expertise is also a key factor. Isabel states, "Understanding the local market averages and potentially offering slightly above those rates can help attract the right talent."

"Align your benefits packages with these values while conducting diligent market research to stay competitive in each region. This approach ensures that you meet both regulatory requirements and employee expectations, fostering a cohesive and attractive benefits package," she adds. To build the right remote team, Isabel recommends: "When hiring remotely, set clear targets and expect independent work."

Additionally, Acelr8 prioritises diversity and inclusion (D&I) from the start. "It's important to have a diverse interview panel to ensure candidates feel included."

Isabel also stresses the role of AI in recruitment: "Training that AI muscle allows recruiters to spend more time engaging with the right candidates, focusing on the human aspect."

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Highlights from Isabel

• Our mission is to make quality hiring seamless, by embedding our talent partners into (recruiting) teams, making our talent partners an extension of their team.
• Get hiring right from the start with our recruiting team's market insights.
• Flexibility, purpose, and strong compensation are key to attracting top talent.
• Design benefits packages based on local market averages to attract top talent, meet regulations, and align with employee expectations.
• Set clear targets and expect remote talent to work independently.
• Having a partner like Teamed is crucial in navigating these complexities.
• Understand the requirements and benefits of hiring in different locations.
• Prioritise diversity and inclusion (D&I) from day one with a diverse interview panel.
• Integrating AI allows recruiting specialists to focus more on engaging with the right candidates.

The commitment to innovation, inclusivity, and excellence is transforming how companies attract and retain top talent globally. Discover how Isabel Strijland’s insights and strategies are reshaping recruitment in our full interview.

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Full Interview

What makes Acelr8 stand out from other agencies?

The word "accelerate," which we often use in business development and client calls, highlights how we can speed up your hiring process. Though it's spelled uniquely, it embodies our mission to accelerate recruitment.

What sets Acelr8 apart from other agencies is our team of talent partners who deeply integrate with our clients. This means they work remotely or visit the client's offices to manage the entire recruitment cycle. They don't just fill positions—they immerse themselves in the client's culture, understand their products, and grasp their specific hiring needs. This thorough approach ensures we bring in talent that not only fits the job requirements but also aligns perfectly with the company's culture and long-term goals.

Additionally, we apply this model to our executive search services. Our executive partners collaborate closely with clients to understand the nuances of each role, evaluate candidates effectively, and create scalable hiring processes. By doing so, we challenge traditional agency methods with our embedded approach, providing a seamless and enriched experience for both candidates and companies.

In essence, our talent partners become an extension of the client's team, working from within to ensure a high-quality recruitment process. This embedded model is not just about filling vacancies—it's about building lasting relationships and ensuring the right fit for both the candidate and the company. This is how we consistently deliver exceptional results and stand out in the recruitment industry.

You mention in your values, "Get your hiring right." Could you elaborate on this statement? Additionally, what aspects of traditional recruitment do you believe need improvement?

We have our mission, or the families that we have in the business, is to really get hiring right for our clients. And I don't think it's anything new or groundbreaking, but it's so needed to really give recruiting a seat at the table and make it a strategic partner in who you bring on board, how many headcount you have, and at what levels. I think too often recruitment is seen as a service center that just executes whatever is told by the people team, the C-level team, or a founder when companies are a bit smaller. 

But it's so important to involve the recruiting team from those first conversations about who to hire because they have insights on the market. They know what kind of skills and what kind of talent is available, and they can really also say if certain goals are realistic and if it's actually needed to hire that team in the structure that is proposed as well.

And we do that with a lot of our clients by being embedded. We also are part of those conversations, and with that, we sort of try to change hiring one company at a time and implement the right recruiting practices and processes. And with that, we should have a strong outcome, on the other side, with some great talent joining the company and making your business a success.

What are the top three things that attract the best talent today?

Flexibility has become incredibly important, especially after the pandemic. Many companies shifted to remote or hybrid models, giving their employees the freedom to work at different times and from various locations. This trend is now common among the tech startups we work with.

In this environment, there are still many jobs that require being in the office. However, the tech startups we collaborate with often hire talent remotely and offer this flexibility.

Additionally, there's a significant need for purpose in people's roles, especially among our generation. Work is no longer seen as separate from life but as an integral part of it. People want to engage in meaningful work that benefits others or contributes to the well-being of the planet. We see this a lot when hiring for green tech and AI companies, which attract talent driven by a sense of purpose.

Lastly, strong compensation packages are crucial. Candidates are now more informed than ever about salaries, thanks to numerous platforms that compare compensation data worldwide. You can no longer mislead talent about their worth. Companies need to offer competitive pay that reflects the value and expertise of their employees. In this context, comprehensive compensation packages can make a significant difference.

In the context of setting up employee benefits packages, how can companies effectively account for the differences in regulations and expectations across various countries?

Effectively accounting for differences in regulations and expectations across various countries when setting up employee benefits packages requires a multi-faceted approach.

Firstly, it's important to consider the type of company and the culture you want to establish. For fully remote companies operating across Europe, where location is less of a concern, it's beneficial to create packages that are averaged based on country-specific standards. For example, a well-known remote company, Hotjar, employs this strategy by hiring both full-time employees and freelancers, yet maintains a leveling approach to salaries to ensure fairness and alignment across different regions.

For companies targeting specific regions for their hires, conducting thorough market research is essential. Understanding the local market averages and potentially offering slightly above those rates can help attract the right talent. This strategy not only ensures competitiveness with local companies but also aligns with the company's compensation culture and values.

In summary, begin by defining your company’s compensation culture and values. Align your benefits packages with these values while conducting diligent market research to stay competitive in each region. This approach ensures that you meet both regulatory requirements and employee expectations, fostering a cohesive and attractive benefits package.

What do clients usually ask for when they want to hire international talent?

Clients now ask for candidates to be very skilled and highly autonomous, especially with the rise of remote work. With access to talent from various locations, clients can tap into a wide range of skills that students and professionals bring from different places. Autonomy is vital here because, when hiring remotely without a local office, companies need to set clear targets and expect their talent to work independently.

For example, we worked with a co-op, a French startup based in Paris. They quickly realised that their engineering talent was spread across Europe. We helped them identify the right markets, conduct market mapping to find niche roles, and ultimately hire ten people across Europe. This approach went against the traditional French startup model of staying local, making it an international company. We guided them through the process, one hire at a time, ensuring they could manage their remote talent effectively.

How do you handle the challenges of hiring globally, and how do you solve them?

Hiring globally presents a unique set of challenges, and having a partner like Teamed is indispensable in navigating these complexities. Each country has its own requirements for hiring, as well as specific benefits you must offer or can offer. When conducting market mapping, it's not just about sourcing talent or identifying challenges; it's also about understanding the requirements and benefits associated with hiring in different locations.

For example, if you're looking to hire for sales roles in Spain, you need to be aware of the legal requirements, the benefits you can offer, and what is prohibited. This allows you to make informed decisions. We're currently working with a fintech company to identify where to hire German-speaking talent both within and outside of Germany. Given the high demand for German talent in Germany, we're exploring other parts of Europe for German speakers who can meet the company's needs.

This process involves more than just identifying talent sources; it also includes evaluating whether it makes sense to open a remote office there or hire through providers like Teamed.

Another critical aspect we've learned from working with our clients is to prioritise diversity and inclusion (D&I) from day one. Taking hiring seriously means taking D&I seriously, which can be challenging initially but is essential. Making D&I a priority means integrating it into every step of your hiring process.

This includes defining what diversity and inclusion mean for your company, incorporating these principles into skill assessments and hiring criteria, using inclusive language in job descriptions, and being flexible with skill requirements to attract diverse candidates. It's also important to have a diverse interview panel to ensure that candidates feel included.

Additionally, implementing strategies like gender quotas can help ensure diversity in your hiring pipeline. For instance, if you're hiring an engineer, you might aim for a 50% male and 50% female pipeline before making a decision. Every step in the recruitment and hiring process should incorporate D&I principles to ensure a truly inclusive approach.

What are your insights on the current effectiveness of AI recruiting systems?

I think for recruitment, it's really a must. I'm really happy that ChatGPT went with the strategy they did, where everyone is using it—from our recruiters internally to my mother at home. This widespread usage has raised literacy in AI, similar to how smartphones familiarised people with touchscreens. Now, people are starting to understand how to use AI in their daily lives and work.

At Acelr8, we actually have a working group with some of our talent partners who are very excited about AI. They experiment with new AI tools, dive deep into ChatGPT, and develop use cases for how to best utilise AI in recruitment. It's about training that AI muscle and knowing how to integrate it into your work.

I don't think AI will replace any roles in recruitment. Instead, recruiters who can effectively work with AI will outperform others. AI can handle repetitive tasks, research, sourcing, and outreach, leading to a higher quality pool of candidates. This allows recruiters to spend more time engaging with the right candidates, which ultimately benefits both the recruiters and the candidates. When set up correctly, AI can ensure candidates are better informed and communicated with throughout the process.

Additionally, how do you envision their evolution and impact over the next five years?

You see a lot of recruitment agencies and teams already applying various AI tools. I think there's definitely an overload of tools at the moment. It's important to find a few that really fit your workflow and ensure your team fully adopts and uses them daily.

In the next five years, I envision these AI tools improving significantly. They will increasingly handle repetitive tasks, reducing the workload for recruiters. This will allow recruiters to focus more on the human aspect, which is crucial for both candidates and companies.

As AI continues to evolve, it will enhance efficiency in the recruitment process, enabling recruiters to provide a more personalised and engaging experience. This shift will ultimately benefit the entire recruitment ecosystem by fostering better matches between candidates and companies.

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After global recruiting what is next?

The future of global employment is all about seamless integration and strategic partnerships. This is why we work closely with recruiting agencies like Acelr8, who excel in finding and placing the right talent. Once the ideal candidate is hired, we step in to manage the employment process, ensuring a smooth transition and seamless experience for both the client and the employee.

At Teamed, we handle the entire employment lifecycle effectively, from onboarding to compliance, payroll, and benefits. All supported by personalised and dedicated assistance for both employees and companies. That's what makes our TeamedDifferent, a key factor that sets us apart from the rest.

As Isabel's insights confirm, flexibility is crucial, especially in today’s global work environment. We support remote work models, enabling clients to attract top talent from anywhere in the world.

Ready to transform your workforce and harness the power of global talent? Connect with Teamed today!

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Just as in the formation of any new relationship, first impressions during employee onboarding are essential, setting the tone for the entire employee journey. It's a well-known fact that a thought-out onboarding process can be a game-changer in employee retention and engagement. But what happens when your teams are spread across different countries, each with their own and unique nuances?

This is where Teamed shines, stepping in to make the global hiring and onboarding process not just seamless, but a great experience with human touch and dedicated onboarding experts.

Real stories from the Teamed journey

With global employment and onboarding, what could be a simple routine operation, such as ensuring your employee tax and social contributions are correct, can have unforeseen challenges. This is where our commitment to excellence in onboarding is not just a promise; it's a reality that resonates in the feedback we receive from our clients. Recently, one of our people operations experts navigated complex negotiations with the Tax Office in the Netherlands, showcasing our dedication to going the extra mile to facilitate smooth collaborations across borders. The client was immensely appreciative of the effort and dedication put into supporting them and their employees.

In an age of automation and AI, it can be so easy to focus on optimising and automating a new hire's journey with us. In a recent case, Teamed's people-first approach highlighted the importance of the human touch when, during an initial discussion with a company planning to expand in New York, we received some really encouraging feedback. The primary contact at the company noted that their experience with Teamed was "a million times better" compared to their past engagements with other EORs (Employers of Record). They were particularly impressed with our approach to customer service, which they found to be more friendly, human, and genuinely supportive, marking a refreshing change from their previous experiences. This early positive feedback is a promising indicator of a blossoming partnership, underscoring the importance of getting the onboarding process right.

Retention: More than just numbers

SHRM research shows that organisations with an excellent onboarding process experience a 52% increase in the retention rate of new hires. This shows how retention is not just about keeping employees; it's about fostering a community where they want to stay, grow, and thrive. And it all starts from the beginning of the employee lifecycle. At Teamed, we take this to heart, crafting onboarding experiences that resonate with individuals, no matter where they are located. Dive deeper into this topic with our earlier post on Cultural Differences in Global Teams: Unlocking 21% Higher Profitability and Success.

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"The onboarding process was a smooth process. Alice was helpful and made sure I understood the terms." Ketshepile A.

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Engagement: The heartbeat of a happy team

Working with a range of HR professionals and businesses, we've come to understand that engagement isn't merely a metric; it's the heartbeat of a happy, productive team. In addition to our own expertise, a variety of studies have revealed that effective onboarding strategies indeed lead to a higher level of employee engagement. As an example, BambooHR reports that effective onboarding results in 89% of employees feeling very engaged at work. We believe that engagement starts with feeling seen and valued, a principle that is deeply embedded in our onboarding process.

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"The onboarding process was seamless. The team at Teamed is super friendly and helpful and it helps. Friendly staff. Always keen to help. Feel like they are on employees side and not just working for a company." Helena V.

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Productivity: Setting the stage for success

A structured onboarding programme is not only fantastic for fostering engagement, but also plays an important role in boosting the productivity of new hires by up to 70%. At Teamed, we view this as laying the foundation for individual success, providing both new hires and their employers with the essential information and time needed to integrate fully and contribute meaningfully right from the outset, without concerns over contract compliance or international payroll challenges. Organising a few meetings to get your new starters and processes up and running swiftly is a no-brainer.

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Teamed approach to global onboarding

At Teamed, we're not just adapting to the changing landscape of global employment; we're leading the charge. Our mission is to democratise employment, making it straightforward and human-centric, even when it spans continents. We're here to ensure that no remote employee feels like a second-class citizen, fostering a culture of inclusivity and respect.

"We looked at Deel, Remote, Oyster… the lot. Teamed offered the same product at a lower price. In fact, that's not fair. It's a better product because the customer service goes way beyond what the others offer, and they never charge extra fees." | Anil Kumar, Luganodes

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"Support for our candidates was hugely important. We wanted a solution that felt like just another branch of what we do internally but took care of things that are outside of our expertise. For this, Teamed delivers on all fronts!" | Marta Silva, Tekever.

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Conclusion

We know that international onboarding experience is more than a process; it's a statement of how we value our employees. As you expand and start to navigate the intricate landscape of international employment, we at Teamed stand next to you offering innovative solutions that are as humane as they are strategic.

Remember that at Teamed, we believe that all great journeys begin with a few, well-planned steps. Let's redefine what hiring global talent and how their onboarding should look like, together.

Get in touch or continue learning more about on how to facilitate onboarding by checking our blog post: Tips to Effectively Onboard International Employees.

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• We've been wanting to talk to an employee who works remotely with most of their team for a while. Now, we finally have a testimonial from Ferdinand Boeck, Senior Sales Engineer at Kahoot!
• “While I could be on-site for a while, I would eventually want to return to having remote flexibility”, he confesses.

When an employee experiences the benefits of working remotely, they rarely want to go back to the office. If they have to return, they will likely seek opportunities to regain the flexibility that a remote position offers.

This time, we had the opportunity to talk to an employee based in Barcelona, working for the popular company Kahoot!. The company's headquarters are located in Oslo and Copenhagen. German by birth, Ferdinand Boeck is a Senior Sales Engineer who has the privilege of choosing the perfect place for him to work.

Ferdinand has embraced the Spanish way of life, enjoying “the culture, climate, and lifestyle” of the country. Although he sees himself living elsewhere for a while, Spain is always a place he would return to “because it has so much to offer”.

Despite his role requiring constant communication and collaboration between departments, he doesn’t find it difficult to perform his duties remotely. When asked about the main issue he encounters in remote environments, he explained: “One issue can be that you don’t really feel part of a team and more like a freelancer. Therefore, occasional get-togethers with your team and colleagues are essential to foster a sense of belonging.”

We wanted to understand what a remote employee feels if they had to go back to the office one day. Ferdinand replied: “I would reluctantly give up the flexibility my remote job brings. While I could be on-site for a while, I would eventually want to return to having remote flexibility.”

Ferdinand also shared how he builds bonds with his colleagues, highlighting an important social aspect for many employees: ‘Lunch time’. “I’m mostly in Barcelona and usually go in twice a week to have lunch and socialise with colleagues. When I travel to our headquarters in Oslo and Copenhagen, I go to the office every day because I don’t see those colleagues as often as the ones in Barcelona,” he confesses.

Let’s talk to Ferdinand in a friendly and natural way about his experience as an employee who works remotely with most of their team for a large international company.

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Highlights from Ferdinand

• Talents thrive on opportunities to learn, grow, take on new responsibilities, and receive guidance and support.
• Remote job flexibility is highly valued, and while on-site work is possible temporarily, returning to remote work is preferred.
• A common issue is feeling more like a freelancer than part of a team, making occasional team get-togethers essential for fostering belonging.
• Ferdinand sometimes travels to Kahoot!’s headquarters in Oslo and Copenhagen. He confesses he likes to go to the office every day during these days to build bonds. 

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Full Interview

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Who is Ferdinand, briefly introduce yourself? What’s your background? Why did you choose to study software to work in Sales?

I have always been interested in many different subjects, which led me to study history, political science, and education, as well as computer science. During my computer science studies, I also took many business courses.

While I was a student, I worked as a self-employed salesperson, which strengthened my skills in that area. After a stint as an administrator, I decided I wanted to focus more on customer interactions. Pre-sales was a perfect fit, allowing me to combine my technical, commercial, and interpersonal skills, along with my language abilities.

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What drives your desire to be a part of Kahoot!? 

Since Kahoot! is a SaaS company with a strong focus on learning, engagement, and communication, it appeals not only to my technical and sales interests but also to my passion for education. This allows me to leverage a broader range of my background and skills, which is always beneficial.‍

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In your opinion, what drives the best talent in the Sales industry nowadays? What do you value most in a company's culture?

I believe talents are driven by opportunities to constantly learn, grow, take on new responsibilities, and receive guidance and support for their progress. This motivation benefits both the employee and the company.

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As a Senior Sales Engineer, you need to work closely with software engineers and the support department, what skills are crucial for your position? 

As a Sales Engineer, you are an integral part of the sales process, handling technical aspects such as demos, front and backend adaptations, RFI/RFP responses, tenders, and technical questionnaires. You may also be involved in adaptations and the implementation process. 

This role requires collaboration with Sales, customers, and the development team, which includes Product Designers, Front and Backend Developers, and Product Managers. It also touches on project management. You act as a bridge, linking all these elements together, providing guidance and expertise to meet customer requirements to the best of your and the product's ability.‍

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Managing remote work presents its challenges. What are some of the issues you've faced, and how have you addressed them?

One issue can be that you don’t really feel part of a team and more like a freelancer. Therefore, occasional get-togethers with your team and colleagues are essential to foster a sense of belonging. 

However, since you work with customers worldwide whom you rarely see in person, being in the office every day wouldn’t change much, as you wouldn’t see them anyway.‍

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Which countries would you like to work from and why?

I work from Spain because I enjoy the Spanish culture, climate, and lifestyle. However, I am quite adaptable and can acclimate quickly to different environments. I could see myself living somewhere else for a while, but Spain is always a place I would return to because it has so much to offer. Especially within Europe, everything is close by, making it easy to visit other countries.‍

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Now that you have experience with remote work, would you be willing to relocate to another city for an on-site job? What qualities would you look for in such a company?

I would reluctantly give up the flexibility my remote job brings. While I could be on-site for a while, I would eventually want to return to having remote flexibility. My work wouldn’t change if I were on-site all the time, so why would a company need me in the office every day? That said, I do enjoy going to the office on my own terms. 

I’m mostly in Barcelona and usually go in twice a week to have lunch and socialise with colleagues. When I travel to our headquarters in Oslo and Copenhagen, I go to the office every day because I don’t see those colleagues as often as the ones in Barcelona.

If an opportunity arises to work on-site somewhere else, I would consider it. If the opportunity is good, it would be foolish not to take it. However, I would inquire if there’s an option to return to remote or at least hybrid work eventually.

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How does an EOR like Teamed help employees like Ferdinand?

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At Teamed, we understand that top talent wants to feel part of the team, not like freelancers. They seek the full range of benefits that come with being a full-time employee. This sense of belonging is crucial for all employees, especially for those working from home or other countries. Most of our testimonials confirm this point, and it’s no surprise.

Ferdinand highlights that “one issue can be that you don’t really feel part of a team and more like a freelancer.” Similarly, Adam Tully, the headhunter and recruiter, and founder of JIE + Search, emphasized this during his interview “Most top talent prefer employment over contract work.”

‍Teamed addresses this need by offering comprehensive benefits packages that help global employees feel integrated into their companies, while also aligning with the regulations and norms of their home country.

Additionally, our EOR provides dedicated and human support to be beside every remote employee. We stay close to them to address any questions or concerns that might pop up, ensuring that they always feel supported and connected. This personalised support helps bridge the gap between remote employees and their companies, enhancing their overall work experience.

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‍Ready to experience the Team Difference? Let’s chat!

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What is meant by global salary benchmarking?

As organisations increasingly search for talent beyond their borders in response to talent shortages and the shift towards remote work, the importance of effective global salary benchmarking cannot be overstated. In this Teamed Insights article, built with our partners at reesmarxGLOBAL, we delve into the topic of global salary benchmarking to guide businesses through this stage in their international hiring.

Our discussions with Ericha Hartz and her team at reesmarxGLOBAL shed more light to the intricacies of global hiring and the importance of timely salary benchmarks. This conversation is particularly relevant given the global push towards salary transparency and fairness in hiring practices. Ericha Hartz highlights the perils of delaying salary benchmarking until the later stages of global expansion.

“Comprehensive early planning is essential to identify potential legal and economic impacts on recruitment strategies,”

Ericha points out, stressing that precise benchmarking is crucial for attracting top talent and fostering sustainable growth in new markets.

Joanna, Head of Legal at Teamed, observes, “In regions like the UK, where gender pay gap reporting has been mandated since 2017, there is an increasing demand for broader wage transparency.” The EU’s pay transparency directive, proposed in 2023, is aimed at combating pay discrimination and reducing gender pay gaps across Europe, illustrating a significant regulatory interest in addressing pay inequality.

In the United States, the lack of a comprehensive federal pay transparency law contrasts with state and city-level regulations that increasingly mandate employers to disclose salary ranges and benefits.

“These changes are reshaping how companies approach salary offers, making benchmarking more than just a strategic necessity — it’s becoming a regulatory requirement,” Joanna adds.

This evolving regulatory landscape, coupled with diverse cultural expectations of compensation, underscores the necessity for businesses to adopt a sophisticated approach to salary benchmarking. With insights from global experts like reesmarxGLOBAL and the strategic capabilities of Teamed, companies are better equipped to navigate these challenges, ensuring compliance with emerging laws and the attraction and retention of the best global talent.

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Factors Influencing Global Salaries

When setting salaries internationally, businesses should balance out a variety of factors that can significantly impact their hiring decisions:

• Industry Impact and Regional Skills Gaps: “As a part of your people plan, it’s  key to align the hiring strategies with regional industry strengths and weaknesses”, Ericha states. “For instance, the technology sector in Silicon Valley benefits from a robust ecosystem of talent and innovation, making it an ideal location for tech startups.” Conversely, post-Brexit changes in the UK have affected immigration laws, impacting talent availability for industries reliant on international workers. “Planning where and why you are hiring, considering local skills availability and economic factors, is key,” advises Tom, CRO at Teamed.

• Role Specificity and Cultural Differences: The demands of specific roles and their cultural fit are of utmost importance in determining the suitable candidate pool. In Japan, where business practices emphasise respect and hierarchy, adjusting recruitment strategies and salary packages to align with local expectations is necessary. Ericha explains, “Cultural fit and role demands significantly affect the recruitment process.” Moreover, compliance issues such as GDPR in Europe necessitate modifications to hiring procedures.

• Local Presence and Executive Recruitment: “The absence of a local headquarters can increase perceived risks among candidates, leading to elevated salary demands” notes Ericha. Furthermore, recruiting for executive-level positions can be challenging due to longer notice periods and smaller candidate pools, particularly in countries like Sweden, where long-term employment relationships are highly valued.

• Employment Costs and Payroll Management: The overall cost of employing staff in different regions can vary dramatically due to local economic conditions, legal requirements, and benefits expectations. Countries with mandatory high social security contributions or comprehensive healthcare benefits can significantly inflate employment costs. Luke, CFO at Teamed, highlights the advantages of leveraging an EOR:

“Employing through an EOR like Teamed allows companies to effectively manage and streamline payroll and taxation processes, reducing the high costs of direct employment (local entity registrations, professional services, corporate taxes, intercompany etc), whilst also removing the HR headache of directly managing compliance across global regions. Working with organisations in the past where this was done in-house, if I could turn back the clock and do it again, I would pick EOR each time.”

Understanding these factors helps businesses effectively navigate the complexities of global hiring. By considering industry dynamics, cultural expectations, local presence needs, and employment costs, companies can develop more strategic, informed, and successful global employment practices. 

Partnering with recruitment experts like reesmarxGLOBAL can provide valuable insights into local talent pools and salary benchmarks.

“Engaging with a Global Expansion Advisor early can provide actionable, reliable data for successful market entry,” advises Ericha.

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Practical Steps for Businesses

Implement these actionable steps to enhance your approach to global salary benchmarking and ensure successful international hiring:

1. Early Planning and Compliance Review: “One thing I’d always say is; Begin the planning process well in advance” notes Ericha. This should include a comprehensive review of employment regulations in potential new locations. Understanding the legal landscape is critical to ensure compliance and avoid costly litigation. “Utilise legal and HR experts or a hiring partner who can help you gain a deep understanding of each market’s regulatory requirements.”

2. Consider Cultural Differences and Local Expectations: Cultural nuances significantly impact recruitment and onboarding. Develop a good understanding of these cultural factors to tailor your recruitment strategies effectively. “This includes adapting communication styles, negotiation tactics, and management approaches to align with local norms and expectations, thus enhancing both recruitment and employee integration” lists Ericha.

3. Stay Competitive with Comprehensive Benefits: Investigate and understand what constitutes a competitive salary and benefits package in each region. This goes beyond just the basic salary; consider health benefits, retirement plans, and other perks that are valued in the local market. “This is another stage where the right global hiring partners can do the heavy lifting for you” notes Tom, “ We offer benefits guidance and information to our customers who use this information to craft offers that are attractive to potential employees, helping their brands stand out as an employer of choice.”

4. Successful Onboarding: Ensure that once a candidate is selected, the onboarding process is compliant with local laws regarding employment classification. “Mistakes in employee classification can lead to significant financial consequences” Joanna explains. Partnering with a Professional Employer Organization (PEO) or an Employer of Record (EOR) like Teamed can streamline this process, ensuring that all legal requirements are met efficiently.

5. Consult Experts for Strategic Expansion: We suggest working closely with recruitment and global employment experts such as reesmarxGLOBAL and Teamed. These partnerships can provide you with critical insights into local employment landscapes and detailed salary benchmarks. As demonstrated, we can offer strategic advice tailored to each location, enhancing your ability to make informed decisions and successfully enter new markets.

By following these steps, businesses can more effectively manage the complexities of global hiring. Each step is designed to build upon the last, creating a comprehensive approach that covers legal, cultural, and strategic aspects of international recruitment and salary benchmarking.

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In summary

To build competitive and compliant packages is best started from the get go of your global hiring journey. With the right approach to salary benchmarking and a strong partnership with experts, it becomes much more manageable. By joining forces with partners such as reesmarxGLOBAL and leveraging Teamed’s expertise as an Employer of Record, businesses are well-equipped to tackle any talent acquisition challenges head-on.

Salary benchmarking is key not only to attracting the best talent but also to retaining them by ensuring your offers are competitive and culturally appropriate. It’s about more than just meeting compliance — it’s about understanding what motivates your global team and ensuring they feel valued.

Remember, the goal is to make global expansion smooth and sustainable. With our expert support your business can thrive in new markets, well-prepared to adapt to the local nuances that make each region unique.

Ready to expand your operations globally? You can always contact our team to discuss your global hiring plans and our partners reesmarxGLOBAL for finding the right talent and the salary benchmarking.

Global People Strategy: How RPO and EoR Drive Growth

Building a global team is one of those ambitions that sounds straightforward in the boardroom but quickly reveals its complexity once you're in the thick of it, especially when you need to understand how to hire international employees compliantly. Suddenly, you're navigating unfamiliar labour laws, job boards you've never heard of, and the quiet anxiety of wondering whether your brilliant new hire in São Paulo is actually being paid correctly. This article walks through how combining Recruitment Process Outsourcing (RPO) with Employer of Record (EoR) services creates a global people strategy that doesn't just survive expansion—it supports it at every stage, from that first international hire to building a distributed team that genuinely works together.

A strategic approach to global hiring

A strategic approach to global hiring combines Recruitment Process Outsourcing (RPO) with Employer of Record (EoR) services to access international talent pools while staying compliant across jurisdictions. It's about building infrastructure that scales with you—not scrambling to patch gaps as you grow.

Solving HR pain points

HR leaders understand that inefficiencies in global hiring and employment management can lead to missed growth targets, increased costs and compliance risks. Here's how our RPO and EoR services directly address these issues:

Finding the talent: Recruiting abroad can feel insurmountable—unfamiliar job boards, limited candidate pools, and language barriers stack the odds against you. A global-first RPO partner helps you sidestep these hurdles from your very first international hire, building capability until you're ready to bring recruitment in-house.

Navigating compliance: EoR services ensure you meet local employment laws across every jurisdiction—without your team becoming accidental experts in international labour codes. As Joanna notes, "It's not just about following rules; it's about understanding how these rules impact your global operations."

Cultural integration: Distributed teams thrive when cultural fit is assessed early. RPO partners evaluate personality and openness during recruitment, while EoR providers support expectation-setting—so new hires arrive equipped to collaborate across borders, not blindsided by them.

Operational efficiency: Outsourcing recruitment and employment management lifts payroll, benefits administration, and contractor classification off your plate. As Tom puts it, "We take on the complexities, so you can focus on what you do best—growing your business."

proofing your HR strategy

The companies building durable global teams aren't treating RPO and EoR as nice-to-haves—they're treating them as infrastructure. As Tom puts it, "

As the landscape changes, so do our strategies to support your global HR needs."

you're ready to stop firefighting compliance gaps and start hiring with intention, Amby and Teamed can help you get there.

Frequently asked questions

What is a global HR strategy?

A global HR strategy optimizes how you develop, train, and manage people across borders—focusing on motivation, corporate culture, and leading teams with a global mindset as part of your business goals.

What is the difference between HR strategy and people strategy?

HR strategy builds and maintains effective systems for managing employees, while people strategy builds and maintains effective relationships between the organization and its people to support goals and navigate change.

What is an example of a people strategy?

Adidas structures its people strategy around four pillars: talent acquisition, role model leadership, diversity and inclusion, and company culture—combining individual growth with organizational values.

What is an example of a global strategy?

Combining RPO with EoR services creates a global strategy that accesses international talent pools while staying compliant across jurisdictions—building infrastructure that scales with growth rather than patching gaps reactively.

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• Matthew Sarre, co-founder of Jumpstart, highlights the demands of the new generation and recruiting trends in startups.
• “New generation is looking for purpose or impact”.
• “German startups are eager to hire UK talent when local options fall short”

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In the competitive world of startups, finding the right talent can make or break a company. Jumpstart has emerged as a pioneering force, providing early-career professionals with a robust entry into the startup ecosystem. We had the opportunity to talk with Matthew Sarre, co-founder of Jumpstart, to uncover what sets their programme apart from other recruitment services. Our conversation also covered new generation demands, recruiting trends in startups, and various innovative HR topics in the startup world.

Jumpstart's innovative approach involves creating a cohort of candidates and inviting startups to pitch their companies and roles directly to this group. Matthew described this process: "We put those candidates into a cohort and invite startups to pitch their companies and roles to that cohort. 'Startup Spotlights,' where we get startups to come in and pitch their companies and roles to the cohort."

Matthew highlighted that in the startup world, "everyone on the team needs to embody that spirit of taking initiative." He noted that the new generation is increasingly looking for roles that offer "purpose or impact," as well as significant career progression. "Flexibility is another important factor, including the possibility of living in different countries," he added.

The co-founder of Jumpstart noted that it's happening that startups sometimes hire 'five or six sales candidates to drive sales in the new market.' He explained that “in Germany, we've seen strong growth in the startup ecosystem. They are keen to hire UK employees to go over to Germany if they can't find the talent they need locally."

Looking to the future, Matthew identified several trends shaping the recruitment landscape: "First, I think diversity and inclusion are significant themes. Second, there's the evolving dynamic of working from home versus working from the office versus working internationally. Third, we need to consider the impact of artificial intelligence (AI) on hiring. AI will influence both the number and the types of people startups hire."

Jumpstart's forward-thinking programme and emphasis on matching the right talent with the right startups is paving the way for a more dynamic and inclusive startup ecosystem.

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Highlights from Matthew

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• In startups, everyone on the team needs to embody the spirit of taking initiative.
• The new generation is looking for purpose or impact in their work. Career progression is another significant factor for them. Flexibility is also crucial, including the possibility of living in different countries.
• Jumpstart currently focuses on placing candidates in UK-based startups, but our proven model could expand internationally. For instance, Germany's thriving startup ecosystem sometimes seeks UK employees if they can't find the talent they need locally.
• Future trends to watch:
  • Diversity and inclusion will be a major theme.
  • The evolving nature of working from home, the office, and internationally.
  • The impact of artificial intelligence (AI) on hiring.

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Full Interview

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What distinguishes Jumpstart's core focus from that of other similar services/companies?

Jumpstart is predominantly a programme for people early on in their career, typically those with zero to four years of experience, to get into the startup ecosystem. That's broadly what we do. The way in which we do it is probably very unique.

Most importantly, we take in thousands of applications, about 5,000 a month. We choose the top candidates across marketing, operations, and sales, and put them through a rigorous selection process. This results in selecting the top 1-2% of the candidates that apply. Then, we put those candidates into a cohort and invite startups to pitch their companies and roles to that cohort.

‍They then go off and matchmake amongst themselves. Hopefully, they get lots of accepted offers. Anyone who gets an offer is then onboarded into the Jumpstart community where they receive ongoing support provided by Jumpstart, including access to a one-on-one mentor, ongoing training, and a community.

Our focus on startups, junior candidates, and the rigorous selection process is quite different from many other companies. After being selected, candidates are onboarded into a community, which is very different from a typical recruitment company or jobs board.

Our biggest unique selling point is what we call the "Startup Spotlights," where we get startups to come in and pitch their companies and roles to the candidate. It's a bit like "Dragon's Den," "Shark Tank" in the US, or Y Combinator Demo Day. This experience vastly improves candidates' ability to select the right company and role for them.

Now, on how we filter these profiles before having the companies, many early-stage startups look for similar characteristics and attributes in their employees. For example, our most popular role, the Founder Associate, typically has one to two years of experience. They're willing and keen to do the groundwork but also bright, ambitious, and proactive enough to get involved in strategic work.

Other desired attributes include proactivity, problem-solving, and strong communication skills. We at Jumpstart have developed best practices in identifying these attributes. We've placed about 450 people into the startup ecosystem and interviewed over a thousand candidates, allowing us to A/B test and refine the attributes we look for.

We're quite data-driven in the attributes we seek, which differentiates us from a normal recruitment company. We ensure the process is just as focused on the candidates as it is on the companies, creating a balanced and effective hiring process.

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In what ways do startups differ from established companies regarding recruitment and hiring processes?

I think there are a few key differences. Firstly, mechanically, how they assess candidates is less structured. Early-stage startups tend to do things more on the fly. You're probably not going to get two or three different independent reviewers looking at each CV, and interview questions are less formalised because they’re often designed on the go.

In terms of attributes, the single biggest thing startups look for is proactivity. Proactivity is crucial because a startup is essentially the result of someone proactively solving a problem. Everyone on the team needs to embody that spirit of taking initiative.

‍So, the number one thing startups look for, and by extension what we look for in Jumpstart candidates, is proactivity. Of course, you also need a baseline in other areas like strong communication skills and strong problem-solving abilities. In a smaller team, it’s also important to get along well with everyone, probably more so than in a big team where the impact of one person is less noticeable.

Multitasking is also very important. Being able to juggle lots of things is definitely a key skill everyone in a startup needs to have.

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What factors are currently motivating the top talent of the new generation?

I think there are a couple of key factors motivating top talent in the new generation. Firstly, this generation is looking for purpose or impact. I deliberately didn't say social impact, though that is important too. Many candidates applying to Jumpstart express that they don't want to be just a cog in a big machine. They want to see a direct line between their input and the resulting output, like increasing sign-ups or sales by making changes to a website. They seek roles where they can have a tangible impact.

‍Related to this is the desire for social impact and purpose, which is certainly a major trend. Another significant factor is career progression. High-potential candidates are looking for opportunities to advance both in terms of job titles and the experiences and skills they gain. Learning and development are crucial.

Startups can be especially exciting for this generation because joining an early-stage startup can provide a rapid learning curve. If you join a company with fewer than ten people that grows to 500 in a year or two, your role will change many times, allowing you to develop a diverse skill set you wouldn't get in a more stable, conventional corporate career.

‍Flexibility is another important factor, especially post-COVID. A few years ago, the demand for flexibility and remote work would have been the most significant trend. It remains very present, and it's now widely accepted by both companies and candidates that there's an increased demand for flexibility, including the possibility of living in different countries.

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Can you describe the most common situation you've encountered when clients seek international talent?

Yes. So, to explain the thought process behind this question: if you have a successful product that you’ve sold very effectively in the UK and you’re a high-growth startup looking to expand, you might look internationally to grow.

‍What do you do when you want to break into a new market? Well, you probably want to hire a sales team or a marketing team. Often, what we see is that when startups reach the Series A or Series B stage and have found product-market fit, they look abroad to grow their sales development representative teams—basically their sales teams. They’ll often do this in a big batch, hiring five or six sales candidates to drive sales in the new market.

‍Regarding how Jumpstart can help, while we currently focus predominantly on the UK, placing candidates into UK-based startups, the model we've developed is tried and tested and could certainly expand internationally in the future.

For example, in Germany, we've seen strong growth in the startup ecosystem. Many German startups speak fluent English and are keen to hire UK employees to go over to Germany if they can't find the talent they need locally.

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How do you envision the future trends in startup hiring requirements?

‍I think diversity and inclusion is a very big theme. Historically, diversity and inclusion have focused on gender and ethnicity. I think we'll see a growing emphasis on socio-economic diversity, including people who haven't had the same privileges as others.Another trend that has been growing over the last few years and will continue to grow is the balance of flexibility—how working from home vs. working from the office vs. working internationally will look like.

‍A third trend will be the impact of artificial intelligence (AI) on hiring. AI will influence both the number of people startups hire and the types of people they hire. Startups may hire fewer people because individual productivity is increased by AI. Additionally, they will seek individuals who are adept at using AI tools like ChatGPT and other similar technologies.

Related to AI, there will be a rise in the use of no-code tools. People who can effectively build and use no-code tools will be increasingly valuable.

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What are your perspectives on the use of AI in recruitment systems?

Yeah, good question. So, to be super clear, there’s AI used by employees on a day-to-day basis to execute their work, and then there’s AI used in recruitment systems. Within recruitment, there are two separate areas: using AI to do the work for you, like selecting candidates, and using AI to improve your processes to select better candidates.

‍I think we should focus on using AI to improve the processes rather than to hire people directly. AI doesn’t yet have the nuance and decision-making capabilities to make effective hiring decisions. It's more about using AI to assist with tasks like transcribing recorded interviews so you don’t need to take notes, programming highly personalised email invites to increase interview acceptance rates, or doing a first-pass review of CVs and assessment answers.

However, AI should not make the final yes/no decision but rather suggest the top candidates for human review. AI can help identify the most suitable candidates but should still allow for a thorough review of all potential hires. Regarding startups going global with a lot of applications, AI can be particularly useful at the top of the funnel in these processes, helping to manage and filter large volumes of applications more efficiently.

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Would you like to add any final thoughts or comments? Is there anything else you'd like to share?

Yeah, the only thing to add is if you are a candidate or a startup and you want to get involved with Jumpstart, feel free to check us out. We've just launched a new software engineering stream for full-stack developers with three to ten years of experience who want to build in early-stage startups. This can be a great opportunity to kickstart your career, especially when they're looking for experienced candidates.

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After Global Recruiting What is Next?

‍Jumpstart's innovative approach and emphasis on early-career professionals are reshaping the startup recruitment landscape. By creating a cohort of candidates and inviting startups to pitch directly to them, Jumpstart ensures a tailored and dynamic hiring process. As co-founder Matthew Sarre notes, the demand for purpose-driven roles, flexibility, and international opportunities is growing. Trends like diversity, remote work, and AI are also influencing recruitment.

Teamed can amplify these benefits by simplifying global employment logistics. With Teamed, startups can effortlessly hire, pay, and support international talent, ensuring they can access the best candidates worldwide. Our dedicated local specialists provide personalised, human support to navigate the complexities of global hiring. This synergy between Jumpstart and Teamed offers startups a comprehensive solution for building world-class teams, no matter where the talent is located.

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‍Ready to take your startup to the next level? Discover how Teamed can support your global hiring strategy.

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• Paul Arnesen specialises in transforming HR and people processes for global companies.
• “Instead of random daily messages, having a structured strategy to ensure everyone feels seen and heard is vital”.
• “The key is for global companies to adapt their management style to fit the diverse needs of their team members, enhancing their performance”.

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We had the opportunity to chat with Paul Arnesen, a Global HR expert with extensive international experience since 2008. He focuses on scaling workforces, enhancing leadership development, and fostering inclusive cultures to boost organisational success. He highlighted his unique expertise: “I'd say my speciality really shines in cross-cultural communication and management practices. My life's journey has taken me around the world, living in places as diverse as New Zealand, Thailand, Brazil, Portugal, and Italy. These experiences have deepened my understanding of various cultures and how to navigate the complexities of working and communicating within them.”

Paul emphasized the importance of autonomy and flexibility for managers, noting that these elements are crucial for motivation. He also highlighted the significance of personal growth and development to prevent managers from feeling stagnant, which can lead to demotivation.

Discussing remote work, Paul pointed out the benefits of accessing a global talent pool. “You can hire specialists from anywhere in the world quickly without the substantial costs and time typically associated with relocation. This flexibility often results in greater loyalty and job satisfaction,” he explained.

In remote settings, Paul advises maintaining regular communication while avoiding an overbearing approach. “A structured strategy to ensure everyone feels seen and heard is essential,” he says. By addressing individual needs and preferences, a more inclusive and valued workplace culture is cultivated. He also noted that effective remote managers excel in communication, such as scheduling regular check-ins, which fosters a unique kind of trust. “The best remote managers I've seen are the ones who really understand communication”.

Paul shared a story highlighting cultural nuances in global operations: The US HR team, accustomed to domestic practices, initially struggled with their approach in Asia. They learned to adapt their performance reviews to be more culturally sensitive, particularly to meet the Taiwanese team's expectations.

Expectations from team leaders in remote collaborations include transparency, trust, flexibility, and, crucially, empathy. “Simple interactions like asking, “How’s your day?” can make a significant difference, especially to the younger generation who are starting their careers in fully remote roles”, he explained.

Lastly, Paul advocates for warm, human interactions within remote teams, such as organising off-site meetups, which he believes are invaluable for team cohesion.

He concludes that “it’s vital for global companies to adapt their management styles to meet the diverse needs of their team members, thereby enhancing overall performance”.

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Highlights from Paul

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• Remote work opens up a global talent pool. You can hire specialists from anywhere in the world quickly without the significant expenses and time traditionally involved in relocating someone.
• The remote managers who stand out are those who manage to transition from being good at face-to-face communication to being just as effective online. This ability is what makes them unique. It builds a different kind of trust. 
• In a remote environment, regular check-ins are crucial, but it's important to strike a balance to avoid being overbearing. 
• Instead of random daily messages, having a structured strategy to ensure everyone feels seen and heard is vital. 
• Empathy is key, especially when communicating remotely. Asking simple questions like "How's your day?". (...) This expectation is particularly strong among the younger generation, who are entering the workforce in fully remote positions. 
• By catering to each individual's needs and preferences, instead of adopting a 'my way or the highway' attitude, you create a workplace where everyone feels valued and understood on a personal level.

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Full Interview

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What sets your key area of expertise apart from the rest?

I'd say my speciality really shines in cross-cultural communication and management. My life's journey has taken me around the world, living in places as diverse as New Zealand, Thailand, Brazil, Portugal, and Italy. These experiences have deepened my understanding of various cultures and how to navigate the complexities of working and communicating within them. It's this blend of personal experience and genuine passion for understanding how people from different backgrounds interact that defines my expertise in global human resources.

I'm particularly suited to advise on global expansion because I understand the challenges of hiring and integrating team members from different parts of the world. Recognising and adapting to diverse feedback styles, communication methods, and leadership approaches are crucial, as these can vary significantly from one culture to another. My experience in cross-cultural management and global consulting has prepared me to navigate these challenges effectively.

Moreover, I'm adept at creating strategies that consider the unique cultural contexts of various countries. While I am Norwegian, my work isn't limited to Norwegian companies; I've successfully worked with firms from Italy, Spain, South America, and Asia. This ability stems from my longstanding interest and expertise in understanding and managing cross-cultural dynamics.

This journey into HR began when I was living abroad, initially sparking my interest in international business. At one point, I considered a career in diplomacy because of my fascination with fostering connections between people from different cultures. This aspect is not only crucial for large corporations but also plays a significant role in immigration and supporting expatriates, illustrating the broad applicability of cross-cultural understanding in both professional and personal contexts.

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What are the top three motivators for managers in the workplace today?

In today's business climate, a key motivator for management is the opportunity to engage in and impact innovation. With the rapid pace of technological advancements and evolving work practices, companies that cling to outdated methods risk demotivating their management teams. Managers are increasingly seeking roles in organisations that champion innovation, allowing them to experiment with new tools, technologies, and ways of working.

Autonomy and flexibility have also become crucial. Recent trends, such as the surge in remote work, highlight the importance of being able to work from anywhere, be it a coffee shop or from home, rather than being tied to an office. Managers now prioritise roles that offer flexibility, not necessarily requiring a fully remote setup but perhaps a hybrid option, recognising its significance in today's working environment.

‍Lastly, personal growth and development remain fundamental. Without opportunities to advance and enhance their skills, managers may feel stagnant, leading to significant demotivation. It's essential for companies to have a clear plan for the development of their management team, ensuring they can grow within the organisation. In summary, innovation and impact, flexibility, and personal growth are the three pillars vital for motivating managers in the current business landscape.

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Autonomy and flexibility have become crucial.

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What does a top-notch remote manager do that's unique, and how do they differ from a manager who runs a team in the office?

I've noticed that the best remote managers I've seen or worked with are the ones who really understand communication. It's easy in an office to just pop by someone's desk to check in or say hi at the beginning and end of the day. But moving that kind of communication to a remote setting isn't straightforward for everyone. Suddenly, you have to rely on typing messages or setting up meetings for regular check-ins, and it's a completely different way of connecting.

The remote managers who stand out are those who manage to transition from being good at face-to-face communication to being just as effective online. This ability is what makes them unique. It builds a different kind of trust. I've been in situations where, after joining a company or a project, you barely hear from some managers again. You might see them online on Slack or elsewhere, but there's no real outreach, and it can make you start to wonder about your place and satisfaction in the work. So, in short, those who can master communication in a remote environment really do become the best remote managers.

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The remote managers who stand out are those who manage to transition from being good at face-to-face communication to being just as effective online.

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It can be tricky to manage a team that's spread out across the globe. What sort of situations do you usually run into, and what's the smartest way to tackle them? Could you share some situations where you've dealt with Asian work culture?

I recently worked with a US-based company that had embraced remote working from its inception. This startup grew and decided to expand internationally, specifically targeting talent in Asia due to the technological skills they needed. They ended up hiring a team from Taiwan, a place with a culture closely aligned to Chinese ways of working, though with a somewhat more Western outlook on business.

Initially, the collaboration between the US company and the Taiwanese team was very successful, with significant performance improvements. However, after conducting a performance review at the end of the quarter using their standard US approach—which tends to be direct and straightforward—the performance of the Taiwanese team unexpectedly dropped.

‍The US HR team, experienced in domestic practices but new to working in Asia, didn't realise the impact of their feedback style. In Taiwan, and many Asian cultures, direct criticism or being singled out can lead to "losing face," which is highly embarrassing and can significantly reduce trust and motivation.

Upon analysing the situation, I found the decline in performance was due to how the Taiwanese team perceived the feedback. They felt embarrassed, especially since some feedback was given in a public setting. Recognising this cultural mismatch, we worked on adapting the US company's approach to performance reviews to be more culturally sensitive to the Taiwanese team's expectations.

‍To address this, we implemented cultural training for both teams. I advised the US team on how to adjust their feedback methods to align better with Taiwanese cultural norms. Conversely, I also prepared the Taiwanese team on what to expect from a US perspective. This approach aimed to bridge the cultural gap, ensuring that remote work between teams from different backgrounds can be successful with mutual understanding and respect for each other's cultural nuances.

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Can you share some tips for improving communication with a remote team? What communication methods stand out online compared to in person?

I believe effective communication is key, echoing what I mentioned earlier about what makes a good remote manager. In a remote environment, regular check-ins are crucial, but it's important to strike a balance to avoid being overbearing. Instead of random daily messages, having a structured strategy to ensure everyone feels seen and heard is vital. This approach also considers the cultural nuances in communication preferences. Some may prefer indirect communication, while others might be more direct. Understanding and accommodating these individual communication needs is essential.

Another point I'd like to emphasise, which may not be as prevalent now but was a significant issue during the height of COVID-19, is training on digital tools. With the shift to remote work, it became imperative to ensure everyone could effectively use platforms like Slack, Teams, and Zoom. Therefore, learning to use collaborative platforms effectively is another essential aspect. Without the ability to physically gather around a table for a project, knowing how to use shared documents and other online collaboration tools becomes indispensable for remote teamwork. Ensuring the team is well-trained before diving into remote work setups is key.

I believe it all boils down to having a solid onboarding plan from the start. This plan should outline how communication will be handled and ensure everyone feels seen and heard. So, when someone new joins the company, it's crucial they receive clear instructions on how to use the tools, what's expected of them, and the role of managers in this process, making sure everything is set up for success from the beginning.

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I'm particularly passionate about the richness of cultural diversity we encounter. 

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How can managers better communicate and connect with their remote teams? 

What I was saying earlier ties back to the importance of building connections, which is crucial in any work setting, whether remote or in-person. At the start of any professional relationship, it's essential to make an effort to understand the person you're managing. This understanding should respect their comfort level regarding what they're willing to share about their personal lives. I'm particularly passionate about the richness of cultural diversity we encounter. For instance, in some cultures, people love talking about their personal lives and what they did over the weekend. This openness is often seen in what might be considered an American approach, where there's a tendency to share and sometimes brag about personal achievements. However, other cultures may be more reserved.

As a manager aiming to be effective, recognising and adapting to these cultural nuances early in the relationship is vital. It's about being aware of where someone is from and having the sensitivity to discuss topics that are important to them without making them uncomfortable during non-work-related conversations. This approach fosters a more inclusive environment where trust builds not just in you as a manager but also among team members. By catering to each individual's needs and preferences, instead of adopting a 'my way or the highway' attitude, you create a workplace where everyone feels valued and understood on a personal level.

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What do staff expect from their bosses when working together remotely?

‍Transparency, trust, flexibility, and empathy are crucial. I realise I haven't mentioned empathy before, but it's vital to understand and put yourself in someone else's shoes. Employees need to know that if something personal affects their work performance, their manager will understand. This understanding is more challenging to achieve remotely. In an office, you might notice if someone is going through a tough time just by their appearance. However, online, it's much harder to perceive these nuances—you can't see someone's mood through a Slack message, aside from perhaps a sad face emoji on their profile.

‍Empathy is key, especially when communicating remotely. Asking simple questions like "How's your day?" and genuinely listening can make a significant difference. Employees today expect their managers to understand and accommodate their personal situations, which can affect work performance. This expectation is particularly strong among the younger generation, who are entering the workforce in fully remote positions. They've grown up with different communication styles, favoring quick messages and texts, and even place meaning in the use of emojis.

For managers, especially those with more experience who are used to traditional office settings, adapting to these new expectations can be challenging. It's important to recognise that a young workforce might have never experienced office life and communicates differently. Therefore, setting clear guidelines and onboarding processes from the start is crucial. In a remote setting, direct messages can feel more intrusive than a casual office interaction, so providing clear documentation and resources, like an internal FAQ, is essential for helping everyone feel comfortable and informed. This approach can help bridge the gap between different generations and work styles, ensuring a cohesive remote work environment.

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Employees today expect their managers to understand and accommodate their personal situations.

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How can a boss foster a warm and human atmosphere when leading a remote team?

Going back to empathy, it’s about understanding everyone's preferences and making sure to acknowledge their special events. In a team spread across cultures, it's important to remember that different cultures have their own holidays and significant days. For instance, being mindful of religious holidays like Ramadan is essential. If you’re unaware of what Ramadan means for a Muslim colleague, it might lead to misunderstandings. It's beneficial for managers to learn about these cultural differences and for employees to share what’s important to them, like a special holiday they’ve celebrated all their life, possibly requesting a day off for it.

On another note, getting the remote team together for off-site meetups is incredibly valuable. Meeting even just once a year can greatly enhance trust and mutual understanding within the team. While it can be a challenge to coordinate everyone from around the globe, the effort pays off in building a stronger team. These gatherings are an opportunity to celebrate successes and just enjoy some informal time together.

Also, celebrating successes is crucial. Whether someone’s clinched a great deal or there’s a notable team achievement, it should be celebrated. Sending out emails or having an internal newsletter that highlights these wins, welcomes new team members, or showcases special initiatives helps keep everyone connected and appreciative of each other’s efforts.

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After the remote working change due to COVID, it's taken managers a while to really get on board with leading remote teams. What do you think has made them realise the benefits?

I think companies should really appreciate the benefits that remote work offers, especially in terms of flexibility. Remote work provides ultimate flexibility, allowing employees to be at home for any emergencies without the stress of having to request time off for small things, like waiting for a plumber. It removes a lot of organisational stress around managing minor absences since employees can still work while managing home responsibilities.

Another point I emphasise is that remote work opens up a global talent pool. You can hire specialists from anywhere in the world quickly without the significant expenses and time traditionally involved in relocating someone. This not only saves costs but also broadens the range of talent available to companies. Essentially, as long as the working language aligns and they have the Internet and a laptop, you can find and employ the right talent from anywhere.

Remote work also supports better work-life balance, making employees generally happier and, from what I've seen, more productive. It shifts the focus from just being present at the office to what employees actually deliver. This means you can measure productivity by the outcomes rather than just attendance.

Moreover, people work differently. Some may be more productive at night, and remote work accommodates these personal preferences, allowing employees to work when they feel most efficient. This flexibility can lead to greater loyalty and job satisfaction.

One challenge is getting traditional companies to embrace asynchronous work. Not everyone has to work or deliver reports at the same time, especially when teams are spread across different time zones. Recognising that some people might be more productive at night and accommodating these individual working styles can lead to a more efficient and productive team. This understanding should be part of initial communications, asking employees when they prefer to work and setting expectations early on.

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One challenge is getting traditional companies to embrace asynchronous work.

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What's your take on using AI for recruiting? 

Before AI caught everyone's attention, recruitment was already using it in a basic form to sift through CVs, looking for certain keywords. This method wasn't foolproof, often missing out on some top-notch candidates. Now, AI has gotten much better, providing valuable support in sorting through applicants and helping to avoid biases. It's crucial, though, not to let AI make all the decisions. Combining AI's insights with human judgment offers the best of both worlds, ensuring no good candidate slips through because of a keyword miss. Essentially, AI hasn't replaced the human touch in recruitment; instead, it's become a smart tool in the toolkit, making the screening process smoother and more effective.

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The key is for global companies to adapt their management style to fit the diverse needs of their team members, enhancing their performance.

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Would you like to discuss or share anything in particular?

In the global business scene, many companies miss out on effectively managing diverse teams. They often stick to a uniform way of managing everyone, from performance reviews to team building, which might not suit teams from different cultural backgrounds.

Take, for instance, a French company I encountered, hesitant to hire outside France due to a preference for local employees. They recognised the potential of hiring globally but were unsure how to make it work beyond just saving costs.

‍The key is for global companies to adapt their management style to fit the diverse needs of their team members, enhancing their performance. For example, the difference in managing a team in China versus the US can significantly impact overall performance.

Cultural training, often given to expatriates, is rarely extended to remote teams, missing a chance to improve understanding and teamwork. Additionally, meeting in person at least once a year can change perceptions and strengthen relationships in ways remote communication can't, highlighting the importance of personal interaction in global team management.

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How to simply and easily hire and build global teams?

Building high-performance teams globally and in remote work environments is not just feasible but can be highly effective with the right strategies and insights. Joining Paul Arnesen's extensive expertise in cross-cultural communication and management with employers of records (EORs) like Teamed enables businesses to tap into the world's best talent within hours. Paul's unique approach, shaped by his international living experiences and deep understanding of diverse workplace cultures, provides invaluable guidance for organisations looking to expand globally.

With Teamed, companies can effortlessly handle the logistical aspects of hiring and payroll. There is an especial ingredient, Teamed is popular to provide a unique and human touch that stands out from the rest of EORs. Employees and companies have assigned dedicated local agents across the globe and during the entire employee journey. Paul's expertise, combined with Teamed's extensive services, empowers businesses to excel in the global marketplace. Ready to transform your workforce and harness the power of global talent? Connect with Teamed today!

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So you’ve chosen to expand your business globally and picked an Employer of Record (EOR) to help manage your remote team. An EOR takes care of everything from payroll to compliance, making sure your workforce is legally and efficiently managed.

But is your EOR really living up to your expectations? Maybe things seemed smooth until a hiccup — like a payroll error — revealed some cracks: slow customer service, hidden fees, unhappy employees.

Now’s the perfect time to run a quick check on your EOR and see if they’re truly meeting your needs. It’s not just about the tech; it’s about the service and the experience for you and your team.

Use our 9-step checklist to evaluate how well your EOR is working for you.

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Q1: Are you able to speak to a real person when needed?

Check out the 1 and 2-star ratings for EOR services on Trustpilot or G2, and you’ll see that 99% of the complaints are about customer service. People want to talk to a real person to solve their problems, not get the runaround from AI or a brush-off from junior support staff.

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In the EOR industry, a human-first approach makes all the difference. While AI and technology can streamline services, human interactions are essential. Whether it’s discussing the details of international payroll compliance, addressing cash flow concerns, or ensuring your workforce’s wellbeing, connecting with a real person [such as a dedicated customer success manager or an experienced operations team member] can greatly enhance your experience.

For businesses looking for a reliable EOR partner, consider those who prioritise both technology and personal connections. This combination ensures efficiency while maintaining the human touch that’s crucial for effective problem-solving and support. 

At Teamed, technology aids efficiency, but personal connections define our service.

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Q2: What are their response times for queries? Have they got an SLA with you?

Time is of the essence, especially when managing a global team across different time zones. A one-day delay can snowball into a 2-3 day setback for colleagues on the other side of the world.

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As a team of global hiring geeks we understand the importance of prompt responses to queries about payroll, employee management, and invoicing.

That’s why we consistently achieve a first response time of under 2.5 hours for any inquiry. Our service level agreement (SLA) aims to resolve all customer queries within five days, but we’re proud to say our current average is just under 3.2 days.

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Q3: Is your EoR flexible to your global growth needs?

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Expanding into new markets? You need an EOR that’s as flexible as your business. Navigating different legal environments, understanding local labour laws, and managing cultural nuances are key to ensuring compliance and smooth transitions. For startups and growing companies, an EOR that adapts to your evolving needs means you can focus on growth without the administrative burdens.

At Teamed, we take a human-first approach. We understand that every business is unique, and we work with each client to create customised solutions that fit their growth stage perfectly.

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Q4: Are your employees supported throughout? From onboarding to offboarding?

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Beyond compliance, boosting loyalty and retention gives you an edge in today’s competitive talent market. Solid support from onboarding to offboarding can significantly enhance the employee experience.

At Teamed, we prioritise a seamless and supportive journey for your employees. It all starts with an onboarding call to set the stage for personalised support. We stick to our SLAs for timely, effective responses because we know a positive employee experience drives business growth. Happy employees often recommend Teamed, and many of our new clients come from these referrals.

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Q5: Is there a minimum contract length with your current EOR?

Are you aware of any minimum contract terms with your current EOR? Restrictive EOR contracts can really slow you down. Choosing an EOR with flexible contracts and no lock-in clauses ensures you can adapt quickly and maintain operational agility.

Shamir, a Senior Sales Representative at Teamed, shares: “One client was trapped in a three-month notice period with another EOR, unaware until they tried to move their employees. They lost a quarter struggling with an unsuitable EOR.”

At Teamed, we prioritise flexibility. There are no minimum contracts, allowing you to cancel or change your contract whenever needed.

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Q6: How effectively can your EOR support and guide you with visa and compliance enquiries?

For businesses expanding internationally, robust visa support from an EOR is essential. As a business you need quick accurate advice that ensures compliance and streamlining global talent onboarding. Often an EOR won't be able to support you directly, they should still clearly communicate your options and preferred partners. 

The best EORs may not always handle visa applications themselves. For example, at Teamed, we’re dedicated to supporting your global operations. We work closely with you and our network of expert partners to navigate the complexities of international employment and help you achieve your global ambitions successfully.

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Q7: Is your EoRs  pricing clear and are there any hidden fees?

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Does your EOR provide a detailed breakdown of their pricing structure, clearly outlining any fees for services like contract changes, legal queries, or onboarding? This transparency helps you plan your budget effectively and avoid unexpected financial setbacks. Reviews on platforms like G2 and Trustpilot frequently cite unexpected fees and complex invoices as common complaints.

At Teamed, the price we discuss during the discovery call is the price you pay. There are no hidden fees. Our pricing includes the Teamed fee ranging from £300 to £500, plus salary, social security payments, taxes, and any chosen benefits. Our invoices are meticulously itemised, allowing you to see exactly what you're paying for at each step, ensuring full transparency.

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Q8: Is the technology user friendly and offers integrations?

Industry feedback on sites like G2 and Trustpilot often highlights how great-looking platforms can fail due to their complexity, especially as new features are added over time.

Does your EOR offer a user-friendly platform that integrates well with your existing HR systems. Complex, outdated platforms can lead to confusion and frustration for HR professionals and employees alike.

At Teamed, we prioritise simplicity and usability. Every new feature undergoes rigorous scrutiny to ensure it enhances user experience without adding unnecessary complexity. While our list of integrations is currently expanding we encourage you to discuss your specific needs with our team. We’re committed to efficiently accommodating your requirements or providing a clear timeline for future enhancements.

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Q9: Is your payroll accurate and processed timely?

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Again looking at G2 and Trustpilot reviews we see that payroll issues are a top concern, mainly due to their significant impact on employees and their families.

Consistent, error-free, and prompt payroll processing is essential not only for employee satisfaction but also for compliance and preventing financial problems. Payroll errors can disrupt cash flow, harm employee morale, and lead to legal challenges, making it vital for a reliable EOR to prioritise payroll precision and quickly address any mistakes with empathy.

As total geeks for payroll we understand the importance of payroll and its impact when it goes wrong. To avoid errors that can stress employees, create extra work, and cause financial difficulties, we have established stringent payroll verification processes. We maintain clear communication with our clients around payroll cut-off dates to ensure clarity on what is included. Our double-check system guarantees accuracy, ensuring smooth and reliable payroll operations at all times.

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Conclusion

So now we’ve gone through the list of questions and shared some insights into why they’re important. Next, check each of these questions and identify the four most important factors to you.

1. Are you able to speak to a real person when needed?
2. What are their response times for queries? Do they have an SLA with you?
3. Is your EOR flexible to your global growth needs?
4. Are your employees supported throughout, from onboarding to offboarding?
5. Is there a minimum contract length with your current EOR?
6. Can your EOR support and guide you with visa and compliance enquiries?
7. Is your EOR’s pricing clear, and are there any hidden fees?
8. Is the technology user-friendly and does it offer integrations?
9. Is your payroll accurate and processed timely?

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Think of the four questions and answer these to yourself. If any of the four you’ve chosen have a “no” or negative answer, it might be time to chat with our team about your concerns and how to approach changing EORs.

Choosing the right EOR for your business is about more than just price. When it comes to the livelihoods of your most important resource — your staff — you have to get it right. And when things go wrong, you need an EOR that’s going to do everything they can to fix it. A truly exceptional EOR shines when challenges arise, providing prompt solutions, empathetic support, and unwavering commitment to your success.

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If your current EOR falls short in any of these areas, it might be time to explore other options. Proactively addressing any shortcomings in your EOR partnership can prevent future disruptions and ensure your business is set for growth and success in an increasingly competitive global market.

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At Teamed, we believe in a human-first approach, combining cutting-edge technology with personal connections to deliver outstanding service. Why not jump on a call with one of our experts to see how we can support you? Let’s work together to support your global workforce and drive your business forward.

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