You may have noticed that the term “Employer of Record” has been popping up more frequently among employers and providers of talent, and it can be confusing to figure out exactly what the term means in comparison to the services provided by the more traditional “staffing agency” or “payroll vendor.” The traditional definition of Employer of Record is:
a company or organization that is legally responsible for paying employees, including dealing with employee taxes, benefits, insurance, etc.
That defines the basic service, but a good Employer of Record is much more than just someone you hand your payroll duties off to. Partnering with an Employer of Record (EOR) is a smart business decision that creates a layer of protection for your business – mitigating common risks such as worker’s compensation and claim management issues that a company can inherit as it grows larger.
Identifying Hidden Risks
When a company makes a business decision to utilize contingent workers and independent contractors to manage the fluctuations in their workforce needs, they run the risk of these workers being incorrectly categorized by hiring managers and supervisors during the on-boarding process. That means any worker’s compensation claims or workplace injuries that may occur during the worker’s employment can cause OSHA and DOL audits and inspections, monetary risk due to increased worker’s compensation insurance premiums across your enterprise and also bad PR for the company. These type of audits, inspections and insurance issues can take several years to clear up, and if you run into multiple violations you begin to see why it is prudent to partner with a professional Employer of Record who will help mitigate the risk to your organization and provide guidance relative to contractor management.
How TalentBurst Can Help
TalentBurst is now one of the leading Employer’s of Record in the US and Canada and is an expert in providing Fortune 1000, mid-sized and start-up businesses with compliant and efficient Employer of Record Services. We handle every part of contingent worker management, which means you can focus on running your business smoothly with a solid labor platform supporting you.
At TalentBurst, we are fortunate to be able to work with companies that have recognized the risks that lie within their business. We help clients not only in the United States but also companies that require contractor compliance in international locations such as Canada, UK, Germany, France and India. If you would like to know more about how an Employer of Record can help your company mitigate risk and save money, please reach out to us.