{"id":8181,"date":"2022-01-08T11:12:43","date_gmt":"2022-01-08T16:42:43","guid":{"rendered":"https:\/\/ustechsolutions.com\/?p=8181"},"modified":"2023-02-10T05:08:28","modified_gmt":"2023-02-10T10:38:28","slug":"how-an-employer-of-record-can-help-your-digital-transformation","status":"publish","type":"post","link":"https:\/\/ustechsolutions.com\/how-an-employer-of-record-can-help-your-digital-transformation\/","title":{"rendered":"How an employer of record can help your digital transformation"},"content":{"rendered":"\n\n[et_pb_section fb_built=”1″ _builder_version=”4.8.1″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_row _builder_version=”4.8.1″ _module_preset=”default” custom_padding=”0px|||||”][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

4-minute read<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default”][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Adapting the talent status quo<\/o:p><\/h2>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

It\u2019s one of the least talked about subjects in the discipline of business management, but the fact is some of the more important improvements to the way an organization functions simply don\u2019t happen because of the way departmental and portfolio managers are remunerated and targeted.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

As organizations grow, organic organizational designs evolve into a departmental structure, with departments assigned managers to lead them. Soon enough, managers build up their little empires and start to see benefits packages focused on the achievement of departmental goals. The unintended consequence of this evolution is that managers care more about the objectives on their performance plan than they are on the wellbeing and success of their enterprise.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″ custom_padding=”|40px||40px||”]

Dr Eli Goldratt\u2019s Theory of Constraints is well known to organizational consultants. It states that the core constraint of virtually every organization is that organizations are structured, measured and managed in parts, rather than as a whole. This results in lower-than-expected performance with constraints constantly shifting from one place to another and chronic conflicts between people representing business silos.<\/o:p><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

The way organizations manage talent falls victim to the challenges of organizational siloism. In many firms today, HR leaders manage full-time contracts while procurement heads are responsible for indirect hires such as gig workers, freelancers, contractor and outsourcing companies. Meanwhile, IT is responsible for automation (another way to get a job done these days). While each department head has a long list of objectives, none of these include the creation of a holistic approach to talent management that spans across the organization (and across departments).<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default” column_structure=”3_5,2_5″][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”3_5″][et_pb_image src=”https:\/\/ustechsolutions.com\/wp-content\/uploads\/2021\/03\/businessman-at-home-office-working-on-laptop-P95PAHN.jpg” _builder_version=”4.8.1″ _module_preset=”default” title_text=”businessman-at-home-office-working-on-laptop-P95PAHN” hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_image][\/et_pb_column][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”2_5″][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default”][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Remote working is the new normal for workforce management<\/o:p><\/h2>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

2020 was a game-changing year for the talent industry. It re-wrote the book on knowledge worker productivity, re-writing the specific chapter that said office working was more productive than home working. It meant that organizations could suddenly consider tapping into talent from around the world. When everyone is on a Zoom call, it matters not that one person lives an hour from the office, another from the other side of the world.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″ custom_padding=”|40px||41px||”]

Remote Working is transforming the talent industry. It means skilled workers in far off shores are now within reach to employers prepared to move to a virtual workforce or hybrid digital workforce model.<\/o:p><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

This significant moment in business history comes at a time when organizations are under pressure to increase the agility of their workforce and mitigate risks of falling foul of new tax regulations aimed at stamping out abuses of the system. These \u2018external drivers\u2019 are motivating employers to de-select roles for full-time employment contracts that can be offered to flexible workers.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default” column_structure=”3_5,2_5″][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”3_5″][et_pb_image src=”https:\/\/ustechsolutions.com\/wp-content\/uploads\/2021\/03\/AdobeStock_168062492.jpg” _builder_version=”4.8.1″ _module_preset=”default” title_text=”AdobeStock_168062492″ hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_image][\/et_pb_column][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”2_5″][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default”][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Governments are clamping down on tax avoidance<\/o:p><\/h2>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

In the next couple of years, employers across the world are expecting tax authorities to clamp down further on hiring self-employed and sole trader style contractor businesses on terms created to avoid paying employment taxes.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Tax regulations like the UK\u2019s IR-35, and 1099 compliance in the US are being more rigorously policed. In the end, these regulatory frameworks look to do the same thing\u2014i.e., going through compliance checks to make sure someone should be an independent consultant or should be a PAYE\/W2 via payroll.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″ custom_padding=”|40px||40px||”]

In August 2019<\/span><\/a>, HMRC targeted contractors in the pharmaceutical sector by raiding the supply chain of GSK. HMRC went directly to GSK and obtained data on 1500 contractors working for them. HMRC targeted a big player in the pharmaceutical sector believing there to be widespread non-compliance in the industry as a whole with regards to the IR35 rules.<\/o:p><\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Two approaches are being taken to mitigate risk of non-compliance with tax regulations:<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

(1) Statement-of-Work (SoW) contracts\u2014that fall outside of regulations like 1009 and IR35\u2014and;<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

(2) Outsourcing to an Employer-of-Record (EoR); an organization that takes on the employment obligations and serves talent on-demand.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default” column_structure=”3_5,2_5″][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”3_5″][et_pb_image src=”https:\/\/ustechsolutions.com\/wp-content\/uploads\/2021\/03\/AdobeStock_263181866.jpg” _builder_version=”4.8.1″ _module_preset=”default” title_text=”AdobeStock_263181866″ hover_enabled=”0″ sticky_enabled=”0″][\/et_pb_image][\/et_pb_column][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”2_5″][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=”4.8.1″ _module_preset=”default”][et_pb_column _builder_version=”4.8.1″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

The evolution of the EoR model<\/o:p><\/h2>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Most Employers-of-Record started as payroll providers and have evolved their services from there. They come in many flavors with some offering on-premise program managers, others operating totally virtually.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

The breadth of service offerings available from \u2018new era\u2019 Employers-of-Record providers like USTECH SOLUTIONS<\/span><\/a> varies enormously, as there are no rules that limit the value-adding areas an EoR provider might cover (some EoR vendors look not too dissimilar to a \u2018Master Vendor\u2019). So what should you be looking for? Here are some service lines to look out for:<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Market Insights<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Expect providers to supply access to best-in-class talent insights platforms like Gartner\u2019s TalentNeuron<\/span><\/a> that offer rich data on pay rates by job category, territory and candidate skill-levels.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Legal Services<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

A relatively new feature of EoR services is the provisioning of legal services to support clients, recognising the increased threat profile of employment law, data loss\/privacy regulations and diversity\/equal opportunities around the world.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Recruitment<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

The traditional model of an Employer-of-Record was to take on candidates sourced by a company, or its existing network of staffing firms. This too is changing. Some EoR providers also offer recruitment services and technology to find the talent their clients need.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Background Checks, Onboarding and Integration<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Performing background checks and onboarding new hires is a common feature of any recruitment. In the case of the Employer-of-Record (EoR) vendor role, these services are fulfilled by the provider \u2018as\u2019 the employer.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Employee Services and Payroll<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

The core function of any EoY is payroll. Often, these services are supported by slick online platforms. Providers will also take care of submissions to tax offices etc. like any employer would.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

On Premise Program Management<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Taking a leaf out of the book of Recruitment Process Outsourcing firms, some EoY providers offer on-premise program management to coordinate employer services and supplement the resources of their client.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Technology Ecosystems<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

One of the noticeable differences of modern EoY providers comes in the form of their technology platforms. In addition to support for core disciplines such as payroll and reporting, they might also offer advanced features such as Direct Sourcing, Statement-of-Work (SoW) and gig-working micro-task portals.<\/p>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Performance and QBRs<\/o:p><\/h3>\n[\/et_pb_text][et_pb_text _builder_version=”4.8.1″ _module_preset=”default” hover_enabled=”0″ sticky_enabled=”0″]

Transparency and oversight over the activities of the EoY provider is important to any client organization. For this reason, EoY providers will normally offer rich self-service reporting tools. For larger contracts, expect to be offered a Quarterly Business Review (QBR).<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n","protected":false},"excerpt":{"rendered":"

4-minute read Adapting the talent status quo It\u2019s one of the least talked about subjects in the discipline of business management, but the fact is some of the more important improvements to the way an organization functions simply don\u2019t happen because of the way departmental and portfolio managers are remunerated and targeted. As organizations grow, organic organizational designs evolve into a departmental structure, with departments assigned managers to lead them. Soon enough, managers build up their little empires and start to see benefits packages focused on the achievement of departmental goals. The unintended consequence of this evolution is that managers care more about the objectives on their performance plan than they are on the wellbeing and success of their enterprise. Dr Eli Goldratt\u2019s Theory of Constraints is well known to organizational consultants. It states that the core constraint of virtually every organization is that organizations are structured, measured and managed in parts, rather than as a whole. This results in lower-than-expected performance with constraints constantly shifting from one place to another and chronic conflicts between people representing business silos. The way organizations manage talent falls victim to the challenges of organizational siloism. In many firms today, HR leaders manage full-time […]<\/p>\n","protected":false},"author":9,"featured_media":8182,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[68],"tags":[],"class_list":["post-8181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-total-talent"],"yoast_head":"\nHow an employer of record can help your digital transformation - USTech Solutions<\/title>\n<meta name=\"description\" content=\"Why with the rise in remote working there\u2019s never been a better time to find an employer-of-record and a good talent platform to go with it.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ustechsolutions.com\/how-an-employer-of-record-can-help-your-digital-transformation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How an employer of record can help your digital transformation - 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