Setting up business across borders is a challenging decision that businesses take. It involves a lot of cost, effort and thorough analysis of various business functions. Even the pettiest job is to be analyzed critically while moving your business internationally. Among these functions, one of the major concerns business owners must consider before anything else is to manage its employees internationally. Expansion of business is a thrilling step for every business owner. Most companies partner with a well-known EOR company in the local country. An EOR or Employer of Record is a third-party firm that works in partnership with the company and manages its employees on its behalf. An EOR is also labeled as the ‘legal employer’ in the host country, however, the business company reserves all the rights to create and amend decisions regarding its employees.
Handling a multinational company in UAE is not as easy as it looks especially when it comes to managing the workforce coming from different cultures. The most appealing factor for all employees is the money and when it comes to salary transfer or handling payslip matters, it becomes a great deal for the company to ensure everything is smoothly catered. Large businesses must first understand the international payroll solutions in Dubai to help them in maintaining a skilled, talented, and loyal workforce along with keeping the business in compliance with various payroll tax and other employment regulations in UAE.
What are the different ways to manage international employees?
Having an international workforce could be highly challenging therefore payroll outsourcing could be the best solution for you to manage your employees globally. There are different payroll outsourcing companies in UAE that have their different offerings when it comes to handling and managing the workforce. Some of these providers are commonly known as:
- EOR (Employer of Record)
- PEO (Professional Employer Organization)
- GEO (Global Employment Outsourcing)
- Payroll Services Providers
How do Payroll outsourcing and HR outsourcing effect multinational companies?
Assigning the workforce’s payroll administration relieves multinational companies from the stress of handling little yet complicated administrative tasks of payroll. As a large business, you can utilize the time and energy retrieved from here in your core business operations and focus on making your business bigger in the region. Running a business in UAE involves too much of protocols for managing the employees according to the labor law. A tiny mistake in payroll processing may lead businesses to heavy penalties and non-compliance violations. As per the UAE’s labor law, there are certain things that every big or small company has to abide by such as filing of payroll tax, the entitlement of end of service benefits for the employee and (Wage Protection System) WPS registration. Partnering with a local payroll service provider will keep your business in line with these factors.
What are the benefits of partnering with a payroll outsourcing company for multinational businesses?
In a different country, the payroll processing can be more complex than what you may know which is why choosing a service provider to have your global payroll managed is the safest and best solution. It benefits global companies through:
- Efficient management of payments for your employees in multiple countries
- An on-going HR support
- Addressing the issues immediately
- Keeping you up-to-date with changing laws and regulations
1. Efficient management of payments for your employees in multiple countries
Little tasks such as issuing payslip to all your employees in different countries, making salary transfer with detailed records of salary statements, leave tracking and other administrative things can be real time and effort consuming. Outsourcing your payroll management to a third-party company will make it all easier and fast for you. Having a local payroll service provider in UAE will also ensure that WPS registration (Wage Protection System) of your employees is done and will also ensure that the final settlement and end of service benefits are disbursed timely to the employees when they leave.
2. An on-going HR support
The agency will also be a great on-going HR support for your business other than just processing the payroll. You can work together with your payroll agency and take their assistance with other HR related functions for your business in UAE such as handling the paperwork for new employees, drafting employment contracts etc.
3. Addressing the issues immediately
As a multinational company, the head office of your business may be in a different country while your workforce could be in a different one. Geographical demographics may lead to constraints of timings and availability for addressing employee matters on an immediate basis. In such a scenario, your payroll outsourcing partner may save the day for you.
4. Keeping you up-to-date with changing laws and regulations
The labor and employment laws in UAE keep on changing and updating with time. As an employer, companies must be very careful and learned about these amendments. If you have an outsourced payroll service provider, there would be nothing for you to worry as the agency will keep everything in compliance with new laws. The payroll outsourcing agency will regularly file the payroll tax on your behalf saving your efforts and energy in it.
Need assistance in managing the payroll of your offshore employees?
Payroll Middle East gives you a one-stop solution for all your payroll management queries. Being a reputed EOR company in the Middle East, Payroll Middle East has a large clientele from UAE, Bahrain, Qatar, Kuwait, and Saudi Arabia who have satisfactorily experienced payroll services for their companies. If you are planning a global expansion for your business in the Middle East, Payroll Middle East can be the best EOR you may need for managing your employees. From hiring employees to managing their salary transfer, leave tracking, issuing payslips to the arrangement of final settlement, and even WPS registration, we will have everything covered for you.
Read also: Benefits of Global Payroll Services