Employer of Record or EOR service In Nepal is very crucial for businesses and companies, regardless of their size. With emerging companies in the country, it has become important for organizations to find the right employees to conduct their day to day work. But, not every company has the budget or the time to train and hire full-time employees to carry out the human resources duties. Hence, when a company hires an EOR service provider, they are not only hiring third party workers to commit to their organizational goals but also saving lots of time and money. Likewise, the quality of service is much higher when it comes from EOR service providers than when it comes to in-house employees doing the same tasks.
EOR Services
EOR Services has been helping businesses in Nepal focus on their strategic goals by conducting all the human resources management functions. It is always convenient for organizations to rely on EOR services legally as well because almost all the EOR services work as per the local labor laws and regulations.
In the past, there were only a few companies with a need for human resources management. However, with time, the requirement for proper human resource management in an organization has increased. It is important for all types of organizations to stress on the benefits of EOR services because what happens during the finding, training, and recruiting phase of a potential employee determines what is going to happen to the company in the upcoming years. That being said, the success and failure of an organization heavily depends on the quality of employees in that organization. An EOR provider agency helps the employers meet the right set of professionals without having to do much. From making the monthly employee payrolls, managing employee benefits, taxation and legal submissions, to executive hunt, recruitment, training, and selection service, these agencies make HR service outsourcing as easy and trustworthy as can be.
Outsourcing EOR Services
Before they find the right candidate, the EOR agencies go through the social media, internet database, their internal database, networking events, job boards, etc. There is always a thorough checking on whether the candidates are suitable for the seeking employer company and the job role that is vacant. After having shortlisted the right candidates, these EOR companies will move forward in the hiring process as per the need and demand of the client company.
EOR service providers in Nepal set contracts for the to-be employees as per the laws and regulations set by the Nepal’s Labor Act 2074. This contract consists of the job description, job duration, job position, salary, bonuses, remuneration, and benefits. These contracts usually consists of the factors like overtime work hours, holidays/leaves policies, termination policy, employee benefits, age of retirement, work experience certificate requirement (differs according to different organizations), minimum wages (NRS. 17,300 and NRS. 89 per hour (average) Plus SSF as of 2024), provident fund and gratuity eligible for the candidates, Disciplinary Action for Misconduct (Section 131), Sexual Harassment (Section 132), and Procedure for Disciplinary Action (Section 132).
There are more than just jobs that will be made available for job seeking candidates through EOR services. Some of the most popular types of jobs in Nepal are regular employment(8 hours per day), part-time employment, time-based employment, work-based employment, and casual employment. The businesses applicable to outsource EOR services in Nepal are almost all types of profit oriented and non-profit-oriented businesses except for entities from the Nepal Army, Armed Police Force, civil service, journalism, or corporations that fall in Special Economic Zones. These entities may be granted outsourcing applicability if stated in the contract as per the legal laws.
Benefits of EOR Service in Nepal
Companies get a great advantage from hiring EOR service in Nepal. It is not cost efficient or time efficient for businesses to hire an in-house employee who will conduct all the human resources duties in the company. There might even be the necessity to hire multiple employees to do the same job in the same organization. This is going to be a lengthy as well as a very costly process. But opting for the EOR service can be beneficial for organizations in the long run.
The following are some benefits of using an EOR service for your business:
Legal Compliances:
EOR service providers are always legally compliant. Every step that is taken by trustworthy Employee of Record service providers is made with proper consideration of the law and regulations of the country. In Nepal, many businesses have to face stress and even dissolution when they come across unresolved legal obligations. But, simply hiring an EOR service agency will solve this problem in no time.
Professional service:
Everyone working for an Employer of Record service agency is experienced in a professional manner. Hence, one should not worry about having to risk their company’s name when they let the EOR service providers do their work. These workers have been specializing in a certain field of work for several years. Therefore, depending on these service providers might be a wiser choice than hiring an in-house employee who you have trained and supervised throughout their initial time in the company.
Pocket friendly:
Hiring an EOR service provider for your organization’s human resources duties will be cheaper than having to hire one or more employees to do the same work. One of the main advantages of these service providers is that they tend to charge only as much as you make them work. The workers won’t be costing you additional benefits as you don’t have to pay for anything besides their work.
Positive Image of the Company:
When a professional outsourcing agency is working for you, they work on providing you a valuable service along with promoting a positive image of your company. This is usually done by remaining legally compliant, giving a good quality of service, and by seeking potential employees in a wider job market, making more people familiar with your brand. Moreover, the outsourcing service providers, having had years of experience with legal compliances, will reduce and even remove the chances of the company having a negative image.
Time saving:
Companies get the opportunity to carry out so much work in their own organization when they depend on EOR service providers. Hiring an employee to carry out human resources management work is a challenge in itself. It takes more than a month to analyze and select the best candidate out of all the other applicants. But, getting an EOR service can save time as you only have to find the best EOR agency and the rest of your work will be done without any additional obligations.
Scalability:
It becomes easier for companies to scale their businesses up and down when they seek help from EOR service providers. Along with being legally compliant, these businesses will lend services as per the necessity of your business. In short, there is a lot of flexibility in the structure of their service, making it possible to either scale up or down according to the nature of the dynamic business market.
Speed and accuracy:
The Employee of Record service providers doesn’t make mistakes. These professional agencies are used to hiring and onboarding candidates for all types of organizations. The accuracy is one of the main reasons as to why many organizations, regardless of their size, tend to choose EOR services instead of hiring an in-house professional directly. Additionally, for companies in rush, EOR services have made it easier to hire candidates in less than 24 hours.
Talent acquisition:
It becomes difficult for companies to spot the best candidates for a job role. This becomes possible with the help of EOR service providers who have a wide range of workforce in hand.
Inclusivity:
In Nepal, there has been a problem of inclusivity for the past many years. Therefore, in order to better the image of companies in the present time, many EOR service providers have been focusing on inclusivity by hiring employees of different backgrounds and ethnicities. The priority will be given to the skills and learning motivation among employees over anything else when professionals are engaged in finding the best employees.
Conclusion
Employer of Record or EOR services provides a great opportunity for the Nepalese workforce to have a better future. Not only are they hiring candidates benefitting from these services, companies both old and new are also getting a chance to grow without having to invest a lot both directly and indirectly with the support of outsourced EOR services. Companies can get easy access to professionals while getting the opportunity to focus on other company goals. Almost everything that is related to employees are handled professionally and under legal structure by the Employer of Record services.
It might take a small country like Nepal a while to reach the heights as have many other bigger economies in the world. But, EOR services have made it easier for everyone to get closer to that goal.
