How EOR resolves challenges
From addressing skill shortages to navigating intricate tax regulations, we unravel the key drivers behind the escalating demand for EOR partnerships. Join us as we examine the future prospects for consultants in these regions and uncover the pivotal challenges faced by recruitment agencies, intricately linked to the value proposition of EOR offerings.
Anna, EOR expert at Cool Company
Meet Anna, an experienced professional with a background in Talent Acquisition and recruitment spanning across various companies both in Sweden and abroad, ranging from small startups to large corporations. With a keen understanding of the intricacies of recruitment, Anna is adept at managing inquiries and guiding consultants through their onboarding processes.
Reach out to Anna and the EOR team: anna.lindqvist@coolcompany.se
What is EOR?
Simply put, it’s companies that legally employ individuals for a limited period. Typically, the individual has found a job through a client. Being an employer in Sweden and Norway is vastly different from other countries, as the employer responsibility is extensive. It means that the employer responsibility isn’t limited to just payroll and employment contracts but also includes aspects such as workplace safety, rehabilitation, sick leave, and accident management.
Why is there a growing need for EOR partners right now?
The need for Employer of Record (EOR) partners has surged for several reasons, which can be categorized into three main areas: skill shortage, complexity of tax regulations, and an increase in major infrastructure projects.
Firstly, many employers face a challenge when it comes to a shortage of skills. This shortage is particularly prominent in certain regions, such as Northern Sweden, where the demand for qualified labor exceeds the supply. This situation makes it difficult for companies to find the personnel they need to grow and remain competitive. Foreign recruitment agencies have been quick to match skills with assignments, while larger domestic agencies have gradually begun to establish themselves in this field.
The second factor driving the need for EOR partners is the increasingly complex tax regulations. These rules are changing and becoming more intricate, resulting in individuals and businesses often having to navigate a tax landscape that is difficult to understand. This is especially problematic for those working across borders, where they may now be required to pay taxes in the Nordic countries instead of their home country, creating a need for expertise in this area.
Finally, there is a wave of major infrastructure projects contributing to the increasing demand for EOR services. These projects often require a large and specialized workforce, which can be difficult to find independently, especially during the current skills shortage. EOR partners can facilitate this by offering a solution to this problem, taking on the responsibility for the employment process, allowing companies to focus on the project itself.
What does the future look like for jobs in Sweden and Norway for consultants from Europe?
Extremely promising, I would say. For those who want to earn a lot of money and possess unique expertise, the future has never looked brighter.
What are the 3 biggest challenges that recruitment agencies face?
Recruitment agencies face a range of challenges in today’s job market, three of which are particularly prominent:
Complex labor laws:
The primary strength of recruitment agencies lies in their ability to quickly find the right talent through their extensive networks. However, the challenge becomes significant when they must place this talent in assignments across borders, especially in the Nordic countries where each country’s labor laws can vary significantly. Here, EOR services can significantly ease the burden by managing all local labor law compliance, allowing recruitment agencies to focus on their core mission – matching skills.
Being the fastest to match skills:
The second major challenge is the competition to be the quickest to attract talent. In a time of an employee’s market, several agencies are vying to fill the same roles, making speed and efficiency crucial factors for success. Utilizing a partner that does not rely on subcontractors allows questions to be answered and issues to be addressed more quickly.
We are aware that many EOR partners operate as mere shell companies with management based abroad and no local staff. They hire external parties for payroll management and contract drafting, which can lead to extended response times and uncertainties about responsibility allocation. This structure creates challenges in communication and accountability, which can affect companies seeking efficient EOR services.
Administration:
Lastly, the challenge of not getting bogged down in administrative work. The recruiter’s main goal is to match talent with the right projects and opportunities, not to be burdened with time-consuming administration. When recruiters start spending more time managing questions and administrative tasks for already placed consultants, they risk losing focus from their main goal. EOR services can significantly reduce this burden by taking over responsibility for administration, payroll, and labor law matters, freeing up the recruiter’s time to focus on business development and placing more candidates.
Ready to get in touch?
Contact Cool Company to learn more about us as your EOR partner in Sweden and Norway, or read more about the meaning of EOR.