A recent survey shows that about 62.2 million people were employed through staffing agencies. After the COVID-19 outbreak, the global job market experienced the largest rise of almost 40%, staffing agencies and EOR firms have been able to match the pace with the demand and fill the emerging skill gaps. Another reports from the survey says that;
- More than (52%) of hiring managers reported their main challenges are the recruiting process and accessing the right candidates with desired skills.
- 77% of SMEs are planning to increase the overall integration of staffing companies in the next five years.
Staffing Services That Deliver
In this post I will discuss the top two trending staffing agency types which have helped businesses over the globe to eradicate the challenges related to hiring, by providing talent from anywhere around the globe.
EOR Model
An EOR opiates as a legal employer for a company to talent hunt, recruit, onboard and manage the workforce while providing complete access to the company of total control of its operations and how they utilize their team. The main idea is to eradicate the complexities of HR services like payroll, taxes and other labour laws pertaining to the particular nation, their visas, work permits, local benefit administration, onboarding and termination, and employment contracts.
How Does EOR Work?
The EOR will be there as a local entity handling all the legalities and hiring proceedings while the company simply pays to the EOR service provider and uses the team as per their needs focusing on its operations.
Also Read: How Small Businesses Can Hire Employees on a Budget
This becomes even more helpful when a company needs to hire in other countries as the EOR being a local entity will make it easier to expand without any complications of labour laws, establishing its own entity and being compliant with other statutory norms and regulations.
Benefits Of Using EOR
EOR is the future of how employers have been hiring, how is this addressing challenges which earlier seemed like that they cannot be bypassed is discussed below;
- Reduced Risk
EORs ensure all complete compliance to local labour rules reducing the chances of getting into legal complexities.
- Speed and Flexibility
Speed and flexibility comes with EOR, as companies will be focusing more on their operations and could rapidly hire employees overseas and scale up or down their reach as required.
- Cost-Effectiveness
EORs handle everything ranging from onboarding to payroll, benefits, and compliance, minimizing the need for spending resources on HR management and accounts internally.
- More Focus on Core Business
Administrative tasks will be managed by the EOR, the company can emphasize on their core strategies and operations enabling them to achieve desired revenue and enhance quality of their services or products within the industry.
Employee Leasing Model
Employee leasing, which is commonly popular as temporary staffing or staff leasing, is when an organisation to address a requirement, outsources with a staffing company to lease employees for specific needs, mostly for pre decided short term projects. The leasing company’s employees will be assigned to work for the business, and will be paid by the leasing or staffing company and not directly from the business as they don’t directly employ them.
How Does Employee Leasing Work?
Employee leasing enables the business to focus on their core functions while the leasing company takes care of several HR and administrative tasks related to the leased employees. Know the process steps below;
- The leasing company would supply employees to businesses but will itself handle payroll and HR administration.
- Employee leasing company responsibilities include critical functions like processing payroll, managing employee benefits, ensuring strict compliance with employment laws, and maintaining employee records.
- Business pays the leasing company a service fee as per the agreed terms. The client company determines the budget and includes and forms the contract accordingly.
Benefits of Employee Leasing
Employee leasing is in high demand these days. When earlier companies were on their own searching for temporary staff, there are now established organisations in Singapore helping many employers get the the employees temporarily, below are some of the top benefits of employee leasing;
- Risk Mitigation
Associating with a cross border staff comes with different challenges like legal disputes to cultural misunderstandings, but employee leasing agreements are highly beneficial for both parties.
- Operational Ease
When you are planning to hire another team for navigating the complexities of international employment laws, local taxation and benefits, many of the top Singapore companies are relying on the employee leasing company to handle these tasks.
- Flexibility
Lease employee agreements enable businesses to expand easily and scale their teams freely and even cut down as per the project demands. Clear contract terms, companies in industries like tech & IT can adjust workforces easily.
- No Legal Liabilities
No direct & clear agreement with employees will definitely take off much of your load. You can ask the employee leasing company with a comprehensive agreement, tailored to highly comply with local laws, protecting companies from any possibilities of potential legal non-compliances.
Recruitment Central As Your Staffing Partner
Some of the recent developments in the labours laws by MoM has introduced regulations which clearly that EORs cannot directly apply for any work passes for the foreign workers on behalf of overseas companies, which implies;
Also Read: Can a foreign company hire an employee in India?
Key points about the Singapore EOR ban
- – No visa sponsorship:
EORs would only be able to hire local employees and cannot sponsor work passes for foreign workers employed under the overseas companies. - – Local presence required:
Foreign companies who need to hire foreign talent in Singapore must establish a registered local entity to request for sponsoring work passes. - – Compliance with MOM regulations:
Any attempt out of the conditions mentioned above by an EOR for getting visas for foreign employees working for non-Singaporean companies, would clearly be considered a violation under law.
Recruitment Central overcomes all this and has legal owned entities established in Singapore for two long decades. Recruitment central excels in all three essential pillars of successful EOR services which have earned them prestigious awards in all three categories i,e, Best EOR Firm, Best Recruitment Firm, Best Workforce Management Platform.
Conclusion
Staffing services are designed particularly to streamline the hiring process in varying industry types. This widened approach offers businesses a smarter and more accurate approach to recruitment. By leveraging staffing agencies, businesses situated anywhere could easily access a wider pool of desired candidates, reduce recruitment time and costs, with the help of specialized expertise, the staffing agencies contains.
