With companies expanding their reach rapidly and venturing into new markets, many are searching for efficient ways to handle the exponential increase in demand for specialised talent and a diversified workforce. Getting the right talent on board is just the beginning. Onboarding them, handling all the extensive administrative work, making sure you adhere to all the compliance laws for that region and facilitating payroll is where the real work lies. Engaging a Contractor Management Organisation (CMO) or an Employer of Record (EOR) gives companies a chance to pass on a lot of the work, responsibility and risk to a third party, leaving them more time and freedom spend their time strategically to grow their organisations.
However, with so many CMOs and EORs in the market, how do you choose the right organisation to support you? Here are some key factors for consideration to help you to find the one that fits you best.
Does the company comply with all current employment law?
It is no easy task making sure that you are up-to-date with the ever-changing compliance laws, especially in recent months, where employment laws around the world are facing constant change. Each country, and each industry has its own set of rules and challenges and staying on top of these changes takes a lot of time, effort and commitment.
It is very important also to find out if the CMO/EOR have their own in-house specialists to handle legal matters, migration, industrial relations, OH&S, insurance and taxation. Having their own team of experts will not only ensure that you get the best service, but it will also ensure that you get the quickest turnaround time.
Are they a sustainable, reliable and trusted brand?
When looking for a CMO/EOR, one of the most important factors to consider is their reputation and financial standing. If you are relying on them to be the bridge between you and your contractors, payrolling is an extremely important part of their engagement. They need to be able to pay contractors promptly. Some CMOs even offer payroll financing, which gives business owners the ability to pay their workers without having to consider cashflow.
Aside from financial standing, it’s important to consider the company’s ownership structure and their length of trading too. Make sure you do your research, and check in with other clients to find out what it’s like working with them. After all, you want to make sure that you are aligning yourself with a business that is stable, reliable and also shares the same values as your organisation.
Can they offer you the security and privacy you need?
In today’s day and age, privacy protection is of utmost priority. Keeping both your organisation’s and your contractors’ information secure is crucial, which is why your CMOs databases and networks need to be able to withstand stringent security testing and checks. Equally important is to also ensure that they have a strong recovery plan in place, in the event of any unforeseen circumstances.
The critical key to CMOs safeguarding your security and privacy: technology. Look out for an organisation that has a stable digital infrastructure and incorporates advanced technology into their proposed workforce solutions. EORs that have stand alone SaaS workforce management products are easy to work with, offering you the efficiency required to automate the procure-to-pay process while also possessing the capability to integrate with your current technology.
Is contract management at the heart of the company?
Some companies may offer contract management as just one of the services their company provides, but if you want to engage someone who will truly make a difference to efficiency and productivity when it comes to hiring, engaging a company whose core service is contractor management will give you access to resources, systems, knowledge and expertise that many other organisations would be unable to offer.
Do they deliver a seamless and holistic customer experience?
CMOs and EORs should always tailor workforce solutions with the end-client in mind. Not one size fits all, and each strategy drawn up should be based on the specific needs and wants of the client. Does your CMO provide services that is tailored to your organisation’s needs? A good agency should listen to customer feedback to continually improve their service, assign your organisation a dedicated account team and respond to queries within a reasonable timeframe. Building a reliable and enjoyable customer experience should be at the core of everything they do.
Whether you are looking to engage a CMO or EOR to manage your workers, or if you are wondering if you are getting the most out of your existing partner, it is always important to do your research and ask the right questions.
Download our succinct Checklist for Engaging a Contractor Management Organisation.