There are numerous reasons for a business to establish a presence in the United Kingdom. Its central geographical location, a position as a mature market, and a highly skilled workforce are among those reasons. The most common way to establish a presence in the United Kingdom is to create a business entity in the region, either a direct extension of your business (a branch) or an entity like an LLP or Limited Company. However, that may not be a financially or practically feasible choice for all businesses, and if you want to enter the United Kingdom market to access its benefits (including the workforce) without establishing an entity, the best way to do it would be through an Employer of Record (EOR) like Engage Anywhere.
Engage Anywhere is an EOR with a global footprint – in 140 countries, offering a complete suite of services related to hiring and managing talent overseas. These services comply with local labor and business laws and are powered by the Engage Anywhere’s global expertise.
Like most countries, UK labor laws have their own nuances and complexities, including contracts, working hours, working days, overtime, rest, compensation, etc. So even if you establish an entity in the UK and dedicate resources from the headquarters to learn and adhere to these labor laws when building a workforce, it’s quite easy to make a mistake.
Such mistakes, especially for a new company in the UK, can lead to a bad relationship beginning with the local regulatory bodies, especially Companies House. Then there is the process of navigating trade unions, which can be tricky if you don’t understand the local work culture well enough.
This is where an EOR like Engage Anywhere offers you peace of mind. All employment decisions taken by Engage Anywhere are fully compliant and in line with local business practices.
For a business, not having a local entity in the UK (even when you aim to establish a presence here) may simply be a matter of priority. You may have a more urgent need to tap into the local workforce or may simply want to test the waters before you establish a formal presence in the UK. But for many businesses, working with an EOR may be a matter of convenience.
There are many benefits (apart from compliance with local regulations) of working with an EOR like Engage Anywhere, including:
Better Resource Management: You don’t have to divert and dedicate resources from your home office to learning and navigating the local labor laws when building a workforce in the UK. Engage Anywhere allows you to cut through these steps and directly engage the local workforce, with the EOR acting as the compliant intermediary.
Predictable Costing: Building a presence, establishing a local entity, and hiring a workforce in an unfamiliar country is an endeavor that comes with numerous unexpected costs. Even if you can justify these costs as part of the expansion, they can be difficult to plan for and may negatively impact your ROI. An EOR allows you to keep these costs highly predictable and, to an extent, significantly lower compared to what you would spend if you built a workforce in the UK through trial and error.
Time Management: With Engage Anywhere acting as an intermediary and taking care of all the formalities of hiring and managing the local workforce, you can dive right into work. Engage Anywhere can hire the right employees for you in terms of skill level, experience, and compensation, and you can start leveraging their expertise immediately. This will save you time you would have otherwise spent on hiring formalities.
Scalability: An EOR allows you to scale your team in the UK up or down quite seamlessly. If you need to hire more employees because of an increase in the scope of your project or local demand, Engage Anywhere can help you grow your workforce. Similarly, if you are reducing your local presence, the EOR will ensure that all the employees currently on your payroll are let go in accordance with local laws and best practices.
Engage Anywhere offers a wide array of EOR services, starting with onboarding. You can easily onboard your employees in the UK (that Engage Anywhere has hired for you) and get them up to speed on your business needs. Engage Anywhere will ensure that your onboarding is compliant and in accordance with the best practices of the local job market, which allows you to fully leverage the local talent.
The company manages everything, from talent acquisition to managing benefits, perks, and compensation. This prevents you from underpaying or overpaying your employees and establishes you as a business that understands and adheres to the local job market practices. You can also run background checks on prospective employees (through Engage Anywhere), so you know who you are hiring.
Effective compensation and benefits management compliant with local regulations and in line with the benefits and compensation offered by comparable businesses helps establish you as a well-versed employer in the UK market.
Engage Anywhere offers you complete visibility to your talent using their cutting-edge and transparent employee management software. You can track the performance and compensation, calculate the ROI for the local workforce, and make informed decisions about your presence in the UK (mediated through the EOR). The company also offers dedicated support to both you and your employees in the UK, so there is no service gap.
Engaging an EOR like Engage Anywhere to help you manage your workforce in the UK and effectively establish a presence and leverage the local talent pool without establishing an entity allows you to focus on your business goals without investing your resources and energy into employee management formalities. This can help you maximize the benefits of the expansion.