Management & Leadership Company news South Africa

Top management tips from Africa's oldest Employer of Record

An Employer of Record is a third-party organisation that assumes all the responsibilities associated with the formal employment of staff, essentially taking the role of the officially registered employer for the worker, while the original company still manages the work and time of the recruit(s) as well as compensation and duties.
Photo by Magda Ehlers from Pexels
Photo by Magda Ehlers from Pexels

As one of the longest established organisations on the African continent to offer Employer of Record services, Africa HR Solutions shares the top management benefits a company gains by using an Employer of Record:

Save time and money, reduce stress

Using an Employer of Record provides managers with more time to focus completely on core business processes, ensuring further productivity by allowing all resources at their disposal to perform activities that directly grow the business and ultimately increase profits.

Outsourcing HR functions to an Employer of Record offers savings on capital expenditure, workforce, infrastructure, hiring costs, operating costs and training costs and, as an added benefit, these savings can be redirected towards revenue generating activities.

When considering the services of an Employer of Record, Africa HR Solutions advises that managers should check off a few points initially, namely if there is a need for specialised technology, knowledge or skills that are not the company’s wheelhouse; whether the tasks being considered for outsourcing are highly repetitive and time-consuming (and distracting focus from the core business); if there is a lack of staff or operational capacity to complete the work in a timely or cost efficient manner; and understanding when high performers are spending unnecessary time on tedious, albeit necessary, tasks as opposed to more value-added responsibilities.

Gain HR and recruitment expertise

“Look for a true partner who can provide in-depth insight and direction on how to focus your resources as your company evolves. Their aim should go beyond just supplying a service. They should be committed to making your company better, whether through identifying new opportunities, providing useful industry data or suggesting operational improvements,” comments Africa HR Solutions managing director Edan Latzelsberger.

Africa HR Solutions has expertise in human resources outsourcing services, including full payroll management, tax compliance and employee benefit administration, all of which assist in running a business more efficiently.

Services offered by an Employer of Record include:

  • Providing a compliant and locally registered entity to employ workers and process in-country payroll legally
  • Onboarding employees including execution of a local employment contract whereby the worker will be subcontracted to the client (or the client’s project)
  • Visa, work permit and general immigration assistance for the employee, which very often helps in avoiding delays or even refusals
  • Advises on the host country labour laws to legally employ or contract workers and ensure that terminations of workers (including associated items such as notice period and severance pay) is carried out in strict compliance with all applicable laws
  • Providing and administering employee benefits (including insurance and pension schemes) and communicating directly with employees about their benefit package options
  • Carrying out background checks if required
  • Collecting and processing the worker’s time sheets, if applicable
  • Calculation, deduction and timely payment of local taxes and local social contributions to the relevant authorities
  • Fielding all employee complaints with a view to reaching a positive resolution

Why Africa HR Solutions is the right choice for your company

Africa HR Solutions has many years’ experience as an exclusively African-focused Employer of Record, servicing international companies of all sizes across the African continent and guaranteeing project compliance.

In addition to its Employer of Record service, Africa HR Solutions’ offering includes full payroll management and support, immigration and work visa assistance, procuring employee benefits (including insurance and pension schemes) as well as auxiliary services such as arranging office space and car rentals in-country. With experience across 20 industries and 43 African countries, Africa HR Solutions has the most comprehensive HR outsourcing coverage on the continent.

Contact Africa HR Solutions for more information on how to use an Employer of Record to benefit your business.

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