Hire International Talent for Your Indonesian Expansion Using EOR

Hire International Talent becomes an obstacle when opening a company in a country where you don’t understand the habits of the people, government regulations, and how business works in that country.

Because of this, many international companies run out of money when you need local employees with international skills. In the end they use EOR to recruit employees.

Employer of Record (EOR) helps companies employ local residents and remain fully compliant. You will get help with HR Administration, Talent Acquisition, Payroll process. So you just need to think about how the business will operate afterwards.

You can read more about Employer of Record (EOR) Abhitech disini.

Importance of Hiring International Talent in Indonesia

We will provide data from McKinsey 

“In the case of ethnic and cultural diversity, our business-case findings are equally compelling: in 2019, top-quartile companies outperformed those in the fourth one by 36 percent in profitability, slightly up from 33 percent in 2017 and 35 percent in 2014. As we have previously found, the likelihood of outperformance continues to be higher for diversity in ethnicity than for gender.”

This shows that companies that have ethnic and cultural diversity at the management level tend to be more profitable than companies that have a uniform ethnicity and culture.

Quickly hire and onboard international talent in Indonesia with EOR services, ensuring compliance

Image: Freepik

Do you want to talk about ethnicity and culture in Indonesia before hiring international talent?

Data from Afsusa.org

More than 300 ethnic groups and cultures, with dozens of languages, and different social and cultural backgrounds with European, Middle Eastern, and Asian influences make up the unique society of Indonesia and Indonesian culture.”

Overall, the diversity of ethnicities, languages, and cultural influences from various parts of the world make Indonesian society and culture very rich and unique.

Indonesian society not only has diverse ethnicities, cultures, and languages, but we are also naturally used to working with people who have different ethnicities, cultures, and languages.

However, there is a problem here that the large number of ethnicities, cultures, and populations does not always mean that Indonesia has quality talent that is suitable for your company. So, companies still have to be more detailed in hiring international talent, attracting talent, and retaining their international talent.

According to Stephanus Vries – OM Human Capital Manager:

“Hiring is only one aspect of talent management. It’s about establishing an atmosphere that draws in, holds on to, and develops elite professionals. Finding and nurturing high-potential members of the current team is just as important as adding new members. This strategy creates a strong, adaptable workforce that can meet the demands of a changing corporate environment.”

Compliantly hire and manage international employees in Indonesia using trusted EOR services

Image: Freepik

So how do you find quality talent in society with 4th largest population in the world?

You have to understand work culture, benefits, and things other than salary. Abhitech has already covered the article here.

If you need a shortcut. Then you can stay in this article, we will discuss EOR for Hire International Talent in Indonesia.

What Does an Employer of Record in Indonesia Do for hiring?

An Employer of Record (EOR) is an essential service provider for foreign companies looking to hire international talent in Indonesia. This entity takes care of all the legal and administrative work involved in hiring and managing employees, enabling companies to focus on their core business operations.

  1. Payroll and Benefits Management

  • An EoR handles all aspects of payroll, ensuring that employees are paid accurately and on time. They also manage employee benefits, such as insurance and retirement plans, in compliance with local laws.
  • Benefit: This service ensures that payroll processes are streamlined and that benefits packages are compliant with Indonesian regulations.
  • More about  Payroll and Tax Guide for Indonesia
  1. Tax Compliance

  • EoRs manage all tax-related obligations, including withholding and remitting taxes, as well as filing returns. This includes handling income tax, social security contributions, and any other applicable taxes.
  • Benefit: This ensures that all tax obligations are met accurately and timely, reducing the risk of legal issues and fines.
  • More about Payroll and Tax Guide for Indonesia
  • EoRs ensure that both the business and its employees comply with all relevant labor and employment laws in Indonesia. This includes managing employment contracts, obtaining work permits, and ensuring visa requirements are met.
  • Benefit: This reduces the risk of non-compliance with local laws, which can result in significant penalties.
  • About work permits in Indonesia for Foreign: Work Visas and Permits in Indonesia
  1. HR Support for International talent

  • EoRs provide comprehensive HR services such as recruitment, onboarding, and managing employee relations. They can also assist with performance management and employee development.
  • Benefit: This allows companies to focus on their core business activities while the EoR handles the complexities of human resource management.
  • More service Abhitech: HR Services in Indonesia
  1. Visa Support

  • Assist in obtaining necessary work permits and visas for international talent, handling the entire application process to ensure compliance with immigration laws.
  • Benefit: This reduces the complexity and time involved in securing work permits, allowing international employees to start work promptly.
  • More about Visa support and work permit Work Visas and Permits in Indonesia

International companies can now efficiently hire international talent while ensuring compliance with Indonesian laws and regulations through the use of an EOR. This strategic partnership allows businesses to confidently expand into the Indonesian market with minimal administrative burden.

Efficient EOR solutions for hiring and paying talent in Indonesia without needing a subsidiary

Image: Freepik

5 Steps to Hire International Talent for Your Business Expansion in Indonesia Using EOR

Step 1: Evaluate the Strengths and Weaknesses of Each Potential Partner

Make sure your EOR partner understand simportant things below:

  1. Payroll Services for efficient salary distribution and invoice payments.
  2. Ongoing Legal Support to smoothly navigate Indonesian employment law.
  3. Intellectual Property protection and strong data security measures.
  4. Easy Onboarding Experience for onboarding new employees.
  5. Comprehensive Benefit Solutions covering health, retirement, and more.
  6. Transparent and Fair Prices.

Ask these questions of your potential EOR partner, to ensure your EOR provider is a good fit to work with you.

Step 2: Choose the Right EOR Service Provider After Careful Consideration

Make sure the EOR provider understands the region, especially one with a proven track record. Choosing an EOR with experience in Indonesia will be very profitable for you to expand into the Indonesian market.

Step 3: Previous customer testimonials

You can check whether your partner has worked with any company before. This can help you filter the quality of your EOR partners.

That’s why Abhitech created a testimonial partner here.

Step 4: Work Together for Fair Wages and Benefits

When working with your EOR service provider, make sure you offer fair and reasonable wages. Determining your salary is sometimes a bit complicated because there are different factors such as the cost of living and also labor laws in Indonesia.

Ask your EOR service provider if they can provide competitive salaries and benefits based on job, skills, and experience. This is important to help you get the criteria for attractive employees.

Step 5: Protect Your Intellectual Property and Data Security

The next step is to ensure your EOR is committed to keeping your ideas safe and your data protected. Your EOR should also be able to create employment contracts that clearly state that your company owns new ideas generated by your remote employees. This helps avoid legal problems in countries where you may not be familiar with existing rules and regulations.

Conclusion

By using Employer of Record (EOR) services, international companies can recruit international talent efficiently while ensuring compliance with Indonesian laws and regulations. This strategic partnership allows businesses to expand into the Indonesian market with confidence and minimal administrative burden.

If you need EOR solutions for your business expansion in Indonesia, visit Abhitech for further information and the best services to support your business success.

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