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If you are considering starting a business or expanding into the Middle East, hiring an employer for record (EOR) could be the best decision to help you get started. In this blog post, we'll show you why.
The 5 Ways an EOR Makes Middle East Market Entry Easy
The Middle East is ripe with opportunity, and governments are actively courting investment and market diversification. While regional countries undergo the necessary changes to build an attractive investment environment, their complex legal frameworks are slower to change. This can make tasks like hiring staff challenging for businesses, which causes a barrier to entry. For many, it is commonplace to jump this hurdle by hiring an EOR. Here are five reasons why they make that decision.
1. Cost-Effective Market Testing
Setting up a legal entity in a new country can be expensive. It can also take time, which can be slowed further when mistakes or misinformation happen.
When you use an EOR, they become your legal employer in a country, allowing you to employ staff and begin operations immediately without needing to register a new company or deal with the complexities of local business setup.
Being able to test the market as a lean concern allows you to start more profitably and weigh your options earlier for further market penetration and disruption.
2. Practical Employer and Compliance Risk Mitigation
Entering a new market exposes your business to various risks—from non-compliance with local employment laws, cultural nuances, or unexpected regulatory changes.
Hiring an EOR takes much of that off your hands because they are the legal contractor who recruits, pays and supports all regional staff.
Cutting your market entry risk in any area is a good thing. When it comes to workforce management, choosing the right EOR partner in the Middle East can save you a lot of headaches when employment laws are still undergoing significant change.
3. Faster Sourcing and Onboarding of Local Talent
Depending on which sector you work in and which country you are planning an operational base in, finding top talent in the Middle East can pose problems. For many newer industries, you will need to source overseas staff. But where do you find them? And do you rely on agencies and partners you've used elsewhere?
Our best advice is to use a local EOR. If they have real regional expertise like us, they'll already have a pool of qualified candidates to draw from. They also have effective immigration, work visa, and relocation processes for their expats. Leaning into their systems allows you to have a skilled workforce in place in a fraction of the time.
4. Streamlining payroll and benefits management
As with any new country base, when it comes to people management, how you pay them and provide benefits will change. It'll also be subject to compliance. The Middle East poses an increased challenge as differences in employment laws and statutes can happen across a country, not just across borders.
Using a local EOR, a company brands already trust, allows you to streamline your process, meet compliance and standardise your payroll function across any number of countries you choose to operate in.
5. Higher Employee Retention
Over the years, at mselect, we have worked hard to deliver effective EOR services. One area that benefits every client is our higher employee retention rates. You see, unlike general contractors or less experienced EORs, we have developed a way to achieve higher satisfaction levels.
Our secret? It's about going over and above for your staff. What does that look like here in the Middle East? It's a mix of good pay, better benefits and working conditions, plus:
● A positive workplace culture experience
● Cultural sensitivity
● Quick response to employee needs
● And above all an opportunity for personal development.
These are all the areas that regional employees are calling out for and recognising that means we can deliver a focused, well-performing, reliable and, most importantly, happy workforce.
Considering an EOR for Middle East Market Entry?
Contact our team today and let us show you how mselect can act as your EOR and simplify Middle East market entry.
We offer support at several regional offices across UAE, Saudi Arabia, Qatar, Iraq, Lebanon, and Jordan, with an office for clients in London. Our on-the-ground team can meet with you in person or by video call.