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What Is a Global Employment Company, Anyway?

According to some research, 45% of people work remotely.

If you want to capitalize on the ability to have employees all around the globe, you should think about becoming a Global Employment Company.

But what is it? And how can global employment solutions help your company? Keep reading to find out!

What Is a Global Employment Company?

A GEC is a solution to hire employees all around the world. However, you hire them without having a subsidiary or a branch in that foreign location. This means that you’ll use an “employers of record” in each country that you have an employee in.

These employees are set up to onboard new employees and add them to their payroll. This helps to streamline the process and make sure that employers are still in compliance even back in their host country.

It’s generally through a third party that provides employment between the end client and the employee.

The main focus of this is to administrate employments and manage the daily work schedule and activity for each employee. This means that they’ll set the contract, position, compensation, duties, and the timeline of the project for employees.

This can be helpful for businesses that have been trying to enter foreign markets. This way, they can do it without having to come up with a new branch or subsidiary in order to do it. This gives smaller companies access to grow their market.

Over the years, this has become more popular with HR departments as they tried to find new talent and people with specialized skills. They’ve also been using this instead of sending internal people out to fill an international role. That way, everyone has a better work/life balance.

As remote teams start to grow, this solution will only become more popular.


One of the benefits of hiring remote international employees is that you can now sponsor immigration and work permits. You’ll be a legal employer, so the GEO can submit a work permit for an employee on your behalf.

This will also help with tax compliance for your business. The tax calculation and withholding can all be taken care of through the third-party company. That way, you have someone experienced handling the local tax regulations and laws.

You also don’t have to worry about discrepancies with payroll. The payroll will be local in the employee’s country, and they will receive a payslip just like anybody else. They’ll also still be required to contribute and withhold tax as well.

Using this GEO also helps since you won’t need local incorporation. You won’t have to have your business in a foreign country, which can be a difficult and time-consuming process. You will get to hire the best employee on the global market.

What It Does

The Global Employment company or organization will take care of all of the work for you. They’ll arrange for work permits and visas, but they’ll also run all of the payrolls for you. This means that all your employees, even in another country, can still receive all the employee benefits as well.

The company will also coordinate between you and the employee and act as their regional manager, so you can free up your time to focus on other tasks.

They’ll also advise you on changes in employment laws in the area. If an employee was terminated or quit, they will also let you know.

US vs Non-US GEC

It’s not uncommon for there to be two different types of GECs. For example, there are ones that are based in the United States, which are subject to US taxes.

However, there are some that are based outside of the US as well.

If you go through a US GEC, that means that you’re hiring someone in the US who can get United States benefits. For example, they may want to be on the US Social Security system. However, that would mean that they’re not eligible to be employed.

It will likely depend on the structure of your company for whether or not you want to have a US or non-US GEC. Sometimes, it might be better to have a non-US citizen covered under your employment benefits and plans.

Make sure you have a consultation with a good global employment company to ask them any questions and figure out what would be a good fit for your company.

Is It a Good Fit For Your Company?

So is a global employment organization a good solution for your company?

If you are looking for someone that can offer a reasonable fee for their services, it’s definitely worth it. It’s worth it to have the peace of mind knowing that everything is handled by someone who knows what they’re doing and knows all of the local laws and regulations.

Plus, if you had to hire an entity or subsidiary in another country, you would also have to pay a lot in taxes. By having a GEC, they only have to pay taxes on any profits that are earned, which helps to save you money.

Discover More About Global Employment

These are only a few things to know about a Global Employment Company, but there are many more factors to consider.

We know that running your own company can be overwhelming, but you don’t have to do it on your own. We’re here to help you out!

If you liked this article, check out our website. We have even more great options like this one!


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