5 benefits of using an Employer of Record (EOR) provider in Portugal

Choosing to use an Employer of Record (EOR) to hire IT talent in Portugal can be a smart decision for several reasons.

Unlocking tech talent stories

February 6, 2023

The IT recruiting industry has been undergoing a major transformation in the current reality of remote work and the gig economy during the past 3+ years. With remote and cross-border work becoming the norm, the tech talent pool has never been bigger, expanding outside of country borders and enabling teams to work from anywhere. 

Companies are looking for new ways to stay competitive and to meet the needs of their business, clients, and employees. This means hiring tech talent from the four corners of the world to retain the best of the best while embracing diversity, new work dynamics, and flexibility. But with this paradigm, challenges arise. 

The challenges of tapping an international talent pool

Among the new challenges that companies must address from tapping into a larger pool of talent beyond their geographic location, the 5 biggest ones are:

  1. Compliance: with remote work, complying with employment laws and regulations in multiple jurisdictions, making it more complex and time-consuming to manage HR and payroll functions.
  2. Communication and collaboration: ensuring effective communication and collaboration between remote IT teams, which can be challenging in a virtual work environment.
  3. Employee benefits: providing employee benefits, such as health insurance and pension plans, that are compliant with the laws of the location where their remote workers reside.
  4. Technology and infrastructure: providing the technology and infrastructure required for remote work, including hardware, software, and secure networks.
  5. Management and supervision: developing effective strategies for managing and supervising remote IT teams, including setting clear expectations and providing support for their professional development.

Focusing on 1 and 3, using an Employer of Record (EOR) can help companies address these challenges by assuming responsibility for HR and payroll functions, employment and tax compliance, and other employment-related tasks. 

An EOR can also help companies stay up-to-date on the latest employment laws and regulations and provide support for remote work, allowing companies to focus on their core business activities. But let’s dig deeper.

Annie Spratt’s photo on Unsplash

What’s an Employer of Record (EOR)? 

An Employer of Record (EOR) is a third-party service provider that acts as the official employer for a worker on behalf of a client company. The EOR assumes responsibility for HR and payroll functions, employment and tax compliance, and other employment-related tasks, allowing the client company to focus on its core business activities. The EOR also assumes legal liability for the employment relationship and acts as a liaison between the worker and the client company.

Why you should use an Employer of Record (EOR) in Portugal

Portugal is a compelling destination for foreign companies looking to expand their IT teams. With a well-educated and skilled workforce, a large pool of IT professionals, and a strong emphasis on technology and innovation, Portugal offers a rich talent pool. The country’s favorable business climate, with a pro-business government, low tax rates, and a supportive ecosystem for startups and tech companies, makes it an attractive destination for companies looking to expand their operations.

First things first: why Portugal?

One of the key benefits of Portugal as a location for IT expansion is its cost-effectiveness. Compared to other European countries, Portugal offers a high quality of life at a lower cost, making it an attractive destination for IT professionals, as well as a cost-effective location for companies to expand their IT teams. The country has a warm climate, beautiful beaches, and a rich cultural heritage, offering an excellent quality of life to both residents and visitors.

Aayush Gupta’s photo on Unsplash

In addition to its favorable business climate and quality of life, Portugal’s strategic location is another reason why companies may choose to expand their IT teams there. The country is located at the crossroads of Europe, Africa, and the Americas, making it an ideal location for companies looking to expand into new markets. With a well-developed transportation infrastructure, including excellent road, rail, and air connections to other major European cities, Portugal is well-positioned to support international business and trade.

Overall, Portugal offers a compelling combination of talent, a business-friendly environment, cost-effectiveness, quality of life, and strategic location that makes it an attractive destination for foreign companies looking to expand their IT teams.

Hiring IT talent in Portugal through EOR

Choosing to use an Employer of Record (EOR) to hire IT talent in Portugal can be a smart decision for several reasons, including:

  • Compliance: EORs stay up-to-date on employment laws and regulations, ensuring compliance and reducing the risk of costly legal issues.
  • Flexibility: EORs allow companies to hire workers on a flexible basis, such as for short-term projects or as independent contractors.
  • International expansion: EORs can help companies expand into new markets by handling the complexities of employment laws and tax requirements in different countries.
  • Time savings: EORs handle HR and payroll tasks, freeing up the company’s time and resources to focus on its core business activities.
  • Cost savings: EORs can help companies save money by reducing the costs associated with in-house HR and payroll administration.

Overall, using an EOR can help companies streamline their HR and payroll processes, reduce employment-related risks and costs, and support their business objectives.

Where to start? 

Landing.Jobs offers Employer of Record services for companies wishing to hire IT talent in Portugal, providing one-on-one support through an expert team that has years of field experience. 

If you’re ready to explore the Employer of Record solution, start by getting in touch with an expert team and clarifying all your doubts. You should be able to get a full picture of what help you can get, down to the little details. 

 You’ll be able to start finding and hiring the best IT talent in Portugal in no time! 

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