Bob Cahill got his start at Ernst & Young. “And I was fascinated by the power of software and technology to expand your market or make you efficient in your operations,” he said as our guest on this episode of #HRTechChat video podcast. Over the approximately 25 years that have passed, Bob served as a C-suite executive for several technology companies, and a big part of his focus has always been on international challenges, “where I found a lot of passion to scale technology globally,” he said. “It was sort of the perfect juncture with meeting Nicole Sahin,” the founder of Globalization Partners, where Bob later became CEO. “She had this better mousetrap idea.”
Traditionally, companies that wanted to expand internationally would have to follow a very conventional process. The first step would be to set up a new entity and get a payroll registration so they could hire people. Then, they'd have to ensure regulatory compliance would be outsourced to an array of advisors. “Nicole's vision was, ‘Why do I keep doing this over and over again?’,” Bob noted.
Thus was born, about 10 years ago, Nicole’s vision for an employer-of-record (EOR). A company that needs to stand up its ability to employ people in a country new to its operations can turn to an EOR to do all the heavy lifting. The EOR’s very business is to set up these entities in any country needed to become the globally expanding employer’s single point for all things there related to employment. The EOR assumes this risk and takes on solving for all the complexity involved.
As a pioneer in the space, Globalization-Partners has trailblazed best-practices to overcome resistance to the idea of an EOR. This resistance is waning considerably as EORs have flourished to gain acceptance in recent years. The welcoming has come not only from the typical growing global organization, but also from employers clamoring to establish borderless workforces and vie for talent in pursuit of the emerging work-from-anywhere approach to talent acquisition and retention.
This is the future-of-work angle, and it’s worth noting that nearly one-quarter of CFOs are concerned over talent shortages, according to Globalization Partners' 2022 Globalization Trends Survey. Perhaps more compelling, 83 percent of CFOs believe “their long-term plans will stem around expansion into new countries,” the related press release notes.
It’s a number slightly higher than last year’s, and the report is rich with insight into the sentiments and objectives of CFOs vis-à-vis EOR. As additional context for our conversation, Bob and I touched a bit on the findings overall. We also explored the company’s philosophy when it comes to workforce inclusivity and blending service and technology for EOR, as well as Nicole’s vision for the years ahead in EOR now that she is executive chair of Globalization Partners. I highly recommend viewing this episode.