Flexibility and Stability: A look at how Atlas HXM helps technology startups with talent and expansion

Startups, after being the darling of venture capitalists and private investors for years, now find themselves in a place where they need to prioritise profitability.

For years, tech startups have taken the approach of growth at all costs but investors are now steering them towards profitability.

In this new startup landscape, entrepreneurs are not only reevaluating their business model but also changing the way they hire talent.

One thing hasn’t changed though, startups still need the best minds to succeed and building the best possible team has gained new prominence as startups change their business model.

This new economic landscape for startups and their hiring practice is also shining a new light on the versatility of Employer of Record (EOR) solutions.

EOR in a changed startup landscape

An Employer of Record (EOR) is an organisation that helps technology and startup industries to manage the legal, HR, tax, and local compliance responsibilities in any country where they don’t already have an operation.

This means a startup based in Europe can easily hire local talents in Asia without having to set up a local office.

To help this hiring process, the EOR will act as the legal employer and will handle onboarding and paying staff on behalf of their client.

Back in June, we looked at some of the biggest trends in EOR via a whitepaper published by Atlas.

Through Atlas’ Human Experience Management (HXM) platform, the company provides a centralised place for technology startups to manage their global people operations.

While the solution may sound like outsourcing hiring responsibilities, the reality is far from it.

While the EOR is the legal employer, helping companies with no local operations to manage legal and financial responsibilities of employees in remote locations, the company is still responsible for the recruiting and day-to-day management of its talent.

In an era where remote work has become the norm for knowledge workers around the world, an EOR service makes it easier for startups to manage those workers.

Atlas says startups need an EOR partner to “fully realise the potential of tomorrow’s globalised workforce.”

In other words, an Employer of Record (EOR) partner helps startups to build a team with diverse skill sets across multiple countries, managed remotely, and supported completely by the organisation.

EOR: An apt choice for Europe

During the pandemic, the European tech stocks outperformed but saw a big slump in valuation and the region has seen a drop in venture funding this year.

This has forced European tech startups to not only innovate and reach profitability but also expand to new markets.

Moving forward, Atlas says the right talent strategy will prove crucial for companies in the European technology scene.

The hybrid labour market has created low supply and high demand with high employee attrition and offering flexibility is the only way for companies to stand out.

In its whitepaper, Atlas observes that one of the advantages of tapping into a global talent pool is that businesses can address their biggest challenge: skills gap.

“For startups, widening the talent pool also helps them fight for attention alongside heavyweights with established reputations and wallets,” Atlas explains in its whitepaper.

In order to future proof themselves, the European tech startups need to find inventive ways of hiring that doesn’t add too much weight to its bottomline or complexity to HR, payroll, and legal.

With an EOR service like the one offered by Atlas, tech startups in Europe can position HR as a strategic function by ensuring “hiring processes are handled correctly and overcome unexpected challenges around compensation, location, and regulation.”

Stability and Expansion

Atlas’ EOR service does not only help businesses to stay compliant with local laws, but also acts as a solution to uncertainty.

With over 300 clients using its EOR service, there is proof that Atlas is not only a trusted EOR partner but also one that helps startups scale and expand.

This became evident during the pandemic when each country had its own distinct lockdown rules that limited working hours, access to facilities, and social contact.

This meant organisations had to grapple with each country’s regulation and might have needed individuals to be present on site to enable seamless operation.

During the pandemic, the customers of Atlas’ EOR service were able to avoid having an individual present on site and received country-specific information that’s pertinent to the safety and security of employees.

An EOR service also proved useful to many global organisations facing challenges like stranded employees who could not return home due to rapid changes in visa or work permit status during the pandemic.

“An EOR is the equivalent of hiring a local advisor,” Atlas says in its whitepaper.

This ability to bring stability is not limited to a situation like the pandemic but EOR service also helps organisations approach employment and remuneration ethically should the company face economic uncertainty.

For any company looking to set up a legal entity in a new market can take approximately five months. In China and South Africa, it can take up to two years and the process is also expensive with some countries requiring businesses to hold a certain amount with a local bank.

Fuse Universal – Video testimonial with Atlas HXM from Atlas HXM on Vimeo.

While big organisations can manage this legal process, startups need to avoid this trap to achieve speed and lower opportunity costs.

Atlas says, “Partnering with an EOR means that you can start hiring in new markets in days or weeks, rather than months.”

From managing language barriers to adopting a global mindset, an EOR service like Atlas can help technology startups to create an inclusive and diverse team.

Katie Kokkinos, Chief Operating Officer of Vetspire, says, “Since hiring the first person, we’ve added two more employees to our virtual UK office through Atlas’ Direct EOR platform. Their understanding of HR compliance and legal requirements has been instrumental in helping us get our UK employees what they need.”

It is well known in the startup ecosystem that success and failure hinges on the kind of talent designing and delivering the product.

With talent recruitment and retention becoming challenging and talented people spread globally, an EOR service is not only useful but essential enough that startups should make it part of their business plan from the outset.