In an Employer of Record (EOR) arrangement, managing employee performance evaluations and feedback involves a collaborative approach between the client company and the EOR. Here’s a breakdown of how the process is typically structured and managed to ensure effective feedback and performance tracking while maintaining compliance with local employment laws.
In most EOR models, the client company is responsible for overseeing the day-to-day management of employees, which includes setting performance goals, assessing work quality, and providing feedback. Since the EOR primarily manages HR, payroll, and compliance, the client maintains control over operational aspects such as task delegation, project assignments, and performance standards. This allows the client company to directly engage with employees and set expectations, which helps reinforce company culture and align employee performance with organizational goals.
While the client company is responsible for direct performance management, the EOR supports the process by managing employment documentation, handling administrative tasks, and ensuring compliance. The EOR can facilitate performance reviews by maintaining accurate employment records and documenting evaluations or disciplinary actions when necessary. This record-keeping ensures that feedback processes remain legally compliant and meet regional employment standards. Some EORs also offer platforms and tools for performance tracking, allowing companies to integrate metrics or evaluations into a single accessible system.
When feedback involves sensitive matters or disciplinary actions, the EOR’s involvement becomes crucial. As the legal employer, the EOR often must be consulted to ensure that any corrective actions follow local labor laws and protect both the client company and the employee from potential legal issues. The EOR may guide the client on proper documentation procedures, appropriate warnings, and escalation steps, especially if performance issues could lead to termination. This helps mitigate risks associated with non-compliance in employee handling.
Many EOR providers offer digital tools and dashboards to track and record employee performance. These platforms can streamline the evaluation process, allowing the client to set objectives, monitor progress, and record feedback effectively. In cases where multiple employees are managed across different countries, these tools provide consolidated performance data, making it easier for managers to analyze trends and address areas needing improvement.
EOR providers with global experience also support the performance evaluation process by advising on cultural nuances that may influence feedback delivery. This is essential for global teams, where communication styles, work expectations, and feedback perceptions vary widely. EORs that specialize in global talent can provide training on effective communication across diverse cultural settings, contributing to a positive employee experience and fostering constructive feedback exchanges.
Wisemonk offers a streamlined approach to performance evaluations within an EOR framework, combining local compliance expertise with advanced tools for efficient tracking and documentation. With Wisemonk, you gain access to compliant record-keeping, culturally sensitive support for global teams, and tailored advice on performance management strategies. Wisemonk’s systems integrate with your workflow, allowing you to maintain your evaluation processes while ensuring all actions align with local labor laws. This helps you manage employee performance effectively without the administrative burden of handling compliance alone.