An ever-expanding pool of foreign investors is showing an interest in the Middle Eastern market, taking advantage of globalisation to put their own employees on the payroll in Turkey by relocating their teams. Yet, many find hiring a local workforce even more beneficial and turn to specialised agencies to handle all HR matters, including recruitment in Turkey. These umbrella companies allow them to build a presence at the crossroads between Europe and Asia for their own business without having to set up an official entity.
How Does an Umbrella Company Handle Payroll in Turkey?
To handle payroll in Turkey without creating a dedicated department and generating additional expenses, foreign investors call upon payroll companies, such as Azkan Group. Such arrangements prove particularly convenient for those who wish to do business in Turkey but would rather not relocate altogether. For instance, European clothing brands may want to purchase products in Turkey and simply require the help of a few representatives on site. Instead of dispatching their own employees, they turn to local agencies to manage recruitment in Turkey and hire competent associates who have a perfect grasp of their own market.
The umbrella company provides a legal structure for foreign groups to put consultants on the payroll in Turkey and remains in charge of all practical matters pertaining to their employment. In essence, the foreign company can rely on Turkish personnel as though they were contractors, thus saving time, effort, and money.
How does it Work?
Concretely, the Turkish employee on the payroll in Turkey signs a contract with the umbrella company and officially provides their services to that entity. Hence, they receive compensation in the form of a salary, complete with benefits, paid leave, and social security. The foreign investor, on the other hand, receives an invoice from the umbrella company which covers the cost of the employee along with the agency’s fee.
Why Choose to Hire Through a Payroll Agency?
Though recruitment in Turkey is no more complicated than it is in some European countries, it does require investors to have a local subsidiary. For those whose only goal is to test a new market, such an endeavour would simply not prove cost-effective. In addition, having no ties in Turkey, many foreign companies lack the resources necessary to carry out a successful hiring campaign in a different country. Being able to entrust local professionals with finding the right talents for the task at hand is highly beneficial. Even without a legal structure, foreign companies can do business in Turkey.
With no actual personnel on the payroll in Turkey and one, simple invoice to handle, accounting tasks are reduced to a minimum, translating into significant savings. This means there will be no need to expand the accounting or HR teams. Regardless of how many Turkish employees are required, outsourcing the hiring process and administrative management is convenient and provides peace of mind.
Finally, and this is perhaps one of the most compelling benefits payroll agencies have to offer, investors get to have a vast network of trustworthy experts at their disposal. For those unfamiliar with the local job market, being able to identify the right skill sets in their new associates can prove challenging.
Well aware of the high expectations of international investors, umbrella companies strive to surround themselves with capable individuals whose unique profiles will serve their best interests. They can also act as headhunting agencies if their network does not already have compatible profiles available. This ensures foreign companies can have full confidence in their new employees and rely on the payroll agency to find a more suitable match should they not be entirely satisfied with their new hire.
This article is written and sponsored by an advertiser. The view expressed in this article is advertiser’s.
