Great talent is everywhere. If you are looking to hire remote talent in Africa, Ghana offers a broad talent pool.
An Employer Of Record (EOR) can be ideal for companies looking to hire and pay talent around the world without the legal and administrative hassle. For example, did you know that in Ghana pregnant employees are eligible for 12 weeks of paid maternity leave? Or, do you have knowledge of local contracting laws and hiring practices? An EOR can help with this and more.
This article will walk you through the reasons, processes, and advantages of hiring employees in Ghana through an EOR.
Why Hire Talent in Ghana?
The Ghanaian workforce is highly educated and motivated. Ghana is home to over 17 million people with over 40% of the population having some post-secondary education. Beyond that, the primary language is English, removing language barrier for many global companies based out of North America.
How Can I Legally Hire an Employee in Ghana?
To hire employees in Ghana, your business must have a local legal entity. Establishing one can be a legal nightmare and is only worth it if you are going to set up long-term operations in the country.
This is where EORs come in handy. An EOR acts as a broker for hiring global talent. It will already have an entity set up and the legal framework in place to do the hiring for you. This gives you more time to focus on managing relationships with your employees and growing your business.
Going through an EOR is a simple way to hire talent in Ghana without all the legal hassle.
What Does an EOR Do?
Simply put, EORs take care of the legal procedures while you manage your employees. The legal frameworks for hiring in Ghana can be quite different from those in the US and Canada. EORs handle worker visas and work permits, employment contracts, payroll, local compliance, termination, and any other HR services.
To learn more, check out our article on everything there is to know about EORs.
Contracts and Documentation
An EOR will handle the tedious administration involved in preparing and collecting contracts and documentation. This includes employment offers, signed contracts, banking information, and more so can focus on growing your business.
Employee Insurance and Benefits
When the world is your competition, it pays to incentivize new and existing hires with attractive benefits like medical, dental, vision and life insurance, and retirement savings plans. A comprehensive EOR will have those kinds of benefits built into its service offering.
Vacation and Public Holidays
In Ghana, full-time employees are entitled to 15 working days of vacation each year, accruing at 1.25 days per month. Employees are eligible for annual leave after 12 months of work.
In addition to vacation allotment, Ghana observes 13 public holidays. Employees may be granted the day off or additional compensation.
- January 1: New Year’s Day
- January 9: Constitution Day
- March 6: Independence Day of Ghana
- April 7: Good Friday
- April 10: Easter Monday
- April 21: Eid al-Fitr
- May 1: Labour Day
- June 28: Eid al-Adha
- August 4: Founder’s Day
- September 21: Kwame Nkrumah Memorial Day
- December 1: Farmer’s Day
- December 25: Christmas Day
- December 26: Boxing Day
Taxes
The general Corporate Income Tax rate is 25%. However, there are contemporary rates depending on the nature of business carried out by an entity, the location of the business and the specific industry in which it operates. For example, organizations operating in the hotel industry are 22%.
What Are Your Responsibilities?
While the EOR handles everything related to legal and HR processes, you manage the rest as the employer. You take care of your remote, global staff in the same way you would your local hires. That means search and recruitment, company onboarding, training, management, day-to-day communications, progress tracking and so on.
While the relationship with the employee won’t be all that different through an EOR, you need to be clear with your staff on the legalities of their contracts. Of course, retention is also up to you. You will need to consider how you help your staff grow and succeed in their new roles at your organization.
What Are the Advantages of Going Through an EOR in Ghana?
Using an EOR to hire talent in Ghana will save you time, reduce costs, and mitigate risks.
Setting up an entity for hiring in Ghana is time-consuming and frankly, can be a huge headache. Since the EOR is already set up to hire employees in the country, it will be faster and easier to start hiring right away. In fact, the process won’t be that much different from hiring locally.
The set-up and HR costs can also be quite high, so going through an EOR can save you money. You will also be paying lower salaries than you would be in the US and Canada, so you’re bound to see some positive impact on your bottom line.
Most importantly though, you’ll be mitigating the risks associated with non-compliance. Because EORs have extensive experience in navigating complex local HR policies, you won’t have to worry about any issues arising from improper hiring practices.
How Do I Choose the Right EOR for Me?
Before selecting a vendor, consider these 5 things.
- Local Experience: Does the EOR have experience hiring in Ghana? As discussed earlier, one of the biggest advantages of hiring an EOR is the assurance of compliance. Often, this requires a lot of past experience, so check the EOR’s track record in the country.
- Service Scale: Do you need someone who offers a full suite of services? If you want happy employees that you can retain in the long run, then you may need to offer them benefits like insurance and other welfare. Some EORs have systems in place for this but others may not. Also, certain EORs will offer consulting services to optimize your global hiring practices.
- Data and Systems Security: Protecting intellectual property in a remote working environment is critical. Ensure your vendor of choice has a specific agreement outlining the ways in which they plan to keep your sensitive information safe and secure.
- Collaboration: Ensure your vendor’s approach to communication and collaboration with its clients is aligned with your organization’s approach. Love having a point of contact person? Perhaps all you need is access to a Slack channel so you can quickly reach your vendor. Whatever your communication style, ensure your vendor can meet your needs.
Borderless: The Employer of Record your Company Needs
Need an EOR? Look no further than Borderless. We can help you hire in Ghana – giving you access to a massive talent pool without all the headache of traditional global expansion.
Book a demo today and see how we can help you quickly and easily hire, onboard, pay, and retain the talent your organization needs.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
