Is Enlisting an EOR Right for Your Business? Here’s How to Tell


Part of growing your business is onboarding employees from other countries. In addition to widening your talent pool, hiring overseas encourages workplace diversity while promoting innovation and creativity. You also ensure productivity around the clock thanks to the different time zones.

However, venturing into global labor markets can be intimidating. Furthermore, employee regulations vary from one country to another. If you want to maintain hiring efficiency and avoid legal issues, it’s time you considered an Employer of Record (EOR).

What Are EORs?

These firms guide global companies through logistical hurdles by dealing with taxation, employee payments and benefits, insurance, performance evaluations, and visa applications. Think of an EOR as an authorized employer of employees. Remember, you don’t lose your power when you engage an Employer of Record; employers can still decide who gets hired, promoted, or fired.

However, EORs aren’t the same as professional employer organizations (PEOs). While EORs handle a section of your employee and business payrolls, a PEO manages all HR functions, including workers. When it comes to international recruitment, PEOs require client companies to own local entities and enter co-employment agreements. But with an EOR, you can hire in foreign countries without entities or co-employment arrangements.

Should You Enlist EORs?

An Employer of Record streamlines various stages of your geographical expansion. Here’s how to know whether you need an EOR.

You’re Considering Overseas Operations

When expanding globally, you need someone to establish your foreign operations on short notice. This is especially true when hiring in multiple locations and competitive industries. An EOR handles legal obligations to save you the hassle of researching foreign laws. Moreover, they maintain world-class standards to attract talent internationally. EORs also improve the employee experience. By addressing concerns as soon as they arise, an Employer of Record keeps your staff happy to increase employee retention.

You’re Hiring on a Budget

Business registration, legal counsel, capital obligations; you name it, starting an entity in a foreign market can be expensive. Since EORs are established legal entities, you don’t have to register a new subsidiary in a foreign country. Furthermore, an Employer of Record eases your payroll workload by reducing the costs associated with employee recruitment and termination.    

You Need Time to Focus on Your Business

From paying salaries to managing taxes and statutory deductions, a lot goes into payroll processing. These functions may be essential, but they can take too long and distract you from core businesses. By distributing these responsibilities to an Employer of Record, you increase your growth potential by focusing more on your clients. 

Choosing Your Next EOR

Apart from their track record, you can gauge an Employer of Record using their hiring experience in your country of choice. They should also be transparent about their pricing and operations. Do you want to expand beyond your borders? Allow us to grow your business with expert EOR solutions.

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