What is An EOR? 4 Crucial Benefits of Hiring An Employer of Record

For most businesses worldwide, the reason why they should tap into international markets and expand their company is simple: to access a larger audience and customer base.

But the problem arises when we discuss the method of doing so. It’s not as clear-cut, and there are countless ways you can go about it.

There is a lot of work to be done to achieve this goal, including establishing a local entity in the country you want to do business. But the ideal solution is using an employer of record (EOR) in such a situation.

Here’s everything you need to know about an employer of record and how you can use them to successfully expand your business internationally.

What is an Employer of Record (EOR)?

An employer of record, commonly mentioned as its abbreviation, EOR, is a third-party organization that manages the task of hiring and handling the employment duties of full-time employees for another company.

The huge advantage of working with global employers of record is that it allows companies to legally work with employees from a foreign entity in a different country. With an EOR, you can basically hire anyone from anywhere in the world.

People often get confused between an employer of record and a professional employer organization (PEO). So the question is, PEO vs. EOR: What’s the difference? Well, simply put, a PEO works as a co-employee arrangement. Unlike with PEO, the responsibility of entity establishment and legal accountability falls completely on the EOR.

How Can an Employer of Record Solution Benefit You?

Saves a Lot of Time and Resources

Undoubtedly, relying on an experienced employer of record with teams of experts to manage the hiring and onboarding process will save your company a lot of money and resources.

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They also handle legal matters, acquire the necessary legal permits, and train the new recruits, completely freeing you of the hassles.

Easier to Expand to Global Markets

With the ability to instantly hire employees anywhere in the world without much effort, scaling and expanding your business globally couldn’t be easier.

Employer of record services are especially a great choice for small companies looking to tap into markets in various countries and regions. The shortened process will help your workers get employed and settled in no time.

They Take Care of the Compliance Laws

The best benefit that comes with relying on an EOR is that you won’t have to deal with local compliance regulations and labor laws. Employers of record ensure that your company is allowed to do business in the country and is compliant with all employment laws.

Provide a Suitable, Appropriate Work Environment

Even if you have the resources to manage and afford a work office for your foreign employees, knowing about the working culture of the people and creating a suitable environment isn’t possible without local guidance.

In addition to hiring capable employees, employers of record will build a conductive and properly managed work environment to make the process easier for the employees too.



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