Are you finding it difficult to manage remote workers globally and navigate the intricacies of international hiring? According to a 2023 report by the World Economic Forum, over 60% of companies are now hiring remote employees across borders, making global HR solutions essential for success.
With businesses increasingly looking to expand their global footprint, managing remote teams requires more than just recruitment—it involves complying with local labor laws, handling payroll, managing tax filings, and administering benefits.
This is where Employer of Record (EOR) companies come in. As companies expand globally, effective HR support becomes more important. With EORs, businesses can benefit from international talent while ensuring full compliance with local regulations.
If your company is ready to unlock global opportunities while staying compliant, finding providers with the best EOR services is the first step.
What Is an Employer of Record?
An Employer of Record is a third-party organization that acts as the legal employer for a company’s workforce in a specific location, typically in a foreign country or region. The EOR acts as an intermediary between the business and its employees, assuming all legal and administrative responsibilities related to employment.
The primary role of an EOR is to handle functions such as:
- International Payroll Management: Ensuring employees are paid accurately and on time in compliance with local regulations.
- Taxation: Calculating and remitting appropriate taxes, social security contributions, and other deductions required by local employment laws.
- Benefits Administration: Providing statutory benefits, such as health insurance, pensions, or paid leave, as required in the employee’s country.
- Employment Contracts: Drafting and maintaining legally compliant contracts tailored to local employment laws.
- Compliance: Managing labor law compliance, including termination policies, notice periods, and workplace standards.
While the EOR is the legal employer on paper, the client company retains full control over the employee’s day-to-day responsibilities, tasks, and performance. This division allows businesses to focus on their operations while the EOR mitigates risks associated with non-compliance and administrative burdens.
EOR vs. PEO
An EOR assumes full legal responsibility for your employees, while a PEO shares employer duties with your business, retaining more control over HR functions.
READMORE: PEO vs EOR: Deciding Which One is Right for Your Business
EOR vs. Outsourcing
With an EOR, you hire employees directly and manage their work, while BPO involves contracting a third-party company to handle specific business functions or services.
EOR vs. Global Payroll Provider
A global payroll provider handles payroll processing across borders, but an EOR goes further by legally employing workers, managing compliance, and providing HR and payroll services.
EOR vs. Staffing Agency
Staffing agencies typically supply temporary workers, but an EOR handles full-time employees, managing HR services, taxes, and legal obligations in foreign markets.
EOR vs. Contractor
An EOR manages employees, managing compliance with local laws, while contractors are typically independent workers responsible for their own legal and financial obligations.
Read more: EOR Vs. Contractor: What’s the Difference & How to Decide
Benefits of Global EOR Services
Employer of Record services offers businesses a range of advantages, especially when expanding into new markets or managing an international workforce.
Global Compliance
Navigating labor laws across multiple countries is challenging, with unique regulations for contracts, taxes, wages, and employee benefits. An EOR ensures compliance, minimizing risks of fines or legal issues. Their expertise lets you confidently hire globally without worrying about labor law violations.
Cost-Effective Expansion
Establishing a legal entity abroad is costly and time-consuming, requiring investments in legal, financial, and administrative resources. An EOR acts as your legal employer, eliminating the need for incorporation, local HR teams, or offices. This makes global employment affordable, even for startups and SMEs.
Streamlined Operations
Handling payroll, taxes, and benefits across multiple locations can overwhelm your team. An EOR manages these tasks, freeing your staff to focus on core operations. This ensures smooth workforce management without juggling multiple systems or providers.
Risk Mitigation
Expanding globally carries risks like non-compliance, incorrect tax filings, and benefit mismanagement. An EOR minimizes these risks by ensuring local compliance, mitigating tax liabilities, and handling audits, disputes, and grievances. They provide an added layer of legal and financial protection.
Fast and Flexible Hiring
EORs enable quick hiring—often within days—using their established infrastructure. This flexibility supports short-term projects, market testing, or onboarding remote workers efficiently, saving valuable time.
Focus on Core Competencies
With employment complexities handled by an EOR, your leadership can focus on strategic goals, market growth, and customer value. This lets your business maintain efficiency while expanding globally.
When Should You Consider an Employer of Record?
An Employer of Record (EOR) can be a game-changer for businesses navigating international expansion or remote team management. But how do you know if it’s the right solution for you?
Here are some common scenarios where partnering with an EOR makes perfect sense:
- Your business is entering new countries but wants to avoid the cost and complexity of setting up legal entities.
- You need help managing different regions’ diverse labor laws, tax regulations, and compliance requirements.
- You’re exploring potential in a foreign market with minimal financial commitment and operational risk.
- You’re hiring talent in countries where you don’t have a legal presence and need to ensure compliance.
- Your employees or contractors are spread across various jurisdictions, requiring efficient payroll services and benefits administration.
- Your business needs to expand rapidly without investing time in building legal infrastructure in every location.
- You lack the internal resources to handle international employment compliance and want to mitigate penalties or disputes.
- Your team is small, and outsourcing administrative tasks allows you to focus on core business priorities.
How to Choose an EOR Provider
When selecting the right EOR provider, look for a partner with expertise in your target regions, strong compliance practices, and a proven track record.
- Global Expertise: Look for an EOR with proven experience in the countries you plan to operate in, ensuring they understand local laws and regulations.
- Range of Services Offered: Ensure they provide comprehensive services, including international payroll, tax compliance, benefits administration, and more.
- Compliance Standards: Verify their commitment to adhering to and staying updated on local employment laws and regulations.
- Technology and Processes: Assess their technology for payroll, reporting, and employee management, ensuring it’s user-friendly and efficient.
- Reputation and Reliability: Check customer reviews, testimonials, and case studies to confirm their reliability and industry track record.
- Scalability and Flexibility: Choose a provider capable of scaling their services as your business grows or expands into new markets.
- Cost Transparency: Ensure their pricing is clear and free of hidden fees, and aligns with your budget.
- Support and Communication: Look for dedicated account management and responsive customer support to address issues promptly.
- Cultural Fit: Select an EOR service provider that aligns with your company’s values and approach to team management.
Best EOR Companies for Building a Global Workforce
These top EOR companies make it easy to expand your team, stay compliant with the law, and skip the headaches of setting up legal entities. Let them handle the details so you can focus on growing your business.
1. 1840 & Company
At 1840 & Company, we take pride in being a leading global Employer of Record provider, offering international workforce solutions tailored to your needs. With operations in over 150 countries, we specialize in removing the complexities of international employment.
From payroll to tax compliance and benefits administration, we handle the legal and administrative side, allowing your business to focus on what matters most—growth. We believe in a hands-on approach, working closely with you to create customized solutions that align with your goals.
Our platform gives you real-time insights into payroll, benefits, and compliance, ensuring complete transparency and reliability. Beyond the basics, we also offer recruitment outsourcing and contractor management services, becoming your one-stop solution.
2. Remote
Remote is a fast-growing EOR provider that empowers businesses to hire top global talent. Their services are particularly attractive to startups and small businesses looking to scale internationally without the administrative burdens of setting up foreign entities.
One of Remote’s standout features is its user-friendly platform, designed to streamline global employment processes. Employers can manage employee data, contracts, and payments through a single, intuitive dashboard. Remote also offers a competitive pricing model, making it accessible for businesses with varying budgets.
3. Deel
Deel is a modern EOR solution catering to businesses seeking efficient global team management. Known for its focus on remote work, Deel is ideal for companies hiring across borders without setting up local entities.
The company’s advanced platform integrates with popular HR tools, offering businesses seamless access to employment data and insights. Deel also prides itself on a transparent pricing structure with no hidden fees, appealing to businesses of all sizes.
4. Globalization Partners
Globalization Partners is a pioneer in the EOR space, providing businesses with the tools to hire, onboard, and manage employees in over 180 countries. They take on the legal employer role, ensuring compliance with local employment laws while allowing businesses to manage day-to-day operations directly.
Their all-in-one platform allows businesses to manage payroll, benefits, and tax compliance seamlessly. Globalization Partners also offers robust support services, including 24/7 assistance for clients and employees.
5. Safeguard Global
Safeguard Global helps businesses expand their workforce across more than 170 countries, offering EOR services designed to minimize risks and maximize efficiency. Their expertise spans multiple industries, making them a versatile choice for diverse business needs.
Their innovative platform provides clients with actionable insights to optimize staffing operations. The company also prioritizes flexibility, offering customized solutions to align with each client’s unique expansion goals.
6. Velocity Global
Velocity Global is a well-known EOR provider specializing in simplifying international hiring and legal compliance. Their solutions cater to companies of all sizes, from startups to multinational enterprises.
Their cloud-based platform is a key feature, offering clients easy access to payroll and compliance data. Velocity Global also emphasizes employee experience, ensuring that workers feel supported and valued, regardless of location.
7. Papaya Global
Papaya Global offers a unique EOR solution by combining human expertise with advanced technology. They are especially known for their data-driven approach to workforce management.
Their platform integrates with various HR tools, enabling seamless workflows and real-time analytics. Papaya Global also stands out for its focus on data security, ensuring that client and employee information is protected.
8. Oyster
Oyster is an EOR provider dedicated to helping businesses build distributed teams. The company places a strong emphasis on sustainability, offering eco-friendly solutions to reduce the environmental impact of global hiring.
Their platform is designed to be intuitive and accessible, making it easy for businesses to manage international employees. Oyster also provides tools and resources to enhance employee well-being, including access to local benefits and wellness programs.
9. Atlas (formerly Elements Global Services)
Atlas provides comprehensive EOR solutions for businesses looking to simplify global hiring. With a presence in over 135 countries, they offer payroll, compliance management, and benefits services designed to minimize risks and administrative burdens.
Their platform integrates seamlessly with existing HR systems, ensuring a smooth user experience. Atlas also focuses on employee satisfaction, offering personalized support for workers in different regions.
10. Horizons
Horizons specializes in EOR services for businesses expanding into Asia, Europe, and beyond. They provide end-to-end solutions, including payroll management, benefits administration, and compliance support.
The Horizons platform offers a simple and efficient way to manage global teams, with features like automated payroll and compliance tracking. Horizons also prioritizes client relationships, ensuring businesses receive personalized support throughout the expansion process.
Finding the Best Employer of Record for Your Business
Partnering with a reputable EOR company can significantly simplify your global operations, reduce legal risks, and allow your team to focus on strategic priorities.
An EOR handles crucial aspects like HR support, local labor law compliance, and the management of international payments, ensuring you stay compliant with each country’s regulations. With an EOR overseeing payroll, employee benefits, and global contractors, your business can confidently expand into new markets and scale a diverse, worldwide workforce.
Looking for the best EOR services to streamline your global operations? Schedule a call with our growth experts today and take the first step toward seamless international expansion.
