Record for Your Remote Team

Leveraging on the Employer of Record for Your Remote Team

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Record for Your Remote Team

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    Expansion of any business globally carries a lot of benefits along with it. International expansion is an arduous task and comes with an abundance of legal formalities along with the work management including hiring among others. Global expansion is sometimes hindered due to these additional responsibilities, and so a solution for this is essential. This can be made easy by having the right EOR, Employer of Record partner.

    What is an EOR? 

    An Employer of Record is a third-party organization that is legally responsible for the expansion of another company’s business. An Employer of Record is responsible for hiring and paying employees on behalf of another company. EOR allows companies to hire employees globally without setting up an actual office or risk violating the employment norms of any country. 

    What does an Employer of Record do?

    Global Employer of Record has set up a network of its entities around the globe that helps other organizations later in work. They set up banking networks, insurance facilities, taxing facilities, and other contract requirements that are further needed by any company to expand their business globally. They complete your entire requirements on international grounds with the expertise required.

    When you hire EOR, you give them the right to hire on your behalf and also take legal responsibility for complying with the rules and regulations of the country. The Employer of Record generally:

    • HR needs of the in-country employees
    • Look into the taxation, salaries, and benefits.
    • Gets local employees on board

    So, an Employer of the record gives you the leverage of expanding your workforce in global horizons without any risk to the organization. An EOR takes the entire responsibility on the legal front and you have to look into the day-to-day work of the employees.

    Why Use an Employer of Record?

    Payroll is the largest expense on the business front. About 70% of the company’s overhead cost is the payroll. Paying salary on time is one of the extremely important aspects of the employee and employer relationship. Handling legal issues related to salary and taxing is another burden that pulls back the global expansion of a business. For dealing with such issues, EOR is a suitable option.

    Benefits of Using an Employer of Record

    Access to High-quality talent

    An EOR is well aware of the local culture and talent pool of any place. When we hire through EOR, it gives you open access to local talent that brings diversity to the business along with talent and knowledge. An Employer of Record helps you reach and gives you access to international talent. You can hire from anywhere in the world. The process reduces the cost of hiring and encourages globalization.

    Tailored hiring as per the need

    In the world of business, we all understand that every employee is not fit for every job. That means the right talent has to be searched and put in the right place. Where one employee might be fit for one kind of business, the other may not fit in. So, as per the requirement of the firm an EOR, gives leverage to hire the talent that suits your task.

    Intellectual property/Legal Laws protection

    An EOR partner of the firm understands the importance of intellectual property rights. There are legal clauses signed between the employee and the employer as per the international rules. When entering legal situations, it might become confusing for a firm to understand the entire legal system of different places. Therefore, the data security and regulation of laws are easy with the help of an EOR.

    Competitive Compensation and benefits

    As time passes, the market becomes saturated and competitive, and thus it becomes necessary for any firm to stand out from the crowd. One way is to provide incentives to the employees that may include health insurance, bonuses, paid leave, etc. With this, a company can maintain its reputation and morale amongst the employees. It helps in talent retention. An EOR partner looks into this matter as well.

    Pay only when you hire

    There is a pool of talent all trying to prove themselves worthy of the title. So in the condition of such competition, you can work out your options with the help of your EOR partner and pay only when you get to hire the required talent.

    Beyond the benefits of an Employer of the record, certain limitations may have to be confronted.

    Limitations to Using an Employer of Record

    Less influence

    In a business where the employees are trained through different processes under the mentorship of the employer, it might be tough to manage the network through EOR. An employer might feel less authority or control upon its employees at times. An EOR has professionally trained HRs that do the hiring task for the firm. This might make it tough to build a strong connection between employee and employer. 

    Variation in goals and standards

    The variation in goals and vision of the company and an EOR might affect the business negatively. As the hiring process is done by the EOR, it becomes essential to have an EOR partner that has the same goal and vision as you hold for your firm.

    Employer of Record vs. PEO

    Though Employer of the record and PEO sound similar, they are not the same. The main difference between an EOR and PEO is the shared legal responsibility and entity requirement. Unlike in PEO, EOR encompasses the entire legal responsibility of the work.

    In the U.S, PEO is traditionally co-employers of any partner firm. They look into the payroll and HR facilities of the business, and the co-partner looks into the work management of the employees. For this, both PEO and the co-partner firm must be registered in the same country i.e. the United States. An EOR eliminates these complex legal responsibilities as compared to the co-employment arrangement of a PEO.

    How to choose the right Employer of Record service?

    Choosing the right Employer of Record service is very important, and many factors are needed to be considered during the selection.

    Are the partner EOR firms global?

    It is important to know whether the EOR influences the region of required operation. It is to look at how active they are in the region from where you want to hire. Not all EOR are global and may not hold the required influence in the region of action.

    Does the contract protect privacy and promise data security?

    To handle the sensitive data between the firms, it is important to know whether the firm holds a data confidentiality agreement or not. 

    Does the vision of the EOR match the vision of your firm?

    The vision of both partners must match to give you access to the required talent. Else, it may have a negative impact on the business.

    Who is the point of contact between the partners, and what is the performance of EOR?

    It must be well researched that the performance of the EOR must be good and in accordance with the needs that you possess. Also, it is important to have a clear understanding of who you are dealing with in terms of regular contact. That is the person who maintains the relation between EOR and the firm.

    What are the terms of exit, and how long is the process?

    As the process is on an international platform, there has to be a clear process of exiting from the partnership. The contract length to exit has to be minimum, and the terms must be easy so that you can take an exit if the work is not going smoothly. 

    Employer of record might just be the solution to build your reliable remote team. It helps you complete the hiring process without any hassle. You can get talent on board in just a few clicks easily through an Employer of record service. You can have a partner in any place without even moving the position geographically and can get easy access to the huge pool of talent available globally. 

    The best part about having an EOR partner is that you do not have to worry about the legal responsibilities of any country from which you hire, this will be easily managed by the EOR partner. 


    For over a decade, companies have been relying on their EOR partners for hiring from the diverse pool of talents in different geographical locations scattered all over the globe. EOR has helped firms to achieve their targets easily and without hassle. Hiring an EOR with the same vision as the firm might increase the benefits of the firm manifolds.


    NO! That work is already done by the partner EOR. An employer of the recording service includes the maintenance of banking and taxation facilities in the country of the employee and thus managing the task easily.

    You can hire from any country where there is a presence of your partner EOR firm. An EOR active in a region gives access to international talent easily.

    There are standard implementation timelines of any firm that vary. It may vary from a firm to another. It may take up to 2 weeks for in-country service, whereas it can extend up to 4-5 weeks for international hiring. This may vary from company to company.

    It depends on the EOR you are working with. Ideally, you should look for an EOR with a success fee model in which you only have to pay when you hire.

    You can check with your EOR’s screening process and ask if they are using rigorous skill assessment tests for screening candidates. This way you can ensure your EOR is not wasting your time.

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