Expanding business overseas is an excellent opportunity for business owners to increase their revenues and profits. It allows one to access new markets and connect with diverse customers. Partnering with an employer of record can help you take advantage of an international talent pool. 

What Is An Employer Of Record? 

An employer of record (EoR) is an individual or third-party company that works by assuming the legal responsibility for finding and hiring employees on behalf of foreign business owners. An EoR takes full responsibility for managing the recruitment process of a client company.   

Other services provided by an EoR include the following: 

  • Process payrolls 
  • Filing taxes 
  • Handling compensation 
  • Process timesheets 
  • Administer benefits for workers 
  • Employee dismissal   

employer of record can help you
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Benefits Of Having An Employer Of Record  

Today, more and more companies consider outsourcing an effective way to improve operational efficiencies. A study was conducted in 2022 and found that 52% of businesses prefer to use professional services. 

Meanwhile, an employer of record can help a business in various ways. Here are some of them: 

1. Explore New Market  

Today, companies are operating competitively. Many businesses are moving internationally to pursue new consumer markets to overcome market competition. By going globally, you can increase your sales and profits.   

When you expand internationally, you have offices in different countries. And this also means managing all employees from the countries where you have bases. However, managing business operations globally can be daunting. In this case, an EoR will help you begin operations while simultaneously creating an entity for your company.   

Working with local employees can take significant time and effort. For instance, most companies encounter a language barrier, especially if both parties need a common language. In this case, hiring an EoR can help in new market exploration.  

An employer of record can assist you in hiring employees in target counties and starting operations quickly without needing local incorporation and registration. As such, you can reach the global market with ease.   

2. Manage Workforce 

Hiring an international workforce can help companies reach global markets. However, business owners can have numerous responsibilities on their shoulders. You might need more time to manage your employees. Hence, hiring an employer of record becomes necessary.   

Besides being responsible for recruitment, the EoR can manage new employees. They can introduce the new hires to your business culture and procedures. They can also supervise their work and output to meet your standards. 

On the other hand, creating remote or hybrid teams is one of the most popular business trends nowadays. It lets employees decide whether to work from a designated physical business office or home. An EoR can help you hire employees for remote roles or hybrid teams. 

Remote and hybrid workplaces help enhance flexibility since employees can have a work-life balance. It’s also one of the best ways to save money since you can minimize the need for an office space. Also, remote workers are more productive than their counterparts in the office. According to a study, 40% of remote workers are likely to work more hours than in the office.  

3. Compliance With Labor Laws  

The first benefit of hiring an EoR is complying with existing labor laws. Various laws may have specific requirements for staff recruitment and compensation. In addition, the law describes the steps to follow when terminating employees.  

Failure to comply with the standard procedures may incur penalties and legal troubles for your business. Hence, an EoR can check legal policies on hiring, benefits, and termination of employees. Meanwhile, many new labor laws are being introduced now and then. An employer of record can update you with changing labor laws, ensuring your company remains compliant.   

4. Reduce Complications  

Managing company payrolls can be overwhelming and time-consuming. You can hire an EoR to do the work for you. They’ll manage payroll, including filing taxes and administering all the employees’ social benefits.   

Hiring global employees can be a costly process. According to statistics, 98% of companies invest in staff recruitment software. An employer of record can help you to identify the right software for your recruitment process. Hence, they can help you reduce the cost and complications of international hiring.   

Alternatives For Employer Of Record 

There are various alternatives to EoR. They include the following: 

  • Professional Employer Organization: A professional employer organization (PEO) is a service provider that assists companies. Like the EoR, PEO performs various employee administration tasks, including payroll preparation on behalf of the client.   
  • Staffing Agency: A staffing agency is another alternative to EoR. It recruits workers for companies that seek to fill particular job positions. They can help you find both temporary and permanent employees.  
  • Outsourced HR: Outsourced HR refers to a contractual agreement between a business and a staff recruiting company. It’s responsible for finding employees on behalf of the client. Simply put, the firm will work by assuming all the HR tasks in a company.   


If you want to work with international employees, consider hiring an employer of record. They’ll assist you with HR tasks, including payroll administration, complying with local laws, and filing taxes. If you decide to hire one, find the best service provider.