Imagine you want to hire someone in another country, but you don't have a legal entity there.
An Employer of Record (EOR) can act as your local partner. You find the right person for the job and manage their daily tasks, just like you would with any other employee. The EOR then handles all the legal and administrative details of hiring in that country. They become the official, legal employer for that person, which saves you the time and expense of setting up a new company from scratch.
What an EOR Handles For You
Onboarding on an international employee involves a lot of complicated paperwork. An Employer of Record (EOR) takes care of all those administrative burdens for you.
They handle important tasks like:
Payroll processing: The EOR processes payroll, making sure your team gets paid correctly and on time. They also handle all local taxes and social security contributions.
Compensation and Benefits: They ensure your employees receive all legally required benefits, like health insurance and paid time off. Plus, they can help you create an attractive compensation package to bring in top talent.
Legal Compliance: They make sure all employment contracts and hiring procedures comply with the laws of that specific labor market, taking care of any lawsuits or fines for you.
Hiring & Separation: They deal with all the paperwork to on board a new person and when someone eventually leaves, so it’s easy from start to finish.
Lowering Risk: As the legal employer, they bear the risk. This will shield your business from the potential pitfalls of navigating complex employment laws.
Here's why using an EOR is a smart move for your business:
Move Fast: Instead of spending months on paperwork, an EOR allows you to hire new employees in a matter of days or weeks. This lets you quickly get ahead of the competition and test new markets without delay.
Relax About Rules: You don't have to become an expert in every country's labor laws. The EOR does that for you, ensuring you're always on the right side of the law.
Hire the Best Talent: Don’t be constrained with local talent alone. You can recruit the most talented people in the world.
You can focus on what matters: When the EOR handles all the payroll and HR paperwork, your team is free to focus on what they do best, like growing your company and developing new strategies.
It saves you money: Paying an EOR's fee is almost always more affordable than the time consuming and expensive process of setting up your own legal business entity in another country.
It gives you flexibility: An EOR allows you to easily scale your team up or down as needed, without a long-term commitment. This gives you the freedom to try new things or enter new markets without a significant upfront investment.
Focus on What Matters: By offloading all the payroll and HR paperwork, your team can focus on what they do best, like growing the company and developing new strategies.
Save Money: It's almost always cheaper to pay an EOR's fee than to establish a legal business entity in a foreign country.
Be Flexible: You can easily scale your team up or down as needed, without a long-term commitment. Which allows you to try new things or enter a new market without having much capital invested.