Home Business Insights & Advice The advantages of using an employer of record: Streamlining global workforce management

The advantages of using an employer of record: Streamlining global workforce management

by Sarah Dunsby
25th Jul 23 12:40 pm

In the 18th century, at the beginning of the industrial revolution, human resources were valued no more than material resources. Today, the situation has changed radically. It takes several years, educational infrastructure, technology, and much more to educate a highly qualified specialist. Therefore, every employer understands how difficult it is to find a true professional and how valuable it is to keep them. In this situation, the role of recruitment agencies can hardly be overestimated.

However, in the 21st century, another trend has emerged — massive globalisation and a significant increase in the popularity of remote work. If you are a CEO and want to scale your business, these processes will definitely affect you. How can you attract employees from all over the world and overcome the difficulties of hiring in different countries? There is a simple and effective solution — to contact an employer of record (EoR) who will help expand the team and take a new step in business development.

What is EoR?

Remember how you registered the company. Most likely, it was not the easiest process, associated with numerous difficulties. Now imagine that you need to go the same way, only in another country. This country has its own laws, rules, and mentality. And this is exactly what you will need to do if you want to legally hire employees there. No doubt it can be done, but it takes a lot of time and energy that an entrepreneur can save for more important things. An EoR is an intermediary that has legal offices in dozens of countries and is ready to provide the recruitment process for your firm.

Benefits of partnering with an employer of record

Most likely, you comprehend some benefits such cooperation brings to you. A partner who will attract the best employees from all over the world is a great value. Such cooperation is a complex solution that needs to be considered in more detail and highlight the main benefits that you receive.

No need for foreign entities 

Opening each office and establishing a legal entity in another country requires time, money, and knowledge of local laws. Even if you are a technology company and all employees work remotely, you still need a representative office in every country where you hire employees. As we said above, the employer of record has already done this for you. Therefore, you can safely work with people around the world and not open offices.

Guaranteed compliance with local laws 

Unintentional violation of labor laws is possible if you do not know them. The EoR company guarantees that all rules will be respected, both during the recruitment process and throughout the duration of the employment contract. This is a very important advantage, since many countries have very strict laws, and violation of them can lead to heavy fines and legal proceedings.

Full outsourcing of recruiting activities 

By cooperating with an employer of record, you not only relieve yourself of the burden of hiring but also of all issues related to the payment of wages and taxes. Since you are entering into a tripartite agreement, taxes and salaries are the responsibility of the EoR. All you have to do is to manage and use the professional skills of the employee.

Growth rate 

If you are a small or medium entrepreneur with global ambitions, speed is very important to you. Entering other markets may take months or years. Bureaucratic complexities slow down the development process. An employer of record provider will help you quickly become an international company and get ahead of your competitors.


We have no doubt that you have a recruiter or even an entire HR team. However, to work with foreign specialists, it is necessary to understand the mentality of local residents and their expectations of work. Therefore, consulting an employer of record will help you become a truly international business person. In addition, according to Reveal PI, a private detective agency in Birmingham, a private investigator can provide invaluable insights into a potential or existing employee. Remember that you and the employer of record are working towards a common result, which is possible with synergy.

Cost reduction 

Obviously, all of the above benefits will allow you to significantly reduce your costs. Opening an office and legal support requires money. The risks of violating labor laws and getting a fine are significantly reduced by partnering with an employer of record. But most importantly, your rapid growth and access to global markets can bring you such a profit that is impossible within the borders of one state.

The best employees 

Last but not least. Today, a business focused on quality, not quantity, wins. Two bad employees will not replace one good worker in the short or long term. An employer of record service will help you find the best employees in the world and use their talents for the benefit of your business.


We live in an era of globalisation and international cooperation. Growing companies can no longer remain within the boundaries of one state. Entering new markets requires hiring qualified local staff. An employer of record offers comprehensive recruitment services around the world. This partner will help you focus on your key business objectives and ensure that all employment-related legal requirements are met. Contact the best providers and enjoy the growth of your company.

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