Hire and pay global employees with EOR services

An EOR, or Employer of Record, is a service provider that makes it possible for organizations to hire employees in different countries where they do not have a local entity. Establishing a local legal entity in a foreign country is time consuming and expensive. If a company is not prepared to make a long-term commitment to building a workforce in a given country, an EOR is a great alternative to compliantly employ internationally without the administrative burden of establishing an entity. An EOR employs your international talent on your behalf and is responsible for payroll, remitting local taxes, providing required benefits, and other compliance obligations.

An EOR platform is a secure online portal where payroll, documentation, and HR compliance for global teams are managed. Processes from employee onboarding — including signing local employment contracts and agreements, payroll processing, employee benefits administration — to offboarding are done on an EOR platform.

A professional Employer Organization (PEO) is a co-employer model in the U.S., where the PEO is responsible for a specific portion of the employer responsibilities, typically payroll, taxes, benefits, and workers' compensation insurance. An EOR, by contrast, is a global service where the EOR is the sole employer of record; the EOR employs workers on behalf of client companies without requiring them to open a local entity there. Learn more here.

An EOR works by legally employing your international employees through its own entity in various jurisdictions. EORs have expert knowledge and familiarity with local employment laws, and can ensure compliance regarding onboarding, payroll, compensation, benefits, severance and termination, and more. The EOR co-signs the employment contract with the employee, and then assigns the employee to your company through a service agreement. Your company is responsible for the daily management of the employee.

To choose the right (EOR) for your business, it's important to consider several key factors that will ensure smooth and compliant international employment:

• Understand your global expansion goals: Determine which new markets you plan to enter and ensure the EOR has experience in those specific countries. This is crucial for navigating local regulations and legal employer responsibilities.
• Evaluate the EOR's expertise in international employment: The right EOR should have a deep understanding of local laws, tax regulations, and workforce management to prevent issues such as misclassification and non-compliance.
• Consider pricing: Compare pricing across different providers to ensure you're getting a cost-effective rate without compromising on service quality.
• Check for robust data security measures: Protecting your employee and company data is vital. Ensure the EOR has strong data security protocols in place to safeguard against breaches.
• Look for comprehensive global payroll and tax compliance services: The EOR should handle complex tasks like tax withholding, social security, and competitive benefits packages seamlessly to avoid legal and financial pitfalls.
• Verify support for in-house teams: The EOR should complement your existing HR infrastructure, offering support and resources that align with your company's goals and culture.

By carefully evaluating these factors, you can select an EOR partner that aligns with your business objectives and supports your international expansion strategy effectively.