Employer of record (EOR)

An EOR handles employment-related tasks for businesses, allowing them to hire and manage employees both domestically and internationally without the need for establishing legal entities or navigating complex compliance requirements in foreign countries.

Choosing the right EOR partner is essential for successful global expansion and workforce management. By leveraging EOR services, businesses can access global talent, streamline operations, and ensure compliance with local employment laws and regulations.

EOR services typically include legal employment, payroll administration, benefits management, immigration support, equipment management, and more. Providers like Globalli EOR offer a comprehensive range of services to ensure compliance and streamline global employment processes.

Using an EOR offers several benefits, including access to global talent, accelerated global expansion, minimized compliance risk, and reduced administrative burden. It enables companies to quickly expand into new markets and tap into a broader talent pool without the complexities of setting up legal entities.

When hiring through an EOR, the EOR becomes the legal employer of the hired individuals, handling all aspects of employment such as contracts, payroll, benefits, and compliance. The client company maintains control over employees' tasks and performance while delegating legal employment-related responsibilities to the EOR.

Some advantages of using an EOR include rapid global expansion, streamlined HR and payroll processes, unified employee experience, and access to a broader talent pool. EORs help businesses overcome time and resource constraints while mitigating compliance concerns.

Using an EOR is generally easier and more cost-effective than setting up legal entities in foreign countries. EORs eliminate the need for significant capital investment, bureaucratic hurdles, and ongoing HR and compliance responsibilities associated with entity setup.

EOR coverage varies depending on the provider, with some offering extensive global reach while others have limited coverage. The only alternative to an EOR for international hiring is establishing foreign entities. However, this approach entails more complexity and higher costs.

EORs differ from Professional Employment Organizations (PEOs), Global Employers of Record (GEOs), and staffing agencies in terms of scope, legal responsibilities, and geographical coverage. EORs focus on global employment management, while PEOs cater to domestic HR services and GEOs specialize in global employment.

While companies can engage freelancers and contractors directly, EORs like Helios offer Agent of Record (AOR) services for compliantly hiring and managing contractors alongside employees. This ensures legal compliance and simplifies workforce management.

When selecting an EOR provider, businesses should consider factors such as coverage, platform capabilities, support, security, pricing transparency, and integration options. Choosing a provider that aligns with specific business needs is crucial for efficient and compliant global operations.

The cost of EOR services typically involves a service fee per employee, which varies depending on the provider and specific requirements. Helios EOR, for example, offers transparent pricing starting at $599/month, including comprehensive services tailored to each country.