What Is an Employer of Record (EOR) and How It Can Help Your Business Grow Globally
Introduction:
As businesses expand internationally, navigating legal and regulatory hurdles can become a daunting task. One way to simplify the process is through an Employer of Record (EOR). In this post, we’ll explore what an EOR is, how it works, and why it’s the perfect solution for companies looking to hire employees in foreign markets without setting up a local entity.
What Is an EOR?
An Employer of Record (EOR) is a third-party organization that acts as the legal employer for your international team. While you manage the day-to-day tasks and projects of your employees, the EOR handles all the legal aspects, including employment contracts, payroll processing, taxes, benefits, and compliance with local labor laws.
Benefits of Using an EOR
- Comply with local labor laws: The EOR ensures that your business follows the employment laws and tax regulations of each country.
- Quick hiring: Forget about long wait times to set up a legal entity. The EOR lets you hire employees quickly and compliantly.
- Cost-effective: Avoid the costly and time-consuming process of setting up entities in multiple countries.
- Focus on scaling: Leave the administrative burden to the EOR so that you can focus on growing your business globally.
An EOR is a valuable tool for any business looking to hire globally. Whether you’re expanding into new markets or hiring a remote team, an EOR simplifies the process, ensuring compliance and allowing you to scale faster.
Read more about choosing the right EOR provider
How to Choose the Best EOR Provider for Your Business Needs
With a variety of EOR providers available, it can be challenging to know which one is right for your business. This post will guide you through key factors to consider when selecting an EOR provider, ensuring that you choose a solution that aligns with your goals and business requirements.
Key Considerations When Choosing an EOR:
- Countries Covered: Ensure the EOR provider operates in the countries where you plan to hire. Some providers cover a global network of countries, while others specialize in specific regions.
- Onboarding and Setup Time: Speed is crucial when expanding your workforce. Look for providers that offer quick onboarding and setup to get your international team up and running fast.
- Pricing Structure: EOR providers offer different pricing models. Some charge a flat rate per employee, while others offer a subscription or performance-based pricing. Make sure the pricing structure aligns with your business size and budget.
- Support and Communication: Effective communication is essential when working with international employees. Ensure your EOR provider offers high-quality support, both for you and your employees.
- Additional Services: Some EOR providers offer value-added services like benefits management, employee handbooks, and more. Consider whether these extras are important for your team.
Choosing the right EOR provider is essential for global expansion. Take the time to assess your needs, compare providers, and select the one that best suits your business goals.
See our top EOR provider recommendations
How Long Does It Take to Set Up an EOR and Onboard Employees?
One of the biggest advantages of using an Employer of Record (EOR) is the speed at which you can hire employees worldwide. But how quickly can you get your employees onboarded and ready to work? In this post, we’ll dive into the timeline of working with an EOR and how long it takes to start hiring globally.
Setup Time for EOR Providers:
- Deel: Deel’s onboarding process is known for being fast—typically taking 2–5 days to onboard employees.
- Papaya Global: Papaya offers quick setup for both large enterprises and small businesses, with a turnaround time of 1–2 weeks.
- Multiplier: Multiplier’s setup process is streamlined, taking 2–7 days depending on the country.
- Lano: Lano can onboard employees in 5–10 days, providing flexibility in terms of services and locations.
What Affects Setup Time?
- Country Regulations: Some countries have more complex labor laws and tax structures, which may require extra time to ensure compliance.
- Employee Documentation: The faster you can provide required documents (such as employee contracts and IDs), the quicker the onboarding process.
- Customization Needs: If you require custom contracts or unique services, setup time may be extended.
While each EOR provider offers different timelines, the process is still far quicker than setting up a legal entity in every country. You can onboard employees in as little as 2 days and start managing your international team with ease.
Learn more about EOR setup times
Exploring EOR Solutions for Global Hiring: Quick Comparison
As companies expand globally, choosing the right Employer of Record (EOR) provider is critical. In this post, we’ll compare the top EOR providers—Deel, Papaya Global, Multiplier, and Lano—helping you find the best solution for your global hiring needs.
Deel:
Deel is a top choice for tech startups and remote-first teams looking for flexible hiring solutions. With its ability to hire in 150+ countries, Deel is perfect for businesses that need quick, cost-effective global hiring solutions.
Papaya Global:
Papaya Global excels in enterprise-level solutions, offering robust compliance, payroll management, and employee benefits in over 160 countries. This makes it an ideal option for large organizations with complex HR needs.
Multiplier:
Multiplier offers competitive pricing for startups and growing businesses, covering 100+ countries. Its user-friendly platform and fast setup time make it a solid choice for scaling companies looking to build a global workforce.
Lano:
Lano stands out for its ability to serve flexible businesses, offering an easy-to-use platform for managing both contractors and full-time employees in 120+ countries. Lano’s customizable services are a great fit for dynamic businesses.
Choosing the right EOR provider depends on your specific needs, including the size of your business, the countries you plan to hire in, and the level of service required. All of the providers listed here offer unique features tailored to different business types, so be sure to assess your goals carefully.
