Unlocking Global Talent: The Benefits of Using an EoR

Unlocking Global Talent: The Benefits of Using an EoR

   Expanding an international presence is a logical move for any growing business. Leading companies want to hire the best specialist rather than the best person in the country. Global employment can be a good opportunity to gain insights into new markets and encourage diversity in ideas. However, there can be problems with regulatory compliance.

   An Employer of Record can be the most innovative and efficient solution along that trajectory. Your company can expand its global standing while decreasing the complexity of international employment. This guide explains how EoR services work in practice.

 What Are the Key Challenges of Having a Remote Workforce?

Managing a remote workforce creates difficulties stemming from the geographical, cultural, and logistical differences that come into play when operating beyond borders. Let's see the main challenges faced by companies in this regard.

  • Compliance and legal issues: A major hurdle is navigating complex international labor laws. Businesses need more extensive expertise in that field to ensure compliance with local regulations.
  • Cultural variations: Adapting to diverse cultural norms and practices is crucial for effective international operations. Misunderstandings can damage relationships between employees, clients, and partners.
  • Communication barriers: Time zone differences, language barriers, and varying communication styles can hinder efficient collaboration within remote teams or across international offices.
  • Logistical complexities: Managing remote employees or international offices requires efficient coordination of logistics, supply chains, and IT infrastructure, often leading to operational challenges.
  • Cybersecurity risks: The growth of remote work comes along with vulnerability to cybersecurity threats. Protecting sensitive data across borders is a growing concern.
  • Talent acquisition and retention: Finding and retaining foreign employees takes extra effort due to the growing opportunities for remote specialists. Companies are strongly fighting for a skilled workforce.

To overcome these challenges, businesses must optimize the employment process to locate the right candidates for the job. In this case, expanding overseas with EoR can be the best possible solution.

What Is an Employer of Record?

Companies are now more frequently recruiting individuals in different jurisdictions. It often creates compliance challenges, which take work to deal with. In this context, EoR services can legally engage with workers and take over all employment tasks and liabilities on behalf of your business. They can operate within the same country and across borders without violating the local labor law. Consider a global EoR as your foreign HR team that knows the complex employment regulations in the markets your workforce originates from.

An EoR gets involved in the employment process when the company decides on a suitable candidate. The service collects all the necessary information and ensures that the customer acts following the official policy covering taxes, social contributions, and other details. Thus, an EoR is a registered employer that does not manage the employee's experience and performance. The original employer makes the corporate decisions on compensation, job obligations, etc.

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How Does an EoR Differ from a Staffing Agency?

A staffing agency functions as an intermediary between a potential job candidate and a hiring company. It aims to help the corporate client to secure an employee who aligns with the vacancy.

Here are additional services provided by staffing agencies:

  • posting job vacancies on various platforms;
  • conducting background checks on candidates;
  • evaluating applicants based on the job description;
  • handling administrative paperwork.

On the other hand, an EoR is getting involved after the completed recruitment procedure. The service is not responsible for the talent search and evaluation.

What Does an Employer of Record Do?

Employer of record

EoR services enable companies to lawfully engage international talent in the global market without establishing foreign entities and violating local employment laws. Depending on the location, EoR services may encompass a variety of responsibilities, including:

  • Comply with local labor laws. Ensure employees are recruited following local regulations.
  • Create and maintain locally compliant employment contracts. Managing the employment agreement and setting up all the necessary processes required for the new team member to start work at the company.
  • Run payroll and tax withholdings internationally. Manage business finances for the employer and the employee.
  • Offer comprehensive and statutory benefits. Maintain various benefits, including social security, health insurance, maternity leave, etc.
  • Process contract terminations. Handle all the necessary details upon the legal separation between the employer and the employee.

How to Employ a Foreign Worker with an EoR?

Businesses can hire international workers in different ways. Creating an entity in another country is the traditional method to leave a strong global footprint. Another option involves engaging foreign contractors who provide services as self-employed individuals. However, many companies opt for EoR services to ensure comprehensive legal compliance when bringing foreign members to the team.

An EoR takes legal responsibility for employing your international talent through its local entities, leveraging its expertise in local employment regulations. It includes handling aspects like onboarding, payroll, compensation, and termination in accordance with local laws.

Here is the process of engaging global employees using an EoR:

  • Measure your talent needs. Identify the specific skills and expertise your organization requires and determine the geographical areas where you intend to expand globally. It could involve pinpointing particular countries or regions with growth potential.
  • Choose an EoR Partner. Conduct thorough research to find an EoR with a solid reputation and compliance record. Review their credentials and seek client testimonials to confirm their suitability for your requirements.
  • Define employment terms. Collaborate with the selected EoR to establish clear policies. It needs you to craft comprehensive job descriptions, define competitive compensation packages, and specify other pertinent details. It's essential to provide clarity regarding employee roles and responsibilities.
  • Onboarding and contract signing. The EoR co-signs the employment contract with the employee and subsequently assigns the employee to your company via a service agreement. Under this arrangement, your company assumes responsibility for daily employee coordination, including task assignment and overall integration into the team.
  • Manage payroll and other benefits. The EoR will take charge of payroll processing, which includes tax withholding and adherence to local regulatory requirements. Additionally, they will check social benefits and address any potential concerns.

Sustain compliance. The EoR will continually monitor and uphold compliance with local labor laws and regulations, promptly implementing any necessary adjustments to ensure ongoing adherence.

What Are the Benefits of Using an EoR?


As your business progresses in the international arena, managing a diverse workforce may seem overwhelming. However, you can navigate this challenge thanks to the advantages of EoR services.

  • Compliance with local employment laws. EoR services ensure your company fully complies with legal regulations, reducing the risk of legal disputes or penalties.
  • Cost savings. The cost of using an EoR is far less than the cost of establishing a business entity abroad. Paying salaries to employees in different countries is also more cost-efficient due to the poor economic situation.
  • Risk mitigation. An EoR risk reduction helps your business eliminate potential challenges associated with international expansion. These include legal disputes, labor issues, and tax challenges.
  • Flexible workforce management. Whether temporary or permanent placements, EoR services adapt to your staffing needs.
  • A diverse talent pool. EoR services get access to a wide range of skilled professionals to choose from. A misclassification risk is reduced to the minimum.
  • Streamlined benefits. EoR services ensure accurate and timely payments for international employees. They also provide other benefits determined by the local legislation.
  • Enhanced employee experience. An EoR provides HR support and ensures that your global workforce receives necessary assistance, improving overall employee satisfaction.

The EoR benefits extend beyond administrative convenience. They are instrumental in achieving successful international expansion and effective workforce management.

When to Use an Employer of Record?

Businesses usually use EoRs in situations when they want to hire foreigners. They need someone to help them navigate the local employment laws. Of course, more scenarios determine the eligibility of these services.

  • Examining a new market. Not every market is suitable for your business concept. Hiring local employees through EoR services allows you to analyze the local customer base and validate your market expectations before going any further.
  • Employing remote talent. Labor shortages often make organizations look for talented workforce abroad. Hiring one or two specialists in a new country isn't a solid reason for establishing a local legal entity. An EoR is the main viable option in this case.
  • Converting freelancers to full-time employees. Businesses may offer full-time employment to their freelancers after successful collaboration. Making the transition in the same jurisdiction is not a problem, while hiring an international freelancer becomes possible with the help of EoR services.
  • Engaging employees with higher flexibility. Remote work has revealed new career opportunities independent of one's physical location. An Employer of Record services allows specialists to join the new team in any country.
  • Finding a safe alternative to full-time hiring. The assisted compliance with all necessary hiring laws and professional support across all legal aspects turns the EOR into an optimal alternative to hiring a contractor full-time. Namely, you get to avoid common risks and liabilities, like copyright issues, taxing and insurance costs, and legal disputes of all sorts

COVID-19 and the Changing Landscape of Remote Work

Work from home

The COVID-19 pandemic has transformed the very nature of work by blurring the geographical boundaries. Companies are open to engaging talent worldwide, leading to a more globalized workforce. The evolving landscape has created opportunities for international collaboration and the integration of global talent.

Through technology and remote work, talent has become geographically dispersed. If your company wants talent from a different country, you can take work to that person by developing and retaining your skills. This trend existed for a long time, but COVID took it to new extremes. Employees now have more control over their job decisions, while employers take responsibility for guiding their workforce throughout the working process. The recruitment of foreigners has some difficulties for all parties involved.

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If you are looking to hire talent in a destination housing a pool of more affordable yet highly-skilled specialists, EORs should manage the employment process on your behalf. In this context, legal compliance with EOR can help your company navigate the new reality.

Each expansion into new markets brings forth a unique mix of complexities requiring an experienced team. As your trusty Employer of Record (EOR) partner, we help you quickly and compliantly hire top specialists in Ukraine. Granting the highest level of support for cost-efficient and secure employment at the push of a button

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