A company is nothing without its employees, and there are several approaches you can take toward managing your organisation’s workers.

In today’s world, businesses operate in a huge range of ways. It’s important to determine and implement the best approaches for your company if you want to achieve success.

Things can be even more complicated if you’re planning on expanding globally. One approach to consider when establishing a foreign entity is using employer of record (EOR) services.

But what exactly does EOR entail, and why should you use it? Keep reading to find out.

What Are Employer of Record Services?

An employer of record is a third-party company you can hire to oversee your workers. They’ll be fully responsible for your employees, handling things like:

  • Payroll
  • Regulatory compliance
  • Administering benefits
  • Filing and paying employee-related taxes
  • Managing worker’s comp and unemployment claims

Your business will still have managerial control and determine what they do at your company.

EOR providers can be based in your own country or internationally. This makes it easy to grow your company and expand into new markets. You won’t be faced with many of the challenges that come with taking on employees in new regions.

When to Use EOR Services

Most companies use EOR services when expanding into new markets. They can make hiring foreign employees significantly easier. This has become more appealing to many businesses with the rise in remote working in recent years.

If your company is planning to merge with or acquire another across international borders, an EOR provider can help streamline the process. They can prove very beneficial for any organisation that has an international workforce.

You may also want to use such services when taking on temporary or project-based work. They can help you find suitable candidates to assist with specific tasks so you don’t have to worry about the time and resources needed to hire full-time employees.

Some organisations will turn to EOR providers simply for assistance with administrative tasks like payroll and employee benefits.

Benefits of EOR Services

Not all businesses use EOR services, so why should yours? You can reap several benefits from working with an EOR provider.

Ensuring Regulatory Compliance

Employee compliance is essential, and things become far more complex when your business starts moving into international markets. Regulations change in every country, so this isn’t something many business owners can navigate alone.

Ensuring regulatory compliance in different nations is one of the key responsibilities of an EOR provider. They can help you reach these new markets without having to worry about legal issues.

Cost-Effective Business Expansion

Growth is great for any company, but it’s often challenging. There are sizable costs that can come with setting up a legal entity in another country, and that’s before any administrative overheads.

An EOR company can help you achieve all this at a lower cost. They’ll help you bypass various expenses so that your company will have more funds to use elsewhere.

Streamlined HR Management

Trying to manage a global workforce can be overwhelming for an HR team. An EOR service can step into this role to reduce the burden.

They can handle things like employment contracts, benefits, and even terminations. Your internal HR team will then be able to channel their efforts into other crucial tasks.

Accelerated Market Entry

You may want to expand into new markets, but this can take time. An EOR provider can speed things up by helping you overcome bureaucratic hurdles that come with hiring foreign employees. Fast growth will allow you to capitalize on opportunities faster than your competitors.

Access to the Global Talent Pool

The larger your talent pool, the easier it will be to find suitable candidates. Through an EOR provider, you can expand your talent pool so that you can employ workers from around the globe. This is ideal if you need to fill roles that require very specific skills or qualifications, and it can help you build a more diverse team.

Mitigating Legal and Financial Risks

There are various legal barriers when it comes to creating a global business. Navigating these can be incredibly difficult for those without the right training or experience.

An EOR provider knows how to manage all related liabilities. They’ll ensure your company doesn’t infringe any labour laws or tax regulations, so you won’t have to worry about legal ramifications. This will ensure your employers don’t face any issues, which will help improve your employer brand and company culture.

Administering Employee Benefits

There are various benefits that an EOR provider can administer to your global employees. Health insurance, for example, can be very complicated depending on the country due to regional laws. EOR providers can ensure your employees get all the benefits they need in line with the rules in their countries.

Focusing on Core Business Functions

If you’re trying to get too much done at once, you won’t be able to focus on anything effectively. With an EOR company managing employment-related matters, however, you can prioritise your remaining resources more effectively. This can help you concentrate on major goals and drive further business growth.


Scalability is vital when expanding into global markets. It can be difficult to predict how quickly your business will grow in the long run, so being flexible is crucial.

EOR services are highly scalable. You can easily adjust your workforce depending on your needs to ensure you can keep up with demand.

Expertise and Knowledge

When working with an EOR provider, you can leverage their expertise and knowledge to benefit your company. They have a thorough understanding of international employment laws and best practices. With their guidance, you can optimize your global expansion strategy to make it more efficient while avoiding costly mistakes.

Working With an Employer of Record Services Provider

Your company could benefit greatly from working with an employer of record services provider. If you’re planning on expanding into international markets, this is one of the best approaches.

Bradford Jacobs can provide EOR services, along with a range of other employment services that can help your company grow. We’re already operating in over 180 countries and have more than 20 years of experience. Take a look at our EOR services page to find out more.