Top Business Growth Benefits of Hiring An Employer of Record

What are the main benefits of EOR services?

We’re going to outline some of the most impactful benefits of working with an international EOR, explaining how the service can be fundamental in terms of administration, finances and regulatory compliance; and ultimately, enabling companies to expand far beyond their domestic borders.

1. Access to global talent

An EOR will open your recruitment process to global talent pools, helping you to find the experts that you need, exactly where you need them. Talent that seemed out of reach can be hired by an EOR on behalf of your company, and your recruits can be onboarded seamlessly with this type of specialist support.

All of the challenges that come with your status as an international employer are managed, and you can place your efforts on finding the right, high-quality personnel.

2. Global expansion becomes a viable business opportunity

Traditionally, companies have been required to open a legal entity or business premises in the country that they’d like to expand into. More often than not, this is the main deterrent for businesses looking to take their operations overseas, as it isn’t viable from various standpoints – resources, budget and geography of personnel are a few examples.

With an EOR, the requirement for having a legal entity or business premises is no longer applicable. The founders and teams that may have ruled expansion out on these grounds may now be able to consider it as a viable next step for their business; and this is potentially one of the biggest advantages of hiring an EOR.

3. Compliance is taken care of

When you become a global employer, you are obligated to adhere to the relevant compliance standards. Staying compliant across multiple jurisdictions can quickly become a burden, regardless of the scale of your business. Hiring laws, taxes, and regulatory requirements will differ from country to country, and not complying with these requirements can result in costly penalties.

It can also be dependent on the nature of your product/services and how they relate to international regulations. You may need to research your specific offering in the country you’re expanding into, in terms of specific compliance requirements. For example, technology companies always need to be aware of international user privacy and data protection laws.

4. Administrative advantages: global payroll & employee benefits

Traditionally, when a company is hiring new employees overseas, the HR department becomes responsible for a lot of administrative complexities. From navigating global payroll requirements, to devising employee benefits packages and understanding the intricacies of global employment laws; but with an EOR, the company itself is no longer liable for any of these aspects. Instead, all of these tasks are managed by the EOR, giving the company more time to focus on setting up its operations in the new market.

Essentially, an EOR can simplify international hiring processes. The administrative relief that comes with working with an EOR gives businesses invaluable resources back, allowing them to focus on establishing themselves.

5. Streamlined entry into a new market

If your business expands into international markets in a more ‘traditional’ manner (i.e, without an EOR), your path would involve a multitude of bureaucratic hurdles, taking up the entire workload of your HR department – or putting much more on your plate if you don’t have this type of personnel. With an EOR, these challenges are no longer your responsibility, allowing you to focus on other aspects of your business’ expansion plans.

Entry into a new market could also happen a lot quicker when you choose to work with an EOR, as you’ll be working with specialists that are well-versed in helping businesses to establish themselves overseas.

6. It’s a cost-effective option

Mapping out your business’ entry route into a new, international market will come with countless expenses at every stage – and they will soon add up, turning your plans into (perhaps) your most expensive endeavour yet. The financial overheads that come with having to set up a local legal entity and a global payroll system might leave your budget with limited longevity, ramping up the pressure on your overseas operations being successful.

When you choose to expand into international markets with an EOR, these overheads are completely eliminated. Instead, the cost is packaged up into one expense that covers all of the services that you’re benefiting from – and when you choose Agility for this, we’ll ensure it’s completely bespoke to suit your individual business needs.