26 Best Employer of Record (EOR) Services in 2024: Reviewed & Compared
10 Best Employer of Record Services (EOR Services) Shortlist
Here’s my shortlist of the 10 best Employer of Record service providers I’ve covered in detail in this article, out of the 26 options I’ve included in total:
Get free help from our HR software advisors to find your match.
Are you interested in hiring remote employees in another country, but intimidated by the idea of opening a new legal entity abroad? If only there was a way to get the hassles of international legal compliance, payroll, and benefits off your desk for good — right? My best advice is to sign up for an Employer of Record (EOR) service to handle these challenges for you.
An EOR service can help you legally hire, manage, and pay international employees, with no need for your company to open a new legal entity. Your EOR employees will have local support, and you'll gain peace of mind that your future global operations are compliant at all times. Sounds like a perfect fit, right? However, which EOR service is the best fit for your needs?
To help you narrow down your options, I’ve compiled my research into this list of the best Employer of Record services for hiring abroad. I'll help you simplify your selection process and make this process easier so you can find the best EOR service for your needs.
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Best Employer of Record Services: Price Comparison Chart
This comparison chart summarizes pricing details for my top EOR service providers to help you find the best EOR service for your budget and business needs.
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| Velocity Global | Pricing upon request | Website |
| RemoFirst | From $25/user/month | Website |
| Oyster HR | From $25/employee/month | Website |
| Omnipresent | From $100/employee/month | Website |
| Multiplier | From $20/user/month (billed annually) | Website |
| Remote | From $29/user/month | Website |
| Skuad | From $199/employee/month or $19/contractor/month | Website |
| Foxhire | Pricing upon request | Website |
| Agile Hero | From $499 to $599/employee/month (15% discount for annual) | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare Software-
Deel
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8
Reviews of the Best Employer of Record Services
To help you find the best EOR service for you, I’ve summarized my top 10 selections in detail, including the specific services each provider offers, and how HR teams can use them. In addition, I’ve included 16 more EOR service providers below if you’d like even more options to choose from.
Deel
Best EOR service for managing global hiring, payroll taxes, and compliance risks
Deel is a well-established employer of record platform that enables companies to rapidly employ people in 150+ countries. Employers can expand internationally without ever needing to establish a new entity, allowing them to leverage the skills and knowledge of a global workforce.
Why I picked Deel EOR: Deel offers free calculator tools to help you estimate the cost of an international worker. You can compare different country costs and see what benefits and withholdings are required. Deel uses local legal experts to generate compliant contracts and keep track of regulatory changes, and will ensure all legal obligations are met on your behalf.
The well-established business has launched several new offerings over the past year, including global payroll, global mobility support, integrated Slack tools, and advanced integrations. Their global payroll offering brings in-house expertise, which can greatly help companies with existing payroll setups to streamline their accounting and reporting procedures.
Deel Key Services:
Deel offers end-to-end management for your international team covering everything from onboarding to termination. Their web app is user-friendly and provides a range of features to help businesses manage their workers effectively. These include international benefits, contract management, and expense tracking. Their integrated contract management function supports advanced customizations such as stipends, signing bonuses, and stock options.
In addition, Deel is known for its fast support. They offer 24/7 customer support and live chat.
Velocity Global is a global HR platform designed to help companies hire, manage, and pay employees in multiple countries. It focuses on making it easier for businesses to expand internationally, offering a range of services, including employer of record (EOR), global payroll, and immigration support.
Why I picked Velocity Global: Velocity Global offers a range of features to support global expansion efforts. For example, their international onboarding system ensures that your new hires are legally employed in their country while still working for you. They also handle multi-country payroll, making it simple for you to pay employees in different currencies. You won’t have to juggle different systems—Velocity Global takes care of payroll, tax, and compliance in every country you operate in, helping you scale efficiently.
Another reason Velocity Global stands out as an EOR provider is their local benefits management. When you hire globally, Velocity Global ensures your team gets the right benefits packages, whether that’s healthcare, pensions, or other perks, customized to each country. This feature not only helps you attract top talent but also keeps your workforce engaged and compliant with local regulations.
Velocity Global Key Services:
In addition to its EOR services, Velocity Global offers other key solutions that further support your global operations. Their immigration support service helps your team navigate visa and work permit processes. They also provide assistance with global equity programs, allowing you to offer stock options to employees no matter where they are. Their Global Work Platform also integrates with key tools like Workday, ADP, Oracle, NetSuite, BambooHR, SAP SuccessFactors, and Greenhouse.
Remofirst is a global EOR service provider on a mission to free employers from geographical boundaries so they can access global talent with ease. Their EOR platform is set up to help you hire and manage full-time employees or global contractors in 180+ countries, eliminating the need to set up a local entity in every country you want to source talent from.
Why I picked Remofirst: For budget-conscious businesses wanting to scale their remote teams, Remofirst helps you avoid the high costs of setting up local entities. They help you hire employees globally, manage payroll, and ensure you stay compliant with local labor laws. Their team of legal experts and HR professionals also stay on top of changing regulations with compliance documentation accessible at all times through your secure dashboard.
On top of their EOR services, Remofirst also provides international payroll and invoice management, global benefits management (including insurance and equity plans, plus time-off management), visa support, and employee assistance with other immigration documentation. They can even help you with provisioning equipment to your distributed employees around the world.
Remofirst Key Services:
You'll have the option to summarize and aggregate your invoices into one payment (rather than making multiple individual payments), and they'll automatically calculate your team’s hours, time off, holidays, bonuses, and commissions so you don’t have to worry about it. Instead, you only need to review their monthly invoice and approve it for payment. Additionally, their customer support team is available 24/7 in case you need additional help. All clients also receive a dedicated account manager as their main point of contact.
Best employer of record service for managing HR processes in 180+ countries
Oyster is a global employment platform to hire, pay, and care for international employees while delivering exceptional Team Member experiences across the full employee lifecycle.
Why I picked Oyster EOR: You can manage the entire process from Oyster’s dashboard, which allows you to check on your international employees, approve payroll, and view your compliance status. Compliance headaches will be a thing of the past though since Oyster EOR manages all that on your behalf. They even offer employment liability insurance in the countries where they work, as well as intellectual property (IP) protection through confidentiality and IP agreements.
On top of this, the Oyster Academy is a helpful resource for companies that are new to the international work-from-anywhere scene, and includes training courses on ‘how to prepare for distributed work’, and ‘how to create a company culture in a distributed environment’.
Oyster also shares useful financial tools that help you determine the full cost of hiring a new employee in any country, or whether it would be more cost-effective to fill a position with an international contractor rather than an employee.
Oyster Key Services:
Oyster's services include access to an automated global hiring platform, compliant global employment contracts, onboarding international new hires, contractor misclassification, and compliance monitoring.
Best EOR for global hiring without needing to set up local entities
Omnipresent is a global employer of record (EOR) service that helps companies hire employees in over 160 countries without needing to set up local entities. It manages everything related to employment, from onboarding to payroll and compliance, so your team can focus on growing your business.
Why I picked Omnipresent: With constantly changing labor laws, staying compliant can be tough when hiring internationally. Omnipresent's platform ensures your business remains compliant with local employment laws, including regulations around taxes, benefits, and terminations. Their legal experts monitor and adapt to the latest changes, so you don't have to worry about potential risks when hiring in new markets.
Another key feature is Omnipresent's global payroll management. It processes payroll in multiple currencies, ensuring your team gets paid accurately and on time, no matter where they are in the world. Omnipresent handles everything from tax withholding to contributions to social security systems, giving your team a smooth experience with payments.
Omnipresent Key Services:
Additionally, Omnipresent provides a full range of benefits and perks for your employees and can handle global mobility, allowing your team to move employees between countries with ease. They also manage the complexities of intellectual property protection, ensuring your IP rights are upheld when hiring abroad. Omnipresent offers visa and immigration support for your international team members.
Best EOR service for quick hiring and effortless onboarding across 150 countries
Multiplier is an employer of record company that provides HR and global payroll services to businesses, allowing them to outsource these responsibilities to a single provider. They're known for their technology-driven approach to HR and payroll services, offering a user-friendly platform for businesses to manage their workforce.
Why I picked Multiplier EOR: They have local entities in over 150 countries, enabling them to offer locally compliant HR and payroll services to businesses that want to expand to new geographic locations or employ more workers abroad. By outsourcing your core HR responsibilities to Multiplier, you can reduce your exposure to the legal and financial risks associated with employing workers in different jurisdictions.
Additionally, Multiplier can help businesses quickly and easily onboard new employees, manage their payroll and benefits, and ensure compliance with local laws and regulations. Their EOR services are very fast, with the ability to employ new talent in less than 24 hours once you've decided which international candidate you'd like to extend an offer to. Their 4-step onboarding process is also intuitive and easy to follow, providing a good experience for your new employees.
Multiplier Key Services:
Their EOR services include payroll processing, tax compliance, benefits administration, and worker's compensation. Their team of experts provides ongoing support and guidance, ensuring local compliance with employment laws and regulations and helping businesses navigate any challenges they may face.
They also have several helpful resources on their website — including their international TalentWiki and their Work Permit database — which compile all the details you need to know when considering hiring in another country in one place.
Remote’s EOR solution allows companies of all sizes to hire, pay, and manage full-time and contract workers in any country where they don’t have a legal entity. Remote takes care of international payroll, benefits, taxes, stock options, and compliance, so you can focus on providing a best-in-class global employment experience. Remote’s ironclad intellectual property protections and security guarantee also give you peace of mind across the globe.
Why I picked Remote: Remote helps companies become global powerhouses by expanding their access to talent beyond their borders, allowing them to hire anyone from anywhere. They own local legal entities in all their covered countries to avoid third-party handoffs and ensure your protection. Their EOR service helps companies remain competitive in the international talent market by lending access to competitive benefits packages.
They can help you offer health insurance, dental insurance, vision insurance, life and disability coverage, and mental health support services for your EOR employees. Also worth noting, Remote does not add any markup to their benefits premiums or administration costs, making them a cost-effective choice. The platform also never charges percentages or fees. It has one flat rate to help you control your budget so you can focus on growing your business.
Remote Key Services:
Services include global payroll processing, intellectual property and invention rights protection, and country-specific benefit packages that are local and competitive. Their software platform also covers experience reimbursement and time-off requests, which are quick and easy to approve through their online portal. They also have an in-house global network of legal, finance, and HR experts and a fully self-service platform that allows you to onboard, pay, and manage your global team. You can also access complementary tools like the Employee Cost Calculator, Country Explorer, and Salary Explorer.
Skuad
Best EOR service for hiring, managing and paying in 160+ countries
Skuad is a global HR platform that offers EOR services and HR compliance across 160+ countries. Its unique selling point lies in its ability to provide the best global HR compliance, making it the ideal tool for companies with international remote teams.
Why I picked Skuad: I included Skuad in this list because it's well-situated to support global HR compliance due to its unified approach to employment setup. Their EOR services cover compliance, payroll, and HR administration, which addresses the challenges of hiring and managing a global workforce. I also appreciate Skuad's Global Hiring Toolkit, which equips businesses with essential resources for international HR compliance.
Skuad Key Services:
Skuad's services include acting as an Employer of Record (EOR) or Agent of Record (AOR), handling onboarding, cross-border payroll, compliance, and benefits management. Additionally, Skuad offers support for visa and immigration processes, background verification, and global payments in over 100 currencies, catering to the needs of tech, HR, finance, and legal teams.
The platform aims to simplify the complexities of global employment outsourcing and provides dedicated support to ensure compliance with local employment laws in over 160 countries.
Foxhire
Best EOR service for technical, healthcare, and higher education workers
Foxhire offers a comprehensive range of Employer of Record services in over 100 countries. Their core services include financial, administrative, insurance, and legal matters. All employee personnel and administrative functions can be handled, including payroll, timesheets, and benefits administration.
Why I picked Foxhire: They've specialized their EOR services around supporting organizations looking to hire for technical, healthcare, or higher education roles. They will go the extra mile to ensure the credibility of the workers they employ for you, including detailed license and certification verification for healthcare professionals and nurses, or educational credential verification for college and university hires.
Foxhire Key Services:
Services include employee onboarding, background checks, drug screening, and fingerprinting. Foxhire will also manage workers’ compensation, deal with unemployment claims, and handle employee terminations. Other areas covered include health benefits administration, employment contracts, immigration matters, tax compliance, immigration authorizations, and IRS compliance.
Agile Hero is a global team management platform that provides services such as Global Employer of Record (EOR), Global Payroll, and Global Mobility support. It stands out for its commitment to social progress, partnering with a non-profit to support education for underprivileged children, positioning it as a socially responsible option for managing international teams.
Why I picked Agile Hero: I included Agile Hero in this list due to its global-first approach to employee management and mobility. Agile Hero offers a comprehensive solution that supports all aspects of managing a global workforce in a compliant manner.
Another reason I chose Agile Hero is that they offer services for managing expatriate employees, such as private health insurance plans and IT assets arrangements. These are ideal for organizations with employees who live a 'remote nomad' lifestyle, making supporting anyone based in one country but frequently working abroad easier.
Agile Hero Key Services:
Agile Hero provides a platform with a range of HR solutions, such as global employer of record services, payroll management, and support for global mobility. I especially like that they emphasize employee engagement through self-onboarding features and collaborations with non-profit organizations. The platform also ensures privacy and legal compliance at the global and local levels, with tools for handling leave and expense requests and an employee portal for resource access.
Other Employer of Record Companies
Here are some other EOR service providers that didn't make the top list, in case you'd like a few more suggestions:
- Atlas HXM
EOR provider for supporting global teams with international expansion initiatives
- Headway Workforce Solutions
EOR for staffing research, hospitality and event-focused roles
- Airswift
EOR services for the energy, infrastructure, mining, and technology industries
- Safeguard Global
EOR service provider for centralizing multi-country payrolls covering 170 countries
- Globalization Partners
EOR service provider offering an AI-driven global employment platform
- Shield GEO
EOR provider for simplifying international hiring
- Rippling
EOR and workforce management platform with global support for compliance risks
- Papaya Global
EOR for enterprise, with global workforce payroll & payment solutions
- Worksuite
For avoiding employee vs contractor misclassification errors
- ANSR
EOR with a talent network to help you source candidates
- Pilot
Employer of record solution for hiring and onboarding staff in 100+ countries, including North America
- TCP Solutions
EOR for borderless and limitless employment arrangements
- New Horizons
Employer of Record services for quick employee onboarding
- GoGlobal
EOR provider for the Asia-Pacific and EU regions
- Mercans
EOR and PEO for accessing industry-leading global payroll outsourcing specialists
- Innovative Employee Solutions (IES)
For tools to determine independent contractor vs. full-time employee status
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Selection Criteria for Employer of Record Services
Selecting the right EOR service is crucial for businesses wanting to expand their operations internationally without the burden of establishing a local legal entity. Uncovering the best EOR services for this list requires a deep understanding of how these services can alleviate common challenges, such as legally hiring employees abroad, managing international payments, ensuring compliance with local labor laws, providing competitive benefits, and facilitating smooth onboarding.
My approach to choosing the best EOR services is grounded in thorough research into recent Employer of Record market data and an understanding of which partnerships would add the most value for organizations hoping to access the global talent market.
Here are the specific criteria I used to carefully compare the service offerings for each provider in this list:
Core Employer of Record Services (25% of total score): To be considered for inclusion in my list of the best Employer of Record services, the provider had to offer the following basic services first:
- The corporate structure to legally and compliantly hire employees in multiple countries without a local entity
- The ability to manage global workforce payroll and taxes in compliance with local regulations
- Assistance with offering competitive and locally compliant benefits packages
- Assistance with navigating visa and work permit processes for expatriate employees
- Robust procedures to ensure data privacy and security that comply with international standards, including GDPR and other requirements
Additional Standout Services (25% of total score): To help me narrow in on the best EOR services out of the numerous options available, I also took note of any unique or less common services, including:
- Advanced technology platforms that streamline EOR payroll and other HR processes while still offering ease of use
- Specialized experience in hiring employees within specific new countries or key industries
- Services that enhance remote work compliance and global mobility needs
- Specialized customer support for complex immigration cases
- Assistance with international IT requirements, including managing computer equipment, software licenses, and other asset-tracking requirements
- A focus on eco-friendly and sustainable employment practices
Industry Experience (10% of total score): To evaluate the industry experience of each EOR service provider, I considered the following:
- How many years their business has operated in the EOR space
- Any industry recognitions or certifications the provider may hold in international HR and payroll
- Their depth of knowledge in local labor laws across multiple jurisdictions
- Their expertise in new markets, including how many different countries they offer local expertise in
- Evidence of a strong track record managing global expansion processes
- The combined experience and credentials of their team members, if available
Customer Onboarding (10% of total score): To get a sense of each provider's customer onboarding process, I considered the following factors:
- The availability of comprehensive onboarding materials, such as fact sheets, guides, FAQ repositories, or other training resources
- Support for integrating the EOR provider's software with existing HR systems
- Direct access to onboarding specialists, customer support, or a dedicated account manager during the setup phase
Customer Support (10% of total score): Since the EOR provider will act as your remote workers' legal employer, it's important to ensure you'll receive timely communications and top-level support. To evaluate the level of customer support each company offered, I considered the following:
- The availability of a multilingual support team that covers different time zones
- Multiple support channels, including phone, email, and live chat
- Evidence of responsiveness and effectiveness in resolving issues, as inferred from customer reviews
- The existence of dedicated account managers to provide assistance as needed
Value for Price (10% of total score): To gauge the overall value of each service, I considered the following factors:
- Transparent pricing models without hidden fees
- Comparative analysis of service offerings versus cost
- Flexibility in service packages to suit different business sizes and needs
Keep in mind that EOR services are complicated, and because of that the price tag can sometimes be high. However, the prices for their services still offer a good ROI considering the complexity of the premium-grade services you're gaining.
Customer Reviews (10% of total score): Evaluating customer reviews is the final element of my selection process, which helps me understand how happy real users are with a service. Here are the factors I considered:
- Consistently high ratings across various consumer review platforms
- Specific feedback on the ease of use of the EOR services
- Testimonials highlighting exceptional customer support and problem resolution
Using this assessment framework helped me identify the employer of record services that go beyond basic requirements to offer additional value through unique services, deep industry experience, smooth onboarding, effective support, and overall value for price.
How to Choose an EOR Service
An EOR service can simplify the process of hiring and managing international staff. To help you figure out which EOR service best fits your needs, you need to document your specific challenges first.
As you work through your own unique selection process, try to answer the following questions thoroughly:
- What problem are you trying to solve? Start by identifying the challenges you're trying to overcome. This will help you clarify where you need the most help. These challenges may include:
- sourcing international talent within a specific geographic country,
- sourcing talent with unique knowledge regardless of the country they live in,
- managing compliance with laws and regulations in unfamiliar countries,
- paying existing or future employees in multiple currencies,
- offering international benefit plans to stay competitive in your industry, or
- navigating complex visa or work permit requirements for future new hires.
- Who will benefit from the service? Consider who will manage the EOR relationship (i.e., who will be your main contact person in-house?) and how having an EOR service would improve their day-to-day work. Next, identify their key priorities to ensure all their needs will be met. Your main EOR users will likely include the following, depending on the structure of your org:
- Chief of HR Operations (CHRO),
- Payroll processing specialists or Chief Financial Officer (CFO),
- Internal legal staff or legal department, and
- Talent acquisition staff.
- What is your budget? To evaluate cost, estimate how many foreign employees you anticipate hiring. Since EOR companies typically charge a monthly fee for each new hire, this will allow you to estimate your monthly costs proactively.
- If you need help convincing your executives to partner with an EOR, here's a useful tip. Outline the cost per employee under an EOR arrangement versus the total cost of establishing a new entity abroad. The latter option is almost always more expensive in the long term.
- What outcomes are important? Review the capabilities you want to gain or improve, and how you will measure success. Being clear on your desired outcomes upfront is crucial to avoid wasting valuable time. Key outcomes you may want to measure include:
- Reduced time to hire and onboard foreign employees,
- Decreased compliance-related legal issues or an improved compliance rate,
- Increased employee satisfaction among international staff, or
- Less time spent on international HR issues by your internal HR staff.
- Would the EOR platform work with your technical requirements? Consider how the service provider's software ecosystem would work alongside your existing workflows and systems. Does their software framework integrate with your existing HR software, or would you face data management roadblocks? Key integrations to review include:
- Your existing HR management system (HRIS, HCM, or HRMS),
- Your corporate workspace (Microsoft SharePoint, Google Workspace, etc.), or
- Your performance management system.
Remember every business is different — don’t assume that a global employer of record service will work for your organization just because it's popular.
Trends in Employer of Record Services for 2024
As more businesses expand across borders, the need for efficient, compliant, and user-friendly solutions for hiring employees abroad, and managing international payments, compliance, benefits, and onboarding has never been more critical. As a result, international employer of record services have continued to evolve, with an emphasis on technology-driven solutions that offer flexibility, comprehensive support, and innovative features to facilitate global operations.
Here are the most recent trends affecting EOR services and the HR software systems that are used to offer them:
- Immigration Support: There is a growing demand for assistance with immigration services like visa and work permit sponsorships, simplifying global talent acquisition processes for client companies immensely.
- Specialized Services for Diverse Needs: Several EOR companies have begun to offer IP and invention rights protection and equity incentive planning services, to cater to the specific needs of their client companies.
- Enhanced Employee Benefits Packages: There's a growing trend in global EOR services going beyond standard healthcare coverage to offer a full spread of enterprise-level medical and health benefits, stock options, and even one-time benefits like moving bonuses. This trend demonstrates an understanding of the importance of attracting and retaining top talent globally.
- AI-Backed Knowledge Bases: Some global EOR services (including Deel) are beginning to offer legally vetted knowledge bases or information wikis that use artificial intelligence to surface answers to common questions quickly. This helps customers source details on hiring within a specific country fast, without relying on human-run support systems.
As the market continues to evolve, these trends are likely to shape the future of international employment, making it easier for businesses to navigate the challenges of global expansion. For a closer look at specific EOR companies that are capitalizing on these trends, I recommend reading our in-depth reviews of Atlas HXM, Deel EOR, and Remofirst EOR.
What is an Employer of Record Service?
An Employer of Record (EOR) service is a third-party service provider that acts as the legal employer for your staff in a specific country abroad while your parent company maintains day-to-day control of your employee's tasks and workload. As the legal employer, the EOR assumes full legal responsibility for any new hires, including payroll, tax deductions, compliance management, benefits administration, and any other local employee perks.
Using an EOR service is beneficial for companies looking to tap into the global talent market or expand their operations internationally since it simplifies this process considerably. Instead of burdening your existing HR professionals with the complexity of operating within international laws and regulations, you can outsource these requirements to an EOR service and gain peace of mind that your operations are compliant in any jurisdiction where you're employing staff abroad.
Key Employer of Record Services
By leveraging an EOR service, companies can manage international payments, ensure compliance with local labor laws, provide competitive benefits, and optimize their new hire onboarding process. Here are the most important services to look for in an EOR service provider:
- Global Payroll Management: Arguably one of their most important tasks, an EOR service will ensure your employees are paid accurately and on time in their local currency. This service is essential for maintaining employee satisfaction and financial stability in diverse geographic locations.
- Tax Compliance and Withholding: An EOR service will also manage employee income tax withholdings and employer tax obligations per local laws, preventing legal issues and ensuring smooth operations across different tax jurisdictions.
- Local Labor Law Compliance: EOR service providers offer country-specific knowledge of employment laws and regulations. This knowledge protects businesses from legal disputes and fines, ensuring a respectful and lawful work environment for all employees. Knowledge of these laws also applies to monitoring employee work hours, including timesheets and time-off requests.
- International Talent Acquisition & Background Checks: An EOR service will work with their client company to source additional talent from the global market as needed. As part of this process, many EOR services include background checks for potential new hires to confirm their credentials and ensure they're suitable for their role. Once approved, an EOR will also manage your country-specific employment contracts as well.
- Visa and Work Permit Sponsorship: Many EOR companies offer assistance with obtaining necessary visas and work permits for expatriate employees. This service is critical for facilitating the legal employment of foreign nationals and ensuring a seamless relocation process.
- Onboarding and Offboarding: An EOR will also manage the processes of integrating new hires into their client's company or managing their departure. This ensures a smooth transition for both employees and the organization and gives peace of mind that employee terminations are handled as per the labor laws of each jurisdiction.
- Benefits Administration: By leveraging economies of scale, EOR service providers can access competitive, region-specific health insurance benefits packages to cover your international employees. Tailored employee benefits are crucial for attracting and retaining top talent, enhancing job satisfaction, and meeting legal requirements for employee welfare.
- HR Support and Consultation: EOR specialists are a valuable resource as they can provide ongoing human resources support and expertise on international employment practices. This support ensures that businesses can navigate complex HR issues, deal with grievances effectively, and maintain positive employee relations without affecting their employer brand.
- Risk Management and Insurance: Since EOR providers assume legal responsibility for your foreign staff, this also includes managing employment-related risks, handling workers' compensation matters, and maintaining certificates of insurance, including both professional indemnity and public liability. This coverage is vital for protecting businesses and employees against unforeseen circumstances.
- Multi-Language Support: Many EOR companies offer services in multiple languages to help organizations operate efficiently in a global marketplace and serve the needs of a diverse workforce. This can include translation services for your corporate policy documents, as well as localized assistance in your international employees' native language, to prevent possible miscommunications.
As you can see, EOR service providers offer a full set of comprehensive services to help businesses expand their operations globally without the burden of navigating international workforce laws and practices on their own. By securing an EOR partner to cover these critical services, you'll gain peace of mind, and more time to concentrate on your core business objectives.
Benefits of an Employer of Record Service
EOR services are a savvy option for organizations looking to expand their global footprint without the complexities and liabilities associated with international employment laws and practices. For companies contemplating global expansion, understanding the benefits of partnering with an EOR can provide the clarity and confidence you need to move forward. Here are five primary benefits of using an EOR service:
- Quick Market Entry: For organizations aiming to test new markets or hire talent in new countries where they have no legal presence, an EOR offers a swift and efficient solution to initiate operations, saving time and resources.
- Simplified Global Payroll: Using an EOR service simplifies the complex process of managing international payroll, including tax deductions, withholdings, and currency conversions for your employees worldwide.
- Global Compliance & Risk Mitigation: By managing compliance, an EOR service provides expertise in navigating the intricacies of employment laws, tax regulations, and insurance requirements in multiple jurisdictions, helping businesses safeguard their operations against compliance-related risks.
- Enhanced Benefits Negotiation: By leveraging their extensive networks and purchasing power, EORs can negotiate better international insurance rates and secure competitive benefit packages on your behalf, enhancing your ability to attract and retain top talent worldwide.
- Improved Cost Effectiveness: Using an EOR service is a cost-effective way for businesses to enter new markets, compared to the significant costs of establishing a new foreign entity. The latter option involves significant upfront legal fees, plus other costs related to office infrastructure, staffing, and local benefits and insurance coverage.
Understanding the benefits of an EOR service is crucial for strategic planning and operational efficiency. As businesses look towards international markets for growth opportunities, partnering with an EOR provider offers a streamlined, cost-effective, and compliant pathway to global expansion.
Need a bit more firepower to convince your upper management to partner with an EOR service? Focusing on the costs of hiring a foreign employee and how an EOR can simplify the hiring process might just be the winning strategy you need.
Costs & Pricing for Employer of Record Services
Typically, the cost of an EOR service follows a fee per-employee, per-month pricing model, which can vary widely depending on a range of factors. This model allows for scalability and predictability in budgeting for international expansion efforts.
In general, EOR services cost between $199 to $650/employee/month. However, key factors that can influence the pricing of an employer of record service include:
- Geographic Location: Costs can vary significantly based on the EOR country or countries you're hiring in. This is due to local economic conditions, labor laws, and the complexity of compliance requirements.
- Employee Seniority and Role Complexity: The level and nature of the roles being filled can also impact the monthly cost. Senior positions or roles requiring special qualifications may increase the price due to higher benefits and compensation management costs.
- Number of Employees: The total number of employees being managed can also impact the cost. In some cases, higher volumes may lead to volume discounts, making per-employee costs more economical.
- Custom Requirements: Any specific needs beyond the standard service offering may also contribute to the monthly cost. This may include customized employer of record solutions for recruitment, specialized employee onboarding, or unique compliance requirements, all of which can affect pricing.
Some EORs also operate under different pricing models, including a percentage of employee salary model, a fixed pricing model, and custom pricing models. If you'd like to delve deeper into the different factors that influence prices, my post explaining the intricacies of different EOR pricing models is a natural next step.
When considering an EOR service, it is crucial to understand how these factors impact the overall cost to ensure that the service aligns with your business's needs and budget constraints. Anticipating the specific requirements of your international expansion strategy will help you choose the most cost-effective and efficient EOR solution for your needs.
New & Noteworthy Product Updates
Below, I've summarized the most recent release notes and product updates for my top EOR service recommendations. Discover what’s now possible through new service improvements, software features, and other company updates. Learn what’s new, if it’s hot—or not, and why it matters for EOR services.
2024 Q4: EOR Software Updates
Remofirst Update Notes
During Q4 of 2024, Remofirst launched a new, modern design for its platform. This updated look aligns with the company's mission to enable the "Freedom of Work," making it easier for businesses to build international teams at competitive prices.
For users, the redesign enhances the user experience by providing a more intuitive and visually appealing interface. This improvement simplifies navigation and access to Remofirst's services, supporting businesses in their global expansion efforts.
Verdict: Warm? I'm excited to hear that the user experience has been improved, but sadly the press release was pretty sparse on details regarding the actual changes.
Oyster HR Update Notes
During Q4, Oyster HR released new features to make global payroll management easier for companies with remote teams. This update focuses on integrating systems and creating tools to simplify handling payroll across borders.
The update includes API integrations that send payroll and expense changes directly to other applications. Oyster also introduced a “Payroll Changes” page, a single hub where HR teams can track, filter, and search payroll updates. Batch payments for contractor invoices and added benefits for employees in France are also part of the update.
With automated updates and an organized system for tracking changes, companies can better manage payroll across different regions, cutting down on time and compliance risks.
Verdict: Hot! Collectively, these updates centralize payroll data and reduce manual tasks for HR teams, improving efficiency.
Rippling Update Notes
Recently, Rippling introduced several enhancements to improve global payroll management, specifically expanding Employer of Record (EOR) services in Malaysia and Pakistan. The update aims to ease payroll handling for international teams.
The new features include automated retroactive payroll adjustments to account for backdated pay changes, removing the need for manual calculations. It also adds “Supergroups,” allowing users to automate recurring earnings, like remote work stipends, to keep payments consistent.
These changes save time and reduce errors, making global payroll smoother for companies. Automating benefits payments also improves consistency, helping HR teams stay efficient and keep employees satisfied.
Verdict: Hot! Collectively, these updates expand EOR coverage and improve HR operations for global teams.
FAQ: Employer of Record Services
Here are some answers to frequently asked questions people often have about EOR services and how they work:
What does an Employer of Record do?
An Employer of Record (EOR) service provider is a third-party entity that can help an organization hire a new employee in a country where it has no physical presence. It’s a useful service for businesses that are expanding internationally but don’t have physical offices established yet, or don’t ever plan to establish them. In these situations, the EOR provider becomes the legal employer of your remote staff on your behalf.
In this type of partnership, the EOR service provider deals with local employee-related matters such as managing payroll, deducting taxes, and administering the onboarding process for new employees. This allows organizations to access global talent while reducing their legal liabilities and compliance risks. This is because the EOR company assumes the legal responsibility for your international new hires on your behalf.
For a more detailed breakdown of EOR services, I recommend our article explaining how an EOR service works too.
Can EOR services help with employee relocation?
Yes, EOR services can assist with employee relocation, especially when it involves international moves. EORs are adept at managing the complexities of hiring across borders, including immigration and visa processes, ensuring compliance with local employment laws, and facilitating the smooth transition of employees.
By leveraging their global expertise and infrastructure, EORs can help businesses expand their operations into new markets without needing to establish local entities. This support extends to handling all the administrative and legal aspects of employment, making it easier for companies to relocate employees globally.
For more insights on using EOR services for global talent management, refer to our complete guide of EOR services.
Does an EOR service include access to software?
Most EOR service providers do include access to their software systems as part of the service they offer, through a client self-service portal. After all, the EOR provider itself needs to use software for payroll management, time-tracking, and other workforce management features. Lending access to this employee data through a user-friendly portal gives their clients peace of mind, ensures full data transparency, and streamlines communication between the EOR provider and your business.
Depending on the terms of your service agreement, you may be able to access their payroll software or other features without any roadblocks, or for an additional fee. Keep this in mind as you’re going through the selection process to find the best EOR partner for you. Depending on the system you choose, you may also be able to use automation to create integrated workflows between their software solutions and the ones you’re already using too.
Another aspect worth considering when evaluating EOR platforms is their native software integrations. Integrations with your existing HR software are important, especially if you need to track your EOR employees’ time in detail in order to invoice their hours to your clients. Before you commit to an employer of record solution, ask what native integrations are available, or if any can be created using an API or other means. It’s always better if changes in their system update your own HR platforms in real-time, to eliminate any data gaps.
What's the process of terminating an employment contract through an EOR?
Terminating an employment contract through an EOR involves the EOR managing all legal and procedural aspects in compliance with local labor laws. This includes handling severance, notice periods, and any required legal documentation.
The EOR’s expertise ensures that the termination process is conducted fairly and in line with the specific regulations of the EOR country where the employee is based. Businesses benefit from this arrangement by minimizing their legal risks and administrative burden during the termination process.
Do EOR providers offer other types of global HR services?
Yes, many EOR service providers also offer professional employer organization services (also known as PEO services), as well as global payroll services.
PEO services are a way of outsourcing portions of your HR function to support your international teams. They can help you with international compliance issues, benefits administration, workers’ compensation, and other HR administrative tasks.
Global payroll service providers help global businesses compensate remote workers and freelancers in their local currency of choice, all within a single payroll cycle. These services also handle local compliance regulations and tax requirements on your behalf, making the international payroll process much easier.
To dive even deeper into this topic, I recommend reading this breakdown of how different global HR services can help you.
How big is the EOR services market and which regions are experiencing the most growth?
With organizations across many sectors looking to capture top talent from new markets, the EOR service market has risen in size. As of 2022, EOR market data was valued at $4450.5 million USD, with an expected value of $6604.4 million USD by the end of 2029! This represents a compound annual growth rate of 6.8% during that seven-year period.
Other EOR research pinpointed the growth of EOR services for both small-to-medium enterprises and large enterprises throughout 2023. The key geographical areas seeing the most growth are:
- North America (the USA, Canada, and Mexico)
- Europe (the UK, France, Germany, Italy, Russia and Turkey)
- Asia-Pacific (China, Japan, Korea, India, Indonesia, Thailand, Vietnam, Malaysia, the Philippines, and Australia)
- South America (Brazil, Argentina, and Colombia)
- The Middle East (Saudi Arabia, and the United Arab Emirates)
- Africa (South Africa, Nigeria, and Egypt)
Interested in hiring within a specific country? We’ve created specialty lists covering the best EOR services in Canada, the best UK EOR services, and the best service providers for EOR in Australia, EOR in India, EOR in Italy, EOR in France, EOR in Spain, EOR in Portugal, EOR in Germany, EOR in the Netherlands, EOR in Turkey, EOR in Brazil, EOR in Colombia, EOR in Singapore, EOR in the Philippines, EOR in China, EOR in Japan, and EOR in the UAE as well.
Is a global employment organization (GEO) or global employer of record (GEOR) the same as an EOR company?
A global employment organization (GEO), also known as a global employer of record (GEOR), offers the same services as an EOR company but on a wider, global scale. Both EORs and GEOs offer assistance with payroll processing, tax withholding, international benefits management, and monitoring compliance with local laws and regulations across the different countries they operate in. The difference lies in their country-specific service offerings.
While some service providers may use the terms EOR and GEO synonymously, here are some ways you can differentiate them when doing your own research:
- Review their service offerings. Do they offer coverage in specific countries or regions, or do they use specific terms like global workforce management support or global benefits support instead?
- Examine their geographic coverage. Many EOR/GEORs have country-specific directories listed on their websites that demonstrate their in-house expertise for specific countries.
- Examine their client base. Lots of EOR service providers list key companies they work with on their website for marketing purposes. If you notice there are many multinational corporations in the list, that’s a good sign that they have global employer of record capabilities. If the companies listed all seem foreign or are unknown to you, they likely are focused on markets you’re not as interested in.
- When in doubt, book a consultation. Sometimes it’s hard to find the details above on your own, or you may have limited time to conduct your own research. If it’s essential for you to determine whether an HR provider is an EOR or GEO, talk to them directly. I’ve included links to all of the top EOR companies that made it into this article. If you click through to their website, you’ll be able to request more information from them directly to verify if they’ll satisfy your business needs or not.
How do EOR services handle data privacy and security?
EOR services prioritize data privacy and security by adhering to global and local data protection regulations, such as the GDPR in the European Union. They implement robust security measures, including data encryption and secure storage, to protect sensitive employee information. Compliance with data security standards is critical for EORs, as they handle personal and financial information for employees across different jurisdictions. Regular audits and updates to their security practices ensure they meet the latest data protection requirements.
Understanding the risks and ensuring compliance is a significant part of choosing the right EOR partner. For more details on data privacy and security considerations when working with EORs, I recommend reading our comprehensive guide on EOR risks for decision-makers.
What are some of the consequences of non-compliance?
As an organization, you never want to be deemed as non-compliant in the eyes of any government body. The exact rules and regulations will vary according to the jurisdiction you’re operating in, which is one of the main benefits of using and EOR service provider.
If you don’t use an EOR and you do hire international workers, you may quickly find yourself in non-compliance. The consequences of doing so will depend on the severity of the violation, but they could include all of the following:
- Fines and penalties
- Legal actions such as lawsuits or other litigation proceedings
- Corrective measures and compliance orders
- Revocation of business licenses or operating permits
- Reputational damage if the news becomes public (loss of public trust and loss of internal employee respect)
- Increased monitoring and additional government scrutiny
Companies who fail to follow international labor laws cannot simply say they were unaware of the legalities, and hence, didn’t follow them. That’s where an EOR service can really remove a lot of potential risk and liability from the international hiring process.
To brush up on your compliance best practices, have a quick read through our 2024 HR Compliance Guide.
Are there any risks to using an Employer of Record service?
In the world of business, nothing is ever 100% risk free, and that is true for Employer of Record services as well. While EOR services do offer substantial advantages, here are some of the risks you should also be mindful of as you choose the right partner for you:
Financial risks:
- Hidden costs and service fees: Some EOR companies may charge additional service fees for specific tasks, such as processing documents, onboarding or offboarding employees, or providing additional HR advice.
- Mandatory benefits: Some countries require mandatory benefits for employees. In that case, the EOR will charge you for those benefits in addition to the employee salary and their service percentage, which can add up.
- Currency fluctuations: Exchange fluctuations can impact the cost of EOR payroll and other financial transactions as the strength of a currency you’re using goes up or down.
Operational risks:
- Data security: Since you’re entrusting sensitive employee data to your EOR, you’ll want to consider the strength of their data protection practices and policies, including their incident response plans, IT penetration testing, and data management certifications, such as ISO 27001.
Strategic risks:
- Loss of control: You will need to relinquish some degree of control over the workforce management processes of your EOR employees, which may impact your organization’s strategic decision-making capabilities.
- Brand reputation: Any negative actions, incidents, or practices of your chosen EOR can directly impact your organization’s brand reputation and create a negative employee experience if not handled properly.
For a deeper dive on this topic, read our comprehensive guide of EOR risks, including ways you can mitigate each potential issue upfront.
What's the difference between an EOR and a staffing agency?
An EOR and a staffing agency both help businesses hire employees, but they operate differently:
- An EOR takes on legal responsibility for employees, handling everything from payroll, taxes, and compliance with local labor laws. The company remains in charge of the day-to-day management of the employees, but the EOR is the official employer on paper.
- A staffing agency, in contrast, primarily sources and recruits temporary or contract workers for short-term projects or to fill skill gaps. The staffing agency typically handles the hiring process but does not act as the legal employer for long-term employees.
In what scenarios is it better to use an EOR service instead of a staffing agency?
An EOR service is ideal when you want to hire full-time employees in foreign countries where your business doesn’t have a legal entity. It allows you to quickly onboard talent while ensuring compliance with local laws and regulations.
If your business plans to expand into new markets or requires long-term hires without the need to set up a branch, an EOR service is the better choice.
On the other hand, staffing agencies are more suited for businesses seeking temporary or project-based hires, particularly when the need is for short-term roles or to quickly fill vacancies.
According to Laura Maffucci, Vice President of Global Total Rewards at EOR provider Globalization Partners:
While a staffing agency does not offer the same benefits in terms of compliance, they can reduce the business liability and time to hire for employers.
For a more thorough exploration of both options, read our comparison of EOR vs staffing agency services next to help you determine the right option for your company.
To quote Maffucci again, “If your organization is still in growth stages, you may not have the in-house expertise or resources to hire multiple in-region experts to ensure 100% compliance for things like payroll and taxes when dealing with international employees - which can land you in legal hot water. EOR solutions can help to relieve that burden, by absorbing these responsibilities and managing the risk of compliance associated with local laws and regulations, and also monitor for legislative changes to ensure compliance with any legal or tax changes that occur.”
Why would you use an EOR service to pay an international contractor?
Using an EOR service to pay contractors, in addition to your international employees, can be beneficial for several reasons:
- Simplified Payment Processes: With your EOR already managing payments for your international staff, adding a few additional independent contractors onto your EOR payroll register is an easy and cost-effective solution that ultimately removes additional hassles from the desk of your in-house HR staff.
- Lower Service Costs: Many EOR services will manage contractor payments for substantially lower fees than what they charge for an EOR employee. For example, Remote charges $599 per EOR employee/month, but only $29 per contractor/month, with similar pricing differentials offered by other popular EOR providers too, including Deel, Papaya Global, Remofirst, Multiplier EOR, and others.
- Compliance Assistance: Just because we're referring to contractors instead of employees, that doesn't mean there are no compliance requirements. An EOR service can assist with the required tax filings for remote workers and those required for independent contractors, including Form 1099, Form 1096, and many others.
- Risk Mitigation: EOR services are also well-positioned to help their clients avoid employment-related risks, such as the potential misclassification of workers as contractors when they should technically be considered full-time employees. Their specialized knowledge of labor laws can help organizations avoid the costly legal and financial repercussions that misclassification often entails.
EOR vs. PEO Services
The main difference between EOR and PEO services is the legal status of the parent company. If you're interested in hiring remote employees in a country where you don't have a legal entity established, then an international Employer of Record service is what you need.
On the flip side, if your organization already has a legal entity established in a foreign country and your in-house HR staff just need additional help with hiring and managing international talent, you can opt to outsource specific parts of your HR services through a PEO agreement.
Under a PEO agreement, your organization and the PEO company enter a co-employment situation where each party has distinct legal responsibilities.
To help you make that choice, take a closer look at our detailed comparison of PEO vs EOR services to figure out which service is the right one for you.
What is Co-Employment?
A co-employment relationship is a situation where two separate entities share employer responsibilities for the same employee, such as in an EOR or PEO scenario. Under a co-employment arrangement, the responsibilities are divided between the client company and the other legal body (the EOR or PEO company).
The client company controls the employee's workload and day-to-date activities. This includes supervising the employee, assigning work, and making decisions about the employee's role within the company.
The PEO or EOR company manages administrative and HR-related functions such as payroll processing, benefits administration, compliance with employment laws, and tax filing.
Tips for Selecting the Best EOR Service Provider for You
To help you select the best EOR service provider to work with, you need to have a clear idea of your specific needs so you can be sure the EOR provider addresses them. To help you hone in on that quickly, try answering the following questions:
- Are you interested in hiring new employees within a specific country? If so, how much experience does the EOR have in that country?
- Does the EOR have a proven track record in the region you're interested in, such as North America or Asia?
- Is the Employer of Record company a global employer of record, or are they only active in specific regions?
- How long has the EOR been in business for?
- Does the EOR have a permanent local entity in the country you're interested in hiring in, or are they using a local partnership instead?
- Does the EOR handle all the areas you need support with, including sourcing top talent, international payroll & taxes, work permits, health benefits, background checks, and more?
- Will the EOR provider assist you if you do decide to open up a foreign entity of your own? Could you retain their services under a PEO agreement instead?
- How do their services and fees compare to other international EOR providers you're considering?
Use these questions to vet your top three choices for EOR providers and the best choice for you should become clearer. And if you'll mostly be working with contractor or freelance workers, contractor management software might also be something to consider using.
Other Resources & HR Services
With international employment on your mind, I recommend checking out these other helpful articles too:
- Best PEO Companies to Help with Global Expansion
- Best Global HR Service Providers
- How to Hire Remote Employees and Tap Into Global Talent
- Best Compliance Software for HR Departments
- Best Benefits Administration Software
Simplify Your International Operations with EOR Services
Now, you should have a better sense of how EOR services can alleviate the typical hassles of hiring international employees. They're truly a valuable resource, whether you're an enterprise organization striving for the best global talent, or a small business or startup trying to compete in the global talent marketplace.
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