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What Are EOR Services?

EOR Services

It takes a lot of labor, regulatory compliance, and a thorough understanding of payroll to grow your firm. In the past, establishing a subsidiary firm in another country was the best approach to employ abroad.

However, utilizing EOR services is becoming increasingly popular as a speedier and cost-effective option for worldwide recruiting. Welcome to the future of global employment through an employer of record.

If this is the first time, you’re hearing about an employer of record services, no worries. We’ve got your back. Please keep reading for our full breakdown of everything you need to know about EOR services. 

EOR Meaning and Inner Workings

An Employer of Record is a firm or organization that is legally responsible for paying workers and dealing with employee taxes. In addition, it manages benefits, insurance, visa applications, sponsorship applications, and a wide range of other transactions and procedures related to human resources.

Human resources operations, market access, market awareness, market involvement, and handling payroll for overseas personnel are just some of the issues companies face when recruiting EORs.

When you hire an EOR, they take on the employer’s role for the duration of their contract with you. In addition to keeping a firm by labor laws and other requirements, this outsourced service greatly aids the company in its worldwide expansion.

How Do EOR Services Work?

There are several advantages to working with a remote team. There are no demographic restrictions when you have a remote workforce working for you, and you may tap into an international talent pool.

When your firm is based in another country, you have the opportunity to hire foreign employees that can satisfy your company’s needs quickly and effectively. As a result, your company will be able to expand into new areas and take on new revenue streams.

The challenge arises when you try to hire people all across the world. Each nation indeed has its own unique set of labor and tax rules. It’s also worth noting that societal norms are dynamic and ever-changing.

Your organization must comply with these legal frameworks if you want to bring in overseas workers. Trying to handle all of this is a monumental undertaking. An Employer of Record (EOR) is needed in this situation. A record employer can assist you with the following HR-related tasks. 

And, if you’re interested in tapping into the Maltese market, you can learn about it here. 

Payroll and Benefits

When you use Employer of Record Payroll Services, they’ll handle all payroll-related operations. They’ll manage this for your remote workforce in a timely and error-free manner.

And as an employee benefits administrator, the employer of record handles everything. This includes paid time off and bonuses health insurance to retirement programs on behalf of your company.


Maintaining compliance while onboarding personnel from other countries is essential. At a minimum, it will help prevent legal issues.

It is possible to implement channelized and compliant employment methods inside your company. Additional HR activities, including registration, and tax filing, are handled by a trusted third party.

Miscellaneous Services

To help with all of the duties mentioned above, an EOR may also aid with additional tasks. This includes keeping track of employee medical leaves and other short- and long-term absences. They can negotiate pay and termination agreements.

In addition, you’ll find that EORs can manage compliance for you. An EOR is far more engaged in tax rules and other perks and compliance issues because of its contractual connection with the workers. EORs have a more substantial track record of reducing the burden on their customers’ “compliance issues.”

Why Bother Looking Into Employer of Record Companies?

Choosing to work with an employer of record, or “partnering,” has several advantages. Employing an EOR allows the client’s business to manage their employees’ time better.

Instantly noticeable changes may be seen in cost structures and human resources operations. Not to mention, there will be compliance difficulties tied to laws and regulations.

Think about improved cash flow, higher savings, and an increase in marginal expenditures. All of these result from this reorganization of the company’s cost dynamics. These savings, in turn, may be used to expand the firm in other areas. Or, it can help you meet the company’s strategic mid and long-term goals more quickly.

However, an employer of record is more than just a staffing agency. Since they can promptly fill a client company’s employment needs with high-quality individuals.

In reality, EORs oversee everything else, even though they often partner with hiring firms to recruit top employees.

Many of these employment firms lack the expertise to educate human resources. And, you’ll want them to handle payroll and accounting at the same time. In addition, many staffing firms lack knowledge and understanding in critical areas.

For instance, there are regulatory compliance., risk management, insurance, and employee benefits. The majority of the time, they are unable to satisfy the requirements of running a business.

What Are the Average Costs of an EOR?

There are two types of EOR pricing models: flat fees and percentage arrangements. EORs who charge percentages instead of flat fees should avoid looking for a new partner.

EORs based on a percentage of a company’s revenue discourage its clients from paying their employees fairly. An employee’s increase or promotion must be paid for by someone other than the employer when you pay a percentage rate. Although EORs based on a percentage was formerly the norm, this is now changing.

A flat fee system allows you to recruit the most incredible worldwide talent. You’ll be able to pay them exactly what they’re worth, without any questions. Remote is the most affordable employer in the sector.

From a CEO to a software engineer, you may hire any person for $299 per month per employee in any of our supported locations. You won’t find any hidden costs or percentages related to your payment.

Exploring Employer of Record Services

Businesses need to overcome the obstacle of conducting business overseas. EOR services are essentially becoming a primary strategy for hiring local inhabitants and expats. We hope that our guide has shed some light on what an employer of record can bring to your company. 

And, if you’re interested in learning more about growing your business, you should check out our business section. You’ll find all the additional tips and explainers you could need. 

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