What is a global employer?

A global employer is an organization that operates and works with employees in many different countries across the world. Companies are increasingly tapping into the global talent pool and hiring workers internationally—a trend accelerated by the growth of remote work, with 35.5 million people teleworked in the U.S. in early 2024 alone. Those companies can incorporate in every country where their international hires reside, or use global employer services instead.

‍What is a global employer organization?

A global employer (also called a GEO or global employment company) is a service provider that legally employs workers on behalf of other companies across multiple countries. Instead of setting up costly legal entities everywhere you want to hire, you partner with a global employer to handle employment, payroll, and compliance.

Global professional employer organization (PEO) vs. global employment platform (GEP)

Under the umbrella of global employers, companies have two main options. A global professional employer organization (PEO) acts as the legal employer of your international workers. This means they handle all compliance issues and HR responsibilities while you focus on managing your team.

The alternative is a global employment platform (GEP)—a cloud-based solution that streamlines international hiring. These platforms let you quickly build and scale global teams while experts handle tax obligations and legal compliance.

What services do global employers provide?

Ever wondered what a global employer actually does day-to-day? They handle all the complex, country-specific tasks of international employment so you can focus on what matters—managing your team.

Key services often include:

• Compliant onboarding: Generating locally compliant employment contracts and managing all new-hire paperwork.

• Global payroll: Processing payroll accurately and on time in local currencies, while handling all tax withholdings and contributions.

• Benefits administration: Offering and managing competitive, country-specific benefits packages, from health insurance to retirement plans.

• Ongoing compliance: Staying up-to-date with changing labor laws and regulations to ensure your company avoids legal risks.

• HR support: Providing a point of contact for both the company and its employees for HR-related questions and issues.

Benefits of using a global employer

Better talent acquisition

Here's the reality: sometimes the best person for the job lives halfway around the world. Global employers let you tap into that talent without the usual geographic limitations, giving you the chance to work with experts from different regions and industries.

Key talent advantages include:

• Access to specialized skills: Find experts in niche areas regardless of location

• Competitive hiring costs: Access talent in markets with favorable salary ranges

• 24/7 operations: Build teams across time zones for round-the-clock coverage

Improved compliance

Expanding globally offers companies many new opportunities—with half of all corporate growth in the decade up to 2019 having came from foreign markets—but it can also create many new compliance headaches. Global employers take on the responsibility of handling these compliance issues for the companies. With their expert local knowledge, global employers can help companies ensure that they're complying with all relevant laws and regulations, which are constantly adapting to changes in production, demographics, and other local factors.

Faster onboarding

Onboarding is often challenging, and that's especially true with international hires. Global employers make it easier to adapt the onboarding process according to local needs and onboard global talent faster.

Ongoing HR support

Even after the company hires and onboards its international workforce, the global employer will still be there to help with ongoing HR responsibilities, like payroll. For companies with HR teams struggling to keep up with the current workload, this additional HR support can be a huge relief.

Cost and time savings

Compared to setting up an entity, using a global employer to hire international workers is generally much more cost-effective, helping companies tap into the financial benefits of global expansion, which has been shown to have generated higher TSR than their industry peers. The time it takes to hire and onboard a new international worker is also considerably faster with a global employer. 

Choosing a global employer makes it possible to expand your global team quickly and efficiently. These organizations break down barriers to global hiring so you can bring on international workers without the legal and administrative hassle.

Book a demoGlobal Employment Cost Calculator to learn more.

Global employer cost considerations

When evaluating costs, most global employers charge a flat monthly fee per employee or a percentage of their salary. Yes, it's an added expense—but it's typically far less than setting up your own international entities.

Here's what you avoid with a global employer:

• Entity setup costs: Legal fees, registration, and compliance requirements

• Ongoing operational expenses: Local accounting, HR staff, and office setup

• Compliance risks: Potential fines for employment law violations

How to choose the right global employer

To find the right global employment solution for your business, consider factors like:

• Location: Does the global employer operate in the countries you're interested in? Some global employers operate in more countries than others, and you'll need to find one that offers global employer services in the right places.

• Competitive pricing: Working with a global employer is often a worthwhile investment, but you don't want to overpay for those services. Keep an eye out for transparent pricing that includes all the costs you'll have to pay your global employer. Clear pricing quotes will help you compare options and choose the best one.‍

• Strong reviews: Your global employer will be a key partner for your company, so it's vital to choose one with strong reviews. You don't want to work with a global employer with whom other teams have had bad experiences, as you'll likely run into the same problems.

Scale your team with a global employment platform

Choosing a global employer makes it possible to expand your team quickly and efficiently. These organizations break down barriers to global hiring so you can bring on international workers without the legal and administrative hassle.

A modern global employment platform like Oyster gives you the tools to manage your entire international team in one place, from compliant hiring and payroll to localized benefits. Ready to see how it works? Start hiring globally and build the distributed team you've always wanted.

FAQs

What is a global employment company?

A global employment company is simply another term for a global employer—it's a service provider that manages international hiring without requiring local legal entities.

What is a global employer of record?

A global employer of record (EOR) is a specific type of global employer that becomes the legal employer for your international team, handling all contracts, payroll, and compliance responsibilities.

What's the difference between using a global employer and setting up foreign entities?

Global employers are faster and cheaper for hiring across multiple countries, while setting up foreign entities makes sense only when hiring many employees in a single location.