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A product developer in the United States, a marketing director in Mexico, and a head of operations in England all sign onto a Zoom call. In today’s workforce, this scenario is the new norm. A global workforce can drive a business forward with fresh ideas, access to new markets, and lower costs. Additionally, it lets international workers work from home or travel the globe.
However, staffing a distributed team comes with challenges. Compliance with employment regulations across borders introduces logistical complexities that divert valuable resources. That’s why many organizations partner with an employer of record (EOR), which acts as the legal employer for new hires in foreign countries.
You can choose from numerous reputable EOR services. This guide will explain what to look for in an EOR and review six of the best employer of record services.
What is an employer of record?
An employer of record (sometimes called a “local legal employer”) is an entity that employs workers on behalf of another business. Simply put, you manage your team while an EOR service is their legal employer. Companies can work with talent worldwide while an EOR partner handles HR services, including compliance with labor laws, payroll, taxes, and benefits management.
Employers of record can be located anywhere—within the same country as the workers or in a different country with distinct employment regulations. Companies can manage employees across various jurisdictions without establishing a local legal entity in every country. This frees up resources from hiring and employee management so businesses can focus on core activities and strategic goals.
The best global employer of record services
With so many EOR services available, it’s hard to sift through them all. That’s why we’ve found the top six global employer of record services for your consideration:
1. Oyster
Is your company looking to hire around the globe? Oyster offers automated hiring, payroll, and benefits management in 180+ countries, including the United States. You can pay your team in 140+ local currencies and store employment contracts and documentation in a centralized system.
Oyster offers a suite of tools to simplify the entire employment process, from hiring to employment liability. Hiring tools help you locate the best global talent with contractor versus full-time employee analysis, an employment cost calculator, and localized benefits plans.
Oyster works with directly owned entities and reputable partners to ensure compliance with local employment laws. An emphasis on reducing legal and compliance risks—including employment practices liability (EPL) coverage and country-specific legal guidance—safeguards employers from potential lawsuits.
2. Deel
Deel is a global platform that handles hiring and HR in over 150 countries. It uses a direct EOR model and operates exclusively with its legal entities and subsidiaries, ensuring complete control and legal protection for its clients.
Alongside its EOR services, Deel offers contractor and global payroll solutions. One centralized system can handle everything from employee relocation to visa assistance and payment.
Deel’s strongest selling point is its comprehensive SaaS system, which enables organizations to replace several HR tools with a single platform. Deel integrates with accounting and HR while providing payment software and support for various payment methods, simplifying worldwide employee and contractor management.
3. Remote
As the name implies, Remote is an EOR company focused on organizations with remote teams.
Remote operates in over 75 countries using a direct EOR model. It’s responsible for compliance, payroll processing, and benefits management, cutting out the risk of third-party providers. This model also offers straightforward processes for employers and employees to troubleshoot any problems.
4. Globalization Partners
Globalization Partners is an AI-driven global employment platform that offers HR services and global payroll. It supports international employees in more than 180 countries. The platform helps recruit and hire employees, document employment contracts, and pay employees and independent contractors in local currencies.
5. Rippling
Rippling is an all-in-one platform that integrates various HR and IT services, including time and attendance tracking, learning management, and benefits.
Rippling’s robust system replaces manual work with automated processes. Once employees or independent contractors are onboarded, the platform automatically syncs payment, benefits administration, and compliance training. Automation simplifies workforce management by streamlining administrative processes and ensuring compliance across different regions.
6. Papaya Global
Papaya Global is an EOR company geared towards large organizations. Its tiered pricing system offers steep discounts to companies with over 1,000 employees. The platform serves 160+ countries with tools to hire, onboard, and manage talent. Papaya Global’s HR and payroll services are set up for both employees and independent contractors.
What to look for in an EOR
Labor law compliance, payroll management, and benefits administration are critical business functions. Companies need to identify a trustworthy and detail-oriented EOR company to handle these processes. Here are four crucial considerations when choosing an EOR:
1. Visa and work permit sponsorships
Whether you work with digital nomads, international talent, or employees who want to relocate, the employer is responsible for acquiring the appropriate visas and permissions. A reliable EOR manages the complexities of obtaining and renewing permits so your hires can work legally. EORs help navigate local regulations and avoid legal complications that can negatively impact your business operations.
Oyster’s Talent Mobility supports borderless teams, leveraging an extensive network of immigration experts to guide you through visa applications and work permits.
2. Employee benefits package
Today’s workforce is looking for more than a paycheck. Benefits packages with competitive health insurance, retirement plans, and paid time off will attract and retain talent. Workers’ most desired benefits vary from country to country depending on local regulations and cultural standards. A comprehensive EOR service provides localized, customizable benefits packages tailored to the diverse needs of employees in various countries.
Whether your employees prioritize ample PTO or career development opportunities, a well-rounded total rewards package bolsters employee satisfaction and overall retention.
3. Multi-currency payroll
Pesos, dollars, rupees—an EOR company should be able to manage global payroll in numerous currencies. Multi-currency payroll expands your access to talent around the globe and reduces errors, delays, or steep fees in payroll processing.
4. Global compliance
Each country has distinct labor laws, tax regulations, and employment standards. An EOR is responsible for ensuring you are globally compliant. Companies should choose an EOR with a strong reputation for legal compliance to safeguard against costly litigation. Go beyond reviews and recommendations from colleagues—ask about their network of legal and tax advisors, compliance systems, and documentation protocols.
How much does an employer of record cost?
Typically, EOR services charge per employee per month. Although the fee structure makes budgeting straightforward, the total cost can vary significantly based on a few factors:
- Location: Costs per employee might vary by country. Regions with complicated labor laws and compliance requirements may require steeper fees.
- Role complexity: Job roles that require robust benefits packages or compensation management will likely carry increased costs.
- Number of employees: Some EOR services offer tiered fees. The more employees you onboard into the EOR system, the lower the cost per employee.
There is no one-size-fits-all pricing model, so read the fine print and evaluate its impact on your business’s bottom line. Check out Oyster’s all-inclusive pricing for contractors and full-time employees.
Hire globally with Oyster’s employer of record service
With Oyster’s EOR services, you can build a global team without the legal and logistical headaches. Skip the hassle of setting up entities in different countries and focus on taking your business to the next level. Learn more about how Oyster can jumpstart your expansion into the global workforce.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
FAQs
Let’s answer three common questions about EORs:
What is the difference between an EOR and a PEO?
An EOR legally employs workers on your behalf and handles workforce management, including compliance, payroll processing, and benefits management across countries and jurisdictions.
A professional employer organization (PEO) provides similar HR admin services but operates as a co-employer. This means you and the PEO share the responsibility and liability of your co-employed workers.
What are the benefits of an EOR?
EORs reduce administrative costs and mitigate legal risks in global hiring by handling legal compliance, payroll, and benefits in multiple countries. They enable businesses to expand into new labor markets without setting up local entities and ensure adherence to local labor laws and regulations.
What is the difference between an employer of record and a staffing agency?
A staffing agency focuses on recruiting and placing employees or independent contractors for specific roles, managing the recruitment process, and handling payroll and benefits for temporary positions. In contrast, an EOR manages all aspects of employment throughout the employee life cycle.
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