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Hiring global talent sounds exciting, until you face the legal, administrative, and compliance hurdles that come with employing someone in a country where your business has no legal entity. Setting up an overseas subsidiary takes months, navigating labor laws requires specialized expertise, and one misstep in payroll, taxation, or contracts can expose your company to significant risk. For many employers, these barriers slow down expansion plans and make global hiring feel unnecessarily complicated.
That’s why many growing companies search for a faster, compliant, and cost-efficient way to hire abroad. And that search often leads to one solution: an Employer of Record (EOR).
In this guide, you’ll learn exactly how an EOR works, why it matters for global teams, and how it helps you hire talent in new markets without setting up a local entity, while staying fully compliant with local regulations. Whether you’re scaling rapidly or exploring a new market, this is your complete roadmap to using an EOR for global hiring.
An Employer of Record (EOR) is a third-party organization that employs and pays individuals on behalf of another business. EOR services allow companies to hire employees domestically or internationally without establishing a legal presence or dealing with complex compliance requirements in the employee’s country.
Think of having a partner who handles local labor laws, payroll, and HR tasks, making it easy for you to hire globally.
With an EOR, the company doesn’t share employment responsibilities. The EOR takes care of everything related to hiring, payroll, and legal compliance, while the company oversees the employee’s daily tasks.
In contrast, a PEO shares employment duties with the company. They handle HR tasks like payroll, taxes, and benefits, but both the PEO and the company are responsible for the employee. This shared setup is called a co-employment agreement.
The roles of an EOR can depend on the service and location. Here are some typical tasks an EOR handles:
An EOR helps businesses hire employees according to local laws and provides compliant employment contracts in each country or jurisdiction.
When you hire someone new, the EOR takes care of getting them started. The EOR will onboard them, managing the employment agreement and setting up all the necessary processes for the new team member to begin working at the company.
Dealing with payroll in different countries can be tricky. The EOR fully manages payroll and local taxes for both the employee and the employer, ensuring that employees receive accurate pay slips
EORs provide companies with access to local insurance coverage, and advise on the appropriate benefits in accordance to local standards.
When an employee is offboarded, the EOR ensures that all necessary steps and actions are taken.
While your organization manages the employee’s day-to-day tasks, the EOR handles all employment-related obligations to ensure full compliance with local regulations. Here’s how the process typically works:
You choose the candidate you want to hire, set the responsibilities, and agree on compensation. The EOR then ensures the offer complies with the labor laws of the target country.
The EOR drafts a legally compliant employment contract based on local regulations—including mandatory benefits, working hours, probation terms, and termination clauses—while reflecting your company’s requirements.
Once the candidate signs the contract, the EOR officially becomes the employer on paper. They register the employee with local authorities and begin handling statutory obligations such as social security, tax IDs, and insurance.
Every month, the EOR manages payroll, calculates taxes, processes mandatory and supplementary benefits, and ensures contributions are paid correctly and on time. You simply provide work hours or performance updates if needed.
The EOR constantly monitors local labor laws, ensuring your employee remains compliant with regulations related to leave, overtime, benefits, and workplace protections. This reduces your legal and operational risk.
Throughout the employment lifecycle, the EOR provides HR assistance—including performance documentation, contract renewals, leave tracking, and employee inquiries—so your team can focus on core operations.
If employment ends, the EOR manages the legally compliant termination process, including notice periods, final pay calculations, and required reporting to authorities.
Here are some of the benefits of using EOR:
An EOR allows you to onboard team members from anywhere in the world swiftly. According to a research by Fountain, companies that utilize EOR services can reduce their time-to-hire by at least 50%, enabling rapid scaling of operations and access to a vast pool of global talent.
Establishing a legal entity in a foreign country can be costly and time-consuming. Research by Deloitte indicates that using an EOR can reduce international hiring costs substantially, providing a cost-effective solution without the hefty price tag associated with setting up new offices abroad.
Whether you need full-time employees or project-based contractors, an EOR provides flexibility to accommodate your employment needs. Companies using flexible staffing solutions can see increased operational efficiency, allowing them to adapt quickly to changing business needs without long-term commitments, as shown in a study by EY.
Building a global team introduces diverse perspectives and innovative ideas. McKinsey’s research highlights that companies with diverse workforces are more likely to have financial returns above their industry averages. An EOR allows you to hire a global and multi-cultural workforce, driving better business outcomes through diversity.
Read Related Article : Exploring Paid Time Off (PTO): Definitions and Benefits
Understanding different workforce solutions can make a big difference for your business. Let’s break it down:
| Aspect | Staffing Agency | Employer of Record (EOR) | Business Process Outsourcing (BPO) | Recruitment Process Outsourcing (RPO) |
| Scope of Services | Finding and placing candidates for specific roles | Managing all employment aspects once a candidate is hired | Managing specific business functions to improve efficiency and reduce costs | Handling all recruitment-related activities from job profiling to onboarding |
| Recruitment Assistance | Yes | No | No | Yes |
| Job Advertising | Yes | No | No | Yes |
| Employment Relationship Management | No | Yes | No | No |
| Payroll Management | No | Yes | No | No |
| Compliance and Legal | No | Yes | No | No |
| Benefits Administration | No | Yes | No | No |
| Typical Use Case | Companies needing temporary or permanent candidates for specific roles | Companies needing assistance with the administrative and legal aspects of employment | Companies looking to outsource non-core business functions to external specialists | Companies aiming to streamline and enhance their recruitment processes |
Finding the perfect Employer of Record for your business can feel overwhelming with so many options out there. Here are some tips to help make your decision easier:
Check if the EOR operates in the countries where you plan to hire. If you need to hire people in multiple locations, especially in Southeast Asia, a regional employment platform like Glints ensures a seamless and hassle-free experience. Glints has in-market experience and expertise across Southeast Asia to handle your end-to-end HR requirements.
This becomes even easier when you partner with one of the best EOR companies in Southeast Asia that already understands local regulations and hiring practices.
Cross-border employment can be complex, so it’s important to choose an EOR that provides strong support and helpful resources. Research and speak to their teams to understand the level of support that will be afforded to you. Having reliable support can make all the difference.
Consider the quality of service provided by the EOR. Look for one that offers prompt and reliable assistance, ensuring your questions and concerns are addressed quickly. For instance, Glints provides a high level of service, allowing you to reach out anytime for help, ensuring a smooth and efficient experience.
EOR costs vary depending on factors like location, services offered, and the number of employees. Most EORs charge on a per-employee basis. Visit our pricing page to learn more about the costs of hiring globally.
Glints TalentHub transforms HR complexities into seamless operations with our tailored Employer of Record (EOR) services. Our local HR experts ensures all your HR requirements are covered in Southeast Asia. Our end-to-end offering covers the entire employment lifecycle, from onboarding to offboarding of employees.
Partner with us for hassle-free HR management and schedule a no-obligation consultation today to receive your customized proposal.
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