Getting Hired Through an Employer of Record: Everything You Need to Know

As the global labor market continues to evolve, so do the ways companies hire new employees. One emerging option that makes the process a lot easier is Employer of Record (EOR) services.

EORs are third-party companies that take care of many employment-related tasks for their clients, including payroll, benefits administration and compliance, making it easy for companies to hire employees from all over the world compliantly. 

And while EORs are an excellent option for employers, they're also a popular choice for employees. That's why we wanted to take some time to talk about the experience of getting hired through an Employer of Record company. 

In other words, If you're a job seeker considering getting hired through an EOR, this article is for you. We'll cover everything you need to know about EORs, including their benefits, how they compare to traditional alternatives, how they work and more.

What is an EOR?

An Employer of Record, or EOR, is a third-party company that handles all employment-related tasks for its clients. This includes everything from hiring and onboarding to payroll and benefits administration. 

Essentially, the EOR becomes the legal employer of the workers, while the client company maintains day-to-day control over the workers' activities.

By partnering with an EOR, companies can hire employees from all over the world without having to worry about hurdles like taxes or benefits. They don't have to set up a local legal entity or work with an intermediary. Essentially, EORs allow companies to open their talent pool and hire top talent from around the world. 

There are benefits for employees working with EORs, too. 

9 Benefits of working for an EOR

Getting hired by and working for an EOR has several benefits for employees. Here are nine of them. 

1. Reduced Administrative Workload

EORs manage payroll, benefits and compliance, giving you, your colleagues and your leaders more time to focus on what matters. 

2. Access to Benefits

EORs can sometimes offer employees benefits like health insurance, retirement plans and paid time off, even if the hiring company does not have the resources to provide these benefits.

3. Compliance Support

EORs help ensure the hiring company complies with all relevant employment laws and regulations, reducing the risk of legal disputes and ensuring companies don't take advantage of you. 

4. Cost Savings

EORs are often more cost-effective than the alternatives, allowing companies to maintain their profitability and use their capital for better things – like higher salaries, better benefits, new tech and other perks. 

5. Flexibility

EORs offer more flexibility than traditional employers. They don't require employees to leave their home country and often provide them all the resources and support they need to thrive. 

6. Reduced Risk

EORs assume the legal risks associated with employment, reducing the risk for the hiring company. A less risky company means more stable employment for you. 

7. More Job Opportunities 

EORs typically have relationships and contracts with multiple companies. As a result, employees get access to more job opportunities that they might otherwise not have access to. 

8. Global Job Offerings 

With EORs, you aren't just limited to your local area. Instead, you get the opportunity to work with companies from all over the world, allowing you to expand your horizons. 

9. Work From Home Technology

Some EORs provide cutting-edge work-from-home technology, like managed laptops, time-tracking software, VR workspaces and more, allowing you to get access to top-notch equipment at no cost to you. 

How does an EOR compare to traditional employers and outsourcing?

One way to think of an EOR is as a hybrid between a traditional employer and an outsourcing company. 

• With a traditional employer, the company is responsible for all employment-related tasks. For example, if a traditional employer wants to hire an employee, they must have a local legal entity in that employee's country. Then, they handle the entire employment process, including taxes, payroll, benefits, liability, technology, etc. 

• With outsourcing, the company outsources specific tasks to a third-party provider. Generally, the company never works with the employees directly. Instead, the employees work for the outsourcing company, and the outsourcing company typically serves as a middleman between the two. 

With an EOR, the client company maintains day-to-day control over the workers' activities, while the EOR takes care of all employment-related tasks. In that way, when you work for an EOR, you get the advantages of working with an EOR and a traditional employer all wrapped into one. 

How does working for an EOR work?

When a company works with an EOR, the EOR becomes the employer of record for the employee. The hiring company retains control over the employee's day-to-day work, while the EOR manages administrative duties like payroll, benefits, and compliance. The hiring company pays the EOR a fee for these services. 

So, when you work for an EOR, you'll be an employee of the EOR, not the client company. However, you'll still be working for the client company on a day-to-day basis. 

This means that the client company will be responsible for assigning your tasks and overseeing your work, but the EOR will take care of all employment-related tasks, such as payroll and benefits administration.

What to look for in an EOR

If you're considering working for an EOR, there are a few things you should look for:

• Reputation: Look for an EOR with a solid reputation in the industry. Do some research to get a sense of how well they have served their clients and employees in the past.
• Compliance: Ensure the EOR fully complies with all legal and regulatory requirements. Ask about their compliance policies and procedures, and make sure they adhere to local laws and regulations.
• Benefits: Check to see what benefits the EOR offers. Find out if they offer additional perks like technology or 24/7 support.
• Payroll and taxes: An EOR should handle all payroll and tax-related matters, so make sure they have a streamlined process for handling these tasks. Ask about how they handle tax withholdings, employee contributions, and tax reporting.
• Support: A good EOR should support its employees throughout the employment process – from onboarding until the last day of employment. Look for a company with a dedicated team of professionals to answer any questions and provide guidance when needed.
• Technology: An EOR with modern technology and tools can make the employment process smoother and more efficient. Look for a company with user-friendly software and hardware. 
• Cultural fit: Finally, consider the company culture of the EOR. Do they value diversity and inclusivity? Do they prioritize employee satisfaction and engagement? Make sure the EOR's values align with your own.

Get started with Outstaffer

If you're a job seeker considering getting hired through an EOR, it's important to understand what an EOR is, how it works, and what the benefits are. All EOR companies are not created equally, so be sure to research and choose an EOR that meets your needs and has a good track record – like Outstaffer. 

At Outstaffer, we're a global Employer of Record and #WorkFromAnywhere technology company, making it easy for companies to find, hire, manage and equip top talent from around the world. As a turnkey provider, we also handle recruitment, so we're always looking for talented job seekers from around the world.  

Check out some of our open positions here. 

If you're a company looking to add top talent to your team without the traditional hassles of international hiring – schedule your demo today.