5 Reasons Why You Need An Employer of Record

Worca Resources
Last Updated: 
December 30, 2022

Businesses with overseas employees benefit from the strength of a global presence—but with international hiring comes the long and arduous task of establishing subsidiaries in each employee's country of residence.

However, companies that take advantage of an Employer of Record can skip this process, enjoying the benefits of overseas talent without the added expenditures.

What is an EOR, Employer of Record?

An EOR serves businesses by acting as the legal employer for their overseas teams. An EOR is distinct from outsourcing or freelancing platforms. Companies hiring through an EOR have complete control over hiring decisions, onboarding processes, day-to-day management of employees, and terminations. 

With an EOR, the employee and employer maintain an established working relationship the same way they would without an EOR.

The main difference is that a company with an EOR in its toolkit can streamline human resource processes and leave the backend work to the employer of record. 

What are the Benefits of an EOR?

Although an EOR provides similar backend benefits to outsourcing, hiring through an EOR is distinct from outsourcing in several ways.

1. Build an Ideal Global Team

With an EOR, you decide which candidates are ideal for your team. You are not limited to the existing workforce of a temp agency or freelancing platform. New global hires work directly for your company while the EOR ensures compliance and handles the global HR workload.

2. Access to Elite Talent

EORs provide competitive job offers with benefits to overseas employees. As a result, talented professionals gravitate towards EOR offers while avoiding traditional freelancing platforms that lack benefits. Although businesses can privately discover overseas employees, an EOR can connect companies to top-tier talent.

3. IP and Long-Term Employee Relationships

Many staffing agencies fill temporary positions, and the commitment of the employees they provide is often temporary as well. As a result, EORs are a better option for companies searching for long-term full-time staff seeking growth at work. In addition, your organizational intellectual property is protected by compliant employment contracts.

4. The Potential to Discover Executives

Since an Employer of Record connects companies to experienced and talented professionals searching for long-term positions, it is possible to hire overseas employees to fill executive roles.

5. Affordable Salaries for U.S. Companies

The overseas salaries are competitive for local markets and still affordable to US-based companies. By creating an inexpensive model for hiring, an EOR helps businesses hire more people without increasing overall costs.

What Does an EOR Do?

While businesses retain control over hiring decisions, an Employer of Record handles backend administrative tasks, including:

  • Hiring and onboarding tasks
  • Payroll-related matters, including tax contributions and bookkeeping
  • Benefits, including health insurance, labor insurance, labor pension, and paid leave
  • HR and legal matters, including employment contracts and compliance with local laws

What to Expect from an Employer of Record Service

A top-notch EOR vendor provides a full EOR service by hiring technical talent ranging from full-stack developers to CTOs. When you choose an EOR, you can expect:

  • In-house recruiting
  • HR infrastructure
  • On-the-ground support
  • Coordinated services to expertly streamline your HR tasks through a SaaS platform

Employers of record will assist you in onboarding your ideal hires, complying with local labor laws, overseeing payments, and more—freeing you to focus on what matters most: growing your business.

Creating a new branch in a different country involves substantial overhead costs. If you’re ready to expand your team, an end-to-end EOR solution is an excellent risk management technique to consider.

Employees hired through an EOR transfer seamlessly to your company's legal entity if you decide to create a subsidiary later.

Regardless of your goals, EORs handle your company's global HR tasks while you're getting ahead of your competition.

Whether you're ready to hire or still considering connecting with elite international professionals, Worca brings you to full-time employees committed to your company's success.

Final Thoughts: Hire Overseas Employees with Worca

Worca is a one-stop solution for companies who want to reimagine their human resource life cycle.

By connecting US tech companies with elite talent in the APAC region, Worca creates long-lasting relationships that help individuals and companies thrive. 

For every EOR client, Worca provides:

  • Our expert in-house recruiting team
  • A full EOR service
  • An employer dashboard
  • Employee self-service portals
  • Multi-country reports with one click

Upgrade to Worca’s full EOR services and streamline your: 

  • Hiring 
  • Onboarding
  • Payroll
  • Benefits
  • Time and labor management 
  • Compliance

Take the first click towards automating.automate your day-to-day HR tasks with Worca's intelligent platform.

You can hire from everywhere and succeed anywhere with Worca’s Core HR Service Bundle localized by country. When you upgrade to our end-to-end employer of record (EOR) solutions, hiring international talent easily and compliantly is a call or email away.

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