Benefit of using Global Employer of Record (EOR)

By hrlineup | 29.03.2023

In today’s globalized business environment, companies need to be flexible and agile to stay ahead of the competition. To achieve this, many organizations are exploring the advantages of using a Global Employer of Record (EOR) to help them navigate the complexities of managing employees in multiple countries. In this article, we will explore the benefits of using a Global EOR and why it is a wise choice for companies looking to expand their operations internationally.

What is a Global Employer of Record (EOR)?

A Global Employer of Record (EOR) is a third-party provider that takes care of all the legal, administrative, and payroll-related tasks associated with employing staff in a foreign country. Essentially, the EOR serves as the legal employer of the employees, taking care of all the local compliance and regulatory requirements, while the client company manages the day-to-day activities of the employees.

Benefits of Using Global EOR

There are many benefits to using an EOR, particularly for companies looking to expand their operations globally. Here are some of the key advantages:

1. Reduced Risk and Compliance Management

Employment laws and regulations differ from country to country, and keeping up with these changes can be challenging, particularly for companies looking to expand into new markets. A Global EOR can help companies navigate these complexities by taking care of all the legal and regulatory requirements, ensuring that they remain compliant with all the relevant laws and regulations.

By using an EOR, companies can reduce their risk exposure and avoid costly penalties and fines that can result from non-compliance. This allows companies to focus on their core business activities, knowing that their employment compliance is being taken care of.

2. Improved Speed to Market

Expanding into new markets can be a time-consuming process, particularly when it comes to setting up new legal entities and hiring employees. By using a Global EOR, companies can get up and running much more quickly, as the EOR already has the legal infrastructure in place to hire employees in multiple countries.

This means that companies can start hiring staff and operating in new markets much more quickly, reducing the time to market for new products and services.

3. Reduced Administrative Burden

Managing employees in multiple countries can be a significant administrative burden, particularly when it comes to payroll and benefits administration. By using a Global EOR, companies can outsource these tasks, reducing their administrative burden and freeing up resources to focus on more strategic activities.

The EOR takes care of all the administrative tasks associated with employment, including payroll, benefits administration, tax compliance, and social security contributions. This reduces the workload for the client company and ensures that all the necessary tasks are being completed accurately and on time.

4. Greater Flexibility and Agility

Using a Global EOR provides companies with greater flexibility and agility when it comes to managing their workforce. Companies can scale their workforce up or down as needed, without having to worry about the legal and administrative complexities of hiring and firing employees in multiple countries.

This allows companies to be more responsive to changing market conditions and to adapt quickly to new opportunities or challenges.

5. Cost Savings

Using a Global EOR can be cost-effective, particularly for companies that are just starting to expand into new markets. Setting up a legal entity and hiring employees in a foreign country can be expensive and time-consuming, and may not be feasible for companies with limited resources.

By using an EOR, companies can avoid these costs and start operating in new markets much more quickly and cost-effectively.

6. Compliance with Local Laws

Each country has its own labor laws, tax regulations, and social security requirements. Failure to comply with these laws can result in fines, penalties, and legal actions. Global EOR service providers have extensive knowledge and experience in navigating the complex regulatory environment of different countries. They ensure that the employer complies with all the local laws and regulations related to employment.

7. Quick Setup and Deployment

Establishing a legal entity in a foreign country can take several months, if not longer. Global EOR service providers have an established presence in different countries and can set up and deploy employees quickly. This allows companies to take advantage of business opportunities and expand their operations without delay.

8. Improved Employee Experience

Global EOR service providers offer comprehensive employee support, including onboarding, payroll management, and benefits administration. This ensures that employees receive a seamless and consistent experience regardless of their location. It also helps companies to attract and retain top talent in different parts of the world.

9. Time Savings

Managing the administrative tasks related to employing staff in a foreign country can be time-consuming and distracting from core business activities. Using a Global EOR service frees up time for companies to focus on their core business activities, such as product development and customer service. It also reduces the administrative burden on HR and finance departments, allowing them to focus on strategic initiatives.

Best Employer of Record Solutions

Employer of record allows you to efficiently operate your newly established business overseas and work with foreign employees. With many EOR companies claiming to offer the best services, employers find it challenging to select the best for their needs. Here are our top 5 picks based on thorough tests and comparisons.

1. Deel

Deel offers an all-in-one EOR platform for companies across over 80 countries globally. It is one of the best EOR for staffing companies or any other business that expands its services across borders. Deel handles the entire hiring process, manages compliance, and takes care of HR administration and employee benefits. By managing your business, you are guaranteed seamless operation in compliance with local laws. As a result, you will easily focus on business development and take your company to another level. 

We consider Deel one of the best EOR companies because it is easy to set up and available in over 12 languages. We all know the importance of diversity and inclusion in a business, and Deel helps you meet all your objectives while retaining your brand reputation. 

2. Papaya Global

Papaya global logo

Papaya Global stands out as the best Employer of Record (EOR) service for several compelling reasons. With a global presence spanning over 170 countries, Papaya Global offers unparalleled expertise in navigating complex international labor laws and tax regulations. Their comprehensive EOR services, including payroll processing, benefits administration, and HR support, simplify global workforce management for businesses. Leveraging advanced technology and automation, Papaya Global streamlines EOR processes, ensuring accuracy and compliance while saving valuable time. The platform’s dedication to compliance assurance, dedicated customer support, scalability, cost efficiency, and data security make it the preferred choice for businesses looking to expand their global workforce seamlessly and compliantly.

3. Multiplier

Multiplier logo

Multiplier is widely recognized as the premier Employer of Record (EOR) service due to its comprehensive platform that efficiently manages global teams’ payroll, taxes, social contributions, and local insurance policies while ensuring compliance. By simplifying onboarding and payroll processes, Multiplier enhances HR and payroll teams’ productivity, allowing them to focus on strategic initiatives.

4. Oyster

oyster logo

Oyster is one of the most trusted business and workforce management partners globally. This EOR company boasts of featuring fast compliant hiring procedures, whereby you get to hire and onboard your team within days. Additionally, using it gives you access to free HR resources so you can easily monitor your workforce globally. Oyster is available in over 180 countries globally, and users attest that using it has streamlined their overall business management procedures. 

The best element about Oyster is that it allows you to also manage your hiring and employee management procedures remotely. You will have access to country-specific legal and HR guidance to ensure you remain compliant with each country’s local laws. You will also be able to easily manage payroll and employee benefits. 


In conclusion, Global Employer of Record (EOR) services offer a cost-effective, compliant, and flexible solution for companies looking to hire and manage employees in different parts of the world. They provide local expertise and support, mitigate risks, improve the employee experience, and save time and resources. By using a Global EOR service, companies can focus on their core business activities and expand their operations into new markets