BRIEF OVERVIEW: What is Employer of Record?

The main benefit of using Employer of the Record is that you can seamlessly expand your global team in any country without any local entity.So what exactly does an Employer of Record Company Do?

7 min reading time


The main benefit of using Employer of the Record is that you can seamlessly expand your global team in any country without any local entity.

So what exactly does an Employer of Record Company Do?


Let me start by saying:

With globalization on the rise, companies, both big and all sizes and in any location around the world, work together on a project, regardless of whether they are physically close. Building a remote international team is becoming more popular day by day due to its benefits such as lower overhead costs because there's no need to spend money travelling between offices etc., access to global talent without having them located near your home country among other things that make scaling your company to new territories easier than ever before.

With a diverse range of talent at hand, you can tap into new markets and grow your business in ways that would have in the past otherwise be difficult or impossible.

Global employees are a great way to increase your company's reach and improve its competitive edge. But you have many factors that need consideration before hiring them, such as cultural norms in different countries or even specific languages spoken at home versus those used on the job site.

So how do you go about accessing this global talent pool?

An Employer of Record service is the best option for employers to ensure that their employees are employed correctly in countries where you do not have an entity setup.  It is the best way to make sure your company is also staying compliant with all local labor laws wherever you decide to operate.

Leave everything to the professionals with an Employer on Record. Just sit back, relax and grow your business network by adding more overseas employees!

By hiring using an Employer of Record, you can rest easy knowing that they will care for your employees and ensure all necessary employment admin tasks are taken care of. They handle everything from onboarding to benefits administration for just one low monthly fee.

Global employers of Record (EOR) make it easy to onboard, manage and pay international employees. EORs can handle everything from legal compliance through payroll processing for your team members working in different countries worldwide!

EOR Vs PEO

The Employer of Record is very similar to a Professional employer organization, also known as PEO. A co-employment organization, it works in collaboration with your company and handles partial employee management activities.

When your company associates with a PEO, it's more of an agreement where you have to work together.

On the flip side of that, when you work with an EOR company, they manage all of the administrative side whilst you still maintain full day to day control of your employee.

Whether hiring ten people in one country or ten people in ten different countries, an EOR solution can get it seamlessly done for you.

With all the complicated ways of growing your international team, EOR is always an intelligent decision which it comes to avoiding the complications and hassle when it comes to hiring internationally.

Employer of Record Saves You Time

You are hiring new employees in new countries and dealing with the HR and company processes involved. There are many things to think about. For example, you are deploying and managing the visa processes, collecting the correct compliance data from new hires, complicated local payments and taxes. With an EOR provider, this is all taken care of, and they will manage all of these things. You don't need to waste time with the admin of all of these things to concentrate more on developing your business in your new country.

Employer of Record, What is it?

An employer of Record is a third party company that will take care of employing single or multiple employees on your behalf so that you can hire, pay and deploy staff without having to set up a new entity in a given country.

This allows you to scale your global teams quickly or test new markets when expanding your global footprint.

So what does an Employer of Record do?

With the rise of remote teams, geographical limitations are no longer a barrier to expansion, and now you can access global talent pools.

This way, you can hire more for your organizational needs. This gives you the ability to get into new markets that could lead to your business growth.  

Every country has its own set of laws and rules for structuring your employment and payroll. These laws and regulations can often change and concise notice. One of the biggest challenges when deploying staff in new territories is managing these changes.

Using an Employer of Record is the simplest way to manage this. They will take on all the compliance burdens when it comes to employment, and you relax a little more knowing that you are compliant when scaling overseas.

The Employer of Record efficiently handles employee onboarding, record maintenance, payroll, tax filing, commissions, health insurance, and other employee benefits for your company.

Benefits of EOR for Your Business

Saves Time

HR activities from hiring new employees to processing payroll demand constant attention to every detail, including individual payments, taxes, commissions, reimbursements and other employee benefits. With EOR, you can allow a reliable partner to manage everything on your behalf. This way, you save a great deal of time which you can, in turn, invest in effective business development.

Maintains Precision

You can witness greater precision when you entrust an employer of Record for employee management, payroll processing, and other HR-based activities. This is because all these are the core responsibilities of an EOR. On the other hand, your in-house team has other business-related activities.

Up-to-date Records

When you have an in-house team to manage HR activities, you and your resources have to spend more time generating reports regarding your global teams. This is, of course, a tedious process. You can put an end to this practice with a trusted EOR.

The Employer of the Record maintains all data-backed reports on your behalf. Plus, you can get real-time insights into your company's payroll activities without spending time and energy on the actual process.

No Regulatory Risks

As said earlier, employee and payroll management on a global scale involves maintaining legal compliance. Keeping track of the labour laws of various countries is difficult when you do it on your own.

On the other hand, an EOR maintains updated compliance information on your behalf as it is part of their core responsibilities of employing your teams on your behalf.

With an EOR to back you up, you need no longer worry about regulatory risks.

Selecting Your EOR Service Provider

While there are plenty of EOR service providers out in the market, you should be able to find one that matches your company's HR needs. Take some time and read this article for tips on choosing an employers' record system provider!


Narrow down your requirements - Hiring an EOR to handle your human resources can be a great decision, but you need to have specific goals in mind when making this choice.  You'll get more out of it if you do.


Check for Trustworthiness

Handling payroll and other related activities involve confidential data from both the Employer and the employees.

Given the scenario, you need to make sure the EOR service provider has won the confidence of many businesses like yours. You can rest assured that you have handed over sensitive data to the right people.

Get a Bigger Picture

As an entrepreneur, it is essential to find a company that will allow room for your growth. Once they have shown themselves to be the right fit and able-bodied enough in their work style, let them handle all HR-related activities while focusing on what's most crucial - running core operations!

Once you find an employer of Record that can be a good fit for you, get in touch with them to get a bigger picture of how they do what they do. Once you are satisfied, you can let them take care of the HR activities and go back to focusing more on your core business concerns.


Why Choose Auxilium?

Imagine a world where you could automate all the tedious human resource management tasks. This is possible with Auxilum, an innovative platform that empowers employees and managers alike!

With our transparent EOR services, you can onboard new employees and manage them anywhere across the globe in line with local laws without setting up a full-fledged entity.

Auxilium gives you 100% ownership over your international employees with the ability to hire global talent to manage payroll efficiently and effectively in a single system.

Auxilium simplifies the complexities of payroll and tax payments for your company, helping you to save time. You can keep track all in a click with their easy-to-use interface.

Simplifying and streamlining human resource activities can be a challenge. That's where our trusted business consultants come in! Talk to us today about how we'll help you simplify managing employees and contractors while also reducing costs for your company with an efficient EOR partner like Auxilium.


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