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How do you select the best employer of record (EOR) for your company


Employer of Record (EOR) service

Think about outsourcing part or all of your HR duties to an Employer of Record (EOR) service providerMany medium-sized businesses can benefit from outsourcing by scaling their operations during business expansion periods, especially if they intend to open a business abroad.

Choosing the right solutions is crucial to your success, just like any other product or service available.

To find out more about Employers of Record and whether they are a good fit for your company, see our post on considerations to ask when selecting one.

So, how do you choose the service provider for your “Employer of Record”?

In actuality, a lot will rely on your situation. There are a few basic factors that you should thoroughly research before choosing a partner that best suits your demands.

Five factors should be taken into account while assessing Employer of Record service providers:

  1. Credibility
  2. Understanding geography
  3. Provision of employee perks
  4. Originality
  5. service model
  1. How reliable is the EOR?

First things come first. How well-established is the company?

Look at the length of time they have been in operation and the makeup of their clientele at the moment. Within your company, an EOR is in charge of certain administrative responsibilities. These could include managing your foreign employees’ benefits, sponsoring applications, processing local payments, establishing yourself as an authorized business in your host nation, and adhering to international labor rules.

Make sure they have a lot of experience with the above to guarantee worker safety, prevent compliance issues, and offer you confidence that your company is in excellent hands.

  1. Does the EOR have any prior experience hiring foreign workers in your area?

One of the more complicated parts of payroll services for employees is figuring out medical and leave accrual, insurance deductions, tax withholdings, and wage garnishments.

Make sure the EOR you select has a proven track record of accomplishment in the area where your foreign company operations are being carried out. Every country, state, and municipality has different local tax rules and regulations. There is usually a chance of civil penalties such as fines for such infractions.

Furthermore, labor regulations can differ depending on where you live; therefore, to guarantee regulatory compliance, you’ll need an EOR knowledgeable in foreign employment laws.

  1. What perks does the EOR provide to its staff members?

Working with an EOR has many benefits, one of which is the accessibility of its advantageous systems.

EOR companies have more clout in the advantages market because of their sizable clientele. This implies that even a small business owner can offer the kinds of benefit packages that are usually associated with larger organizations to their overseas staff. You must ascertain that the EOR you decide on offers advantages that your employees would not otherwise be able to enjoy.

Do they offer benefits beyond those found in a typical work contract?

In addition to other perks, a lot of EORs provide life insurance, employee performance programs, and training and development to both independent contractors and permanent staff.

  1. Which technological tools do they use?

Utilizing technology is essential when working with an EOR service because it is used for compliance assurance, payroll and tax processing, and the onboarding of foreign employees.

Ideally, you should be able to handle the employee life without interruption and have access to a system that seamlessly interacts with the software used by your company. To find out how the consumer’s experience will work, ask for a demonstration.

To safeguard the security of the data in your firm, you must also assess the security infrastructure of the software you will be using because you will be sending significant volumes of private information that you are required by law to secure.

  1. What’s the maintenance model?

When choosing which provider would be the perfect business partner for you, take into account their servicing model.

Do they use a one-size-fits-all strategy or do they modify their model to meet the unique needs of every client? Do they mostly connect with you through a website, or will you have one point of contact with whom you can ask questions and escalate problems?

The question of whether the service you want to purchase is essential to their organization is another thing to think about. In a perfect world, you would get the consideration and care you need and deserve.

What is the role of an Employer of Record?

  • Your company can begin hiring in a new nation with the assistance of an Employer of Record (EOR). There is no need for a physical location. They oversee payroll, employee screening, benefits implementation, and onboarding.
  • Organizations can learn how to manage the expectations of foreign employees while respecting their social standards and cultural customs by using their local cultural knowledge. 
  • Long-term employee engagement necessitates balancing these characteristics and novel ideas and concepts.


GEC, or Global Employment Companies, provides several services. The following are the main advantages of outsourcing your HR needs to a foreign company.

A global employment corporation (GEC) will be able to handle all of your employment demands, which will lead to several operational efficiencies.

What are the benefits of outsourcing employment of labor globally?

  1. Quickly enter new markets

Through collaboration with a globally diverse Global Employment Outsourcing (GEO) organization, you can swiftly penetrate new markets without the need to establish local entities.

Multinational corporations can be too much for growing companies. The constant changes in immigration laws, tax ramifications, and compliance make it difficult for you to concentrate on a long-term talent plan.

Working together with a multinational employment firm that is well-versed in compliance will free you up to concentrate on growing your company in the fresh market.

  1. Streamlined and economical human resources

The problems with global hiring and compliance get worse when you have to pay more to manage several vendors or hire HR specialists abroad.

You can collaborate with a single company and do away with the costly in-house workforce by outsourcing your overseas manpower requirements.

  1. Improved communication and efficiency

An outsourcing global employer can offer a single point of contact for all questions.

This decreases the need for various stakeholders to be involved while increasing efficiency and speeding up issue resolution.

  1. Uphold adherence and lower risk

A multinational workforce needs to be legally and expeditiously mobilized. Staying up to date with new laws is critical to the achievement of a multinational corporation.

Relying on a GEO specialist with extensive local knowledge guarantees that, wherever you choose to operate, your global workforce is managed legally.

  1. Accurate and dependable paycheck

Keeping up internal finance and foreign payroll departments can be costly and challenging for clients who don’t have an ongoing presence in the nation.

A GEO firm can handle every employee’s social security benefits and local and federal income taxes. They should also ensure that the tax authorities receive this amount directly from them rather than withholding it from their wages.

Can outsourcing your global employment needs benefit your company?

One of the highly reputed Global Employment companies ‘Soundlines,’ provides fully integrated international talent resourcing and outsourcing services to clients. Additionally, Soundlines serves both blue-collar recruitment and white-collar recruitment in varied industries, making the search for the best recruit more defined and successful every time.


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Soundlines has offices in 23+ countries to facilitate the recruitment process for both employers and candidates. Soundlines offers organizations access to its global experience while maintaining a local presence, ensuring that it understands your brand, culture, needs, and future goals.

Soundlines has served clients in the UAE, Saudi Arabia, Kuwait, Qatar, Bahrain, Poland, Russia, and Romania as a global HR recruitment industry leader for over two decades.


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