When to Consider Using an Employer of Record

If your business plan includes global expansion, employing an employer of record can significantly streamline the necessary tasks and reduce associated risks, simplifying the process. Expanding internationally can be challenging, particularly when you lack local expertise.

Outsourcing to an employer of record changes this dynamic, providing you with a local staffing agency and presence that facilitates the achievement of your global growth objectives. Global expansion entails a multitude of tasks, and an EOR can be advantageous from the very beginning, during your research phase as you explore new markets.

An EOR simplifies the evaluation of international markets by hiring local workers and offering a more efficient and expeditious way to initiate operations for testing purposes. This approach allows you to "test the waters" without committing excessive time and resources to the setup phase.

Having a legal local employer also shields you from the risks associated with independent contractor non-compliance, reducing the likelihood of employment and tax violations. The employer of record service will handle the hiring of contractors on your behalf, ensuring compliance with all local requirements.

With a global employer of record, you can also make compliant payments to new staff without the need for establishing local legal business entities.

By leveraging an EOR, you can avoid the complexities of setting up your own in-country entity, expediting the process and minimizing project timelines.