How an Employer of Record Differs From HR Software

An Employer of Record serves as a third-party entity responsible for legally employing a company's workforce. Conversely, HR software is a digital tool designed to facilitate an organization's management and enhancement of its human resources functions and objectives.

Determining the Need for an Employer of Record or HR Software
The choice between an Employer of Record, HR software, or a combination of both hinges on your specific business requirements.

If you are expanding your workforce across different countries and find it challenging to navigate compliance independently, opting for an Employer of Record may be a prudent choice.

Nonetheless, companies that collaborate with an Employer of Record will likely still necessitate an HR software solution. Most companies maintain an internal HR team and need to address aspects such as performance management, training and development, knowledge sharing, and more.