Expanding across the country or internationally offers businesses the opportunity to tap into new markets and access a global talent pool. However, the complexities of international hiring can pose significant challenges.
This blog explores how an Employer of Record (EOR) can simplify global expansion by handling employment requirements, ensuring compliance with local laws, and mitigating risks. It also differentiates EOR from Professional Employer Organizations (PEOs), highlights scenarios where EOR services are beneficial, and provides guidance on selecting the right EOR provider. With TCWGlobal's extensive experience and expertise, organizations can confidently navigate global hiring and achieve their expansion goals.
What is an Employer of Record (EOR)?
How Does an Employer of Record Work?
When to Use an Employer of Record
What to Look for in an EOR Provider
Employer of Record on a Global Scale
Expanding nationally and internationally offers numerous benefits for organizations, including access to a broader customer base and a diverse talent pool. However, the complexities of global hiring can pose significant challenges. This is where an Employer of Record (EOR) comes into play, simplifying the process and mitigating risks.
A global Employer of Record (EOR) enables companies to quickly hire workers in new markets without the cost and complexity of establishing a legal entity in those countries. An EOR provider manages all employment-related tasks on behalf of the client organization, ensuring compliance with local laws and regulations.
A national and global EOR has already set up entities in various states and countries, taking care of banking, insurance, taxes, HR, facilities, and contracts. They adhere to local employment laws to create a compliant infrastructure for employing and paying local workers. By hiring workers through its established entities, an EOR acts as the legal employer, allowing companies to expand nationally and globally without setting up their own entities.
While the EOR handles HR and payroll, the client company is responsible for day-to-day management, performance reviews, and termination decisions. This allows organizations to benefit from local talent without the associated risks.
Although similar, EORs and Professional Employer Organizations (PEOs) differ significantly. PEOs are more common in the U.S. and typically involve a co-employment arrangement, where HR and payroll tasks are shared between the PEO and the client company.
Both entities must be legally registered in the employee's country, sharing legal responsibility.
In contrast, a global EOR assumes full responsibility for legal compliance and entity establishment, freeing the client company from these burdens. When vendors refer to “global PEO” services, they often mean an outsourcing service similar to an EOR, not the co-employment model seen in the U.S. One more important aspect is that often an EOR offers significantly more legal protections than a PEO.
An EOR can be an ideal solution in various scenarios, including:
When choosing an Employer of Record provider, consider the following:
With close to two decades of experience, TCWGlobal is a trusted EOR provider, helping organizations expand and hire in over 170 countries. Our GEO service leverages deep local expertise to ensure compliant and efficient global employment.
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Whether you need expertise in Employer of Record (EOR) services, Managed Service Provider (MSP) solutions, or Vendor Management Systems (VMS), our team is equipped to support your business needs. We specialize in addressing worker misclassification, offering comprehensive payroll solutions, and managing global payroll intricacies.
From remote workforce management to workforce compliance and from international hiring to employee benefits administration, TCWGlobal has the experience and resources to streamline your HR functions. Our services also include HR outsourcing, talent acquisition, freelancer management, and contractor compliance, ensuring seamless cross-border employment and adherence to labor laws.
We help you navigate employment contracts, tax compliance, workforce flexibility, and risk mitigation, all tailored to your unique business requirements. Contact us today at tcwglobal.com or email us at hello@tcwglobal.com to discover how we can help your organization thrive in today's dynamic work environment. Let TCWGlobal assist with all your payrolling needs!
Discover how TCWGlobal's employer of record service can support your national and international expansion by speaking with one of our global solutions advisors today.