Speed to Hire

An employer of record (EOR) is the fastest method to hire employees in Türkiye. EORs already have their own legal entities set up in different countries or use local partners. This saves a lot of time.

Setting up a local entity and then hiring is not the right choice when your priority is fast hiring because this setup can take two weeks to 1-2 months, and hiring time is additional.

Setup Costs and Investment

An EOR makes it attractive for foreigners to hire employees in any country, especially in Türkiye. They manage every aspect of employment for each employee, ensuring compliance and efficiency. So, you don’t have to handle payroll, finances, or social security (SGK) submissions yourself. Otherwise, you need to pay separately for each service when hiring yourself, such as fees for payroll handling, finances, or SGK submissions.

For smaller teams, the administrational cost surcharges at EOR’s are significantly lower than the running costs of local entities. In such cases EOR’s are more preferable but to be sure you can contact FMC Group for a comparison calculation.

Legal Liability and Compliance

At this point, an EOR still wins. EORs have local experts for different countries who deeply understand local laws. This helps them avoid compliance issues.

When hiring by setting up a local entity, you’re new to the laws, and it is hard to comply with many laws at the same time for the first time.

Payroll and Tax Responsibilities

An EOR handles payroll in addition to employee hiring using its local resources. They keep records of employee work time and holidays and deliver salaries monthly and on time with accuracy. They also handle different types of taxes, such as deducting tax from employee salaries and submitting it to the authorities. EORs also collect SGK contributions and submit them on time.

However, when you hire employees using your own legal entity, you need to handle all the above tasks with the risk of compliance issues, and it is time-consuming.

Control and Branding

Setting up local entities and hiring gives foreigners more control and branding. This matters for some, and they manage all other aspects due to these benefits. The identity of the EOR and the real employer is often unclear to employees until the EOR is clearly introduced everywhere. This can raise doubts about company credibility, especially when the EOR is not an expert.

Scalability and Flexibility

You have full scalability and flexibility when you hire through your own legal entity, but an EOR gives you even more flexibility. You can easily hire more employees or terminate them with the help of an EOR. Flexibility is lower in direct hiring because of more processes.

Exit Complexity

Terminating employees with an EOR is very easy, as they handle all processes with minimal administrative involvement. On the other hand, terminations with local entities are complex. You need to go through the dissolution process and often you might need a lawyer to settle the process if mutual agreement cannot be reached. Such processes can take months.