An EOR is not a single service. Instead, it is a set of many related services that make the global hiring process hassle-free.

If you understand what benefits you get when partnering with an EOR, you can hire employees fast, securely, and smoothly.

So, below are 41 benefits of an Employer of Record service. These points will also give you a clear understanding of what an EOR service includes.

1. Faster global hiring: If you want to hire employees in another country, you need to register a local entity in that country, set up payroll procedures, insurance, and more. An EOR handles these requirements, so hiring becomes much faster.
   
   
2. No entity setup: This benefit makes companies select an EOR. This feature becomes more useful when you want to hire in multiple countries.
   
   
3. Legal employment: You still have full control over day-to-day operations of employees, and the EOR acts as the legal employer and ensures compliance with local labor laws.
   
   
4. Reduced compliance risk: Either you have to learn all labor rules for a specific country where you want to hire, or an EOR already knows them well, so compliance risk is reduced.
   
   
5. Local law expertise: After reading all local laws, you still need assistance in understanding or complying, and due to hiring for multiple clients, an EOR becomes an expert.
   
   
6. Payroll accuracy: This is critical because keeping a record of each employee’s salary, deductions, and accurate numbers is difficult. An EOR has a strong system to handle payroll processes accurately.
   
   
7. Tax compliance: When hiring as a common law employer, you must understand the tax rules of that country and often need a tax adviser, but an EOR takes care of it.
   
   
8. On-time payments: EORs pay employees on time, and this improves trust.
   
   
9. Local currency pay: Currency exchange rates and bank availability are handled by an EOR.
   
   
10. Contract localization: Each country demands specific types of rules in each contract, and EORs make local contracts comply with labor laws.
    
    
11. Risk mitigation: Employee-related risks are reduced due to partnering with an EOR.
    
    
12. Liability shielding: If an employee submits a complaint against payroll or any other labor law-related issue, the EOR handles it.
    
    
13. Simplified administration: An EOR offers HR solutions, keeps records of leave and attendance, and decreases the burden on internal HR.
    
    
14. Lower operational burden: There are multiple things to be done when hiring globally, so an EOR does most of them and decreases the operational burden.
    
    
15. Scalable workforce: When you are hiring multiple employees from different countries or planning to hire more employees later, you just need to ask an EOR, and all is done.
    
    
16. Market entry speed: As you don’t need to meet local requirements to hire employees due to an EOR, you can enter the market quickly.
    
    
17. Cost predictability: You clearly know how much an EOR is charging and the salary of an employee. This makes the cost estimate more reliable.
    
    
18. Compliance confidence: After completing all local requirements by labor law authorities, there might be something missing, or the confidence level is still much lower than that of an EOR.
    
    
19. HR efficiency: You get expert advice on local employment practices by an EOR, as well as HR support.
    
    
20. Streamlined onboarding: Onboarding becomes a lot easier as an EOR is running ads, taking interviews, signing contracts, etc.
    
    
21. Smooth offboarding: If you later want to make an employee quit, there might be some agreement requirements that an EOR will handle.
    
    
22. Termination protection: Employees or local labor termination laws can make the off-boarding process slower or even cause delays. So, an EOR is here to help manage this process.
    
    
23. Statutory coverage: EORs fully take care of and provide statutory benefits to employees, such as sick leave, annual leave, and insurance.
    
    
24. Benefits compliance: Other than statutory benefits that are required by local labor laws, if a company provides other benefits to its employees, an EOR is bound to provide them in compliance with laws.
    
    
25. Employee trust: When hiring through an EOR, you may be a small company with less recognition, but the EOR can be a big name that builds trust with employees.
    
    
26. Consistent policies: Local labor laws continuously change due to multiple factors like inflation, especially in emerging countries. Staying up to date with them is the key to an EOR, so you don’t need to.
    
    
27. Audit readiness: You get a full, in-depth report of each employee’s records and compliance status each month to analyse what went well. Otherwise, you need to make such a report yourself.
    
    
28. Reduced penalties: Complying with other countries’ laws is not easy, and one can get a penalty due to violations of any law. As EOR is already an expert, they reduce the chances. 
    
    
29. Dispute management: Any dispute related to administration, like payroll or workplace issues, an EOR will handle it.
    
    
30. Misclassification avoidance: Sometimes, when hiring for a specific role or contract-based position, misclassification can occur, which leads to penalties.
    
    
31. Regulatory monitoring: Regular monitoring can be time-consuming and frustrating. EORs handle everything and give you clear reports. 
    
    
32. Centralized reporting: You get a report containing the working time of employees, salaries, leaves, deductions, and other details.
    
    
33. Fewer setup headaches: Local laws require multiple things like different types of insurance, bank accounts, taxes, etc. You either set them up one by one with different companies, or an EOR already has everything set up.
    
    
34. Global flexibility: Most EORs work in multiple countries, and you can even hire in a specific country based on your needs. 
    
    
35. Operational focus: When using an EOR service, you only focus on the day-to-day operations and responsibilities of your employees.
    
    
36. Management simplicity: An EOR makes the management simple and reduces internal HR and admin workload.
    
    
37. Faster expansion: If you want to hire multiple employees from different countries at a time, the hiring process can go much faster.
    
    
38. Workforce stability: A balance is created between the internal team of a company, employees, and an EOR. Responsibilities are divided among each party.
    
    
39. Business continuity: If your business continues to grow, you can later switch to a common law employer. That is another benefit.
    
40. Employer credibility: When an EOR has a good reputation, employer credibility automatically increases, and better talent is attracted.
    
    
41. Peace of mind: If you hire as a common law employer, you need to do over forty-two tasks that are time-consuming, slow, and burdensome. Although an EOR charges a fee, gaining peace of mind is one of the most desired outcomes for any founder.