What Are the Benefits of Using an Employer of Record (EOR)? 

Did you know that an employer of record, also known as EOR, can be an asset to a freelancer’s business?

MarketWatch estimated that the market size of Global Employer of Record Services will reach $196 million by 2028. EOR is essential because freelancers usually feel lost without an established business entity.

But what benefits do EORs have for freelancers?

Keep reading below to learn about the benefits of using an employer of record for a business.

What is an Employer of Record?

An employer of record, or EOR, provides employers with a way to outsource employee management globally. It handles HR activities, such as paying workers’ wages, withholding taxes, and providing benefits. Companies use EOR when they need to hire workers in a hurry or when it wants to avoid the hassle of setting up a payroll system.

An example of a Global Employer of Record is Innovativeemployeesolutions.com. They will help your business grow globally while providing international compliance with employment.

Cost Savings

An employer of record (EOR) can be a cost-effective way to staff a business. Employer of Record Services includes hiring independent contractors, as well as employees.

This can save the company money on benefits and payroll taxes. When companies use an EOR, they can save costs of recruiting, hiring, and training.

Time Savings

An Employer of record can save businesses a lot of time in managing employee payroll and benefits. Businesses can focus on their strengths and leave the management of payroll and benefits to the experts.

Employers of Record also offer a variety of other services. This includes recruiting, performance management, and compliance with employment laws to save time.

Flexibility

An employer of record (EOR) allows businesses to hire employees without taking on the associated risks and liabilities. EOR is often used when businesses want to hire employees in a foreign country. It is also used when they need to immediately staff a project and do not have the time or the resources to do so themselves.

EORs can provide companies with the flexibility to hire employees for short-term or seasonal projects. It can provide businesses with the flexibility to adapt to changing market conditions and employee needs. 

Accurate and On-Time Payroll System

An employer of record provides an accurate and on-time payroll system for businesses. This can be an enormous benefit for companies that do not have the time or resources to manage payroll.

An EOR can also help cut the risk of compliance issues and penalties. Also, an EOR can provide valuable HR and benefits support to companies. 

Navigate the World of Employment With an EOR

Our guide shows that EOR or Employer Of Record can help your business in a lot of ways. This includes reducing your administrative burden, providing employee benefits, and managing payroll. They can also help you navigate the complex world of employment law.

Consider using an Employer Of Record and choose the best provider to meet your needs. 

If you’re interested in learning more about HR Processes, check out the rest of our blogs.