Offshore hiring options, ranked › #3

Ranked #3 of 6 · 6/12 points

Employer of record (EOR)

A provider that legally employs a person you found, in their country, and runs payroll, benefits and contracts for you.

Compliance service · Last reviewed

Verdict: The right choice once you have a candidate and want them employed properly; it does nothing to find or replace them.

An employer of record is a company with legal entities in many countries. It becomes the worker's official employer, issues a local employment contract, runs payroll and statutory benefits, and invoices you for the salary, the employer costs and its fee. You direct the work.

It solves compliance and nothing else. Hiring, judging fit and replacing people stay with you, which is why it ranks below a staffing firm for most first offshore hires.

Who it is for

Teams that have already found their candidate and want them as a proper local employee, without setting up a company abroad.

Choose a different route if

Strengths and limits

Strengths

  • The strongest compliance of any route without your own entity: the EOR is the legal employer.
  • Statutory benefits, payroll taxes and local employment contracts handled.
  • You keep full control of who you hire and how they work.

Limits

  • No sourcing or vetting: you find and judge the candidate yourself.
  • No replacement: if the person leaves, you start again.
  • Statutory employer costs and local termination rules apply on top of salary and the EOR fee.

What it costs

A per-employee monthly fee plus salary and statutory employer costs, which differ by country. Several large EORs publish their fees on their pricing pages; check the provider's page and ask for a country-specific cost breakdown.

How it scores

All-in cost transparencyFair Provider fees are often published; statutory costs vary by country and need a quote.
Vetting depthWeak None: you source and assess candidates yourself.
ComplianceStrong The EOR is the legal employer under local law.
ContinuityWeak No replacement if the hire leaves.
Lock-inFair Local notice periods and termination rules apply when you end employment.
ControlStrong You choose the person and manage the work.

Strong = 2 points, Fair = 1, Weak = 0. How we rank.

How it works

  1. You find and select a candidate.
  2. The EOR issues a local employment contract and onboards them.
  3. Each month it runs payroll, taxes and benefits, and invoices you.
  4. You manage the person's work directly.

Roles it fits

The other options