Hiring people in their local countries without the need for a local entity
With remote work becoming a part of every modern workplace, we can benefit from hiring the best global talent, regardless of the employee’s location.
When hiring international employees, there are a couple of rules to follow, the main one being not misclassifying your employees as contractors.
There are dozens of employers of records (EORs) that you can use to hire employees legally in their country of residence without setting up an entity. However, there are also many considerations that you need to be aware of, e.g. in Germany, you can only use EOR for a max of 18 months.
Many countries like France, Spain, and Portugal support foreign employers in hiring local talent without a need to set up an entity or engaging EOR. We can explore all of these options together and choose the one which suits your organization.
Cost of EOR
The cheapest EOR costs 299 USD per month, the most expensive goes up to 12% of Employee Gross salary or 1000 USD,* whichever is lower.
Did you know that in some countries you can hire directly, paying less than 50 EUR a month per employee?
Employer of Record considerations
Reach
EORs either have their own entities, use local third parties or offer a mix of those options to provide the service. Some EORs have reach as large as 160 countries.
Cost
Based on 8 employees with an average salary of 47,000 EUR there is an annual cost difference of 74,000 EUR between the cheapest and the most expensive EOR.
Platform
Some EORs have excellent platforms allowing integrations with your other tech stack, some allow payments in multiple currencies, offer payment advances, and many other features.
Compliance
Remember, we are dealing with employee data. Some EORs takes their compliance seriously with SOC2, ISO27001 and other reputable certifications.
Contractors
If you also want to bring all your contractors onto the same platform as international employees, know that only some EORs have that option.
Additional Fees / Deposit
It’s a norm that EORs will require one month’s payroll deposit, but some EORs require 3 months! There are also plenty of additional costs to consider, e.g. FX rate, transfer fees, onboarding fees.
CHOOSING BEST EOR
Expert Advice
We are providing expert advice on over 30 leading Employer of Records (as well as options for direct hiring without entity and without EOR). Some EORs we work with include:
Deel
Deel helps businesses hire anyone, anywhere. It’s global payroll for employees and contractors from around the world.
Teamed
We remove the barriers of complexity, cost and time for companies wanting to compliantly employ talent around the world.
Remote
The easier way to employ globally. Remote builds belonging for your team with payroll, benefits, & compliance solutions.
Lano
Global solution enabling businesses to hire and pay full-time employees and contractors in over 150 countries worldwide, in full compliance and record-time.
Safeguard
Adaptive solutions—in over 179 countries—for thriving in the global economy. Employment, payroll, onboarding and more.
Pilot
Pilot helps companies pay remote team members. We take care of payroll, benefits, compliance and onboarding for international teams.
Oyster
We’re on a mission to create a more equal world by making it possible for companies everywhere to hire people anywhere.
Workmotion
Enable global employment at the push of a button. We manage payroll, social benefits & taxes. 100% legally compliant.
Papaya
Building the future of work with automated software for global payroll, payments, and HR.
Omnipresent
We make it fast and easy to hire and manage employees compliantly in more than 160 countries.
Boundless
Employ anyone, anywhere. Boundless is the international & remote employment platform.
Panther
We exist to empower a world where talent has no borders. ✈️ Simplifying global payroll, taxes, compliance, and benefits