10 Best Employer of Record (EOR) Services in 2024
The best employer of record services hand-picked by our experts. Find feature comparisons, pricing info and more below.
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Top Employer of Record Companies
Employer of record (EOR) services are third parties that can act as the legal employer of staff in jurisdictions where your company has no presence. With an EOR service, companies can hire talent in another country without the hassle of setting up a legal entity there.
These companies can not only help you pay, provide benefits, and handle taxes for a foreign employee. They can also help with visa and sponsorship applications, local legal compliance, and many other HR processes.
We've spent hundreds of hours over the last few years researching and keeping this guide to the best EOR companies up to date.
The best EOR services made this shortlist based on dozens of demos and numerous in-depth conversations with product teams and HR experts.
Key factors we considered when comparing EOR companies include the number of countries where they offer first-hand services, pricing transparency, customer support, and the quality of their user interface.
- Payroll aggregators or in-house entities?: Many EOR and global payroll companies aggregate the services of third-party entities to offer services that reach hundreds of countries. We prioritized companies that own all the entities they use to hire people on your behalf, so they provide those services first-hand.
- Pricing transparency: In dealing with payroll, it’s essential to be able to see exactly what fees you’re paying and why. The best EOR services have no issues when it comes to providing peace of mind to their customers.
- Customer support: While many tools in the space promote a self-service approach, we favored companies with a strong customer focus. Few business aspects are as touchy as payroll, so vendors with a white-glove approach get prioritized.
- User interface: The best EOR companies tie all of the above together through nice-looking and modern software tools. These products are where you can keep track of everything going on with your international payroll.
You can find more details on how we vet tech vendors here.
PapayaGlobal
Multiplier
Deel
Remofirst
Remote
Rippling
Globalization Partners
GoGlobal
Oyster
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PapayaGlobal
Papaya Global does more than cross-border payments. The platform incorporates employee payroll, advisory services, and compliance tools, making it a solid EOR solution for large enterprises to hire, onboard, and manage employees and contractors in over 160 countries.
PROS
- Papaya Global packs the EOR services you need to do global payroll and employment compliantly in over 160 countries.
- Automated payments in over 100 currencies, 80 of them directly to the worker's bank account through its global banking partners.
- Dedicated customer support providing locations-specific knowledge regarding employment and payroll.
- End-to-end payroll guaranteed payouts in 72 hours.
- Offers four standalone solutions: data and insights, supplemental benefits & immigration support, payment services, and employee data management, making the platform more affordable and scalable.
- Papaya Global packs the EOR services you need to do global payroll and employment compliantly in over 160 countries.
- Automated payments in over 100 currencies, 80 of them directly to the worker's bank account through its global banking partners.
- Dedicated customer support providing locations-specific knowledge regarding employment and payroll.
- End-to-end payroll guaranteed payouts in 72 hours.
- Offers four standalone solutions: data and insights, supplemental benefits & immigration support, payment services, and employee data management, making the platform more affordable and scalable.
CONS
- No free trial or free plan.
- Doesn’t own entities in all the countries it serves. The platform forms relationships with existing local in-country partners to handle employment in a specific region on the client’s behalf.
- BI analytics reports and global immigration services cost additional fees.
- Charges extra fees for setup, onboarding, employee cycle, and tax filing. Also requires a refundable deposit.
- Built-in integration options aren’t very robust. However, the platform does offer pre-built APIs, SFTP, and custom API integrations for free.
- No free trial or free plan.
- Doesn’t own entities in all the countries it serves. The platform forms relationships with existing local in-country partners to handle employment in a specific region on the client’s behalf.
- BI analytics reports and global immigration services cost additional fees.
- Charges extra fees for setup, onboarding, employee cycle, and tax filing. Also requires a refundable deposit.
- Built-in integration options aren’t very robust. However, the platform does offer pre-built APIs, SFTP, and custom API integrations for free.
Papaya Global has been chosen as one of our recommended EOR solutions for three main reasons: a complete suite of services for global employment, a straightforward and flexible pricing structure, and distinctive customer service.
From our experience testing the platform, Papaya Global excels at providing a range of EOR services that businesses need to ensure their global employment is compliant without having to establish a local entity in the hire's country. The platform allows businesses to hire contractors and employees in 160+ countries. While the self-service portal is not new in this space, Papaya Global has made it helpful and engaging for end users. Employees can finish their country-specific onboarding, check their company org chart, time and attendance report, and access payslips, wage and tax statements, and employment documents. The platform has also rolled out its mobile app, with new features coming, to allow employees to access those features on the go.
While we would like to see Papaya Global offer 24/7 customer support, its current support service is already impressive. The global support center and knowledge base are available for all plans. Those purchasing EOR and Payroll solutions will have dedicated experts working in country-specific time zones to provide local expertise regarding employment and payroll.
Microsoft, Intel, Toyota, Wix, Fiverr, Johnson & Johnson, Deezer
- Employee of Record is one of Papaya Global's plans. It enables businesses to manage their EOR locations on one platform. The platform’s in-country partners function as employers of record, being responsible for payroll, workforce management, benefits, compliance, and more. This plan costs between $770 and $1000 per employee per month.
- Other than the Employee of Record plan, Papaya Global offers Contractor Management (starts at $25 per employee per pay cycle) and Global Expertise Services (priced at $250 for an annual plan or $320 quarterly per location).
- PapayaGlobal has added four standalone services in addition to its three plans: Full-Service Payroll (starts at $12 per employee per month), Payroll Platform License (starts at $3 per employee per month), Data and Insights Platform License (starts at $150 per employee per location), and Payments-as-a-Service (starts at $3 per employee per month).
Best For
The price point of Papaya Global’s EOR plan makes it work best for medium to large teams looking to hire international contractors/employees or ones wanting to send staff to work in their international offices.
I worked with PapayaGlobal for about two years in total, weekly. Mostly, I used the HR workflows because I am an HR consultant, and we were setting up mini HR offices globally. Employee onboarding was, of course, a big one. The integration with Workday was perfect. Uploading documents and organizing was straightforward. What I personally found invaluable were the compliance tools and local experience. This boosted my profile as well because I was learning through using the system.
Customer service is exceptional; you really feel that they are part of your team. I also loved the guarantees of local compliance, which created great trust with our in-house auditors. The ability to see the big picture of our workforce globally was also crucial, as it provided a great understanding of the workforce map and enabled strategic moves on the people side of things.
I was setting up PapayaGlobal for one of my previous clients. The reason we needed a tool like this was that we wanted to hire talent from different countries. Previously, we bypassed this by hiring on a "contractor agreement," but we really wanted employees, not contractors. While managing paperwork for EU candidates was somewhat easier, when it came to hires from outside the EU, it was a bit of a nightmare. Our HR team had to learn local employment laws, and we even contacted local lawyers to send us an empty contract so we could be fully compliant. These were the pains that the service greatly alleviated. We saved a lot of time, and audits were less stressful. We used it for about two years, but then the business took another direction.
It took a long time to learn the navigation through the platform; you really need to invest time to learn everything—you cannot just jump in with no training. Sometimes the screen would not load properly; words were overlapping, and it took some reloads for it to work, which was disappointing for a service that charges so much. We also had some issues with invoices; it was not clear how to manage them, but customer service helped with that.
Compliance support and global presence are the main reasons we chose PapayaGlobal. Another key factor is the customer service, which was consistently excellent. I also enjoyed the real-time access to analytics, which was helpful in following trends and monitoring important metrics globally.
First, consider the cost and how the pricing is structured to determine how much value a company can derive from the service at the agreed price point. Another important factor is access to real people who can guide the onboarding and integration with existing tools, which was commendable. Additionally, global access to local labor laws is perhaps the biggest consideration.
PapayaGlobal has evolved, but I believe other platforms have caught up and may be more attractive in their pricing.
PapayaGlobal is great for rapidly scaling businesses that need support in managing a multinational workforce.
PapayaGlobal is excessive for startups and scaleups with a simple payroll structure, or for those who work only with digital nomads, for example. Ensure you actually need all the services within the platform to make it worth the investment.
Multiplier
Multiplier’s EOR platform helps you send contracts in minutes, run payroll, offer insurance, and manage tax contributions in compliance with tax laws in over 150 countries. They also offer 24/5 customer service.
PROS
- Compliance, payroll, onboarding, and timesheets, all in one platform
- Multi-currency payments in over 150 countries
- Multi-lingual contracts made instantly
- Multi-currency payments in local currencies
- Multi-lingual contracts made instantly
- Compliance, payroll, onboarding, and timesheets, all in one platform
CONS
- Limited integrations: As of 2023, Multiplier only integrates with BambooHR for HCM-type tools, although they are working on adding more.
- Lack of tailored options: Customers would like more customization options, especially concerning contract clauses and leave types.
- A few users reported a slow response time from the customer support team.
- Limited integrations. As of Summer 2022, Multiplier only integrates with BambooHR for HCM-type tools, although they are working on adding more.
Multiplier’s Employer of Record solution helps you hire, onboard, manage, and pay employees, as well as manage taxes, allowances, bonuses, social contributions, and statutory deductions in over 150 countries.
For a company that was founded in late 2020, they have made significant strides in their industry, one of which is securing over $70 million in funding from 14 investors. We’ve been happy to see them grow with time, and their EOR services with an APAC focus have always been at the center of the tool. After a couple of demos and numerous conversations, we can attest to the seriousness of their team and the robustness of their software.
Multiplier can function as the middle-man employer to process payroll, benefits, and other expenses required to manage global workforces. Multiplier also helps businesses with local entities process local payroll in the specific markets they are hiring.
Multiplier is used by many companies with a global footprint, including Amazon, PWC, ServiceNow, Korn Ferry, and Orange Business Services.
Multiplier offers two price plans for their EOR services. They are flat rates priced on a per monthly basis. The amount stays the same regardless of the number of employees you manage. You get to cancel anytime, and no credit card is required for initial sign-up.
Note that, in addition to these plans, you will pay additional costs for the employee insurance package (also offered as a stand-alone tool). It starts from $20 per month for the basic coverage plan, and the prices vary with additional coverage. Prices may also vary with location.
Global Payroll is also offered as a stand-alone product for businesses with or without local entities - starting at $20 per employee per month.
Best For
Multiplier is an excellent option for companies seeking to expand their global workforce, particularly in the Asia-Pacific region, although they do cater to clients outside of that area as well. Their platform offers a range of features that benefit startups, mid-sized businesses, and enterprises alike.
We use Multiplier to find international talent. After we find who we are looking for, Multiplier helps us with our onboarding process for both new employees and contractors and gives an easy and secure way for our payroll to get our employees paid worldwide.
- Multiplier allows us to find talent worldwide.
- It helps us with our onboarding process.
- We can securely and easily pay talent anywhere in the world.
My organization started using Multiplier because we needed a reliable way to onboard international talent. We had several needs for talent worldwide on the contracting side and we were running into trouble finding reliable talent and a streamlined way to pay the talent.
- We have had some higher turnover on talent we have found through Multiplier.
- Not often but we have had to use other avenues to find talent because we did not find what we needed for a specific project.
- Multiplier does not have the best tools for language barriers between us and new employees.
I think the biggest way is that it’s a one-stop shop with being able to hire, onboard, and pay.
The biggest thing you need to consider is what type of people you’re trying to hire whether it be contractors or new employees. This will make a big difference in price.
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If your organization is in constant need of international talent and if you're looking for a secure way to hire onboard and pay contractors worldwide, this platform might be for you.
If you do not need to hire internationally or if your hiring needs are not out of control.
Deel
Deel can operate as an employer-of-record in over 150 countries. They own entities in 90+ countries and have focused on global-first companies for a long time. They have been tech-oriented from the beginning, boasting a stellar platform, coupled with solid services.
PROS
- Deel has outstanding customer service. Users benefit from 24/7 in-app assistance and an impressively swift onboarding process, typically taking only 2-3 days.
- Local payroll experts are available in various jurisdictions to offer comprehensive support.
- Deel effortlessly integrates with popular platforms such as Quickbooks, Bamboo, Greenhouse, and more. It further offers custom integrations to streamline and synchronize processes, enhancing efficiency and workflow automation.
- Deel also caters to the self-service approach. Newer users can quickly dive into its features without going through lengthy calls and demos. We have consistently found the setup process to be hassle-free, with identity verification often completed within 24 hours or even minutes.
- Automated invoicing, available in English, simplifies financial tasks for both companies and contractors.
- One of the best features of Deel is its customer service. They offer 24/7 in-app support and the fastest-in-class onboarding speed of 2-3 days. Users get access to local payroll experts in each jurisdiction, and support is available for contractors facing challenges setting themselves up as an LLC.
- Integrates seamlessly with common platforms like Quickbooks, Bamboo, Greenhouse, and more. They also offer custom integrations to automate and sync processes.
- Self-service approach; tech-enabled features so customers can jump in quickly and easily. Our user researchers found it quite easy to set up: the identity verification process consistently took less than 24 hours, and in some cases, it took mere minutes.
- Automated invoices, which are a breeze to do as long as they’re in English, both on the company and the contractor or employee’s side.
CONS
- Certain advanced features cost extra, including onboarding automation.
- Deel's rigidity in altering contracts or service agreements might be restrictive for companies seeking more adaptable terms. Modifications often necessitate addendums, potentially causing administrative complexities.
- Deel imposes a $5 fee per payout, which can accumulate over time and impact cost-effectiveness, particularly for businesses handling frequent payouts.
- Deel currently supports invoice generation exclusively in English, potentially posing constraints for organizations requiring multi-language invoicing capabilities.
- Deel doesn’t own the entities they use for an EOR setup in all the jurisdictions they operate in. Depending on the country, a third-party company may have to be included in the mix.
- Some of Deel’s best and most powerful services, like onboarding automation, appear to be add-ons, which might be too costly for some companies
- There is little to no flexibility when it comes to altering their contracts or service agreements, so many changes would require an addendum.
- There is a $5 fee per payout
- As far as we’ve seen, it’s not possible to generate invoices in another language.
When it comes to global payroll, Deel is one of the pioneering companies. They offer a comprehensive solution that includes contractor and freelancer management, as well as EOR and PEO capabilities.
For an EOR setup, they act as the legal entity that would hire your international teammates in their country of residence. They can do this in over 90 of the countries they currently operate in, so it’s best to check their exact list if you’re positive about wanting to go the EOR route.
Moreover, their sleek design has always made them stand out in the category. Many companies in this space started out offering EOR services and then developed a software product for clients to stay in the loop and perform basic tasks. Deel is one of the companies that started as a tech product from the get-go, which means the platform is quite robust and can handle a variety of international payroll use cases.
Deel is used by companies such as Brex, Google, Homelight, Duffel, and Andela.
Deel offers an intriguing pricing structure that promotes exploration and adaptation. Users have the opportunity to sign up for free and fully experience the tool's functionalities before incurring charges, which begin once the first team member is paid. The pricing tiers for Deel are as follows:
- Contractors: Priced at $49 per contractor per month, this plan ensures comprehensive management of payroll and compliance for contract engagements spanning 150 countries. Deel efficiently handles the intricacies of contractor payroll, streamlining operations across diverse jurisdictions.
- Full-Time Plan: Starting from $500, this plan proves highly advantageous for companies seeking to expand their workforce across international boundaries. This is where Deel acts as an Employer of Record, alleviating the complexities of establishing legal entities in new countries.
Best For
Businesses who are considering an EOR service provider with great tech to go along with it, and the option to have some contractors within the same tool.
We use Deel on a weekly basis to hire, manage, and pay international employees for clients. Once a candidate has accepted our verbal offer, we use Deel to send the offer letter, new hire documentation, and collect information for payroll. Deel stores all of our new hire information such as employee benefits selections, tax information, and signed offer letters. We also use Deel to coordinate with our outside payroll vendor to ensure everyone is paid correctly and the proper withholdings are implemented.
The first thing that we love is Deel HR is free! Not only is it free, it still offers all the bells and whistles of your typical paid platforms. I like that you can use Deel as the employer of record for international employees. Deel ensures we are compliant with local labor laws. Deel HR has replaced our need to purchase an HRIS system to serve as our employee management system.
We purchased Deel because we were seeking an affordable HR tool for our startup company. We were experiencing pain in the areas of documentation management, managing employee files on multiple databases, and wanted to streamline our operations. We were also seeking an onboarding solution that could integrate with our recruitment process. Deel has helped us centralize our HR functions and improve our efficiency in managing employee data and onboarding new hires.
The cost for the employer of record is very high for a startup company. This is an amazing solution to offer for a growing company, but I wish the price was lower or split into two payments across the month. Although it is easy to navigate, the UI could be nicer.
Deel is a one-stop shop for domestic and international hires. They have a built-in background check and visa and EOR in one platform. Other platforms require the use of multiple tools to accomplish these tasks.
First, they need to consider their hiring needs. Determine how many international hires annually to be able to do a cost-benefit analysis. They also need to have a defined hiring workflow to determine if Deel has everything they need to enhance their existing workflow.
Deel has done a great job with API and adding new integrations as the market evolves.
Global and domestic organizations of all sizes.
Deel is great for all companies and industries, especially if they want an all-around tool to take care of all HR needs including global payroll and EOR.
Remofirst
Remofirst makes an all-inclusive EOR platform aimed toward making remote global hiring a seamless reality. Its standout features include budget-friendliness and exceptional customer support, where every client is privileged with a dedicated 24/7 account manager.
PROS
- Employers can conveniently remunerate Remofirst in USD, GBP, EUR, CAD, and SGD.
- Remofirst disburses payments to each international employee in their local currency.
- Their coverage spans more than 150 countries.
- Embracing a youthful disposition, Remofirst boasts a modern, sleek UI that's visually appealing.
- Employers are able to pay Remofirst in USD, GBP, EUR, CAD, and SGD.
- In turn, Remofirst pays each global employee in their local currency.
- Over 150 countries serviced
- Since it’s a young product, the UI looks quite modern, sleek, and generally easy on the eye.
CONS
- Being a comparatively newer player, Remofirst is progressively unveiling integrations and features from its monthly roadmap, resulting in current limitations.
- As a younger company than others in the industry, Remofirst are still rolling out new integrations and features from their roadmap every month. Hence, these are somewhat limited for now.
Remofirst effectively straddles the realms of a software platform and Employer of Record provider. It extends comprehensive compliance solutions to global teams seeking to recruit personnel and contractors in regions devoid of their own legal entities.
We’ve been lucky enough to witness their product evolution since its inception in 2021. After a demo and a couple of conversations with their product team, we’ve noted transformations like a revamped UI, expedited same-day onboarding, and enhanced 24/7 customer support.
On the services front, we’ve heard praise from several users for Remofirst’s transparent operations and exceptional customer service. They also boast extensive country coverage and a reasonably priced offering.
The notable clientele of Remofirst includes Microsoft, Mastercard, ZocDoc, QED, Labster, and Byrd.
Remofirst's pricing model is worth checking out. For EOR services, the pricing tier initiates at $199 per employee per month. Contract workers can start using the platform for $19 per month.
A conventional free trial is absent, but Remofirst is still a cost-friendly tool. For example, there are no monthly charges for hiring global contractors. Hence, you can perform a low-commitment evaluation of the platform's offerings before transitioning to full EOR services.
Best For
Remofirst caters effectively to organizations aiming to onboard remote global workers while maintaining adherence to compliance regulations, whether they are full-time staff, contractors, or a mix of both.
The platform serves a diverse clientele, encompassing large enterprises, small businesses, and even bootstrapped startups. Predominantly, its clients consist of tech-sector companies with employee counts ranging from 100 to 200. Nevertheless, the platform scales flexibly, accommodating scenarios from hiring a single employee or contractor and onward.
I currently use Remofirst daily to hire and manage employees in different locations. One of the main reasons I use Remofirst is for the hiring and onboarding process. It plays a major role in simplifying and streamlining the payroll process for our global teams. The Remofirst dashboard is also used by employees to navigate their payroll effortlessly. Overall, it helps manage various HR tasks efficiently.
The main reason I like Remofirst is the ability to reach people from all around the world. The integration of the system is super user-friendly. Remofirst works well with other existing HR systems. It makes it easier to hire and manage employees remotely.
My organization purchased Remofirst to ensure a smooth onboarding process for HR professionals and to enhance the employee life cycle experience. One of the key benefits of Remofirst is its functionality and user-friendly interface, allowing employees to quickly navigate the system. The platform also streamlines and simplifies the payroll process for businesses with global teams. I have used Remofirst for the past two years, and it has significantly improved our HR operations.
While the platform may be user-friendly, some users may experience trouble navigating it due to its features. It can be challenging to understand and edit information. The platform could improve by launching new features and providing better feedback to help customers use their services effectively.
Remofirst is different from other hiring platforms because it offers competitive pricing catered to a wide range of business sizes. It specializes in working with remote companies at a lower cost. I prefer Remofirst because its tools reduce processing time while ensuring payroll accuracy.
When buying a tool like Remofirst, consider the functionality and features it offers. Ensure the interface is user-friendly so employees can navigate the self-service system easily. Also, consider the tool's ability to scale with your company. Evaluate the cost, customer support, and training options to streamline your business for the best HR process and employee life cycle experience.
Remofirst has evolved to provide a better experience for daily users by including several new features that incorporate the latest technology and trends. They have also improved the platform based on client feedback.
Remofirst is very good for organizations looking to hire employees internationally.
Remofirst is not a good fit for organizations looking to hire small teams or locally.
Remote
Remote is among a small number of EORs that operate as a local entity in the countries they service. They offer numerous global HR solutions in addition to payroll, including onboarding, taxes, and equity plans.
PROS
- Remote owns 100% of the entities for which the platform offers EOR services.
- Flat fee structures don’t require a deposit.
- The benefits packages are country-specific.
- Supports ironclad IP and invention rights protection.
- Responsive customer support via email and live chat.
- Supports equity incentive planning across countries, including tax withholding.
- Easy-to-use employee mobile app.
CONS
- The platform supports direct deposit and wire transfers but doesn’t support off-cycle pay runs.
- No phone support is available.
- There are limited integration options but using their open API doesn’t incur in additional charges.
Remote is a globally distributed HR hub where businesses can process payroll, perform salary simulations, onboard new hires, manage benefits, and take care of most of the administrative tasks of having an internationally distributed team. One of the things we’ve always liked best about Remote is that it wholly owns local legal entities in the 60+ countries it covers. This frees them up to offer more flexibility and speed in services and prices, (which is something most top EOR vendors should have in most of their jurisdictions, we’d argue).
Now, Remote’s EOR services are not the most budget-friendly, but we appreciate the platform's flat fee structure. Users know exactly how much they’ll pay monthly, with no billing surprises. For businesses that meet their creditworthiness criteria (exact standards are unknown to all but Remote), no deposit is necessary.
Though Remote no longer offers free payroll for contractors, it does offer a couple of other benefits we appreciate. Some startups and nonprofits are eligible for discounts, and incentives are provided for businesses that employ refugees.
Loom, GitLab, DoorDash, HelloFresh, Workato, Semrush, Teamway
- Employer of Record: Starts at $599/employee/month (when paid annually)
- Global Payroll: $50/employee/month
- Contractor Management: $29/contractor/month
- Contractor Management Plus: $99/contractor/month (Everything in Remote Contractor Management with added indemnity coverage)
- Remote Talent: Starts at $119/month
- HRIS: Free
- Startup and nonprofit discount: Eligible startups and nonprofits can get 15% off EOR and Contractor Management services for 12 months.
Best For
Remote’s an excellent value for money for remote-first enterprises to get a full-fledged and trusted EOR, thanks to its 100% owned-entity model in 60+ countries.
I use Remote as a tool for our international hiring process, and we require international candidates at least once per month. Remote allows me to control the entire recruitment process from the job position posting until the onboarding process. It also helps me source candidates that match our job description and manage and organize the applicants through their integration with our ATS system.
I love Remote because I can post job openings in different countries, which helps me attract more candidates and create a talent pool. I like that it is user-friendly, and the features are easy to use and understand; you do not need to watch YouTube videos to learn how the platform works. Finally, it helps me create job postings that are more attractive to candidates using AI.
Our Customer Service department requires bilingual and, in some cases, trilingual profiles. This skill can be challenging to find in the market if you focus your search on just one country. I have been using Remote for the past four years, and it has helped us find seasoned candidates on different continents, opening the possibility of hiring international employees and meeting our recruitment goals.
It can increase the number of ATS systems that they can integrate with the platform. Remote has amazing additional services, but they offer them as an enterprise plan (extra cost); I believe some of them, such as global payroll, could be included in the talent acquisition plan. Although customer support is available 24/7, sometimes it takes a few days to get back to you with a solution.
I have used different platforms to hire international employees. Remote.com allows me to contract directly with the employee for my organization, while other platforms only allow me to hire the candidates as freelancers or contractors, and we require full-time employees.
If you want to increase your talent pool and hire remote workers, Remote.com is a good option. In addition, if you need help processing payroll according to the employment laws in each country, Remote.com takes care of it with global payroll.
Remote.com has changed the way of remote work. Before, there was just one option: hiring someone as a freelancer or contractor. However, their platform is available in different countries and has opened the possibility of hiring full-time employees. Companies can now count on team members to be 100% focused on their needs.
Remote.com is for any type of organization, whether an international or multinational company or a business startup, because their platform adjusts to the organization's needs.
I believe it would not be a good fit for an organization that is looking to hire from a specific country where Remote.com does not have a presence.
Rippling
When Rippling entered the global payroll and EOR space, competition got harder. They are able to offer first-hand EOR services backed by a platform that’s already widely known as a best-in-class HRIS and payroll suite.
PROS
- Full HRIS on top of a global payroll suite
- Operation support for work authorization with the local authorities
- Local HR advisors for topics like immigration, performance improvement plans, termination, complaints, and several kinds of leave (parental, sick, unpaid, etc.).
- You can also pay contractors or part-time employees overseas.
- As of Fall 2023, the platform also offers a robust ATS
- All-in-one platform for employee management + PEO services offered, and even a suite of other IT products
- With 500 integrations, it’s very likely that they integrate with other key tools from your tech stack.
- Operates globally with any currency
- Workflow automation
- Analytics opportunities
- Provides a holistic view of company outflows—headcount costs included
CONS
- Rippling as an EOR or Global Payroll suite is only available as part of a comprehensive package, and cannot be purchased separately. This means that businesses interested in using the Rippling system will need to commit to the entire Rippling HRIS.
- Moreover, it may not be a suitable option for very small businesses experiencing slow growth, as the cost and complexity of the platform may outweigh the benefits for these companies.
- Total buy-in to Rippling is essential
- Very SMB-oriented, in case you’re a larger company.
- New features tend to be buggy in ways that tech teams are not accustomed to fixing
Rippling's platform can manage every element of the compensation process for a company. This goes from monitoring employees' and contractors' working hours to performing tax and PTO calculations. This has long been the case with the US-based company, but they can now do this internationally. When processing payroll globally, you as the HR manager or business owner get to choose how to pay employees overseas. You can run payroll through Rippling’s own EOR entities in the country of destiny, or have them help you set up your own local entity and manage everything through the platform.
This contrasts with most global payroll companies; since the majority only act as intermediaries between multiple third-party vendors. What they do is unify all those processes in a single platform, so you get to see everything on a dashboard that's way easier on the eye. Don't get us wrong, that was quite novel not so long ago, and it's still a useful way of employing people internationally while making sure you're abiding by all local tax regulations.
Rippling’s approach, however, is new in the sense that local EOR entities are set up and handled by themselves. They provide the local contracts and thus avoid acting as an intermediary. This approach also lets them offer benefits management, stock options, and global support, with more flexibility; and all this on top of the entire HR suite they are famous for. We were happy to demo it once again in late 2022, and can confirm that their global payroll and EOR offering is worth looking into if you're also in the market for a new HRMS.
Proxy, Dwell, Superhuman, Expensify, Checkr
Rippling starts at $8 per user per month. However, the final fee you'll pay is determined by the specific modules you choose to use. The full platform includes the HR cloud but also their IT and Finance products. It's easy to get a free quote via the pricing page of their website.
Best For
Rippling is an excellent choice for SMBs that value a seamless user experience and seek comprehensive HR tools in a unified platform. The product is thoughtfully designed for accessibility across the entire organization, encompassing a wide array of essential HR functions.
We use Rippling for single sign on, benefits admin, FSA/HSA, time and attendance tracking, PTO requests and more. We also use Rippling for payroll, onboarding/offboarding, compliance and tax, IT device management and more.
Rippling is a one stop shop for our employees. We enjoy the ease and flexibility of the tool. It is also highly customizable to our needs. Payroll processing is straightforward. It takes care of all the compliance, reporting and tax matters we have. The customer support is exceptional and I always get to speak with a real agent when I have a question.
To bring a single source of truth and information hub to the company, we implemented Rippling. We've had Rippling in place since January of 2022. We wanted a tool that supports single sign on, benefits admin, time and attendance tracking, PTO requests and more. We also use Rippling for payroll, onboarding/offboarding, compliance and tax, IT device management and more.
Paying for workflows was a surprise. In order to create custom workflows or approvals you have to upgrade your package.
Rippling truly offers everything you might need. You can pick and choose the features and services you'd like to have, which I appreciate. As a smaller business, we don't need every feature, but we use quite a few and we are very satisfied with what they offer. They also integrate with several other tools which makes it easy to keep all of your platforms connected and speaking to one another.
What are you trying to solve for your company? Make a list of ways an HRIS could simplify your life, for employees, managers and HR. Look at what tools you currently use and see if Rippling could replace those. Or if those tools could integrate with Rippling.
They add new capabilities all the time. They now have a global payroll feature so you could pay all of your contractors and employees from one place. They have headcount planning features now. They also offer compensation banding.
Rippling is good for companies of all sizes and stages. It could be used to manage a team of 15 or a team of 50,000. It is flexible and customizable. I can't think of a company Rippling wouldn't be good for.
Globalization Partners
Globalization Partners stands as the driving force behind an expansive global Employer-of-record platform called G-P Meridian. It’s remarkable for blending professional services with AI capabilities that extend far beyond the realm of payroll management.
PROS
- Their G-P Meridian platform is heavily focused on the EOR space, but it’s offered in several plans that can cater to varying needs, even those that might only need to hire people as contractors.
- Using their tool also implies access to a team of HR and legal professionals with significant experience in each country they operate in.
- Their UX has evolved continuously and gotten more intuitive and modern each time we delve into the product.
- Their G-P Meridian platform is heavily focused on the EOR space, but it’s offered in several plans that can cater to varying needs, even those that might only need to hire people as contractors.
- Using their tool also implies access to a team of HR and legal professionals with significant experience in each country they operate in.
- Their UX has evolved continuously and gotten more intuitive and modern each time we delve into the product.
CONS
- Customizing a contract is only possible with the G-P Meridian Prime plan.
- Features like background checks, equity management, and IT equipment— to name a few— are only available as add-ons.
- There is no way to try out the software product unless you sign up for a demo and request a proposal.
- Customizing a contract is only possible with the G-P Meridian Prime plan.
- Features like background checks, equity management, and IT equipment— to name a few— are only available as add-ons.
- There is no way to try out the software product unless you sign up for a demo and request a proposal.
Globalization Partners offers a holistic approach by seamlessly integrating professional HR services and worldwide payroll solutions through an innovative AI-driven platform. Spanning a remarkable count of over 180 countries, their comprehensive offering enables businesses to effortlessly hire and onboard team members across the globe.
Their platform extends its capabilities beyond the confines of payroll, providing invaluable support for diverse aspects such as onboarding, management, benefits administration, and compliance.
A distinguishing feature lies in their extensive presence, with a business entity established in nearly every country. This unique advantage facilitates the swift and efficient global talent acquisition process, often culminating within a matter of days. The most remarkable aspect is that this entire process unfolds devoid of any burdens related to legal, tax, or HR intricacies, as Globalization Partners shoulders these responsibilities seamlessly.
Since we first came across this tool in early 2021, we’ve witnessed its continuous growth and expansion. In 2023, they offer a wider variety of plans that can accommodate the needs of organizations big and small. Their UX has also improved significantly, and they keep adding new people to their team in all corners of the Earth.
Globalization Partners is used to do global payroll at companies like Distek, Udemo, Zoom, Neurala, and more. Their website has use cases for all of these companies, so be sure to check them out.
While specific pricing details are not disclosed by Globalization Partners, their commitment to tailored solutions shines through. The most prudent path forward for those interested is to engage in a demo.
Best For
Globalization Partners presents an ideal match for enterprises in pursuit of an employer-of-record partner that not only offers a comprehensive platform but also excels in overseeing the intricacies of the entire spectrum of HR operations.
The primary use for us is as the employer of record, offering payroll, benefits, and compliance for international employees. Since we don't have many international employees and aren't well-versed in international regulations, having Globalization Partners makes it much easier to onboard, ensure compliance, pay in local currency, and offer the correct benefits.
It is very easy to use and responsive; everything is mostly self-explanatory, but when I have questions, getting answers is straightforward. Additionally, the site itself is clean and operates quickly.
We bought it because during the pandemic, we allowed employees to move abroad, and some decided to stay there. Our company was only registered in the US and had no plans for international expansion, so it made sense to use a company like Globalization Partners. We started using them in 2020 and have been using them since.
I can't recall any significant dislikes about them. However, every time you add a new country, there is a new fee, which isn't ideal, but I understand why it is structured that way.
For us, it was their expertise, reputation, and the range of countries they could serve that made the difference. It's also a one-stop-shop in many ways since they can handle everything in a single simple workflow when adding a new employee.
If you are hiring just a few people internationally, then it makes sense to use Globalization Partners. However, as your international workforce grows, it might become more cost-effective to manage these processes internally.
I can't think of any specific changes, but I know I receive emails all the time with updates and news from them.
They are great for smaller to medium-sized companies that have just a few employees overseas.
A giant multinational company might already have the expertise in payroll, HR, benefits, and compliance, and be registered in the necessary countries, so they may not need Globalization Partners.
GoGlobal
GoGlobal is the world’s fastest-growing privately-owned EOR provider. They are among the true pioneers of the space and have substantial expertise in many markets.
PROS
- GoGlobal is a rapidly growing EOR provider with substantial expertise, particularly in the Asia Pacific region, operating in over 100 countries.
- Despite being smaller, GoGlobal leverages its size to be responsive and adaptable to client needs with a remote workforce of around 250 individuals.
- GoGlobal offers custom-based pricing, providing clear breakdowns and open communication about charges.
CONS
- GoGlobal may have somewhat limited integration options, potentially causing compatibility issues with existing HR software.
- It’s also been noted by some users that GoGlobal’s services are not a great fit for companies with revenues below 100,000 EUR.
- GoGlobal’s EOR services are only available in around 100 countries. This might seem limited compared to other companies. However, it does imply a strong focus on these markets, and therefore a considerable level of expertise.
- GoGlobal lacks phone support for immediate communication, potentially affecting clients in urgent situations.
GoGlobal started providing EOR services in Asia Pacific, quickly becoming highly sought-after experts in the region by companies from the West wanting to hire top talent there. They've been expanding rapidly while sticking to their credo of doing things themselves. They rarely turn to third-party firms to establish a presence in a new territory; since they actually have people in most places they operate in.
We first came across them in 2020, smack dab in the center of the pandemic, when the EOR space was suddenly experiencing a boom thanks to the sudden necessary normalcy that remote work acquired. Being founded in 2018 and with decades of experience in international hiring, we noticed these guys had everything to ride out this wave.
Back then, they could only offer services in 50 countries, but we were told they were adding a new territory nearly every week. A couple of years later, they operate in more than 100 nations. Now, they continue to grow rapidly, constantly adding new countries and clients. As a self-funded venture, GoGlobal has always been nimble, responsible, and adaptable to what its clients need. Their workforce of approximately 250 passionate and fully remote individuals spans the entire globe.
They have worked with some of the most well-known companies across various industries including social media companies, food delivery technology companies, streaming companies, and one of the largest liquor producers.
GoGlobal's pricing is custom-based since it varies depending on the number of people you're looking to hire and the location. One thing we can say is that they tend to be very transparent about their pricing, consistently providing breakdowns and being very open about what is charged.
Best For
GoGlobal’s services can be helpful for businesses of all sizes and geographies. That being said, they tend to find great matches with VC-backed SaaS companies with a remote global workforce.
I use GoGlobal daily for all communication and collaboration within the company. Instant messaging on GoGlobal serves well when one wants to quickly touch base with team members across different time zones—discussing project updates, application requirements, or brainstorming sessions.
Another feature I use frequently is video conferencing. We hold many virtual meetings with colleagues or peers from other locations about projects, milestones, team reviews, or strategies on upcoming initiatives. Seeing and hearing each other face-to-face strengthens relationships and makes discussions more effective than emails or voice calls.
Additionally, shared document editing allows multiple team members to edit or update a common document, spreadsheet, or presentation simultaneously. This way, everyone has access to an updated document and can provide their inputs in real time, streamlining our operations and reducing issues with mismatched versions.
I like the integrated messaging, video conferencing, and document sharing features of GoGlobal, which facilitate seamless communication across global teams. The platform's easy navigation ensures high productivity without requiring comprehensive training or onboarding. Finally, GoGlobal is reliable, and communication and workflow activities are always smooth and uninterrupted across different time zones and network conditions.
Before GoGlobal, the company had issues with communication due to time zones and coordinating tasks worldwide. When we launched GoGlobal, we finally had our communication and project management tools all in one place. Its rich feature set—instant messaging, video conferencing, shared document editing, and timezone-aware scheduling—simplified our workflows considerably.
Besides increasing productivity, this integration built a sense of teamwork and synergy within varied teams spread across the globe. My experience with GoGlobal started when it was initially implemented in my company.
Having used it for these two years, we have worked in closer collaboration, making the process efficient and enjoyable. It has been instrumental in allowing us to achieve faster results while providing the best solutions to our global client base.
The only thing I dislike about GoGlobal is its limitations for organizations with very specific needs or preferences, as the customization options for user interfaces and workflows are limited.
Having worked with similar tools, I find GoGlobal stands out in terms of its exhaustive set of features, interface, and performance. Its integrated approach saves time and increases productivity by minimizing workflow interruptions and simplifying collaboration processes in a joint team environment. With cross-platform operation, I prefer GoGlobal over others for its smoother integration and strong security measures, which create a more efficient collaborative environment.
It is vital to consider the features it offers. Messaging, video conferencing, document sharing, task management, and integration are common features; how they align with your organization’s needs is key.
User-friendly interfaces and intuitive navigation are important for quick adoption and low training requirements. Test the tool or get a demo to understand how easily your team can adapt to it. Since this pertains to corporate communications and data sharing, evaluate tools from a security viewpoint, ensuring proper security measures such as end-to-end encryption, access controls, and compliance with relevant regulations like GDPR and HIPAA.
Additionally, consider whether the tool can grow with your company and if it supports integration with existing software and platforms, such as CRM systems and project management tools. Finally, balance subscription fees, implementation costs, and any incremental fees for additional features or user licenses against the value and benefits of the tool in terms of increased profitability, efficiency gains, and improved collaboration.
From a core feature set of messaging and video conferencing, GoGlobal has expanded to meet a broad range of collaboration needs, including screen sharing, virtual whiteboards, and integrated task management. Updates and fine-tuning have made the platform more intuitive and easier to use, reducing learning time and enhancing usability across multiple devices and operating systems.
GoGlobal has also enhanced its capability for integrating with third-party applications and services, allowing users to utilize existing tools and systems within the GoGlobal environment, making practices more efficient and reducing context switching. Additionally, in response to rising cybersecurity concerns, GoGlobal has tightened its security measures with strong encryption protocols, robust data privacy controls, and compliance with industry standards and regulations, thus ensuring the protection of sensitive information.
Companies that have offices and operate all over the world will find GoGlobal very useful.
Small companies with only one office might not benefit from GoGlobal.
Oyster
Oyster partners with local entities in over 180 countries, making it a legal employer you can rely on to handle compliance, onboarding, payroll, benefits, and terminations. You will also love the platform’s generous discounts if you’re hiring refugees or a nonprofit.
PROS
- Oyster’s interface is intuitive and easy to navigate.
- Simple and competitive flat rate for employees and contractors.
- Smooth onboarding and offboarding with helpful guidance from lawyers and accountants regarding the labor laws in your hiring countries.
- Non-profits get to hire their first full-time team member for free for a year.
- You can hire refugees in countries where Oyster has direct entities at no or discounted cost.
- Helpful Academy with easily accessible help docs.
- Responsive customer support. Highest-price plan users also are assigned a dedicated account manager.
- The employee cost calculator lets you quickly estimate detailed costs of hiring in a new country.
- Doesn’t charge extra fees for setup or cancellation.
- Intuitive: The platform is easy to navigate and makes logical sense.
- competitively priced: The flat rate for employees and contractors makes cost comparisons simple, and is competitive in the market.
- Targeted for a remote workforce: Whether your employees are in one country or 100, Oyster can accommodate them accordingly, and this is a feature few platforms can boast.
CONS
- Some delays in local currency payment can be expected.
- No phone support for immediate communication is available.
- There’s a refundable security deposit required to initiate the engagement.
- No native time-tracking feature. Only offers an in-app time-off tool.
- If you’re looking to co-employ your employees and partially outsource HR responsibilities, Oyster might not be for you. They are more of an Employer or Record (EOR) rather than a Professional Employer Organization (PEO).
- Slight delays in processing times for payments in the local currency are somewhat common.
- Immediate communication via phone support is not an option, but they do offer live support via Zoom when necessary.
- An initial security deposit is necessary to begin the engagement and is refundable.
- The platform lacks native time-tracking functionality and provides only an in-app tool for managing time off.
- If you’re looking to co-employ your employees and partially outsource HR responsibilities, Oyster isn’t for you. They are more akin to employer of record services (EOR) than a Professional Employer Organizations (PEO).
Oyster is a flexible and user-friendly platform businesses can rely on to compliantly hire global contractors and employees and handle onboarding, house payroll, benefits, and employee information — all these things under one roof. We’re glad the platform didn’t lie when it said it’s designed with end users in mind. We found no difficulty navigating each of its service tools and were especially impressed with Oyster’s customer support. They got back within a few hours to our ticket and were very helpful in assisting with foreign employment law and regulatory aspects.
Diving into more details on Oyster’s EOR services, the first thing that stood out to us was its smooth onboarding process. There are no setup fees, but you’ll be expected to pay a security deposit (equal to one month of your total employment cost) by the first month of your team members. It will be used to fund the team member's payroll should any unexpected payment issues of the customer invoice and will be refunded once all final invoices have been settled, which does make sense.
We liked how Oyster could carry many services: from hiring to onboarding, benefits, time off management, payroll, and offboarding, while maintaining a comfy UI. Our experience with the platform’s cost calculator tool was also positive: it let us quickly estimate potential costs and risks of hiring employees and contractors in specific countries. Another reason for Oyster making it to this guide is the EOR’s remote work regulation guide: it provides remote work policies and regulations in different countries — very up-to-date, and even packs tips for hiring, paying, and managing global workers.
Our experience using Oyster was good overall, yet we still didn’t enjoy some parts of the EOR module. First, while the help center and customer service are punctual, there is currently no phone support. Dedicated account managers are also limited to the highest-tier plans. Another drawback is that you must pay for local benefit plans as add-ons, which cost $80 per month or more. We also expected to see a native time-tracking system, but the current Oyster only supports a time-off management service.
Quora, Wagestream, Impala, and Grover are some companies on Oyster’s long list of customers.
Oyster has three pricing plans:
- Contractor: Starts at $29 per contractor/month. It includes hiring contractors in 180+ countries, drafting, editing, signing compliant contracts, processing invoices, and paying contractors in 120+ currencies.
- Employee: Starts at $499 per employee/month billed annually. The plan enables you to hire full-timers in 130+ countries with compliance and liability coverage, get automation, and IP protection, set up global payroll, and manage expenses, allowances, and bonuses in 130+ countries.
- Scale: It has custom pricing and comes with a discounted rate, dedicated guidance, and support to navigate global employment and bulk hiring.
- Benefits packages are available as paid add-ons for Employee and Scale plans.
- You can create an account, explore the platform, and access Oyster’s global HR tools and resources for free. Fees will only kick in once you’ve engaged a contractor or employee.
- There are special discounts for nonprofits and businesses hiring refugees.
Best For
Small and medium-sized businesses looking to scale their global workforce would find Oyster’s EOR services helpful. Nonprofit organizations and organizations that are recruiting refugees can also take advantage of the platform’s generous discounts.
I’ve used Oyster during a one-time project with a client who was developing a nearshore consulting practice in South America. The tool was used to hire contractors abroad (Brazil).
- Great interface which creates a very positive experience while using the tool.
- Easy to stay compliant to local labor laws.
- Easy onboarding process for new clients.
I helped a client to develop a nearshore consulting practice in South America.
Oyster definitely makes it easy to hire and manage employees abroad, which can be a challenging task due to labor laws intricacies. I have only used the tool during this project’s duration (1 month), but my experience was very positive.
- I wish there were more subscription package options available.
- The cost can be a barrier for startups.
- The resource tools are very helpful, however I’ve identified a couple of inaccuracies in some of the country guides.
Easy and efficient onboarding process.
Ensure that your internal processes are well defined, so you can meet the monthly deadlines to share your company’s information.
Analyze if the solution fits your needs, I’d highly recommend using the free trial that they offer.
Evolution and adaptability are definitely key characteristics when offering a global payroll solution, given the challenge that is to ensure compliance to the labor law complexities of some countries.
Companies that are starting to test or implement a workforce globalization project.
Super large companies that already have HR functions around the world.
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Atlas
Atlas combines industry expertise and technology in its offering, empowering companies to hire and pay employees beyond their borders while keeping them compliant with local labor laws.
PROS
- Atlas has legal entities in over 160 countries. They’ll help you take care of employee onboarding and payroll processing in any of those countries, eliminating the need to engage any local service providers.
- The platform simplifies how you hire, manage, and pay employees and contractors abroad, without needing to set up an operation where they are located.
- Atlas helps you stay compliant with local labor laws and frees you from employer liability.
- Atlas has legal entities in over 160 countries. They’ll help you take care of employee onboarding and payroll processing in any of those countries, eliminating the need to engage any local service providers.
- The platform simplifies how you hire, manage and pay employees and contractors abroad, without needing to set up an operation where they are located.
- Atlas helps you stay compliant with local labor laws and frees you from employer liability.
CONS
- Atlas currently doesn’t offer globally managed payroll for non-EOR clients; so if your company doesn't need Atlas to function as the employer of record in a particular region, but you still need to use Atlas' global payroll services, you can't do so at this time. However, the team at Atlas told us they’re planning to offer this service next year.
- Atlas currently has limited prebuilt integration modules but they do offer API access for users to plug in third-party tools.
- Atlas currently doesn’t offer global managed payroll for non-employer of record (EoR) clients; so if your company doesn't need Atlas to take on from you as EoR, but need to use Atlas' global payroll services, you can't do so at this time. Do note though that the team at Atlas is planning to offer this service next year.
- Atlas currently has limited prebuilt integration modules but they do offer API access for users to plug in third-party tools.
Atlas is a 100% direct employer of record (EOR) and international payroll platform that enables companies to hire and pay talent almost anywhere in the world. They’ll assume the role of legal employer on your behalf; this means once you find employees that you want to hire, they’ll help you manage those employees’ lifecycle, from onboarding to payroll processing - all while keeping you compliant with local labor laws.
We first came across Atlas a couple of years ago, and it’s been nice to see their UX evolve into the modern and sleek look they boast today. Also, they have long been one of the few companies to guarantee a direct EOR model, which wasn’t so common in the early days of the space.
Atlas is used by over a thousand companies, including Toyota, CACI, Bath & Body Works, Coupa, PAE, and Namely.
- Essential: For $99 per month, this plan encompasses features and services that help users navigate the labor & employment laws in over 160 countries (+50 US States), manage employee lifecycle, compliance information between countries, be compliant with their accounting for travel and business expenses, receive personalized notifications, as well as have moderate access to expert insights and HR templates (which are priced separately).
- Premium: For $149 per month, this plan packs everything in the Essentials plan, plus compliance audit interactive checks, people analytics and planning features as well as dedicated account management.
- Enterprise: The pricing of this plan varies according to the number of purchased licenses and customer needs. You can reach out to Atlas’ Sales team for a custom price quote.
Add-ons:
- Contractor Pay: Starting at $49 per contractor per month
- Employer of Record: $595 per employee per month
- Visa & Mobility Sponsorship: Starting at $2,500 per visa
Best For
Companies of all sizes can avail of Atlas’ offering. If you’re looking to compliantly hire and pay employees globally, Atlas is worth checking out.
We can manage our employee's expenses, payroll, holiday management, bonuses and commissions, and all compliant paperwork through Atlas HXM. This is very handy, quite easy to use, and offloads many tedious tasks through automation.
- Convenience: We didn't have to set up our own entity to hire someone in France.
- Compliance: It's handled by the Employer of Record, so we don't need to acquire the knowledge ourselves or create policies.
- Employee satisfaction: All HR and payroll questions can be answered by a local team.
There was a need to expand the firm's market in France, and we needed an SDR in the country with the necessary language skills. Atlas HXM allows us to employ individuals through an existing local structure, which addressed our concerns. The company I work for is still using the service, which is compliant with local laws, easy to understand, and saves time.
- Response time: The account managers are slow to respond.
- Holiday management system: It doesn't always count correctly.
- Constant changes: The platform changes quite often.
It is a great tool to use and cost-efficient in our setting. We had quotes from different providers, and this quote was the most service vs. price efficient.
Companies should explore the cost of using this tool when they consider employing someone abroad without an entity. If it's for several employees, it will be cost-efficient, but above a certain number, it might be worth exploring the option of setting up your own entity.
The platform has changed several times for the better. They have created a more accurate holiday tool and clearer information sharing. The response time has improved as well.
Remote companies can make great use of Atlas, mainly for tech or sales roles.
Companies that want hybrid or on-site roles cannot get the most out of Atlas HXM.
Benefits of EOR Services
The main benefit of using an EOR company is the ability to easily expand your workforce outside of its home country or jurisdiction.
All legal responsibilities are born by the EOR service. That means using one to access a foreign talent market can be significantly quicker than establishing your own legal entity with all the associated compliance and regulatory hoops to jump through.
Centralizing everything through a single platform not only saves time - it potentially reduces overhead costs versus dealing with different systems for each country, too.
Another advantage that you have when using an EOR service is the local market knowledge and know-how that many of these companies will be able to share with you.
You can then focus on finding the right talent, knowing that you’re able to offer at least as many benefits and as much security to them as a local company would.
Finally, while an EOR company is not a staffing agency, some of them can indeed help with recruitment. Some have in-house capabilities, while others partner with staffing agencies in relevant territories.
Use Cases for EOR Companies
Building remote-first teams, exploring new markets, scaling quicker, acquiring assets, and maintaining compliance are all solid use cases for employers of record:
- For remote-first teams: For businesses that have been remote since their inception and intend to stay that way, EOR services are a great option. It doesn’t make sense to set up full operations in several different countries if you’ll only have a handful of employees in each.
- Exploring new markets: For businesses wanting to develop a stronger foothold in a foreign country, EOR services are a great place to start and get a feel for what it’s like to operate there.
- To start and scale quickly: If there’s a strong need to begin operations quickly, for example, if a company has already found workers in a foreign jurisdiction, an EOR can help with getting started quickly.
- As part of an acquisition: EOR services can also be used as a part of an acquisition process. If the deal didn’t include a new legal entity in a target country but did include a local workforce, an EOR provider can ensure the employment relationship continues with complete peace of mind.
- Staying compliant: EOR services are useful for companies that have many independent contractors overseas but no intention of making them full-time employees. This is common with remote startups, for instance. In this scenario, an EOR firm can help with mitigating any non-compliance risks that could derive from each local regulation.
Risks Associated With EOR Companies (and How to Mitigate Them)
Using an EOR service may limit your company’s ability to engage in certain business activities. or enforce compliance or make rule changes that affect staff hired via an EOR. EOR services may also become cost-inefficient as teams grow larger.
- Regulated professions: It may not be possible to hire workers in regulated professions via an EOR company. In some jurisdictions, this restriction can be solved by the EOR company itself receiving the necessary licenses, but beware of the added costs that may be incurred.
- Lack of control: On balance, the fact that an EOR company takes on all legal and compliance obligations is a strong selling point for the services they offer. However, in situations where you want to enforce new policies or change working conditions, this hands-off approach could become problematic. Issues may also arise with respect to data protection if sensitive information is being shared between your business and a third party.
- Scalability issues: As your teams grow larger, EOR services that charge on a per-employee basis may become cost-inefficient. At a certain point the advantages of having full control over your operations in that jurisdiction, with the legal obligations that this entails, becomes more financially prudent than outsourcing.
So, even with an EOR company, hiring people overseas is no picnic. Here are some suggestions for how some of the issues above can be mitigated:
- Knowing local laws: Just because a software company/services provider will be doing the work for you, doesn’t mean you shouldn’t be aware of what that work is. As an employer or HR professional, you should know what laws and regulations you need to adhere to in each country where you’ll be employing someone through an EOR.
- Know your costs: Try and calculate how much you’d spend if you choose to go with individual providers in each country rather than an EOR service, or even set up an operation there and handle it in-house. Among these costs, you should also consider the fines that you would incur if you become non-compliant, or even the potential cost of churn if your employees and/or contractors leave you for not providing the full range of benefits.
- Be mindful of data protection: Data protection laws, especially GDPR, should be one of your concerns if you’re planning on hiring people in new markets. If you’re trusting a software company with your employees’ personal data, you should know which laws are being obeyed when it comes to said data’s safe-keeping. You should also know what kind of practices are put into keeping it safe, beyond the legal requirements.
What to Look for When Choosing an EOR Company
Here are some of the key things to investigate when you’re looking for an EOR company:
- How much do they know about the country (or countries) you’re expanding in? Ideally, they should be true experts in tax laws, work permits, payroll processing, health insurance, background checks, employee onboarding, and everything about the employment relationship within the foreign country. One easy place to check this is the company website - do they post any thought leadership or content that demonstrates their expertise in the space?
- Do they have a permanent local entity in the country you’re looking into? Some EOR companies rely on local partnerships instead of having an entity of their own. This is common if the company is new in the jurisdiction, or haven’t seen much interest in that geography from their current clients. Ask if they have some type of legally-incorporated entity within the country. The answer will reveal how much of a priority your target country is for them (and therefore your likely quality of service).
- What cost structure does the EOR employ? Typical cost structures include per-contractor/per-employee or flat rates, while some vendors will offer custom pricing models. The best pricing structure for your business depends on the number of people you intend to employ through the EOR, and the type of work that they will be doing (extra costs may be incurred if things like professional licenses are required).
- Is the EOR service a good cultural fit? It pays to do extensive due diligence on any third-party you are engaging for services, and an EOR company is no different. You should make sure that nothing in their terms of service or modus operandi will clash with your company’s culture and brand building efforts.
- Are potential exit avenues clear? Before you commit to an EOR company, you should assess potential exit strategies should the relationship not work out for any reason. Enquire about things like fees for early termination from fixed terms and exclusionary clauses.
EOR or PEO?
EOR companies are not the same thing as a Professional Employer Organizations (PEO). The distinctions between one and the other are subtle, but very important:
- Liability: An EOR takes the better part of the liability of hiring somebody. With a PEO, the client company is the one that holds the employment contracts, assuming all liabilities and responsibilities.
- Geography: A PEO is typically a co-employer, meaning hiring someone overseas through a PEO entails having to set up a legal entity within that country. This also means that a PEO wouldn’t be completely in charge of ensuring compliance with local labor laws, as is the case with an EOR.
- Insurance and other Benefits: With a PEO co-employment situation, the client usually has to pay for an insurance policy provided by the PEO but, as the actual employers, they need to provide the workers with insurance of their own. The same goes for other benefits such as a retirement fund or expenses. When working with an EOR, on the other hand, the client’s employees are fully covered under what the EOR provides, which will be tailored to the local laws and regulations, or what local companies are able to offer top talent.
Some PEOs can become employers of record, but not all of them offer that option. Also, PEOs typically don’t operate in many countries -they tend to focus on a certain market, which is why some EORs will partner with them to further their scope of operations within a new country.
EOR Services FAQs
What are the best EOR service providers?
- Papaya Global: Hire and pay all employee types in 140+ countries.
- Deel: Payroll and savvy local expertise for remote international employees.
- Remofirst: Top-notch customer support
- Remote: HR services & payroll platform for remote teams.
- Globalization Partners: Global Employer of Record platform.
- GoGlobal: Fastest-growing independent EOR firm
What is an EOR?
An EOR, or employer of record, is an entity that acts as a legal employer on behalf of a client company in a jurisdiction where that client has no presence. EORs take full responsibility for all aspects of employment in the relevant territory, including payroll, taxes, and legal compliance.
What is global payroll?
The term “global payroll” refers to the compensation that a company needs to make to its foreign employees, independent contractors, and freelancers. Typically handled by the HR or finance departments, it includes salaries, tax withholdings, invoicing, benefits, bonuses, PTO, overtime, commissions, and of course, international bank transfers.
Last Advice on EOR Companies
Ultimately, the question of whether to engage an EOR services firm, pick a global payroll solution, or hire people as independent contractors, is one that will require a lot of self-examination and planning. You have to think about the level of liability and workload that you’d like to keep, and consider the cost of doing it in-house versus the quote from an EOR company.
We recommend reaching out to the companies listed here that you may have found interesting, getting a quote based on your current global expansion plans, and examining how you feel while interacting with these people. An EOR services firm will become a crucial part of your relationship with your employees, so it’s important that you feel comfortable with them.
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