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Why Smart Companies Are Turning to EOR Services

Why Smart Companies Are Turning to EOR Services

An Employer of Record (EOR) is an external company that legally becomes the employer of your remote employees.

Let’s put it like this, EOR is like a teammate who helps you hire remote workers without the headache of paperwork. They take care of all the behind-the-scenes stuff like payroll, taxes, and benefits. They’re the experts in dealing with these things in different areas, so you can skip the hassle and focus on running your business smoothly.

Why are smart companies turning to EOR services?

1. EORs can make expanding your business overseas easier.

With an EOR, you can skip the lengthy process of setting up a legal entity in a new country. They handle all the legal processes of hiring employees abroad, so you can focus on finding the perfect talent and getting started quickly. Basically, it will help you enter into new markets faster and scale your team up or down as needed easily.

Aside from that, EORs also take the burden of compliance off your shoulders. Labor laws and taxes can be tricky things, especially in different countries. An EOR acts as your guide, making sure everything is done according to the rules. This saves you from the headaches of figuring it all out yourself and avoids any potential fines or penalties.

Finally, using an EOR frees up your internal HR team to focus on more important things. No more getting busy with payroll processing, tax filings, and benefits administration. The EOR takes care of all that, allowing your HR team to concentrate on strategic initiatives that help your business grow.

2. EORs help businesses be more adaptable— able to grow or shrink as needed.

On-demand talent acquisition can be a game changer for your business. You can tap into a global pool of qualified professionals wherever they are in the world! You can find the perfect person for the job based on their skills and experience, regardless of where they live. This opens up a whole new world of possibilities and allows you to build a truly diverse and talented team.

On top of that, it also offers great flexibility. As your business needs change, you can easily adjust the size of your workforce up or down. There’s no need to worry about the hassle of hiring or letting go of employees. Plus, you won’t have to deal with the burden of onboarding and offboarding. An EOR can handle that for you. 

Another major benefit is reduced fixed costs. Forget about the overhead expenses that come with setting up a physical office in a new location. You won’t have to pay rent, utilities, or invest in office equipment. This means significant cost savings that you can reinvest back into your business.

3. EORs can help you manage risk better.

EORs can help reduce your employer liability. This is because they become the legal employer of your workers, taking on the responsibility for things like lawsuits related to employment and any workers’ compensation claims that might arise.  

Second, EORs can be a big help when it comes to immigration. Immigration laws can be complex and difficult to navigate, but EORs have experience dealing with these processes and visa requirements, which can save you a lot of time and hassle.  

Lastly, EORs typically have strong data security measures in place. This is important because it helps protect the sensitive information of your employees, giving you peace of mind.

4. EORs can make employees happier.

Your team can now focus on the core activities that can push your company’s growth and innovation. They can have more time to brainstorm new ideas, develop groundbreaking products, or perfect their customer service. 

Another thing is that outsourcing administrative tasks can improve your HR efficiency. By partnering with an EOR, you can simplify processes like payroll and benefits administration. This frees up your internal HR team to focus on what they do best which is providing personalized support and guidance to your employees. 

And of course, many EORs offer attractive benefits packages to remote workers. By outsourcing, you can tap into these benefits which can instantly make your company a more competitive and attractive employer in the job market.

Consider the following factors before making a decision:

  • Size and scale of your remote workforce
    EORs are particularly beneficial for companies with a growing remote workforce or those with employees in multiple locations.
  • Complexity of foreign markets
    If you’re targeting countries with intricate labor laws and tax regulations, an EOR can provide invaluable expertise.
  • Internal HR resources
    If your HR team is already stretched thin or struggling, an EOR can help lighten their workload and free them up for more strategic tasks.

Here’s how to make EORs work for you: Choose the right EOR partner.

Selecting the right EOR partner is crucial. When choosing an Employer of Record (EOR), experience in your industry is a big deal. Make sure they already know the nature of your business, including any special rules or regulations. 

If you plan to expand overseas, pick an EOR with a global presence and the ability to handle different countries’ laws. 

Technology matters too, so look for a user-friendly platform that works well with your existing HR and payroll systems. 

As your company grows, you’ll need an EOR that can keep up, so pick one that can handle a bigger workforce down the line. 

Lastly, good customer service is key. You want a helpful and reliable support team to answer your questions quickly and keep your business running smoothly.

EORs takes care of all the hiring headaches in different countries, freeing you to focus on what truly matters: building a great business and keeping your customers satisfied. 

So, if you’re looking to take your business to the next level, consider partnering with an EOR— it might just be the way to reach your company’s global potential!

If you’re looking for an EOR to help you with your business, consider partnering with Filta! 

You can visit to learn more about our services, or reach out to us via Nerissa Chaux (, Filta’s Co-Founder and Chief Growth Officer so we can discuss your needs and how we can help you to grow your business. 

Check out other blogs:

The Rise of Nearshoring: Why Companies are Bringing Operations Closer to Home

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