7 Myths and Misconceptions about EOR (Employer of Record)

Have you ever wondered if your company would have been in a better place if you would have employed an Employer Of Record (EOR) for various HR and administrative tasks?

‘But Global EORs must be charging too much.’

Do you also believe so?

Well, it’s just another myth.

An Employer of record, abbreviated EOR, is a third-party organization that can help you manage your employee’s payroll, taxation, and compliances, and can also help you with hiring and onboarding employees globally. While they do charge a certain amount from you, that is most often feasible and worth it.

Still, many employers have many myths about Employer Of Record that you would be surprised to know. But I’m going to burst them all here.

Bursting 7 myths about how an Employer Of Record works!

Myth #1: EOR can’t be used to hire executives

Fact: An employer of record can be used to hire for all possible roles and positions for your organization, globally.

An EOR can help you offer your employees attractive benefits. They help you provide a competitive offer to the professionals that makes them believe that your organization cares about long-term commitments.

Myth #2: Employers Of Record charge way too much

Fact: No, they don’t. In fact, they help you cut the cost of so many things. When you’re expanding your business overseas it would be difficult to have knowledge of the local regulations. EOR experts can make this a cakewalk for you.

Myth #3: You would lose control over your workers if an EOR would be there

Fact: Employer Of Record is not responsible to take decisions and directly manage your employees’ work. You’re responsible for that even when an EOR is there to provide all the HR support that your organization needs. EOR is there to make your job easy in every way possible.

Myth #4: Employer Of Record isn’t a legal solution

Fact: EOR is considered a legitimate employment model in most countries. The truth is that EORs need certain licenses and registrations to operate in said countries You can ask them for that if you wish to.

Here are 5 Things To Consider Before You Select A Global Employer Of Record

Myth #5: EOR being a third-party might make the workers feel uncomfortable

Fact: An EOR does not generally interact directly with your employees. They help organizations with onboarding their employees and keep doing regular check-ins with the organization.

Myth #6: There are hidden charges associated with EORs

Fact: There aren’t any charges that would be kept hidden from your organization. You would be provided a proposal document at the beginning with all the charges mentioned there.

Mostly, EORs charge a fixed fee for setting up the software and management tools and then a certain monthly charge based on the salary amount. The payment model, however, would differ from one EOR to another, and also the plan you choose.

Myth #7: Choosing an EOR is the same as outsourcing

Fact: Employer Of Record is not the same as outsourcing. When professionals are hired through a third-party provider then they would not know anything about them. This is not the case with EORs.

Other than that, outsourcing could be seen as risking your security and control over the employees. EORs provide full security to your organization’s data. There is full transparency about the terms of employment and the relationship between the employee, employer, and the Employer Of Record.

I hope your reservations on partnering with an EOR have been cleared now that you know the many benefits it holds for your business, especially when you’re looking to hire, pay, and manage employees globally.

Some of the top global Employers Of Record are Velocity Global, Skuad, TriNet, etc. All of these provide full HR support which includes services like payroll management, benefits and compliance administration, and much more.

These EOR platforms have built a unified dashboard leveraging the advanced HR technology to simplify hiring, paying, and managing remote employees. All these players have an infrastructure in 120+ countries to help you in seamless expansion.

What are you waiting for? Partner with an EOR today and expand your business overseas hassle-free.