The EOR Model: An Optimal Employment Solution for Global Companies

HR managers fingure pointing at a digital gloabe with employee icons

portrait of Justin Hill
By Justin Hill, Senior Manager, Client Solutions, GoGlobal

In today’s interconnected world, businesses are increasingly venturing beyond their borders, aiming to tap into global talent. Amid the array of international employment options, the Employer of Record (EOR) model emerges as a fast and compliant hiring solution.

But why is EOR becoming the favoured choice for many enterprises? In this blog post, we uncover the many advantages of EOR hiring, debunk common misconceptions and explore how a leading EOR and HR services provider like GoGlobal can help support cross-border hiring and global expansion.   

Distinguishing hiring models 

When looking to hire in a foreign country the global employment landscape offers three primary models:  

  • EOR: All in one compliant solution for getting employees on the ground in days covered by a monthly service fee. 
  • Payroll-only Registration: A Solution requiring formal registration in-country, external expertise in a locally compliant employment contract, along with monthly payroll services.   
  • Entity Setup: A Solution requiring formal registration in-country, external expertise in a locally compliant employment contract, along with monthly payroll and accounting services and statutory annual filings.   

While each has its merits, it’s essential to delve deeper into their intricacies to understand their true value propositions. 


Imagine wanting to hire one or two talents in a foreign country. With an entity setup or payroll-only registration, the costs can quickly escalate. Initial registration fees, ongoing administration costs and local compliance necessities can strain the budget.  

EOR, with its transparent monthly fee structure, alleviates these concerns, making it a particularly cost-effective solution and a solution of choice for many clients hiring in a foreign country. 

Bundled expertise 

The EOR model, especially when facilitated by an industry leader like GoGlobal, is not merely about cost savings. It’s about efficiency, expertise and seamless integration into foreign markets. With an EOR, companies don’t just hire employees; they access a suite of services tailored to their specific needs. 

Localised Expertise  Companies gain access to in-country HR and Payroll specialists when partnering with an EOR provider like GoGlobal. These experts are not only versed in the intricacies of local labour laws but are also attuned to the cultural nuances that can influence employment practices. They can advise on everything from mandatory benefits to local holiday observances, ensuring that foreign hires feel valued and understood. 
Navigating Complexity  International employment is rife with potential pitfalls. Between tax codes, employment laws, and contractual stipulations, there’s a labyrinth of regulations to navigate. EORs alleviate this burden, taking on the responsibility of compliance and ensuring that companies avoid costly missteps. 
Operational Efficiency  Beyond the legal aspects, EORs like GoGlobal bring operational efficiency. They streamline processes such as payroll, benefits administration and dispute resolution, ensuring that day-to-day management of international employees is smooth and hassle-free 

 In contrast, firms operating under their own entity or payroll registration find themselves in uncharted waters. They bear the challenging (and often expensive) task of sourcing localised expertise independently. They also grapple with the time-consuming administrative overheads, from setting up payroll systems to ensuring every contract abides by local laws.  

In essence, while firms might have a presence in a foreign market, they often lack the in-depth knowledge and streamlined processes that EORs inherently provide. 

Common misconceptions  

As with any service that disrupts traditional modes of operation, the EOR model is often shrouded in misconceptions that can deter companies from exploring its full potential. 

Misconception  Reality 
Short-Term Hires  A common misconception is that EOR hiring is suitable only for short-term or contractual hires. In reality, the EOR model is flexible and can accommodate long-term employment just as efficiently. Whether a company is looking for a temporary project-based hire or aiming to establish a long-term presence in a new market without establishing a full entity, EOR can be a suitable choice. 
Retaining Control  Some businesses might fear a perceived lack of control over employees hired through an EOR. In truth, while the EOR takes on legal and administrative responsibilities, the hiring company retains full control over the employee’s daily tasks, management, and overall role within the company. The EOR model is designed to manage risks and compliance, not to interfere with business operations. 
Cost Concerns  While we’ve already highlighted the cost-effectiveness of EOR, some companies might mistakenly believe that this model carries hidden costs. EOR pricing structures are typically transparent, encompassing all the services they provide. It’s crucial for businesses to communicate with their EOR provider such as GoGlobal, to understand all costs upfront and recognise the value they’re receiving. 

Supporting cross-border hiring and global expansion 

The EOR model, epitomised by the offerings of pioneers like GoGlobal, transcends its cost-effectiveness to deliver bundled expertise, risk mitigation and operational prowess. As businesses navigate the global employment stage, the EOR model emerges as a beacon. 

With GoGlobal’s comprehensive offerings, the EOR model can extend beyond mere cost-effectiveness. It offers bundled expertise, risk mitigation and operational efficiency along with other products, such as GoGlobal’s Recruit and Hire, Equity Solutions and Independent Contractor Solutions 

As businesses chart their course in the global employment arena, they would do well to consider the Employer of Record model. By leveraging EOR, companies can focus on what they do best: growing their business, while leaving the complexities of international employment in capable hands. 

Check out our ‘What is an EOR?’ guide or contact us to talk with an international HR expert about whether an EOR solution is right for your company.