The Pros And Cons Of Working With An EOR (Employer Of Record)

The Pros And Cons Of Working With An EOR (Employer Of Record)

Are you planning to expand your business overseas? If you are currently eyeing up global expansion, you have come to the right place. An EOR or Employer of Record is a great option for you under such circumstances. Rather than having to deal with all the bureaucracy and associated hassles in your target market, you can instantly tap into international markets as well as workforces with the assistance of an already-established local partner. That way, you will still retain control of operations in the new territory.

If you are looking for a USA EOR then please look no further than TopSource Worldwide.

Pros of working with an Employer of Record

. You can access international markets very quickly – You can hire staff anywhere in the world without registering a subsidiary in that particular country. It helps grow your company faster. In fact, using the services of an EOR is a great alternative for any small business that wishes to expand into new territory but lacks the resources to set up its own entity.

. You can tap into on-the-ground expertise – Employers Of Record or EORs are fully established and based in the country of operation. They will speak the local language and understand local employment laws & regulations. In fact, they can easily guide partner organisations through the various challenges & opportunities that the target market present.

. You don’t have to register a company – Most countries need a foreign organisation or investor to register a company locally for taxation and administrative purposes. It’s already done with an EOR. In fact, an EOR will act as your local registered entity.

. You can cease operations at short notice – Although you will work closely with your appointed EOR, you have the ability to cease the relationship at very short notice. For example, if you need to think about a new opportunity or exit the present organisation for whatever reason, your EOR is responsible for things like redundancies, finances, as well as other administration work are taken care of.

Cons of working with an EOR or Employer of Record

. You will need extra time to embed the goals and culture of your company – Although your appointed EOR will align themselves with your organisational structure and values, you will still need to embed these values into your EOR. There is a time investment here. In fact, you may soon realise that your appointed EOR takes full responsibility for ensuring they are aligned with your corporate culture and goals – rather than the other way around.

. An EOR is a great short-term solution – An EOR is a great choice for short-term investments or time-limited operations. But if you plan to operate long-term in the preferred territory, you should consider setting up your own entity there. That’s the best way to grow your business over the long term on the chosen territory.

There are a few reasons for this. In fact, an EOR comes with a cost – which is not an investment in your own company. On the other hand, you will always be one step behind a significant chunk of your operations with an EOR.

. It may feel like you have less control over the operation – Appointing an EOR means handing over a certain level of autonomy to an external partner. Some organisations may find it more difficult to overcome compared to others. But it usually comes down to a trade-off of time + control + expansion vs. cost.


Working with an EOR comes down to your overall expansion strategy. In fact, it’s a great way to expand into new countries quicker than setting up your own entity. Ann EOR can be engaged in the initial stages of the operation in order to gain local expertise for future global expansion.

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