Insights into global expansion & employee retention

Published: July 30, 2023

7 Benefits of Using an Employer of Record Service

Choosing the right Employer of Records can make all the difference in a company's global expansion journey, driving growth and unlocking unprecedented opportunities. Embrace the advantages of partnering with a top EOR, and elevate your organization to new heights of prosperity and success!

As your business expands globally, managing a diverse workforce across multiple countries can become overwhelming. However, with the benefits of an Employer of Record (EOR) service, you can navigate this challenge effortlessly.

This article highlights the advantages of partnering with an EOR, which simplifies HR processes, ensures compliance, and allows key stakeholders to focus on critical tasks. From seamless workforce expansion and efficient compliance management to reduced overhead costs, EORs empower businesses to thrive in the dynamic global employment landscape. Discover how this invaluable service can support your international growth journey.

1. Expanding your workforce efficiently

When expanding into a new country, the need to hire local staff for various roles becomes inevitable. From brick-and-mortar facilities to customer support, one of the key benefits of an employer of record is that it offers a streamlined solution, simplifying the process of building a robust local workforce.

With help from a global employer of record, you can seamlessly add new staff to your team to quickly and efficiently onboard them into your workforce. How?

  • Employers of record provide simple, structured and paperless onboarding and HR data collection.
  • Since a partnership with an employer of record exempts you from establishing a legal entity in new employees’ respective home countries, you can begin your talent search and hire new staff without waiting for local governments to approve your legal entity applications.
  • Employers of record are international HR compliance experts—thus, you can save time researching the labour and benefits laws in your new employees’ homelands, leaving that burden to the professionals while you build new teams.

2. Managing compliance with ease

When considering the benefits of an employer of record, let’s delve into how it facilitates seamless compliance, making international operations more legitimate than ever before.

Think of all the regulations you must comply with to operate in your home country alone:

  • Hiring, labour and termination laws
  • Financial reporting requirements
  • Minimum mandatory benefits for employees
  • Insurance coverage requirements
  • Professional license applications and renewals
  • Tax filing and payments

When you expand to even just one more country, you suddenly double your compliance workload—unless you partner with an international employer of record, also referred to as globalization partners. 

The benefits of an employer of record can significantly alleviate your compliance workload and ease anxieties. Not only do they ensure compliance in your operations abroad, but they also take cover compliance monitoring required by your home country. 

An Employer of Record will keep up with changing laws, research regulations abroad and complete mandatory reporting benchmarks related to labour and legal establishment—that gives you more time to focus on innovation, operations and international growth.

Two Employees Looking at the Benefits of an Employer of Record

3. Reclaiming operational time

Running a business is time-consuming—especially if you’re a key stakeholder in your company. 

Accordingly, company leaders wear many hats:

  • They get the final say on product and service developments
  • They oversee every department
  • They work with legal and financial teams to ensure an above-board operation
  • They serve as the face of the company, rubbing elbows and expanding client lists

Benefits of an Employer of Record are numerous to key stakeholders like presidents, owners, and CEOs. By leveraging their services to automate and streamline HR, compliance, and tax-related tasks, these stakeholders can significantly reduce their workload and free up valuable time to focus on their primary roles.

The advantages of employer of records extend beyond the top-level executives. When such operational efficiency saves time for key stakeholders, it directly translates into benefits for other employees. With fewer mundane tasks on their plate, employees can fully embrace the advantages of employer of records and dedicate their time to innovation, brainstorming, and project work, ultimately fostering a more productive and dynamic work environment.

4. Reducing overhead costs

In the section above, we discussed reduced time obligations for employees working with an employer of record—and, as the old adage goes, “Time is money.” 

When you reduce HR workloads, streamline processes and give employees time to complete the tasks that lead to profits—providing services, building products or communicating with clients, for example—you save money on overhead. 

Time spent running a manual or automated payroll, researching compliance regulations or completing any other internal tasks incurs overhead costs—time investments in tasks that spend company money without earning any from customers.

One of the benefits of an Employer of Record is that it help businesses complete the tasks listed in the first section of this guide, giving employees more time. When an employer of record streamlines these processes, employees can use their newfound time to:

  • Brainstorm new efficiency measures to further decrease overhead costs
  • Develop new internal policies to improve their workplace
  • Attend continuing education or professional development sessions
  • Contribute positively to the development of the business’s new international markets

5. Ensuring accurate, on-time payroll processes

When it comes to operating a business, implementing reliable global payroll processes is vital to employee morale and your reputation as a business leader. As such, it’s crucial that business owners:

  • Pay employees accurate amounts
  • Take the correct deductions from their paychecks
  • Pay employees on time and on a regular schedule
  • Complete labour compliance reporting
  • Administer benefits 

Slipping up on any of the above can decrease employees’ trust in company leadership, decrease morale or even motivate employees to look for work elsewhere. In addition, late payments without cause or prior warning—in some cases—are against the law.

Since they provide payroll management services, employers of record ensure that your company is always up-to-date on payroll and payroll tax functions, preventing low morale, employee retention issues or compliance concerns. 

And, arguably most importantly, one of the benefits of an Employer of Record is that it can complete these tasks without regular input from in-house HR or finance staff once employee onboarding is complete. 

global hr compliance

6. Keeping your org chart lean

Your business probably started small, and there are certainly benefits to maintaining a lean staff:

  • Reduced overhead costs
  • Cross-training, preventing backlogs if an employee calls in sick
  • Smaller communication chains
  • Lower management workload

Entrusting an employer of record with your HR procedures, regulatory tasks and tax-related obligations can prevent overstaffing—instead of hiring a team of employees to handle each of the three aforementioned tasks, you can assign them all to one entity. 

Moreover, a key benefits of an Employer of Record (EOR) lies in its pivotal role in facilitating international growth. When venturing into foreign markets, establishing a legal entity often entails significant manpower and resources. However, by partnering with an employer of record, you can bypass this complex process and reduce your staffing needs. Leveraging the expertise of an EOR simplifies your expansion endeavors, saves valuable time, and allows you to concentrate on core business operations. Embracing the benefits of an EOR enables you to streamline global expansion and optimize your workforce management strategy with great efficiency.

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7. Using cutting-edge HR platforms

The benefits of an employer of record extend to their approach of developing proprietary platforms instead of relying on third-party software providers to maintain their technology. This strategic choice provides several advantages:

  • Employers of record staff are experts in their field and experts in their own software, so they’re always available to provide high-quality tech support if needed.
  • Since their proprietary platforms are a major selling point for clients, employers of record are always working on software improvements behind the scenes, preventing obsolescence.
  • Employers of record control the data that they use—instead of risking a security breach with additional third-party software, they keep your confidential company information self-contained.

With employers of record, you get the best of both worlds—cutting-edge tech and seasoned professionals who know how to use it. 

8 Benefits of An Employer of Record Like Playroll

Utilizing an Employer of Record (EOR) service, like, grants numerous advantages to both your business and you as a key stakeholder. Embracing the benefits of an employer of record streamlines operations and brings value to your organization.

  1. Streamlined HR, Compliance, and Tax Management: With by your side, you can rely on expert management of various HR functions, ensuring strict compliance with labor laws, tax regulations, and other legal requirements. This frees you from administrative complexities, allowing you to focus on your primary responsibilities.
  2. Reduced Workload and Time Savings: By automating and streamlining essential processes, significantly lightens your workload. The invaluable time savings empower you to focus on strategic decision-making and driving business growth.
  3. Cost-Efficiency: Leveraging’s services translates into cost-effectiveness for you. You can forego the need for an in-house HR team, making the most of the employer of record’s expertise to optimize your budget allocation.
  4. Mitigation of Compliance Risks: diligently stays updated on ever-changing labor laws and regulations, ensuring unwavering compliance for your business. This meticulous attention to compliance significantly reduces the risk of costly penalties and legal entanglements for you.
  5. Flexibility and Scalability:’s employer of record services cater to businesses of varying sizes and industries, offering you the flexibility to tailor employment arrangements. As your business grows, their services seamlessly scale alongside you.
  6. Improved Focus on Core Competencies: With managing HR and administrative responsibilities, you can devote unwavering attention to your core competencies and strategic objectives. This fosters innovation and overall performance on your part.
  7. Enhanced Employee Experience:’s adept handling of administrative tasks results in a smoother onboarding process, seamless payroll management, and efficient benefits administration. The positive employee experience boosts satisfaction and productivity within your organization.
  8. Expert Support and Guidance: You gain access to a team of seasoned HR professionals through, providing invaluable guidance on matters like employee relations and performance management.

Try Playroll Today

Experience the Benefits of an Employer of Record Like Playroll

Experience the benefits of an employer of record with Playroll, as we equip businesses with the necessary tools and expertise to conquer global markets. With our streamlined processes and cutting-edge software, hiring and managing your business abroad has never been easier.

For over two decades, Playroll has been surpassing others in terms of quality, service, and return on investment. Our HR and compliance teams have assisted businesses worldwide in expanding their horizons, entering new markets, and achieving profitability.

Our all-in-one, user-friendly platform offers a range of advantages, allowing you to efficiently monitor compliance efforts, plan future staffing investments, and seamlessly onboard employees, among many other features.

Embark on your global journey with confidence, as Playroll stands ready to support your success.

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