PLAYROLL BLOG

Insights into global expansion & employee retention

Published: October 29, 2021

What Is an Employee of Record Partner and How Can They Help Me Expand Globally?

It’s almost cliche now to say ‘the world of work is changing’.
Classification by Region | Employer Of Record

Work-life balance, burnout, flexible working, workplace mental health and happiness in work culture—even before the pandemic turned work culture inside out, these employment narratives had already been simmering in offices and on social media.

The pandemic crisis simply blew the lid, creating—in some industries at least—mass resignations as employees showed how serious they are that purpose is more important than paycheck to them.

Adapting and moving with the times

Now more and more employers are realising the need to extend their talent search overseas.

In part, for finding specialist talent not locally sourceable—talent able to carry business goals across borders into new markets—but also to give employees the chance to relocate abroad in pursuit of purpose, priorities and adventure, instead of quitting.

What Is an Employer of Record (EOR) Partner?

An EoR partner takes on all legal responsibility for the talent you hire and relocate, effectively acting (on paper, at least) as the legal employer.

EoR partners are responsible for:

  • issuing work contracts,
  • processing multinational payroll,
  • keeping you locally compliant in each country,
  • tax and contributions,
  • even termination legal support,
  • and even paying bonuses.

A worthwhile EOR partner should be able to assist your international expansion plans by taking care of all of this, and more, as you build or relocate your global teams and enter new markets.

How to Shortlist EoR Partners to Enable Your Global Expansion

The only common theme with EOR partners is that they all assume legal responsibility for the talent you hire and relocate.

Other factors vary. When shortlisting EOR partners to take seriously, score them on the following.

Think of this list as your aptitude test:

  • Heritage and experience
  • Current and planned countries of presence
  • Local-compliance expertise by country
  • Level of human support
  • Availability of free resources
  • When and how often do they bill you
  • SLAs and support availability
  • Client transparency and communication
  • Pricing transparency
  • Legal support in case of terminations

Also, check their references—for example, because Playroll’s proprietary, global physical employment entities were built in the 90s for the VAT IT Group, we can provide 3rd party recommendations and confirmation of our heritage.

What’s the difference between an EOR and a PEO?

EoR = Employer of Record
PEO = Professional Employer Organisation

You’ll hear people or find content online treating ‘EoR’ and ‘PEOs’ as interchangeable—they’re not.

The key difference is that an EoR partner can help growing employers hire overseas talent and enter new markets faster by hiring on their behalf, slashing HR and time-to-market timescales, cost and local-compliance risk.

PEOs don’t act as legal employers, taking on exclusively an HR management function, and so PEOs cannot help with compliantly hiring remote teams overseas.

If you don’t own the employment entities in the countries you need to hire in, then your EoR partner—not a PEO—can make it happen. Ideally, with fully-owned physical entities controlled by them instead of 3rd parties you don’t know about.

How Does Playroll Stack up As Your Potential EoR Global Expansion Partner?

An EoR partner able to carry your overseas expansion goals with you needs to demonstrate that they’ve already done the same for others.

Payroll has a heritage that demonstrates just that.

What’s Playroll’s biggest strength?

Before we founded Playroll, we grew and managed payroll for global teams since the 90s as the VAT IT group—so that’s definitely up there.

Payroll and The VAT IT Group

The VAT IT Group is the world’s biggest regtech provider, serving 20,000 clients including more than 50% of the fortune 500 companies.

The global physical employment entities Playroll gives growing businesses access to is thanks to Playroll having built VAT IT Group’s global infrastructure over more than 20 years. With Playroll, you won’t need to set up new offices.

What’s Playroll’s biggest weakness?

If you can call it a ‘weakness’, we go against the crowd when it comes to automated support.

Algorithms vs humans

Some EoR partners cost-cut by building chatbot support algorithms that limit the scope for urgent, detailed and comprehensive support.

We automate only Playroll’s innovative core technology that lets partners create and send two-step, auto-compliant work contracts while managing multinational payroll in one intuitive dashboard.

Legal and day-to-day support is all human-backed by on-the-ground local-compliance experts in each country of operation.

How Does Playroll Provide Instant Value?

When you hire us as your EoR global expansion partner, we hit the ground running—even if your expansion plans operate in an urgent, fast-paced environment.

Start planning new hires and global expansion for free

You won’t be charged for using Playroll as your EOR partner until you actually make the first hire. Before that, you’ll get tons of instant value.

From the moment you log into your free Payroll account, you can use Playroll’s HR calculator to plan potential costs like salary, contributions and tax, for each potential new hire.

You’ll also have instant, free access to Playroll’s Country Encyclopedia Insights to easily get clued up on up-to-date country-by-country employment regulations.

Have fun—whether you choose Playroll as your global expansion EoR partner or not, at least use the free resources we provide to start planning your world domination.

Download our Whitepaper - The state of remote work & talent mobility
CTA 01

Contact us

Latest news and updates

How to find talent outside the UK

The contraction in the British labour market, often colourfully dubbed the “Talent Exodus”, has caused UK-based companies to rethink. Recruiting people from outside the UK is no longer a luxury or a last resort; it’s a necessity. But the market is awash with UK-based companies, all contending for the attention of skilled digital nomads.

It’s time for companies to get proactive about attracting talent.

read more
Recruiting People From Outside the UK

Recruiting People From Outside the UK

UK-based companies are reaping the benefits of employing overseas workers. By riding the wave of digital transformation into the remote/hybrid era, they’re gaining a competitive edge. The English language and the British Pound are also powerful draw cards for remote workers around the world.

read more