PLAYROLL BLOG

Insights into global expansion & employee retention

Published: January 4, 2022

What’s the Difference Between an Employer of Record and an Employment Outsourcing Solution?

According to Forbes, remote and hybrid work has been on the increase and will continue to soar as technology breaks down the barriers to growing hybrid and remote teams.
Girl Smiling And Thinking | What's the difference between an employer of record and employment outsourcing solution? | Employer of record

Global Workplace Analytics reports that 50% of US workers hold a job compatible with at least partial teleworking, and 80 to 90% of employees would like to work remote at least part-time.

Promoting a Remote and Hybrid Work Environment

In some cases, it’s a no-brainer. From an employee perspective, the remote and hybrid work models introduce a whole new world—one that promotes flexible hours, the ability to relocate or travel, and the previously little-known concept of a work-life balance. 

The mere idea of commuting to an office or attending meetings dressed in anything other than pyjama bottoms suddenly appeared daunting—which (among other reasons) led to many professionals choosing purpose over a paycheck, in the style of The Great Resignation

On the other end of the spectrum, savvy employers are realising the value of remote and hybrid working, noticing increased productivity, lower operational costs, and the opportunity to expand talent globally, while positioning themselves as global leaders in their industries. 

Growing remote and hybrid teams is… complicated

Aside from the social cohesion and possible communication downsides, the administrative and operational challenges arise from: 

  • Finding and hiring new talent 
  • Being inundated with payroll and HR policies in every country of operation 
  • Meeting employees’ requirements and expectations
  • The spiralling cost of setting up entities in different locations

What are the options for employment partnerships aimed at hiring global employees?

  1. Employer of Record Partner (EOR)
  2. Employment Outsourcing Solutions (EOS)

And What’s the difference between an EOR and EOS?

Employment Outsourcing Solutions

An EOS service operates under a model known as PEO (Professional Employer Organisation). Simply put, an EOS relieves you of HR responsibilities but cannot be held legally liable for any issues relating to your HR operations and compliance issues. 

Employer of Record Partner

On the other hand, an EOR service essentially acts as the full legal employer of a company’s workforce and takes all legal responsibility for HR matters and legal compliance, reducing the stress, cost, compliance risk and timescales for setting up new teams in new regional markets.

How can an Employer of Record Partner Help Hire Land and Expand in New Regions?

An EOR service can: 

  • Issue global, locally-compliant work contracts 
  • Handle legal employer obligations  
  • Pay employees accurately and on time 
  • Handle tax and company contributions
  • Provide legal support in the event of terminations 

Why choose Playroll as your EOR partner? 

We have more than 25 years of experience under our belt and know a thing or two about growing remote teams globally, having done exactly that as part of The VAT IT Group.

With fully-owned ‘plug and play’ employer infrastructure in almost every continent accessed through your free Playroll dashboard, we’re helping expansion-ready businesses bypass the hassle and eye-watering risk of hiring global talent, wherever it likes to play.

Do the ‘demo’ thing with us—we’ll walk you through Playroll’s two-step compliant work contract builder so you can offer global talent in minutes the opportunity to grow with you from wherever they live.

We’ll also discuss how we partner with you to consult and advise on the savviest ways of growing global teams to gain presence in new target markets across the globe.

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