The Ultimate Guide to Employer of Record (EOR)

Introduction

Expanding into new markets is exciting but challenging. Hiring in a foreign country involves complex legal requirements, payroll, tax compliance, and HR responsibilities. An Employer of Record (EOR) can help.

An EOR is a third-party company that legally employs workers for a business. This allows companies to hire talent in a country without setting up a legal entity. With remote work and globalization, EOR services are essential for international growth.

How Does an Employer of Record (EOR) Work?

An EOR acts as the legal employer, managing payroll, taxes, benefits, and compliance while you handle daily tasks. This lets businesses focus on productivity without worrying about local labor laws.

Key Responsibilities of an EOR:

• Payroll Processing: Ensuring correct and timely payment.
• Tax Compliance: Handling local taxes and social security.
• Employment Contracts: Drafting compliant contracts.
• HR Support: Managing employee records and benefits.
• Legal Compliance: Keeping up with labor laws.

Using an EOR service, businesses can hire quickly, reduce risks, and avoid administrative burdens.

Benefits of Using an EOR

Using an Employer of Record service offers several advantages for businesses looking to expand internationally:

1. 1. Fast Market Entry – Hiring through an EOR allows companies to enter new markets without setting up a local entity, saving time and effort.
   2. Compliance with Local Laws – An EOR ensures that employment regulations, tax laws, and labor policies are followed correctly.
   3. Reduced Operational Costs – Without the need for a legal entity, businesses save money on legal fees, office setup, and administration.
   4. Flexibility in Hiring – Companies can easily hire remote workers, test new markets, or scale operations up or down without long-term commitments.
   5. Access to Global Talent – Businesses can hire top talent from different countries, expanding their workforce diversity.

Traditional Employment vs. EOR Model

Feature	Traditional Employment	EOR Model
Legal Entity Required?	Yes	No
Time to Hire	6-12 months	A few weeks
Compliance Risk	High	Low
Payroll & Taxes	Managed by employer	Managed by EOR
Costs	High	Lower

An EOR is ideal for businesses seeking hassle-free international expansion with flexibility and reduced costs.

The Bridgeshore EOR+ Advantage

Bridgeshore offers more than traditional EOR services. Our EOR+ model provides extra support in hiring and workplace management.

• Vibrant Office Spaces: Fully equipped offices for productivity and collaboration.
• Local Recruiting Support:Assistance with job postings, interviews, and recruitment.
• On-the-Ground Assistance:Dedicated on-site team for support with administrative processes and HR issues.

How to Get Started with an EOR

If you’re considering hiring employees through an EOR, follow these simple steps:

1. 1. Reach Out to Us – Contact us by email or through our contact form on our website, and we will arrange an introductory call to understand your needs, walk you through the process, and answer all your questions.
   2. Tailored Service Proposal We provide a customized service proposal. Once the contract between your company and Bridgeshore is signed, we work together to refine the job details, including a clear job description and a local salary recommendation. With these insights, our recruitment experts will begin the search for the right candidates.
   3. Candidate Selection Within the agreed timeframe, we screen the top candidates and present a shortlist (3-5 candidates) to you. Whenever possible, we invite them to our office for an in-person meeting, followed by an online interview with you. Once you have found the ideal candidate, we can proceed with offering a 3-month trial contract.
   4. Onboarding Made Easy Once the candidate accepts the offer, we handle all contract preparation and signing. We then plan the onboarding process with you to ensure a seamless start.
   5. Seamless Team Integration Your new team member will report directly to you for daily tasks, while we provide ongoing support and create a great working environment at the Bridgeshore office.
   6. Ongoing Support We schedule regular check-ins to ensure everything is running smoothly. Initially, these will be more frequent, transitioning to monthly reviews. And of course, we are always available for any questions or additional support.

Cost Considerations

The cost of using an EOR varies depending on factors such as the country, employee salary, and service provider fees. Here are the key cost components to consider:

• Employee Salary – The base salary offered to the worker.
• Social Contributions & Taxes – Country-specific tax requirements.
• EOR Service Fees – Typically a percentage of the employee’s salary or a fixed monthly fee.

While EOR services come at a cost, they can be significantly cheaper than setting up a foreign entity, dealing with local compliance, and managing HR administration.

Case Study: How a Tech Startup Expanded with Bridgeshore EOR+

A Dutch service company used Bridgeshore’s EOR+ services to hire top Portuguese talent quickly, ensure compliance, and save on operational costs. They built a strong remote team while maintaining company culture and efficiency.