Why Choose an Employer of Record? Top Benefits Explained

Maria Chojnowska

3 October 2023, 4 min read

thumbnail post

What's inside

  1. Why an EOR is a Strategic Business Partner
  2. The Benefits of Using an EOR
  3. Considerations When Using an EOR
  4. Conclusion

This article highlights why an EOR is a service and a strategic business partner. We'll explore how EORs can result in significant cost savings, quicken your market speed, mitigate regulatory compliance risks, and provide access to global talent pools.

As more companies look for streamlined solutions for global expansion, the concept of an Employer of Record (EOR) is gaining traction.

If you're new to what an EOR does, our previous article, "A Comprehensive Guide to Employers of Record", will provide a helpful introduction.

This article delves deeper into the tangible benefits of using an EOR for regulatory compliance, cost efficiency, talent acquisition, and risk mitigation in your international business strategy.

Why an EOR is a Strategic Business Partner

A well-chosen EOR aligns with your company's objectives, taking care of administrative, legal, and HR issues so your management team can focus on strategy and execution. Sunscrapers tailors our EOR services to eliminate most drawbacks and amplify the benefits, ensuring you have the optimal blend of control, compliance, and convenience.

The Benefits of Using an EOR

Hassle-Free Global Expansion

An EOR allows you to quickly step into new markets without the complexities of establishing a legal entity, facilitating quicker launches and new revenue streams.

Regulatory Compliance

Stay shielded from legal ramifications as EORs ensure your business complies with ever-evolving laws and regulations across jurisdictions.


Avoid the financial drain of setting up subsidiaries in foreign countries, making it cost-effective to maintain a global team.

Talent Acquisition

Hire top-tier global talent without the hassle of navigating intricate international employment laws and processes.

Risk Mitigation

Safeguard your operations against legal disputes, tax liabilities, and compliance issues.

Streamlined Payroll & Benefits

Eliminate the stress of handling different tax systems, currency conversion, and varying benefits structures.

Considerations When Using an EOR


Limited HR Control

While you handle daily tasks and projects, the EOR manages HR, which might make you feel detached from some processes.

Third-Party Dependence

Outsourcing to an EOR can sometimes limit your flexibility and decision-making speed.

Cost Implications

The services of an EOR come at a price; ensure the benefits outweigh the costs.

The primary function
of an EOR is to serve
as the official
employer for tax,
insurance, and legal
purposes while the
employee works at a
different company.
PurposeProvides temporary or part-time
Chief Technology Officer (CTO)
services to startups
or other companies
that need technical leadership
but can't afford or don't
need a full-time CTO.
Handles HR responsibilities,
including payroll, benefits,
taxes, insurance, and other
employee-related matters.
ScopeCovers strategic
planning, technology roadmap,
and team mentorship and
may even help in product
Ensures the employment
relationship complies with
local, state, and federal laws.
Strategic FocusAims to align the
company’s technology
strategy with its
business objectives.
Often used to employ staff
in countries where the hiring
company does not have a
legal entity.
Local or RemoteThis can be accomplished
remotely or in person,
depending on the
needs of the business.
Typically charges a percentage
of the employee’s annual
salary for its services.
CostPricing models can vary,
but it’s generally a more
cost-effective way to flexibly
bring in high-level
technical expertise.
Allows companies to hire
rapidly and onboard staff
without setting up a foreign
entity or dealing with
complex legal requirements.
FlexibilityCan be brought
in for specific projects
or phases or to help
transition between
technical leadership.


Opting for an EOR is a critical strategic decision that can redefine your global business trajectory. While there are undeniable advantages in terms of cost-savings, speed to market, and risk mitigation, it's essential to weigh these against the potential drawbacks like limited HR control and third-party dependence.

So, are you ready to explore how an Employer of Record could be your next strategic advantage? Check our previous article, "A Comprehensive Guide to Employers of Record" for a holistic view.

Don't let the complexities of global expansion hold back your business growth. Harness the power of a strategic EOR partnership today to navigate legal landscapes, manage international payroll, and acquire global talent effortlessly.

Ready to transform your global strategy and achieve unparalleled business success? Contact us now to schedule a comprehensive consultation and take the first step toward unlocking your business's full international potential.


Recent posts

See all blog posts

Are you ready for your next project?

Whether you need a full product, consulting, tech investment or an extended team, our experts will help you find the best solutions.

Hi there, we use cookies to provide you with an amazing experience on our site. If you continue without changing the settings, we’ll assume that you’re happy to receive all cookies on Sunscrapers website. You can change your cookie settings at any time.