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Many people still believe an employer of record (EOR) is the same as a staffing firm. If you’re running a staffing firm, you understand that these businesses are quite different, but one can serve as a complement to the other. An EOR can help a staffing company at the backend of the hiring process, handling talks related to the employment contract. This blog will look closely at the mutually beneficial relationship between an EOR and a staffing firm. 

How Does An EOR Benefit You?

EORs + Staffing Agencies = A Winning Combination 

To understand how an EOR can benefit a staffing agency, you must first recognize the differences between these two business models. Think of an EOR as handling the backend functions of hiring. For example, payroll and HR benefits. A staffing firm is the hunter at the front of the hiring process. Staffing firms network and find the right worker for the right job. 

Staffing firms these days have a full-time job just finding talent. That’s where an EOR can help. Staffing agencies that partner with EORs can offer their clients a full-service option for not only sourcing, screening, and hiring talent, but also managing that talent after they come on board. It’s an incredible resource for companies that have overloaded HR teams. What are the benefits of an EOR for a staffing company? 

Benefits of an EOR for a Staffing Agency 

The most significant benefit of partnering with an EOR is the ability to expand your service offerings to a business client. This kind of turnkey operation allows an enterprise and midlevel organizations the resources to outsource all of their contracting functions, from recruiting to orientation and payroll, to your firm. Given the increase in companies turning to contractors, this is a lucrative market with real great potential.  

Using an EOR in this way allows the client to free up their time for key business functions. The time and money they save help pay for your service, making these outsourced relationships highly beneficial for everyone involved. From a risk perspective, the EOR handles benefits and maintains employee records. Compliance in areas such as taxes or other HR-related issues falls under the EOR, as well. The typical responsibilities of these two firms are carved out in the following ways: 

Staffing agency: Handles sourcing, interviewing, negotiating, and the employee offer. 

Client: Handles on-site employee management. 

EOR: Handles drug screening, employment contracts, payroll, taxes, and benefits. 

The EOR handles some of the most complex parts of the contractor/employee relationship, from workers’ compensation and taxes to I-9s and E-Verify forms, payroll, and more. 

Imagine being able to offer a complete, full-service contractor portfolio to large enterprise organizations. It’s a turnkey service that provides massive benefits to your target audience. With an EOR on your side, your services expand along with your bottom line. The risk is handled by the EOR while your staffing agency does what it has always done well—find and hire top talent. 

Has an EOR Benefited Your Staffing Agency?

FoxHire works closely with staffing agencies to create a win-win for everyone involved. Talk with our team today about how we can help you expand your business to provide more value to your clients.  

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