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If you are in the HR or recruiting space, you may have been hearing a lot about “EOR” companies recently. The World Economic Forum even mentioned EORs in their most recent annual meeting. You may ask yourself, “what in the world is an EOR”? EOR stands for “Employer of Record”. It is a service offered by companies that act as the official employer for a worker, even though the worker may be performing their job duties for another company or organization.

Employer of Record (EOR) services take on the responsibilities and liabilities of being an employer for a worker, even though the worker may be performing their job duties for another company or organization. This can include tasks such as hiring, onboarding, payroll, benefits administration, and compliance with labor laws.

EOR services are often used by companies that want to expand into new markets, but don’t want to set up a legal entity in that country. They are also used by staffing and recruiting firms that want to place contract workers at their clients, but don’t have the infrastructure in place to handle the administrative responsibilities of being an employer.

Employer Example:

For example, an American company that wants to expand its business to Canada, but doesn’t want to set up a legal entity there, can use an EOR service to hire and pay Canadian workers. The EOR service will handle all the necessary paperwork, taxes, and compliance with Canadian labor laws.

Staffing firm Example:

For example, a direct hire recruiting firm has a client that wants to hire their candidate on a temp-to-perm basis. In order to facilitate the temp contract, the recruiting firm would use an EOR to be the employer until the client wants to hire the candidate full time.

EOR Software:

Some Employer of Record providers deliver a software solution to manage remote and contract staff, so that it’s easy to add and manage new employees you want to hire. These organizations enable even more flexibility and efficiency for clients through their platforms, which digitize the entire employment process.

Overall, EOR services provide a convenient and cost-effective solution for companies looking to expand their workforce without the added administrative burdens of being an employer. It allows the companies to focus on their core business activities and not worry about the legal and administrative issues that come with employing people in different countries or states. If you are looking for an EOR, FoxHire can enable you to grow without the risk and burdens of being an employer!

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A complete Employer of Record (EOR) platform for onboarding, payroll, and compliance – so you can hire without the hassle.