GLOBAL EMPLOYMENT OUTSOURCING (GEO)
Employer of record solutions
What is an employer of record?
An EOR helps organizations hire workers in a foreign country quickly and compliantly, without having to set up a business entity.
That’s because an employer of record company has already assumed the cost and risk of registering an international entity. When you partner with an employer of record like Safeguard Global, we hire local workers on your behalf, taking on the legal and administrative responsibilities, while you manage your team’s day-to-day contributions and performance.
What does an employer of record do?
Employer of record services should typically include:
- In-country HR teams to support local employees
- Ensuring compliance with local labor laws
- Technology to offer a seamless employee experience
- Negotiating contracts and onboarding workers
- Handling payroll, including administering salaries, taxes and benefits
Employer of record vs. PEO
Unlike an employer of record, a PEO, particularly in the U.S., is often part of a co-employment arrangement, in which both the PEO and client company share legal responsibility for employees, and both must be registered as a legal entity in the country where workers are located.
For foreign companies hiring in the U.S. and evaluating employment partners, the distinction between EOR and PEO is important to understand, particularly if the entity establishment requirement and compliance risk are of concern. (If you don’t have plans to set up a U.S. entity, you need an EOR, not a PEO.)
Sometimes, providers in the global market refer to themselves as an “international PEO,” but despite the terminology, what they’re really offering are employer of record services.
When should you use an employer of record?
You should use a global employer of record when you need to hire international workers, but you don’t have a legal entity in the country where the workers live. Check out our guides for popular countries for using an EOR below:
Additionally, an employer of record can help you:
- Convert independent contractors to employees
- Enable remote work globally
- Employ newly acquired workers as part of an M&A deal
Global Employment Outsourcing (GEO), the employer of record solution from Safeguard Global, provides services in 165+ countries. And as the longest-serving EOR provider in the market (over a decade and counting!), we’ve seen it all and have provided solutions for even the most complex international hiring needs.
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Why choose Global Employment Outsourcing (GEO) as your EOR
Learn more about hiring workers in another country without an establishing entity