Global Employee Benefits: Strategy Guide for 2025

Designing a global employee benefits package that works for a distributed team is one of those challenges that sounds straightforward until you're actually in it. The right mix of benefits can be the difference between a cohesive, motivated workforce and one that's quietly eyeing the door. That's where a thoughtful benefits strategy becomes essential, not as a box-ticking exercise, but as a genuine signal of how you value your people.

A well-crafted global employee benefits strategy isn't just a nice-to-have. It reflects an understanding that your team members are building lives alongside their careers, lives that look different in São Paulo than they do in Stockholm.

The right benefits package addresses those differences while demonstrating real commitment to your team's well-being. It should also align with your company's goals, support long-term growth, and keep you compliant with local labour laws.

In this guide, we'll walk through what global employee benefits actually include, why a strategy matters, and how to build a package that works across borders, without losing sleep over compliance.

Key Takeaways

• 80% of employees would choose better benefits over a pay raise, making competitive benefits packages as important as salary for talent attraction and retention.
• Global benefits strategies require balancing mandatory local compliance requirements with supplementary perks, as statutory benefits vary significantly across countries like Australia's mandatory health insurance versus other nations' pension contribution requirements.
• Younger workers expect flexible hours (51% cite as major concern), mental health policies (91% of Gen Z expect these), and career development opportunities that improve millennial retention by 85%.
• Employer of Record services handle payroll, tax compliance, and benefits administration across multiple countries, enabling companies to expand internationally without establishing legal entities in each jurisdiction.

Global employee benefits vary by company and region, but a well-balanced package often includes a mix of mandatory and supplementary benefits to meet the diverse needs and expectations of a global workforce.

A survey by Aon shows what employees expect from companies in terms of benefits:

How to create a global employee benefits package?

Here are a few steps to help you determine the right mix of benefits for your distributed workforce.

1. Define your budget

Before you design anything, get clarity on what you can actually spend. Consider:

• Current headcount and growth projections: How many people will this need to cover in 12–24 months?
• Per-employee allocation: What's realistic given your runway?
• Country-specific costs: Use industry reports or tools like Teamed's employment cost calculator to compare markets

If you're hiring in countries without a legal entity, an employer of record (EOR) can handle compliance so you don't have to.

You can use this free employment cost calculator by Teamed to compare the employment costs of different countries.

2. Understand government laws

Research and understand the labour laws and regulations in each country where you have employees. Different countries have varying requirements for mandatory benefits, such as health insurance or retirement plans. For example, countries like South Africa require employers to mandatorily contribute to the Workers' Compensation Fund.

Understanding and complying with such laws from multiple countries can be challenging. An EOR like Teamed can help you by taking on the legal responsibilities of an employer, which includes compliance with local labour laws and regulations.

3. Conduct a competitor analysis

Look at what competitors offer, globally and in your target regions through proper salary benchmarking. This helps you understand industry norms and identify where you can differentiate.

LinkedIn, Glassdoor, and industry salary reports are useful starting points.

4. Prioritise the benefits you want to offer

Thoroughly learn about the labour markets you're targeting, what workers expect, what governments require, and what competitors offer.

Here are a few factors to consider when deciding which benefits to include in your package:

• Current employees' satisfaction regarding their benefits package and their opinion on it.
• Are you trying to be more cost-effective? Read more on how to pay international employees in a manner that's competitive and fair.
• Cultural requirements - For example, in countries where preventive healthcare is a cultural norm, providing regular health check-ups or wellness programs may be highly valued.

Now you can start building your global employee benefits package:

Mandatory benefits: benefits required by local laws, such as health insurance and retirement plans

Core supplementary benefits: universally valued benefits, such as paid time off, flexible work schedules, and wellness programs

Tailored supplementary benefits: offerings like transportation allowances, childcare support, or supplementary healthcare programs

Communication and education: informational workshops, online guides, consultations with experts, and user-friendly benefits portals

The key to a cohesive global employee benefits strategy is to coordinate the links between different elements. This will help align the benefits package with organisational goals and satisfy the diverse needs of the workforce.

Global employee benefits: Trends and statistics

These benchmarks can help shape your priorities:

"Support for our candidates was hugely important. We wanted a solution that felt like just another branch of what we do internally but took care of things that are outside of our expertise. For this, Teamed delivers on all fronts!" - Marta Silva, Tekever

How an EOR can help you build a global benefits package

If you're expanding into multiple countries without legal entities in each, an EOR handles the parts that would otherwise keep you up at night: payroll, tax compliance, benefits administration, and labour law adherence.

Specifically, an EOR supports your benefits strategy by:

• Local expertise: EORs have a deep understanding of labour laws, tax regulations, and employment standards in various countries. They can provide guidance on mandatory benefits, such as health insurance, retirement plans, and leave policies.
• Scalability: As your company expands into new countries, an EOR ensures the hiring company remains compliant to local requirements.
• Customised global benefits: Each company has unique requirements when building a global benefits strategy. Teamed can help tailor your benefits package according to your budget and industry norms.
• Benefits benchmarking: EORs can provide insights into industry standards and practices, helping you benchmark your benefits package against competitors to attract and retain top talent.
• Employee communication: EORs can assist in communicating benefits information to your global workforce in a culturally sensitive and locally relevant manner. This is done by tailoring messaging, materials, and delivery methods to align with the cultural norms and preferences of each region.

With an EOR by your side, you have a guide who understands all these factors and who has experience in it.

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Employer of Record services in South Africa: How businesses are expanding with ease

South Africa is gaining traction as a go-to destination for global hiring, thanks to its skilled workforce, cost-efficiency, and strategic time zone alignment. However, navigating the country’s unique employment landscape can be complex without the right support. In this blog, we explore how businesses are leveraging Employer of Record (EOR) services to hire talent in South Africa. 

From compliance considerations to success stories, discover why partnering with an EOR like Teamed  could be the key to expanding your team effortlessly.

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Why South Africa is an ideal destination for global hiring

1. Access to a diverse, skilled talent pool

With over 60 million people and a multilingual workforce, South Africa produces highly skilled professionals across sectors like IT, data science, and business development. Annually, its universities graduate 200,000+ candidates, including specialists in high-demand fields.

“Teamed has definitely helped us transform our hiring process. It allows us to cast the net so much further and target talent we know will be beneficial to our business, regardless of where they’re based.” – HR Team, MyTutor

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2.  Strategic time zone advantage

South Africa operates in GMT+2, ideal for European businesses while overlapping with North American schedules for late-afternoon collaboration. This time zone convenience benefits industries requiring real-time communication, like customer support and software development.

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3. Cost-efficiency in hiring

Labour costs in South Africa are significantly lower than in Western markets, offering businesses opportunities to optimise their budgets without compromising on quality. Lower operating costs also make it a viable destination for scaling teams globally.

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Key considerations for hiring in South Africa

Labour laws and compliance

South Africa’s labour laws differ greatly from the “at-will” employment practices found in countries like the US. Employers need to account for:

• Notice periods: The notice period can be agreed upon between the employer and employee, but legally it should adhere to the minimum requirements based on the length of service.
• Severance pay: Employers are typically required to provide severance during retrenchments. Severance pay regulations can vary, and specifics may depend on the employment agreement and relevant labour laws.
• Probationary periods: While probation periods are common (and can’t exceed 6 months), they must allow for proper feedback and fair assessment of the employee.

“Teamed enabled us to navigate compliance challenges with ease. From probation periods to tax compliance, they take care of everything and allow us to focus on core business areas.” – Senior Manager, CT:

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Payroll and taxes

Employers in South Africa must navigate payroll intricacies, including:

• Currency: Salaries are typically paid in South African Rand (ZAR).
• Employer contributions: These include the Unemployment Insurance Fund (UIF) and Skills Development Levy, which support social programmes and workforce training.
• Bonuses: While not mandatory, many employers offer a 13th-month bonus, often paid in December.

Rather than navigating these complexities independently, businesses increasingly turn to an Employer of Record (EOR) to streamline payroll and compliance.

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Operational challenges

One unique aspect of South Africa is the ongoing challenge of load shedding (scheduled power outages). Businesses hiring in the country should:

• Prioritise candidates with access to backup power solutions.
• Offer allowances for uninterruptible power supplies (UPS).

These proactive measures ensure business continuity despite infrastructural challenges.

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Hiring in South Africa: Using an EOR vs. setting up a local entity

The Employer of Record (EOR)

An EOR is a third-party service provider that handles all aspects of employment for international teams. Key benefits include:

• Speed: Onboard employees in as little as 24hrs, compared to months for setting up an entity.
• Compliance confidence: The EOR assumes responsibility for labour law compliance, including contracts, taxes, and payroll.
• Flexibility: Scale your workforce up or down based on demand without the administrative burden of entity management.

“Teamed feels like an extension of our team. Their expertise and support ensure a smooth hiring experience.” – Rachel Gething, People Operations Manager, Data Science Talent

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Setting up a local entity

Establishing a local entity provides greater control but involves higher costs and time investments. This option is typically suited for businesses with long-term plans to operate in South Africa.

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Hear from companies hiring in South Africa and beyond

CT scales with confidence

Facing talent shortages in the UK, CT partnered with Teamed to hire auditors in South Africa. Teamed managed compliance and onboarding seamlessly, allowing CT to expand globally without operational delays. “Teamed’s quick responses and in-depth knowledge have allowed us to streamline our onboarding processes and eliminate a lot of the red tape we would have previously struggled with.” – Senior Manager, CT:

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Data Science Talent grows globally

Data Science Talent needed to hire a key business development professional in South Africa while navigating tight deadlines. Teamed provided flexibility and compliance expertise, making the process seamless. “They worked around our timelines and made the process smooth. Their human-centric approach feels like an extension of our own team.” – Rachel Gething, People Operations Manager, Data Science Talent

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MyTutor retains top talent

When a senior engineer at MyTutor moved to Spain, Teamed facilitated the transition, ensuring compliance and operational continuity. The partnership has also helped MyTutor hire globally.

“How quickly we can get things set up is a real plus for our team. The speed at which Teamed moves enables us to facilitate international moves, even at short notice.” - HR Team, MyTutor

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How Teamed supports your hiring in South Africa

Teamed’s Employer of Record (EOR) services are designed to simplify global hiring and compliance, offering:

• Streamlined onboarding: Quick and compliant employee onboarding tailored to your business needs.
• Compliance expertise: Stay ahead of labour law changes with Teamed’s legal and HR specialists.
• Dedicated support: A human-centric approach with responsive, knowledgeable assistance every step of the way.
• Scalable solutions: Flexibly hire and manage teams as your business grows.

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Take the next step

Hiring in South Africa presents immense opportunities for businesses to access a skilled, cost-effective talent pool. With Teamed as your EOR partner, you can navigate the complexities of compliance and onboarding effortlessly, focusing on what matters most, growing your business.

Let’s chat about your hiring goals in South Africa!

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Looking for software engineering talent? You’re not alone. Many companies are expanding their search into Eastern and Southern Europe, drawn by the prospect of high-quality tech skills at lower staffing costs. According to Precedence Research, the IT services outsourcing market is expected to hit around USD 1065.10 billion by 2030 with a CAGR of 8.06%. This growth indicates that more and more companies are turning to offshore and nearshore software development, primarily driven by cost considerations. But, as straightforward as it might seem, hiring across these regions comes with its own set of challenges.

At Teamed, we’ve seen firsthand how companies approach hiring in these cost-effective European markets. Often, the expectation of abundant technical skills at competitive costs meets the reality of navigating cultural, operational, and logistical complexities.

“When recruiting tech talent overseas, one of the biggest challenges is aligning expectations with the realities of emerging markets. For instance, Eastern Europe offers a rich pool of technical talent, but trying to transfer existing culture and working practices while expanding to new regions can pose challenges. What works culturally and professionally in a company’s home market doesn’t always translate easily into new regions,” explains one of our hiring experts at Teamed.

This article explores the most common hiring strategies and how businesses can effectively build and manage international remote teams.

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The Expectation:

Companies often look abroad for top-tier engineering talent as they scale. Regions like Eastern and Southern Europe are attractive due to their deep pools of highly skilled professionals and relatively lower costs compared to Western Europe or North America.

The European IT outsourcing sector is constantly growing, making it an attractive offshoring destination. According to Clutch, there are currently 3,016 firms specialising in software development in this region, including 913 IT firms in Ukraine, 1064 in Poland, and 112 in the Czech Republic. However, accessing this talent pool as a direct employer is fraught with challenges.

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The Reality:

Numerous challenges prevent businesses from effectively accessing global engineering talent. The most common issue faced by companies looking to supplement their engineering teams with talent from countries like Poland, Lithuania, Romania, and North Macedonia is making the right logistical and strategic choices. In simple words, the way you look to engage talent. A key challenge is choosing the right hiring approach, which often was narrowed down to three traditional options: building local entities, partnering with software houses, or hiring local contractors.

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The traditional routes: Building entities vs. partnering with software houses and hiring freelance contractors

Companies looking to tap into these markets typically face a decision: build their own local entities, partner with local software houses, or hire local contractors. Each option comes with its own draw-backs and benefits:‍

Building local entities:

Establishing a local presence can be costly and time-consuming. It involves navigating foreign legal systems, adhering to local employment laws, and managing operational risks. While scaling up is feasible, scaling down can be equally challenging and expensive, making this option less flexible and more of a long-term commitment than some businesses are prepared for.

The downside: Establishing a local presence can be costly and time-consuming. According to McKinsey, setting up an entity can take upwards of 6-12 months and cost over $50,000 in legal and administrative fees alone.

The upside: Statista reports that Poland, for example, has over 500,000 ICT specialists, with a growing influx of over 13,000 IT graduates entering the market annually. These markets are filled with highly skilled talent, making them attractive locations.

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Partnering with software houses:

This approach, while quicker and less burdensome in terms of initial setup, due to there being no need to source talent or build local entities, often results in less control over the quality and management of the workforce.

The downside: Companies can find themselves paying higher rates for the talent, yet they lack direct oversight and integration of these teams into their core operations.

The upside: Due to the ease of delivering outcomes without the need to acquire new talent or investing the time and cost involved in setting up local entities, this is a very popular method of acquiring staff for projects. E.g. N-iX reports that in Ukraine, 60% of tech professionals work for IT outsourcing and outstaffing companies, highlighting the prevalence and reliance on software houses.‍

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Hiring local contractors:

Directly engaging with local freelancers and contractors can help you get set up fast and without the need of building local entities, offering flexibility and potentially lower costs but holding the risk of the unknown. Whilst it is more expensive than hiring your own resources it can be cheaper than using software houses. 

The downside: There’s the element of the unknown, as it can be harder to vet contractors overseas. This can occasionally result in a lack of control and quality assurance if not managed properly. Additionally, hiring contractors often limits integration with your core team, and building trust can prove more challenging.

The upside: Hiring freelancers and contractors directly is cost-effective and can achieve cost savings of up to 20-30% services compared to using software houses (Deloitte Global Outsourcing Survey) and allows the flexibility to scale your team up and down quickly as needs require. 

“One of the most common scenarios we encounter is companies looking to tap into global talent and income, but hesitating due to the complexity of establishing local entities and the risks of non-compliance. Some businesses even consider taking shortcuts by hiring contractors where they know they need employees, exposing themselves to significant risks,” says Tom, Co-Founder of Teamed.

“Luckily, there’s a better solution that sidesteps these challenges. By using an Employer of Record (EOR), businesses can hire both long- and short-term employees with minimal risk while retaining full control of their workforce. It’s a smarter, more sustainable approach that combines flexibility with compliance, ensuring companies can focus on growth without unnecessary complications.”

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The maybe less thought option: Employer of Record (EOR)

Amid these well-known approaches, the Employer of Record model offers a streamlined alternative. EORs simplify the process of building global remote teams by managing everything from local contracts to talent hiring, along with providing expert support and payroll services. They already have legal entities established in various countries, which means they can hire employees on behalf of another company.

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Here’s how it addresses the core challenges related to hiring global remote talent:

• ‍Cost-Effectiveness and Efficiency: An EOR eliminates the need for your own legal entity, drastically reducing overhead costs and setup times. With some EORs like Teamed you can hire and onboard new talent even within 24 hours.‍
• Compliance and Risk Management: EORs manage all aspects of legal compliance, payroll, and HR, greatly reducing the administrative burden and mitigating risks associated with international employment laws.‍
• Operational Control: While the EOR handles the legal and administrative responsibilities, the client company retains day-to-day management of the employees, ensuring that the team aligns with the company’s standards and objectives.‍
• Support and Local Expertise: The best EORs provide more than just administrative service; they offer human support and act as an extension of your team. By understanding local regulations and cultural nuances, EORs ensure that employees feel valued and trust their employer whilst reducing stress on your HR and finance teams.

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Conclusion

Making the most out of the global talent pool requires more than just the intent to expand internationally; it demands a deep understanding of the options available and the strategic use of the right hiring models. Here at Teamed, we can show you firsthand how our service as an Employer of Record (EOR) can transform the process of integrating global talent into your operations.

“Many companies approach global hiring as a strategic way to access high-quality talent at a lower cost,” says Tom.

“However, without fully understanding their options, they often default to contracting through software houses. While this can be a viable solution, it often creates a disconnect between the company and its team. An Employer of Record provides a better alternative, enabling businesses to expand their teams globally without the complexities or high costs of setting up local entities.”

At Teamed, we encourage you to look beyond traditional hiring frameworks and explore how an EOR can offer a seamless, compliant, and cost-effective way to manage your global workforce. Whether it’s mitigating risks, simplifying compliance, or retaining control over your international teams, an EOR can be a strategic ally in your global expansion efforts.

Ready to streamline your international hiring and ensure your global teams thrive under one corporate culture? Let’s chat.

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^{This topic was initially brought to us by our partners, Ernest Hunter Green, during early discussions about global hiring challenges their clients face. While we originally decided to co-author this piece, the timing didn’t align, so we’ve decided to publish it as a Teamed insights article. We appreciate their input and thank them for sparking this important conversation.}

Global Employer of Record Services (EOR) | Teamed

Key Takeaways

• Take your business to 180 countries without worrying about hidden fees or surprise costs.
• 24-hour onboarding reduces downtime for new hires.
• Keep your HR, Finance, and Legal teams out of hot water with rock-solid compliance.
• Teamed’s AI Agents handle routine tasks, freeing your in-house experts.

With the rise of remote work and the growing demand for specialised skills, mid-market companies  face unique challenges when hiring internationally. Here’s how global EOR solutions simplify that process:

With the world more connected than ever, your business can cast a wider net and tap into top global talent through an Employer of Record (EOR). They handle all the local taxes, rules, and payroll headaches for you, keeping your risk to a minimum.

However, undertaking cross-border hiring and operations requires navigating the complex maze of local laws, taxes, and compliance. That’s why an Employer of Record (EOR) can help you hire quickly and easily.

This guide breaks down everything you need to know about EORs and helps you pick the right one for your business.

For companies in high-regulation industries like financial services, defence, or healthcare, Teamed combines built-in AI Agents with seasoned compliance experts. You can grow your business with confidence, knowing you're following all the rules that keep HR, Finance, and Legal happy.

What is a Global Employer of Record (EOR) Service?

Employer of Record (EOR) is the legal employer responsible for your overseas workers. You get the same reliable compliance and smooth payroll no matter where you're operating.

This removes the burden of establishing foreign legal entities, so you can hire top talent quickly, without corporate jargon or red tape standing in your way.

An EOR partner lets you dip your toes in new markets and grow smoothly, without the massive expense and hassle of creating foreign subsidiaries.

Navigating Global Employment Complexities

Employing overseas workers is complex. Labour laws, tax codes, and compliance rules all differ by country.

Some common pain points for businesses include:

• Understanding localised payroll systems, income taxes, and social security requirements.
• Ensuring employment contracts comply with laws in defence or financial services sectors.
• Managing multi-country workforce operations with limited resources.
• Understanding localised payroll systems, income taxes and social security obligations
• Navigating unique visa regulations and immigration policies by country
• Providing compliant employee benefit plans, including healthcare, insurance, retirement accounts and leave policies
• Adhering to rigid local employment laws around hiring, terminations, and employee rights
• Conforming with national data privacy regulations and HR record-keeping
• Managing cross-border compensation, equity plans, and remote workforce policies

The more countries you expand to, the more complicated these challenges become.

Key Benefits of Using Global EOR Services

How Teamed’s AI Agents and Human Experts Work Together

Teamed’s built-in AI Agents now automate up to 70% of routine HR, finance, and compliance tasks. Our experienced team tackles the tough stuff, so you never have to worry about compliance issues. "We blend human expertise with proven AI to give mid-market and regulated industries results they can count on."

For HR, Finance, and Legal teams, the true value of a global EOR is measured in lower admin loads, predictable cost structures, and unwavering compliance confidence—according to Deloitte’s 2024 Global Payroll Survey.

The biggest win with a Global Employer of Record? Smoother compliance and lower risk when you're expanding, especially if you're in financial services or defence where mistakes cost a fortune.

Accelerated Global Expansion

Setting up offices or subsidiaries abroad takes forever and costs more than most companies can afford.

EORs change the game completely. You can expand globally and start hiring right away. You can also rely on 24-hour onboarding services to keep your new hires on schedule.

Access to Global Talent and Skilled Workers

Make sure to expand your talent search beyond aa0single geography. An Employer of Record (EOR) clears away all the legal and compliance roadblocks that slow down hiring in new markets.

While you hire, an EOR can handle the necessary paperwork permits to employ foreign staff legally.

Reduced Legal, Tax and HR Administration

EORs take the admin nightmare out of international hiring and HR management.

Your EOR partner handles everything: payroll, tax filings, legal compliance, employment contracts, and all those complex requirements while following local laws to the letter.

Mitigated Risk and Legal Liability

Using a Global EOR reduces operating risks, as they assume primary employer responsibilities and liability in foreign regions.

Plus, you dodge costly mistakes from regulations you didn't know about and sleep better knowing you're legally covered.

Local HR Support and Expertise

EORs have specialised in-country teams familiar with regional employment nuances.

They can provide localised HR services and expertise vital for smooth overseas hiring. That’s why an Employer of Record (EOR) is so valuable, ensuring every step is handled by regional experts.

The Employer of Record (EOR) model also offers unmatched flexibility to deploy talent swiftly across geographies, easing the pressure on HR, Finance, and Legal.

How Global EOR Works

The European Commission’s guidance on employment regulations provides a framework for managing HR and payroll processes across borders. (European Commission: Employment, Social Affairs & Inclusion)

Using a global EOR makes onboarding and managing overseas employees so much simpler.

Here's an overview of how a global EOR works:

Step-by-Step Process of Onboarding Employees Through EOR

Here's what happens when you onboard new hires through an EOR:

• Selecting the countries you wish to hire remote staff and expand operations into. Your EOR provider can advise on the best regions based on your business needs.
• Working with your EOR's in-country teams to source suitable candidates that match your hiring criteria.
• Extending job offers to chosen candidates and having them sign the EOR's standardised employment contract.
• Your EOR secures all required paperwork, permits, and visa sponsorships, handling the complex admin so you don’t have to.
• On the start date, the EOR formally onboard new hires as the legal employer, including payroll setup, taxes, and more.
• Your EOR helps with the daily management of international employees, but you still call the shots.

EOR Responsibilities vs Client Responsibilities

Since an EOR is your company's legal representative in a particular region, it also takes a share of your responsibilities.

Global EOR services handle most of the legal and compliance heavy lifting when you hire internationally.

Key EOR responsibilities include:

• Serving as the legal employer of record in foreign countries
• Managing in-country payroll, taxes, and social security contributions
• Securing work permits and managing immigration/visa requirements
• Ensuring adherence to local labour laws and employment regulations
• Providing compliant HR services, benefits, insurance, leaves etc.
• Handling employee terminations and severance as per local laws

On the other hand, you, a.k.a the Client, are responsible for duties directly related to day-to-day operations, workforce management, and performance oversight, while the Employer of Record (EOR) handles the rest.

• Defining hiring needs and criteria for screening candidates
• Day-to-day management and oversight of remote employees
• Providing technology, infrastructure, and tools for employees
• Managing employee training, evaluation, talent development
• Dictating compensation levels and equity awards

Ensuring Seamless HR and Payroll Processes with EOR

At the end of the day, running an operation isn’t enough. An Employer of Record (EOR) keeps everything running smoothly and compliant from start to finish.

With the right technology stack and global expertise, Employer of Record (EOR) providers can deliver a seamless HR experience across defence or financial services markets, letting you focus on growth.

• EORs' online HR platforms centralise employee records, payroll, taxes, etc.
• HR teams can pull up real-time reports on their global workforce whenever they need them.
• New employees get up and running fast with digital tools and can check their payroll details online anytime.
• You handle global payroll with just one payment to your EOR. Simple as that.
• In-country teams handle localised payroll payments, filings and employment compliance.

Teamed’s streamlined and cloud based EOR solution ensures outcomes HR, Finance, and Legal teams can trust: fast onboarding, predictable costs, and fully compliant payroll in 180 countries.

Choosing the Right EOR Partner

PWC’s 2023 Global Workforce Hopes and Fears Survey shows that compliance and expertise are key drivers for selecting an EOR partner in highly regulated industries. (PwC Global Workforce Report 2023)

Picking the right EOR partner means weighing several factors to keep your business secure and running like clockwork.

Here's what to evaluate when selecting an EOR partner:

Expertise and Experience

Assess the provider's depth of expertise and years of experience managing international employer obligations, payroll, taxes, and compliance across various regions.

Look for:

• Extensive track record over many years
• Demonstrated success through client case studies
• Seasoned in-country specialists worldwide
• Knowledge of nuanced regional differences and regulations
• Extensive track record over many years
• Demonstrated success through client case studies
• Seasoned in-country specialists worldwide
• Knowledge of nuanced regional differences and regulations

International Coverage

Teamed provides seamless coverage in 180 countries. This means HR, Finance, and Legal teams in sectors like financial services or professional services can scale internationally with certainty and speed—knowing every market is accounted for, all under one fair and transparent platform.

Check if they can support you in the markets you're in now and where you're planning to go:

• Seamless support in your priority countries and regions
• Localised HR services and legal guidance
• Ability to scale up as you expand to new markets
• Seamless support in your priority countries and regions
• Localised HR services and legal guidance
• Ability to scale up as you expand to new markets

Customisation and Flexibility

Find an EOR partner who can customize their approach to fit what you actually need:

• Custom-built offerings for your industry and business model
• Flexibility in structuring employment terms
• Integration with your existing HR software and systems
• Scalable services as your international presence grows
• Custom-built offerings for your industry and business model
• Flexibility in structuring employment terms
• Integration with your existing HR software and systems
• Scalable services as your international presence grows

Get Started with Global EOR Servicesa

The UK Financial Conduct Authority emphasises the importance of transparent and compliant hiring practices for firms expanding internationally. (FCA: Guidance for Overseas Firms)

The right partner brings together expertise, global reach, and flexibility to set you up for international success.

Teamed: Simplifying Global Employment

“Our need to convert two contractors to full-time employees in Spain was managed effortlessly through the Teamed platform and their accompanying services. What would have been a complex, costly and long drawn out process was made simple, and dare I say a pleasurable experience.” – Rachel Blezard, Head of People Operations, SpotQA.a0Read the full SpotQA case study.

If you want global hiring that actually works, Teamed offers a complete EOR solution that uses smart technology to make international employment straightforward. We handle all your worldwide expansion and compliance challenges so you can focus on growing your business without the stress.

FAQs About Global Employer of Record Services

1. What is a Global Employer of Record (EOR) service?

An EOR is a provider that acts as the legal employer of staff hired overseas, removing the liabilities and complexities for HR, Finance, and Legal teams.

2. Why do businesses need Global EOR services?

To hire abroad without establishing foreign legal entities, while meeting all local regulations and payroll obligations.

3. What are the key benefits of using Global EOR services?

Accelerated global expansion, access to world-class talent, reduced HR administration, and peace of mind from compliance certainty.

4. How does the EOR model work?

An EOR becomes the official employer of record for your overseas staff, overseeing compliance, payroll, and regulations so you can focus on core operations.

5. Can EOR services be customised for different countries?

Yes. Leading EORsa0like Teamed tailor services to meet each country’s legal, HR, and payroll rules, ensuring smooth operations for Finance and Legal teams.

Yes, EORs are ideal for mid-market and scaling companies that need to hire remote full-time employees without establishing foreign entities. Your HR, Finance, and Legal teams can tackle even the most challenging countries with confidence.

Ready to Succeed with Global Hiring?

Teamed makes international employment simple, even when it seems complicated. Let's chat about how we can help you build your global team successfully. Get in Touch

Conclusion

• Global EOR services break down the walls that keep mid-market companies from expanding internationally.
• 24-hour onboarding ensures fast deployment of talent in 180 countries.
• HR, Finance, and Legal teams finally get compliance that makes sense.

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With the Labour government’s new budget, UK companies are facing a double-edged challenge: higher National Insurance (NI) rates and a Minimum Wage hike that add immediate strain to hiring budgets. For many businesses, these changes can mean stretched resources, reduced growth potential, and a hard look at hiring priorities.

But with cost-effective, highly skilled talent pools around the world, businesses now have a smart alternative to local hiring. Let’s look at how global hiring, particularly with an employer of record (EOR) like Teamed, can offer UK businesses immediate relief from rising costs and a scalable pathway to future growth.

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What’s changed? New costs for UK employers

The latest Labour budget brings a series of changes that affect hiring strategies for UK companies of all sizes. Here’s a quick breakdown:‍

• ‍National Insurance increases: NI for employers now sits at 15% on salaries over £5,000, a jump from the previous 13.8%, creating a costly burden for businesses expanding their teams.‍
• Minimum Wage hike: From April, the Minimum Wage for those over 21 will rise from £11.44 to £12.21 per hour. For companies with entry-level or high-volume roles, this adds significant costs to payroll.‍
• Capital Gains Tax increase: For those with investment portfolios, CGT hikes could redirect funds typically reserved for recruitment and operations.

These cost increases push companies to find creative ways to attract and retain talent without overextending their budgets, and global hiring might be the smartest answer.

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Why now? How global talent can balance the books for UK businesses

The recent budget challenges UK businesses of all sizes to find creative solutions to their hiring needs. From budding start-ups to fast-growing scale-ups and established mid-market firms, every business type has a unique set of pressures, and global hiring offers specific benefits tailored to each.

If you’re a start-up:

• ‍Flexibility and Cost Control: Start-ups thrive on agility, but rising local hiring costs can shrink your budget fast. Global hiring allows you to bring in specialised talent [like developers or customer support] from regions where wages are lower, without compromising on quality.‍
• Streamlined Compliance: Early-stage companies often lack the resources to manage complex legalities. With our EOR model, you’re covered on compliance and tax, giving you more time to focus on scaling.‍
• Scalable Hiring: For start-ups needing quick access to diverse skills, global hiring means you’re not limited to the UK’s tight talent market — you can scale up with skilled remote employees without the usual overheads.

If you’re a scale-up:

• ‍Maintaining Growth Amidst Rising Costs: Scaling means balancing ambitious growth goals with a realistic budget. With the NI increase and Minimum Wage hike, hiring locally could slow your pace. Tapping into global talent pools can give you the specialised skills you need, at a sustainable cost.‍
• Access to Specialised Talent: At this growth stage, you need high-quality talent that brings specialised skills like data analysis, finance, or project management. Teamed’s EOR service lets you hire top talent from markets like South Africa and the Philippines, where these skills are abundant and affordable.‍
• Compliance Peace of Mind: Expansion is complex enough without adding legal risks. Teamed ensures compliance in every region, handling payroll, contracts, and local laws, so you can focus on building your brand.

For mid-market companies:

• ‍Offsetting Rising Operational Costs: With higher wages and NI rates, cost savings are essential. Hiring globally reduces payroll burdens, enabling you to sustain or even expand your workforce without the cost spikes associated with UK hiring.‍
• Long-Term Talent Strategy: For companies looking to establish a remote or hybrid workforce, global hiring isn’t just a quick fix - it’s a way to build a resilient, geographically diverse team. Teamed’s EOR model provides stability and consistency, even across borders, so your teams feel supported and engaged.

By making global hiring part of your strategy, you can control costs, access specialised skills, and grow sustainably - even with the latest budget pressures. Best EORs, like, Teamed, are driven by human touch, ensuring your remote team feels connected, supported, and aligned with your goals.

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Success stories: how two UK companies already benefit from global hiring

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City Relay – Staying agile and cost-effective with remote support teams in the Philippines

City Relay, a London-based property management company, needed to expand its customer support team while managing costs. Teamed helped City Relay build a remote team in the Philippines, providing skilled support at a fraction of the cost of London-based hires.

"One of the things that really stands out about Teamed is their personal touch. They’re not just a service provider — they’re a partner. I know I can always reach out to Paulina or Michael, and they’ll be quick to respond with whatever we need.” - Amy Pantlin, Head of People | City Relay

City Relay adopted global workforce operations since early 2020s, and they’re planning to increase that to and have increased their global staff numbers by 80% in the last two years, a move that enables cost-effective growth even as UK-based hiring costs continue to rise.

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CT – Navigating talent shortages with South African finance expertise

Scotland’s leading accounting firm, CT:, faced a shrinking pool of finance professionals in the UK and rising local hiring costs. Partnering with Teamed, CT: expanded to South Africa, where they could hire skilled finance professionals who met their standards without the geographic limitations.

"Teamed has empowered us to uphold our dynamic work policy while expanding our operations at the same time. Our South African and Australian colleagues have become indispensable assets, accelerating the pace at which we operate and creating more flexible working arrangements for our UK team members — something we don’t believe would have been possible without Teamed!" - Amanda Masuku
, HR & Resourcing Associate | CT:

Teamed’s seamless support allowed CT to maintain its growth trajectory, handling payroll, contracts, and compliance issues at ease. CT recommends Teamed to any organisation looking for a reliable partner to help streamline the hiring process and navigate challenges associated with a limited talent pool in the UK or abroad. Their team emphasises that there’s no need to risk your business or stunt your growth when there’s innovative solutions like Teamed available.

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Why hiring globally through an EOR is a smart move now

With rising hiring costs in the UK, global talent offers a powerful alternative—giving you the skilled professionals you need without stretching your budget. Through an employer of record (EOR) like Teamed, you gain access to top talent worldwide while staying fully compliant and supported at every step. Here’s why this approach works now more than ever:

• ‍Real savings without cutting corners: Hiring internationally gives you the freedom to find top talent at a fraction of local costs. With Teamed, you can focus on hiring the right people, while benefiting from savings by tapping into skilled talent pools in places like South Africa and the Philippines with lower costs for hiring top talent.‍
• Full compliance, zero headaches: Expanding internationally can mean complex tax, contract, and employment laws. Teamed takes care of it all [payroll, holiday management, tricky compliance questions, and contract specifics] ensuring you’re always covered, without the stress.‍
• Access to world-class talent pools: With UK talent in short supply and rising local costs, accessing skilled professionals abroad can give you a competitive edge. In regions like South Africa, the Philippines, and Spain, you’ll find highly qualified candidates in finance, tech, and customer support, helping you build the team you need without local constraints.‍
• A partner that feels like part of your team: With Teamed, it’s more than just hiring, it’s a people-first approach. From payroll to holidays and contract support, our team feels like an extension of your own HR, so every remote hire feels connected, engaged, and supported.

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The Labour budget has made one thing clear for UK companies: rising local hiring costs mean it’s time to think globally. With Teamed, businesses like yours can access skilled, cost-effective talent, just as our clients like City Relay and CT have done. By reducing operational expenses and eliminating the stress of local compliance through our expert EOR services, Teamed lets you focus on building a strong, resilient team.

What else is there to think about? Let’s chat about how we can help you grow with global talent today.

‍Let's chat!

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The Philippines stands as a beacon of growth and potential for businesses looking to expand. With its thriving economy and favourable conditions for expansion like an English-speaking workforce and a growing number of young workers, many companies are drawn to this dynamic market.

To capitalise on these opportunities, you must prioritise and implement effective hiring practices to attract, select, and retain the best Filipino talent available.

This article will explore the importance of effective hiring practices, how they align with the growing business opportunities in the Philippines, and the best practices to follow when growing your team in the Philippines.

Overview of the Philippine labour market

A growing economy characterises the Philippines' labour market, a young worker population, and a favourable environment for the global expansion of foreign companies. The country has experienced steady economic growth in recent years, with a Gross Domestic Product (GDP) of 394.1 billion USD, consistently increasing.

One key advantage of the Philippines is its young and dynamic workforce. With a median age of 25, the country boasts a youthful demographic. This workforce is highly adaptable and tech-savvy, making them well-suited for the demands of the modern workforce.

The country also offers attractive incentives and policies to encourage foreign direct investment, such as tax breaks and streamlined business processes. The availability of cost-effective labour and a proficient English-speaking population further enhance its appeal as a business destination.

The trend of remote work has also gained traction in the Philippines. With advancements in technology and connectivity, many professionals and companies have embraced remote work arrangements. This trend offers numerous benefits, including increased productivity, reduced costs, and access to a broader talent pool.

The Philippines' skilled workforce and favourable time zone (GMT+8) make it an attractive option for companies looking to expand internationally.

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Labour laws and regulations in the Philippines

The Philippines have unique laws in terms of employment regulations. Like any country, the Philippines has its own unique employment laws and as an employer, it is critical you understand these. Failing to adhere to employment regulations could result in legal issues.

Working hours: The working hours in a day must not exceed eight hours and should be exclusive of the one-hour daily lunch break. Any work performed beyond these limits is considered overtime and must be compensated accordingly.

Minimum wages: The minimum wage is currently at PhP610.00 for the private sector. This is approximately USD 340 per month.

Overtime pay: Overtime pay is generally calculated at a rate higher than regular pay, typically 125% to 200% depending on the circumstances.

Bonus: A 13-month bonus that equals a month's salary is provided by employers to the employees.

Paid time off: Employers are only required to provide service incentive leave (eligible after one year of service) rather than standard vacation or sick leave. Employees should be given five paid days off annually, which they can avail as sick or vacation leave. Employers with at most ten employees are not required to provide paid leaves.

Maternity leave: Pregnant employees in the Philippines may receive fully paid maternity leave of 60 days or more.

Notice and severance: When a company terminates an employee for just cause, they must provide at least 30 days of written notice.

Employee representation: The Labour Code of the Philippines recognises the right of employees to organise and form unions or employee associations.

A good Employer of Record (EOR) can ensure that your company aligns with these labour laws and keep you out of any compliance issues that may arise.

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Best practices for hiring in the Philippines

When hiring in the Philippines, following best practices is essential to ensure a successful and effective recruitment process.

Developing a comprehensive job description

Start by creating a clear and detailed job description that outlines the roles, responsibilities, and qualifications required for the position. Be specific about the skills, experience, and educational background needed.

This will help attract suitable candidates and align their expectations with the job requirements. If you're hiring for a role where English is not required, it's also best to put up the job description in the Philippine language.

According to a survey, Philippine workers value companies with a vital purpose or vision. So make sure you mention your culture as a company in the job description to attract the right talent.

Utilising local recruitment channels

Leveraging local recruitment channels in the Philippines is recommended to reach a wider pool of qualified candidates. This can include online job portals, social media platforms, and local career fairs.

You can get access to specialised talent pools and streamline the hiring process if you partner with an Employer of Record, like Teamed, or a local recruitment agency who are familiar with the hiring landscape in the Philippines.

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“I was initially quite apprehensive about hiring in a market like the Philippines because I had no idea what to expect. But Teamed gave us all the tools and support we needed, and now I feel confident in navigating these markets. The personal support Teamed provides is what makes them different. I know I can reach out whenever I have a question, and I always get a quick, informed response. They’re always there for us” | Amy Pantlin, Head of People at City Relay

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Make use of the right technology

Using the right tools can help streamline the hiring process, especially if you are hiring remotely. You can use platforms for applicant tracking, video interview and background screening. Also, make sure your company website is optimised for mobile phones to make it easier for Filipino candidates.

Conducting thorough interviews and assessments

During the interview stage, it's essential to conduct comprehensive assessments to evaluate the candidates' suitability for the role. This can include behavioural interviews, skills assessments, and technical evaluations.

Consider using a structured interview with a standardised set of questions to ensure consistency and fairness. When engaging in job discussions with candidates, it is advisable to incorporate the Filipino language whenever possible.

While most candidates will be proficient in English, making an effort to use their language will create a comfortable environment and ensure their comprehensive understanding of the job's requirements.

Navigating salary and benefits negotiation

Negotiating salary and benefits can be a sensitive and crucial aspect of the hiring process. Research the market rates for similar roles in the Philippines to establish a competitive and fair compensation package.

Consider factors such as the candidate's qualifications, experience, and the local cost of living in that particular region of the Philippines. Engaging with legal and HR professionals familiar with local labour laws regarding minimum wages and benefits can help ensure compliance and avoid potential issues.

Make sure you convert all monetary values into Philippine pesos and mention compensation in terms of net salary rather than gross salary. This is to reframe your pay discussions to align with Filipino norms and prevent confusion.

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Tips for successful hiring in the Philippines

Here are some tips to avoid hiring difficulties in the Philippines.

Build a strong employer brand

Job seekers also consider the company's reputation when applying - 75% of active job seekers are likely to apply for a job if the employer actively manages its employer brand.

So, ensure your company's digital footprint is up to the mark by updating your profiles, posting about company culture and employee stories, and responding to reviews. Communicate your company's mission, values, and culture through various channels, such as your website, social media platforms, and job advertisements.

Highlight unique selling points, such as a positive work environment, employee testimonials, or awards received. A strong employer brand can differentiate you from competitors and make your organisation an attractive workplace.

Offer competitive compensation packages

As mentioned above, the minimum wages in the Philippines are significantly lower compared to European countries. You have the potential to offer a better salary package to employees, giving you a competitive edge in the Philippine labour market.

Consider offering additional benefits, such as health insurance, performance bonuses, or employee development programs, to enhance your compensation package and attract top talent. You can also offer remote or hybrid work opportunities as Filipino workers become more interested in remote work.

Providing growth opportunities and career development

According to a report, Filipino professionals value opportunities for growth and career advancement even more than salary packages.

Emphasise the potential for professional development within your organisation. Outline clear career paths, training programs, and mentorship opportunities that can help candidates enhance their skills and progress in their careers.

You can offer stipends to cover their education or training as part of their benefits package and offer coaching by senior members. This will attract ambitious individuals motivated to learn and grow with your company.

Emphasising work-life balance and employee well-being

In the Philippines, work-life balance and employee well-being are increasingly valued by job seekers. This is probably because the laws regarding paid leave could be more generous, as we mentioned before. If you offer more leaves and flexibility, you can attract a more enthusiastic worker base.

Highlight your organisation's commitment to work-life balance initiatives, such as flexible work arrangements, wellness programs, or employee assistance programs. Communicate policies that promote a healthy work environment, such as reasonable working hours and supportive company culture.

Demonstrating a genuine concern for the well-being of your employees will make your organisation more appealing to potential candidates.

Prioritising diversity and inclusion

Promote diversity and inclusion in your hiring practices. Strive for a diverse workforce by seeking candidates from different backgrounds, genders, and ethnicities. Cultivate an inclusive work environment that values and respects different perspectives. This will attract top talent and contribute to a more innovative and dynamic workplace.

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Challenges to Consider When Hiring in the Philippines

Generally, hiring in the Philippines market is similar to other countries. However, it would be best if you kept a few things in mind to ensure a smooth hiring process:

Language and Communication Challenges

Although most Filipino workers are educated in English, it's always best to consider the language barrier.  Provide clear job descriptions and communication materials in both English and Filipino.

This ensures that candidates with varying levels of English proficiency can understand the requirements and expectations.Utilise bilingual staff or language interpreters during interviews and assessments to facilitate effective communication with candidates. Even better, take the help of an EOR, like City Relay did when hiring in the Philippines, and they'll be able to handle the requirements for you.

"As a business, you have to put in the work too. We’ve worked hard to make sure our remote team feels like part of the company - including communication. That’s what makes this model of hiring work.” Amy Pantlin, City Relay

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Cultural Differences in the Workplace

The Philippines is a culturally diverse country, which will also reflect in your workplace. Take measures to make sure your workplace remains culturally inclusive. Promote awareness and respect for different cultural backgrounds by providing cultural sensitivity training to employees.

Be mindful of cultural nuances during interviews and assessments. Avoid biases and ensure fairness by focusing on job-related competencies rather than personal preferences. Encourage open dialogue and celebrate cultural diversity.

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Compliance with labour laws

Learning and staying updated on the labour and compliance laws and requirements for foreign companies can take time and resources.

To start expanding internationally without delay, consider partnering with an EOR, like Teamed, who is familiar with the local labour laws and culture. You can also seek legal counsel or consult with human resources professionals familiar with local labour laws to  ensure compliance throughout the hiring process.

Professionals can help you maintain accurate records of employee documentation, such as contracts, benefits, and leave entitlements, to demonstrate adherence to labour laws and regulations.

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Make Use of the Dynamic Philippine Labour Market

The Philippines' growing economy, young workforce, and favourable business environment make it an ideal destination for global expansion.

By adopting these best practices and tips, businesses can effectively navigate the hiring landscape, establish a talented and diverse workforce, and contribute to long-term success. In addition to the best practices and tips mentioned earlier, another valuable consideration for businesses hiring in the Philippines is partnering with an Employer of Record (EOR) service provider, like Teamed.

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We can take away all the concerns you may have around global hiring, including legal compliance, payroll and tax - just like we did with Amy and her team at City Relay! In addition, we can also advise you on competitive benefits packages according to your requirement.

Connect with our team to learn more about our services and quickly hire your first employee in the Philippines!

Let's chat!

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Expanding your business operations in to the Philippines is smart for foreign organisations. You'll benefit from a highly skilled workforce and lower costs.

Although expanding into a foreign country can be daunting, this guide will help you quickly navigate the Philippines' labour laws, tax requirements, and hiring expectations. Additionally, you'll discover why hiring filipino employees through an EOR is a wise decision and how to execute it successfully.

Employment Dynamics in the Philippines

This section provides an in-brief snapshot of some critical aspects of employment law in the Philippines and the HR landscape.

Legal and Regulatory Frameworks in the Philippines

With the right approach and a solid understanding of the guidelines, setting up operations in the Philippines can be a successful venture for your company. While the employment regulations may lean towards the employees, your business can still attract top talent by following the necessary protocols.

Working hours: Philippines has a 6-day work week with at most 8 hours a day or 48 hours per week.

Minimum wages: The minimum wages in the Philippines vary according to different regions (based on the standard of living). The national average is 537 PHP per day. The pay could be as low as 89 PHP in some regions.

Overtime pay: Employees who work overtime are entitled to an extra payment of 25% on top of their regular wages. Workers obliged to work overnight must be paid a night shift premium of 110% of their regular salary. Night shift workers must be paid a premium of 110% of their regular salary.

Employer contributions: Employers are required to contribute regularly to the Social Security System (SSS), National Health Insurance Programme and the Home Development Mutual Fund, which covers sickness, maternity, disability, retirement, deaths and funerals, health insurance and housing loans.

Paid leave: All employees who have completed one year of service are entitled to five days of paid leave. Employees usually provide 15 days of paid vacation a year.

Maternity and paternity leave: Female employees are entitled to 105 days of paid maternity leave, while male employees are entitled to seven days.

Taxation: The corporate tax rate for foreign resident companies in the Philippines is 30% based on net taxable income. Employers in the Philippines must also withhold their employee's income tax on their behalf.

Work-from-home and remote work policy: Companies under the Information Technology and Business Process Management sector should follow a 70-30 hybrid work model. Companies that don't follow this rule can potentially lose their current tax incentives. Remote employees must also receive the same collective rights as on-site employees.

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"With Paulina, Teamed's representative in the Philippines, we felt secure navigating the local labour market, addressing challenges like compliance with night differentials and other local regulations that were new to me and the team. Paulina knows the local market inside out. Having her on board to help with compliance has been a game-changer for us.” Amy Pantlin, City Relay

Human Resource Potential in the Philippines

The economy of the Philippines is rapidly growing in Southeast Asia, making it a popular destination for foreign corporations to establish their presence. The government offers comparatively lower wages, and the Filipino workforce is highly educated, bilingual, and displays exceptional work ethics. Furthermore, 77% of Filipino workers show enthusiasm towards upskilling and retraining, indicating their keenness towards learning and self-development. The country also encourages hybrid work environments, as the government passed a law in 2019 to protect the rights of remote workers and promote a hybrid work culture for tech sector employees.

Employing workers in the Philippines with an EOR: How does it work?

An Employer of Record (EOR), a global employment solution, can help you hire and manage a workforce in the Philippines without going through all the complexities of opening your legal entity in the country.

An EOR, will literally act as an employer on your behalf while taking care of administrative duties such as payroll, taxes, compliance, and reporting for your Filipino employees. They will handle all the paperwork and formalities through their entity. They can even recruit staff for you in the Philippines as they will be well-versed in the local language and processes.  

In short, working with an EOR like Teamed will make hiring, managing, and paying your team in the Philippines easier. Get all the benefits of working with foreign talent without navigating foreign bureaucracy alone.

Working with an EOR Partner in the Philippines

When venturing into a new market or expanding business in the Philippines, select the right Employer of Record (EOR). Let's learn how to compare potential EOR partners and make the right decision:

Selecting the right EOR

Firstly, look for an EOR with extensive experience in the Philippines and a proven track record of serving other companies. They should have deep knowledge of the employment laws, regulations, and best practices. There are employment regulations unique to the Philippines that foreign organisations may overlook when navigating alone. For example, night shift workers are entitled to 110% of average wages. This should be considered before hiring any night shift workers.  

The best EORs would be able to accommodate your business growth and adapt to your dynamic requirements. They should be able to provide service for both large and small-scale companies.

And finally, an EOR should have a solid local network to provide the best service. They should have relationships with government authorities, legal advisors, and recruiters. This will give you access to local insights that will be difficult if you do it alone.

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“What makes Teamed different is that they’re more than just a vendor — they’re a partner. We’ve worked closely with them to build a remote support team that aligns with our business goals, and they’ve been instrumental in making that happen.” Amy Pantlin, City Relay who hired 10+ employees in the Philippines through Teamed to date

Contractual agreements and responsibilities

Every EOR service provider out there has different roles and responsibilities. For instance, some EORs only handle HR administration, while some provide a full-package service. So make sure you get the contractual agreement and duties right before finalising.

Clearly outline the specific services and boundaries you want the EOR to provide. Some standard services include recruiting, payroll, employee benefits, HR administration, and compliance support.

Also, ensure that the contractual agreement between your organisation and the EOR specifies that the EOR should handle tax filings, withholding, and other legal work. These essential tasks would determine the smooth running of your firm in the Philippines.

Confidentiality and data protection

Ensure the EOR provides data security measures such as encryption, secure storage systems, and regular audits. They ensure that the employees' data is protected and not misused in compliance with the Philippine Data Privacy Act.

The EOR can help businesses uphold confidentiality and implement robust Intellectual Property (IP) protection measures. Remember, if an EOR fails to comply with the country's laws or breaches any data privacy rules, the company they were hired by may also face charges and be held responsible. So make sure you are careful with the EOR you choose.

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Roles and Responsibilities of an EOR in the Philippines

An Employer of Record in the Philippines can handle multiple tasks ranging from recruiting to compliance.

Hiring and Recruiting through an EOR

While Employer of Record (EOR) services may offer recruitment assistance in certain cases, there are instances where they collaborate with recruitment partners to support employers in sourcing suitable candidates. However, the core focus of EORs lies in efficiently onboarding employees and effectively managing them on behalf of the employers.

Their primary responsibility is to handle the administrative tasks associated with onboarding new employees, ensuring compliance with legal requirements, and overseeing ongoing employee management.

The EOR then prepares and presents the employment offer to the candidate, outlining compensation details and terms of employment and onboarding the candidate. The Philippines have different rules in terms of working hours and leaves. So an EOR will ensure this is right in all the official documentation.

Although your organisation can do these tasks internally, an EOR can do it much more efficiently as they know the local landscape in the Philippines and have a much more robust network. The EOR plays a role in fostering positive employee relations and works to maintain a harmonious work environment.

Payroll and Benefits Management

Another important job the EOR handles is the timely and accurate distribution of salaries and benefits as your global payroll service. They also ensure contributions to funds like Social Security and Home Development Mutual Fund, which are mandatory contributions to be made by an employer in the Philippines.

On behalf of your organisation, the EOR can administer employee benefits programs. These include health insurance plans, retirement savings programs, vacation and leave management, and other benefits.

Further, EORs can track the attendance and productivity of your employees and do a performance review based on your requirements. They may also set goals and expectations with team members to ensure the smooth running of your organisation.

Legal Compliance and Risk Management

An EOR will ensure legal compliance and financial risks for the client. Apart from ensuring that the organisation follows the employment practices aligned by the country, they also handle employee disputes and grievances and manage employee terminations and severance.

There are certain legal aspects in the Philippines that you should be cautious about, like the arduous termination process. Workers should get a 30 days written notice and severance pay in case of termination with an authorised cause. Because of this, most employers choose to have a lengthy probation period (usually six months) when hiring Filipino workers.

In a foreign country, it's always best to seek the services of an EOR because they would know the best ways to protect the client's interests and implement policies to minimise risks associated with employment.

Reporting and Record-keeping

The EOR maintains records such as up-to-date employee reports, personal information, employment contracts, and performance evaluations to facilitate an efficient HR process. They also generate and maintain payroll and tax reports.

Businesses in the Philippines must register with the BIR and comply with the tax reporting and payment obligations. This includes filing regular tax returns, such as the Monthly Percentage Tax, Quarterly Income Tax, and Annual Income Tax Return.

Employers must also report and remit contributions to PhilHealth, the national health insurance program. Monthly reports and payments should be submitted to comply with the requirements.

And additionally, they also must report their employees' contributions to the SSS, a government agency responsible for social security benefits. They need to submit monthly reports and remit the corresponding gifts.

These are essential for the proper financial management of an organisation. And for all this to happen seamlessly, it's best to hire a skilled EOR to handle these tasks so that you can focus on core business functions.

Collaborate with an EOR to expand your organisation in the Philippines

An EOR provides employers with stability regarding different HR functions while helping them save money and time. You will no longer need to appoint multiple agents and organisations to get started with hiring Filipinos.

‍“What I love about Teamed is that they’ve been with us every step of the way. They’re not just ticking boxes — they care about  joint growth and success. And as we continue to grow, I know they’ll be right there with us, helping us scale globally.” Amy Pantlin, City Relay

‍Teamed can help you onboard employees within hours rather than weeks or months. With local experts, we ensure you get access to the right talent pool and provide them with the best experience. We coordinate employment services in the Philippines and across the Asia Pacific region. Contact us to get expert guidelines according to your organisation's circumstances.

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We won Top 25 WorkTech Vendors for 2024 by Inspiring Workplaces! 🎉

Our team is over the moon with excitement after being named one of the Top 25 WorkTech Vendors for 2024 by Inspiring Workplaces!

This recognition is a massive nod to the hard work and dedication we’ve put into challenging the status quo of EOR and HR services with our Human Experience (HX)-driven approach. It’s a testament that when you place people at the heart of everything we do, we’re able to create tailored, meaningful, and impactful experiences that truly make a difference.

At Teamed, we focus on those critical moments in the employee lifecycle, so whether it's onboarding your first hire or scaling your global HR operations, you'll always have the best experience with us. It is because we know it’s these critical moments that can make or break the experience for employees and clients alike. By combining human empathy with latest AI technology, we’re transforming what global workforce management can be.

Why this award matters

Being named a Top 25 WorkTech Vendor isn’t just another accolade. It’s proof that our unique approach to Employer of Record (EOR) services, where we blend advanced AI technologies with the human touch, is really making a difference. Whether it’s onboarding, compliance, payroll, or any other part of your HR operations, we’re always focused on making the employee experience seamless and rewarding.

This award also comes at an exciting time for us. Earlier this year, we have been honoured to be recognised by G2 for Best Support, Easiest to Do Business With, and High Performer accolades across global payroll, EOR, and international payroll categories. These achievements showcase the trust and satisfaction our clients have in our human-first approach, which combines the power of HX with innovative AI-driven solutions.

Want to see behind the scenes?

Here’s a sneak peek at what went into our nomination! Watch our co-founder, Tom Price-Daniel, share our journey and why we believe Teamed is a game-changer in the HR space 📹 [Check our nomination video entry below 👇]

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What this means for you

For anyone interested in HR and global mobility, this isn’t just about winning an award – it’s about continuing to raise the bar for our clients. With Teamed, you get the best of both worlds: human-centred service supported by cutting-edge AI technology to make global hiring as seamless as possible.

As our client or a partner, this award is more than just a trophy on our shelf, it’s a promise. A promise that we will continue to:

• Deliver top-notch service with our HX-first approach, ensuring you always have the right mix of human touch and innovative technology to solve your global hiring challenges.
• Innovate and evolve our offering, pushing forward with cutting-edge AI tools and customised solutions to make global hiring seamless.
• Be there when it counts, providing expert support, compliance management, and a transparent, human-centred process every step of the way.

We’re not just a provider; we’re your partner in growth, dedicated to making global employment personal, efficient, and compliant.

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What’s next?

Our mission is far from over. With a growing team, more cutting-edge AI solutions in the make, and a commitment to excellence, our team is on track to reach even bigger milestones. We’re dedicated to improving every aspect of employee management, from compliance to delivering the future of HR with services 2.0.

Celebrate with us

To all our clients, partners, and team members: thank you for being part of this journey. We couldn’t have done it without you. Let’s keep pushing the boundaries of what’s possible in global employment. Here’s to many more wins to come!

Keep an eye on our website and follow us on LinkedIn and Twitter to stay updated on the exciting things we’ve got coming up next.

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You can also always connect with our team to chat how we can help you make global hiring easy! Contact our team

Imagine losing your top accountant right before tax season, only to be told it could take up to 120 days to find a qualified replacement. It’s not just an inconvenience, it’s a full-blown crisis that’s hitting finance and professional services hard.

Much like those millions on TikTok earlier this year, 'looking for a man in finance,” you might find yourself desperately hunting for talent. But unlike the trend, this talent shortage is no joke, and it’s disrupting the industry in ways we’ve never seen before.

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The talent shortage is real, and it’s threatening to disrupt the industry in ways we haven’t seen before. Our recruiting partners and their networks say that almost half (45 per cent) of firms are “severely” or “significantly” affected by skills shortages.

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The reality of a talent shortage 

In 2024, a staggering 83% of senior leaders in the accounting industry reported a significant talent shortage, up from 70% in just two years. This shortage isn’t just about the availability of candidates; it’s about a shrinking pool of qualified professionals. Over 300,000 accountants and auditors left the industry between 2020 and 2022, creating a gap that’s increasingly difficult to fill. As a result, critical roles often remain vacant for months, putting immense pressure on existing staff and heightening the risk of errors in financial reporting. 

This talent shortage isn’t just a temporary setback; it poses a long-term threat to the stability and sustainability of accounting firms of all sizes. If unaddressed, this will impact the ability of firms to meet client needs and maintain operational efficiency. 

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Navigating the crisis with planned global hiring

With the talent pool dwindling, firms are being forced to rethink their recruitment strategies. Domestic hiring can no longer keep pace with the demand, and traditional outsourcing models often come with their own set of challenges, such as quality control and consistency issues. However, there’s an alternative that’s gaining traction: global hiring. 

Global hiring allows firms to tap into international talent pools, where the availability of highly qualified professionals might be higher. Countries like South Africa have become key hubs for accounting talent, offering a workforce that is not only highly skilled but also aligned with Western business practices and time zones. Many professionals in these regions hold globally recognised qualifications such as ACCA (Association of Chartered Certified Accountants) and CIMA (Chartered Institute of Management Accountants). 

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How an Employer of Record (EOR) simplifies global hiring 

However, hiring internationally isn’t without its complexities. This is where the Employer of Record (EOR) model comes into play. An EOR enables firms to hire talent across borders without needing to set up a legal entity in each country, handling all the necessary compliance, payroll, and legal aspects. 

Teamed, for example, partners with local recruitment experts who are well-versed in identifying top-tier talent. This ensures that firms can access highly qualified professionals who meet their specific needs, whether they require deep technical accounting skills or strategic business acumen. Once the right talent is identified, Teamed handles the entire hiring process, from onboarding to payroll, ensuring a seamless experience that allows firms to focus on what they do best = serving their clients. 

As CT:, an accounting firm that partnered with Teamed, noted, “Teamed made global hiring simple and efficient. They took care of all the compliance and payroll, allowing us to focus on what we do best, serving our clients". 

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The broader implications for the professional services industry 

The implications of the talent shortage go beyond individual firms, it’s a challenge that could reshape the industry if not addressed proactively. By embracing global hiring, firms can not only mitigate the risks associated with talent shortages but also position themselves to take advantage of a more diverse and skilled workforce. 

At Teamed, we’ve supported 15 of the top 25 global accounting practices in navigating these turbulent times, helping them expand their talent pools and maintain operational stability despite the challenges. 

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Time to turn the challenge into an opportunity 

The talent shortage might have started as a trending topic on TikTok, but for finance and professional services firms, it’s become a daily challenge. By tapping into global talent through an Employer of Record (EOR) like Teamed, you won’t just be searching for someone in finance, you’ll be finding the right talent, wherever they are.

By working with partners like Teamed, you can utilise our network of pro recruitment partners and ensure that you’re not just filling roles, but building a resilient, future-ready workforce. Let’s chat about how we can help you solve this problem and keep your firm ahead of the curve.

‍Let's chat!

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Starting a business in the Philippines is now more appealing than ever. The country boasts a young, skilled workforce who are fluent in English and eager to embrace new challenges. Filipino workers are known for their excellent skills in sales and customer service, making them popular choices for call centre roles, especially in the EU market. Plus, the Philippines is nurturing a growing pool of talent in QA testing. With more and more companies hiring filipino talent also the number of companies facing hiring hick-ups in the Philippines is getting more in common.

So, how can you tap into this talent and kickstart a business in the Philippines?

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In this article, we break down the simple steps for foreigners to start a business in the Philippines. We also discuss how partnering with an Employer of Record (EOR) service like Teamed can make the process even smoother, helping you avoid the hassle of setting up a legal entity in the country. With an EOR like Teamed, you can hire and pay your employees in the Philippines, offer local benefits, and comply with labour laws, all through a user-friendly platform with 24/5 customer support.

Getting Started with Building a Business in the Philippines

The Philippines is a friendly place for foreign entrepreneurs looking to set up businesses. However, there are a few things you need to sort out first:

Initial investment

Depending on the number of foreign investors and your business type, you might need to have a certain amount of capital to start. For instance, a fully foreign-owned domestic corporation requires a minimum capital of $200,000.

If you’re setting up a corporation, you’ll need a certain amount of capital first. The minimum investment you’ll need depends on two things: how many foreigners are involved and your industry.

For example, a domestic corporation can't be totally foreign-owned without a minimum paid-up capital requirement of $200,000.

Permits

To start your business, you'll need to register with several government agencies, including the Philippine Securities and Exchange Commission (SEC), the local Barangay, the mayor's office, and the Bureau of Internal Revenue (BIR).

Tax Benefits

The Philippines offers several tax benefits to encourage foreign investments. The CREATE Act of 2021 introduced several incentives for foreign companies.

Teamed keeps you updated on all these changing rules, letting you focus on building your team in the Philippines.

Hiring in the Philippines: What You Need to Know

When hiring in the Philippines, there are a few things you need to know to keep on the right side of local labour laws.

Wages and Overtime

Annual salaries in the Philippines range from ₱136,200 to around ₱2,389,200, with an average of around ₱535,800.

There is no one set minimum wage in the Philippines.

Instead, the minimum wage varies depending on the region and can be as high as ₱610 PHP and as low as ₱89 PHP a day.

As a company, you have the choice of implementing the newly approved Philippine four-day workweek or sticking with the traditional five-day week. The maximum, however, is a six-day working week.

Once your employees work for more than 40 hours, you’re required to pay an overtime differential of 25%. There are other types of overtime as well. Employees who work at night are paid a 25% differential. Those who work on holidays get a 30% differential.

There are eight public holidays in the Philippines, as well as several special non-working holidays. Employers are not required to provide paid leave on the special days.

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"With Paulina, Teamed's local expert in the Philippines, we felt secure navigating the local labour market, addressing challenges like compliance with night differentials and other local regulations that were new to me and the team. Paulina knows the local market inside out. Having her on board to help with compliance has been a game-changer for us.” Amy Pantlin, City Relay

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Expected benefits

Vacation or sick days are not required by law, and instead of this, all Filipino employers are to provide a minimum of 10 paid days off per year for employees who have worked for the company for at least one year (service incentive leave). Generally, employers provide more leave—the norm is 15 paid days of leave a year.

Parental leave is also required in the Philippines. Mothers receive 105 days of paid leave and fathers receive seven days of parental leave.

Employer contributions

Employers contribute to three government funds on behalf of their employees (employees contribute as well):

• the Social Security System (SSS),
• the Philippine Health Insurance Programme (PhilHealth), and
• the Home Development Mutual Fund (Pag-IBIG).

The SSS provides maternity and disability benefits to private-sector employees. It also acts as a pension program.

PhilHealth is a national health insurance plan that covers all employees.

Pag-IBIG is a national affordable housing fund.

Tax

Filipinos are taxed on their global income, whereas foreigners are taxed only on the income earned within the Philippines. Companies in the country are also required to withhold the income tax of their employees.

Work culture

Filipinos understand many Western references, but Filipino work culture is quite different from Western work culture. For one thing, it’s more formal, with Filipino employees dressing up for work and referring to their bosses using honorifics such as Mr, Mrs, and Miss.

For another, Filipino culture is extremely high-context. Body language and facial expressions are an important set of clues in conversation. Rather than directly saying no to a request, a Filipino employee may answer indirectly.

It’s important to recognise that communication can be nuanced rather than attempting to force a conversation.

Lastly, there is a very social aspect to office life in the Philippines. Great emphasis is placed on personal gatherings like staff birthdays, and often, Filipino colleagues may ask a lot of questions that might seem invasive, but which are meant to foster a warm and friendly relationship.

Hiring remotely

Hiring remotely in a high-context, social culture can be a challenge. However, remote work and working from home is considered a benefit in the Philippines.

An EOR like Teamed is positioned well to help you take advantage of the remote work preference. Our experts guide your remote employees through the onboarding process via a 1:1 call. After the call, we send them the localised contract for signing and they’re ready to start work!

Companies working in Information Technology and Business Process Management are required to follow a 70-30 hybrid work model or risk losing their tax incentives.

Additionally, the Philippines requires that remote employees receive the same collective rights as those who work on the premises.

With Teamed, you don’t have to worry about missing these requirements since our compliance experts take care of them.

Other Ways of Hiring in the Philippines

Doing business in the Philippines is an attractive proposition for many companies.

But you may not be willing or able to meet the requirements because you lack a presence in the Philippines, or you’re doing business in several countries as well.

In that case, there are other ways to hire in the Philippines.

Outsourcing

By working with an outsourcing provider, you can hire talent in the Philippines without setting up a legal entity. However, to do so, you must work with an outsourced HR provider.

The downside of this is that you may lose control of your workers. They work for the outsourcer who is managing the project.

Branch office

Branch offices do business on behalf of a foreign parent company, and don’t need a separate legal entity to carry out activities in the Philippines.

They do, however, require a minimum investment of $200,000.

EORs

An EOR like Teamed is a business that owns a legal entity in the country where you wish to employ a job candidate.

As we’ve mentioned previously, EORs employ workers on behalf of client companies, taking on the burden of local legal requirements to ensure the client company can employ workers in the area.

An EOR handles onboarding, international payroll, tax, and benefits for their client companies, but you are the one who manages your employees in the Philippines.

Our Recommendation for Starting a Business in the Philippines is Through an EOR

The local knowledge and expertise of the EOR allows you to hire while staying compliant, which is particularly important if you’re doing business in several different countries.

Every business entity you create needs constant support, including operational, legal, and payroll issues. Trying to manage all that in several countries can be time-consuming and costly.

An EOR like Teamed handles the local red tape in the Philippines so you can focus on your business.

Choosing an EOR

When choosing an EOR to help you start a business in the Philippines, look for an entity with local experience with Philippine law, payroll, and regulatory changes.

You should also seek out an EOR that operates in all the jurisdictions in which you want to operate so that you are not working with several providers.

Lastly, look for one that provides an HR platform, so that you can easily monitor all of your team members worldwide.

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“I was initially quite apprehensive about hiring in a market like the Philippines because I had no idea what to expect. But Teamed gave us all the tools and support we needed, and now I feel confident in navigating these markets.The personal support Teamed provides is what makes them different. I know I can reach out whenever I have a question, and I always get a quick, informed response. They’re always there for us” Amy Pantlin, City Relay

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Get Started in the Philippines

Teamed can help you onboard the best talent in the Philippines.

As your global workforce partner, we help you with the following:

• Compliantly hire full-time employees in 150+ countries
• Onboard employees within 24 hours
• Manage international payroll and taxes in 50+ currencies
• Offer attractive localised benefits packages
• Ensure country-specific compliance
• Provide ease of access with an automated, self-serve platform
• Assist with sourcing ideal candidates through our vetted recruitment partners.

Let us handle the rules and regulations, payroll, benefits, and compliance so you can focus on building the best team possible.

Contact us today to get started.

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Employer of Record (EOR) vs. Staffing Agency: Which One is Right for Your Business?

Key takeaways

• If you're running a mid-market or scaling company with headcount above 50 and need to get compliant fast, an EOR is your best bet.
• Staffing agencies can get you people quickly, but their compliance approach tends to be patchy at best.
• When you focus on what HR, Finance, and Legal actually need, you'll naturally cut down on overhead and liability.
• With coverage in 180 countries, you can expand globally without the usual delays and headaches.
• When leadership is under the gun, 24-hour onboarding takes the pressure off and gets things moving fast.

For mid-market companies looking to expand globally, Teamed takes the complexity and risk out of international hiring with solutions built specifically for your needs.

When expanding globally or managing remote teams, two options often come up: using an Employer of Record (EOR) or hiring through a staffing agency. Both models can help you grow your team, but they work in completely different ways and deliver different kinds of value. So which one should you choose?

Let's break down the key differences between EORs and staffing agencies, and when it makes sense to use each one for your expansion.

What is an employer of record (EOR)?

An Employer of Record (EOR) is a third-party organisation that officially employs your talent. After first mention, we use ‘EOR’ to keep it concise. The same goes for Staffing Agency references, ensuring clarity and consistency.

An EOR cuts through the hassle of setting up entities, prevents compliance mistakes, and eliminates wasted overhead. In highly regulated industries, an EOR takes the uncertainty off your plate, especially when boards and auditors are watching your every move.

For HR teams, this means payroll runs without errors. For HR teams, this means payroll runs without errors. For Finance, it ensures accurate tax compliance. For Legal, it reduces regulatory risk.

• Payroll: EORs are responsible for payroll calculation, processing, deducting taxes, and administering benefits.
• Compliance and legal: Ensure workers' employment arrangements adhere to local labour laws and mitigate the risk of legal issues for client companies.
• Tax management: Withhold and remittance of taxes on behalf of the employees, including income tax, social security contributions, and unemployment taxes.
• Benefits and insurance: Ensure that employees receive the necessary coverage for benefits, including health insurance, retirement plans, and other perks.
• Global workforce management becomes simple when someone else handles local employment requirements, from onboarding to compliance to payroll.

Want the specifics for your expansion? Check out our global hiring guides for all the regulatory details, or just talk directly with our compliance specialists.

Pros and cons of an EOR 

What is a staffing agency?

A Staffing Agency primarily focuses on temporary or contract hires. Staffing Agencies source and recruit workers for a company, often handling short-term or specialised job placements. While they do take care of payroll for the workers they place, Staffing Agencies usually don’t cover compliance, benefits, or long-term employee management in the same way an EOR does.

Staffing agencies operate on a placement model: you define the role, they source candidates from their network, and facilitate the match. Once hired, the employment relationship is directly between you and the worker. If you need more than just temporary workers, staffing agencies probably won't cut it.

Staffing agencies basically connect companies with job seekers. They work with employers to source potential candidates by utilising their networks, databases, job boards, and other resources. They also conduct screenings of candidates to assess their qualifications, skills, and suitability for the job and shortlist candidates.

Staffing agencies establish relationships with job seekers. They collect resumes and relevant documents through online portals, email, or in-person meetings. When suitable job opportunities arise, staffing agencies match qualified candidates to available positions. If a job offer is extended, the staffing agency assists with the negotiation process, ensuring the interests of both parties are considered.

Pros and cons of a staffing agency

Key differences between EOR and staffing agencies

Both EORs and staffing agencies connect employers with workers, but that's where the similarities end.

Compliance and risk management

The biggest difference between an EOR and a staffing agency? How they handle compliance. EORs are responsible for ensuring that all legal and regulatory requirements are met in the country where the employee is based, reducing risk for your company.

Staffing agencies may handle some legal aspects, but they usually don’t cover the full spectrum of compliance requirements, particularly when it comes to international hiring.

EOR: An EOR acts as the legal employer of a group of workers, assuming the associated legal and administrative responsibilities. They handle payroll, taxes, compliance, benefits, and other employer-related obligations. The workers are assigned to and work at a client's worksite, but the EOR remains the formal employer on record.

Staffing Agency: A staffing agency focuses on sourcing and matching job seekers with employers' job openings. They connect employers with potential candidates, who are then directly employed by the employer once hired. The staffing agency's role typically ends after the placement process is complete.

Check out our blogs on contractor vs. employee status and employee misclassification to see how EORs tackle these compliance challenges.

Legal and administrative responsibilities

EOR: As the legal employer, an EOR assumes all legal and administrative responsibilities associated with employment. This includes payroll processing, tax withholding and remittance, benefits administration, compliance with labour laws and regulations, and managing employment contracts.

Every jurisdiction has mandatory benefits that can blindside unprepared companies. Every jurisdiction has mandatory benefits that can blindside unprepared companies. Take Sweden's extended parental leave (OECD report [1]). Get it wrong and you're looking at serious reputational and financial damage. Teamed knows these regulatory details inside out from years of hands-on experience, giving HR, Finance, and Legal leaders the confidence to expand into defence or financial services.

Staffing Agency: Staffing agencies do not act as legal employers. They assist with candidate sourcing, screening, and matching, but the employer directly employs the selected candidates. The employer manages legal and administrative responsibilities, such as payroll, taxes, and compliance.

Flexibility in hiring

Best EORs offer flexibility in how you hire. Whether you’re looking for long-term employees or contractors. Best EORs offer flexibility in how you hire. Whether you’re looking for long-term employees or contractors, an EOR can handle both. This means you can scale globally without losing sleep over admin nightmares or compliance risks.

Staffing agencies, on the other hand, are better suited for short-term or specialised roles but may not be as effective for long-term, full-time hires.

Control over employees and workplace

EOR: An EOR maintains higher control over the workers' employment arrangements. They have the authority to set and enforce employment policies, handle disciplinary actions, and make decisions related to workplace rules and regulations.

Staffing Agency: Employers who directly hire workers through a staffing agency have more control over the employees' day-to-day activities, work assignments, and supervision. They are responsible for managing and overseeing the workers' performances.

Costs

EORs charge service fees, typically a subscription per employee. When you lay out all the costs in a comparison table, HR, Finance, and Legal teams can quickly see which option gives them the best value and transparency.

Staffing Agency: Staffing agencies typically charge a one-time fee, often 20–30% of the candidate’s first-year salary. Employers bear all ongoing employment costs directly.

When to choose an employer of record or staffing agency

Your choice between an EOR and a staffing agency comes down to what you need, what you can spend, and what expertise you have in-house.

Which option is right for your business?

Choosing between an EOR and a staffing agency depends on your company’s needs. If you’re looking for short-term placements or specialised skills for a project, a staffing agency might be the right fit. However, if you need to hire employees internationally and ensure full compliance with local laws, an Employer of Record is the better option.

Payroll runs smoothly, compliance risks disappear, and your team gets back to doing strategic work that actually matters.

Factors that decide what you should choose

• Employment Arrangement: Consider the nature of the employment arrangement you require. If you need a long-term employment solution with full legal and administrative support, an EOR may be more suitable. A staffing agency may be a better fit if you prefer to hire directly and have greater control over the workers. This means that a staffing agency will only help you with recruiting - everything from job posting to onboarding.
• Legal and Compliance Needs: If you want to offload legal and administrative responsibilities, including payroll, taxes, benefits, and compliance management, an EOR can provide comprehensive assistance. Partner with an EOR and they'll handle all the legal and compliance stuff while you focus on running your business.
• Workforce Flexibility: A staffing agency can provide the necessary flexibility if you require a temporary workforce that can be scaled up or down quickly. If you prefer a stable, long-term workforce, an EOR may be more appropriate. An EOR works great when you want to mix long-term employees with contractors on your team.
• Cost Considerations: Evaluate the financial implications of each option. EORs typically charge ongoing service fees, while staffing agencies charge placement fees or a percentage of the hired candidate's salary. Usually, a staffing agency would be more affordable if you hire low-salary employees. Planning to hire a bunch of people at once? Lock in a long-term EOR partnership. You'll save money in the long run.

Scenarios where an EOR is the better choice for mid-market and scaling companies

• HR: Immediate relief from local hiring complexities without missing mandatory benefits.
• Finance: Predictable, fair and transparent budgets without hidden overheads.
• Legal: Reduced liability risks when operating in heavily regulated sectors like defence or financial services.
• For C-suite executives: Get the confidence to expand globally fast with 24-hour onboarding.

Scenario 1: International expansion under pressure Imagine your financial services firm has just closed Series B funding and the board is demanding rapid expansion into Europe Imagine your financial services firm has just closed Series B funding and the board is demanding rapid expansion into Europe. Your legal and HR teams are already stretched, and compliance risk is a board-level concern. That's when an EOR becomes your secret weapon. They handle hiring across 180 countries, keep payroll running smoothly, and guarantee compliance. Your C-suite stays focused on growth, not paperwork.

Looking to expand internationally and hire foreign workers? Go with an EOR. They can help simplify the process by managing local employment requirements, compliance, payroll, and tax obligations.

For instance, a financial services firm expanding into European markets would benefit from an EOR's compliance expertise - ensuring payroll runs without errors, 24-hour onboarding, and fair and transparent costs across 180 countries. This gives HR, Finance, and Legal teams the certainty they need when dealing with high-stakes regulations.

Scenario 2: Risk mitigation for regulated sectors For a mid-market defence For a mid-market defence or professional services company, entering new markets means navigating strict local laws - often with a small in-house legal team. An EOR takes the admin burden and legal liability off your shoulders, giving you certainty and control. As one CFO put it, “Our board wanted international revenue growth, but we couldn’t risk a compliance misstep. With EOR, we had peace of mind from day one.”

Want to transfer employment risks like workers' compensation or unemployment claims? An EOR takes those on, protecting your organization from legal and financial exposure.

Scenarios where a staffing agency is the better choice

Scenario 1: Direct control and supervision

If you want direct control over workers, including their daily tasks and supervision, a staffing agency might work better for you.

Scenario 2: Temporary or Project-Based Staffing

Need someone short-term? Looking for specialized skills for a project? Want to test someone out before committing? A staffing agency gives you that flexibility.

Key takeaways

• An EOR cuts compliance risks for mid-market businesses.
• Staffing agencies give you flexible workers but often can't help you globally.
• Keep your eye on what HR, Finance, and Legal actually need.
• Teamed works in 180 countries with pricing that's fair and transparent.
• C-suite leaders love our 24-hour onboarding when they're under pressure.

Find the right match

Both EORs and staffing agencies have their place. It all comes down to what you need. For companies focused on global expansion and long-term employee relationships, an EOR offers a more comprehensive, compliant solution. In contrast, staffing agencies can be a good option for short-term placements or project-based roles.

Not sure which way to go? Let's talk about your expansion timeline and what compliance looks like for you. We'll show you exactly how each option affects your budget, your risk, and how fast you can move.

Frequently Asked Questions

1. ‍What’s the core difference? An EOR is the legal employer and carries payroll, taxes, benefits, and compliance. A staffing agency sources candidates; once hired, you’re the employer and you carry the risk.‍
2. When should I use an EOR? International hiring, regulated sectors, or when you need certainty and speed without opening entities. Ideal for mid-market and founder-led companies scaling across borders.‍
3. When is a staffing agency the better fit? Short-term cover, project bursts, or when you want to do all employment admin yourself and keep full HR ownership in-house.‍
4. Who owns compliance and risk? EOR: we do -local contracts, payroll, taxes, benefits, and audit-ready records. Staffing: you do - after placement, you manage employment law, payroll and liabilities.‍
5. How do costs compare? EOR: a predictable per-employee fee that replaces entity set-up, ongoing filings, and local counsel. Staffing: a placement fee (often a % of first-year salary) plus all ongoing employment costs on you.‍
6. Do I lose day-to-day control with an EOR? No. You direct the work, targets, and culture. The EOR handles the legal employer obligations behind the scenes.‍
7. Can an EOR handle contractors too? With Teamed, yes. One platform for contractors, EOR employees, and your own entities - with smooth status changes and no re-onboarding.‍
8. How fast can we start and where? Teamed offers 24-hour onboarding across 180 countries, with payroll coverage in 130 countries and 50+ currencies.‍
9. Which teams benefit most from an EOR? HR gets error-free, on-time payroll. Finance gets clean, transparent line items. Legal reduces misclassification and regulatory exposure - especially in defence, financial services, and healthcare.‍
10. How is Teamed different from a staffing agency? We’re not recruiters. We work alongside your TA or agencies to employ, pay, and protect your people globally - with transparent pricing, named specialists, and no hidden fees.

Hiring international employees can be an exciting step towards expanding your business globally, but it requires careful planning and understanding of various factors. From finding the right candidates to managing legal compliance and payroll, there are several steps to ensure a successful global hire.

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Below is a guide to walk you through the process of hiring international employees.

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1: Define job requirements and qualifications

Once you've got the legal requirements down, the next step is to define the job requirements and qualifications.

• Identify the specific skills and expertise needed: When hiring an international employee, it's essential to clearly define the specific skills and expertise needed for the job. This can help you target your recruitment efforts and evaluate candidates effectively. It can also help you justify hiring a foreign employee, which may be necessary for visa or work permit applications.
• Determine language proficiency requirements: Language proficiency may be essential depending on the job and country. If the job requires communication in a specific language, you must ensure your prospective employee has the necessary language skills. This may involve conducting language tests or interviews.
• Consider cultural fit and international experience: Cultural fit and international experience can be essential factors in hiring overseas employees. It would be best to consider how well the prospective employee will fit into your company culture and how their international experience might benefit your business.

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2: Source and attract global talent

With the job requirements and qualifications defined, the next step is to source and attract foreign talent.

• Explore international job boards and websites: International job boards like Indeed, ZipRecruiter, and LinkedIn can help you reach a global audience of potential candidates. These platforms can help you advertise your job openings to a broad audience and hire international employees.
• Utilise professional networks and industry-specific platforms: Professional networks and industry-specific platforms can also be valuable resources for sourcing foreign talent. These platforms can help you connect with professionals in your industry from around the world, and they often offer tools and resources to help you hire internationally.
• Consider partnering with recruitment agencies specialising in international hiring: If you're new to international hiring or looking to streamline the process, consider partnering with a recruitment agency specialising in international hiring. These agencies have the expertise and resources to navigate the complexities of hiring foreign workers in just four steps and can help you find the right candidate for your needs.

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3. Understand the legal requirements

Every country has its own set of labour laws, tax regulations, and compliance requirements. You’ll need to understand the legal framework in each country where you plan to hire employees. This involves knowing local employment laws, tax obligations, and mandatory benefits such as healthcare, retirement plans, and parental leave.

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• Research visa and work permit regulations: Different countries have different visa and work permit regulations. You must do your homework and understand what type of visa or work permit your prospective employee will need. This will depend on factors like the nature of the job, the duration of the employment, and the employee's nationality.
• Determine sponsorship obligations: If you're hiring a foreign worker, you may need to sponsor them for a visa or work permit. This involves a significant investment of time and resources, as you'll need to provide documentation, pay fees, and meet specific requirements as an employer/
• Familiarise yourself with immigration processes: Immigration processes can be a bit of a maze. It's essential to familiarise yourself with these processes and understand what steps you'll need to take to hire international employees. This can include submitting applications, providing documentation, and attending interviews or hearings.

Did You Know? In countries like Sweden, each parent is entitled to 240 days of paid parental leave. This must be factored into your employment offers when hiring in Sweden. Global hiring is easier with an EOR who takes care of all the compliance for you.

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4: Evaluate candidates and conduct interviews

Hiring internationally begins with sourcing the right candidates. You’ll want to consider the skills and experience needed, but also factor in cultural fit and local job markets. Understanding the local hiring landscape is essential. Once you've sourced potential candidates, the next step is to evaluate them and conduct interviews.

• Review resumes and applications: Review resumes and applications to understand the candidate's skills, experience, and qualifications. Look for evidence of the specific skills and expertise you identified in step 2, and consider how well the candidate's experience aligns with the job requirements.
• Assess qualifications and work history: In addition to reviewing resumes and applications, you'll want to assess the candidate's qualifications and work history. This can involve checking references, verifying credentials, and considering the candidate's career progression and achievements.
• Conduct interviews, either in person or remotely: Interviews are a crucial part of hiring foreign workers in just four steps, allowing you to assess the candidate's skills, personality, and fit for the job. Depending on the candidate's location, these interviews may be conducted in person or remotely. Use multiple rounds of interviews to assess both technical skills and cultural fit when hiring in foreign market

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Pro Tip: When evaluating candidates, consider cultural fit as well as technical skills to ensure they align with your company’s values. Consider the local cultural context when evaluating candidates. What works in one country may not work in another.‍

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5: Make a job offer and complete right to work checks

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Once the right candidate is selected, you’ll need to create an offer that aligns with local standards. Offering competitive salaries and benefits that reflect local expectations will ensure you attract top talent. Be sure to include country-specific benefits like healthcare, pensions, equity options, or paid leave in your employment contracts. Don't forget that some candidates might require immigration support and you to navigate the visa process.

• Draft and negotiate the job offer: When making a job offer to a foreign employee, it's important to clearly outline the terms of the employment, including the job duties, salary, benefits, and start date. You'll also need to negotiate these terms with the candidate, considering factors such as cost of living differences and relocation expenses.
• Sponsor the visa or work permit: If the candidate accepts the job offer, you must sponsor them for a visa or work permit. This involves applying to the relevant immigration authorities, providing documentation to support the application, and paying any required fees. An EOR might be able to support you with the application or give you the information on how the process works. Be prepared that an EOR might not be able to offer support with VISAs and work permits.
• Support the candidate through the immigration process: The immigration process can be complex and stressful for the candidate. As an employer, you can support the candidate by providing information, assisting with paperwork, and offering necessary resources or support.

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Did You Know? Offering locally competitive benefits packages can significantly improve your chances of securing top-tier talent in international markets. Read more on the topic in our expert interviews!

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6: Onboard the employee and manage their employee experience

Effective onboarding is key to integrating international employees into your company culture. This process should include setting up payroll, taxes, benefits, and making sure employees feel supported in their new roles. Ensure that ongoing management includes regular communication, check-ins, and feedback loops to keep them engaged and builds trust in the remote setting.

• Prepare for the employee's arrival: Before the employee arrives, you'll need to prepare for their arrival. This can involve arranging housing and transportation, setting up their workspace, and preparing necessary equipment or materials.
• Conduct an onboarding program: An orientation program can help the new employee get to know your company, understand their role and responsibilities, and familiarise themselves with their new environment. This program might include a tour of the office, introductions to key staff, and an overview of company policies and procedures.
• Provide ongoing support and resources: After the orientation, please continue to support the employee as they settle into their new role. This could involve assigning a mentor or buddy, providing language or cultural training, and offering resources for living and working in the new country. Remember, supporting an employee's integration is a long-term commitment that is crucial to their success and satisfaction.

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"Support for our candidates was hugely important. We wanted a solution that felt like just another branch of what we do internally but took care of things that are outside of our expertise. For this, Teamed delivers on all fronts!" - Marta Silva, Tekever

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Hire internationally with Teamed

Hiring international employees can be challenging but rewarding. By following these six steps - evaluating candidates, understanding legal compliance, expanding your business, screening candidates, making offers, and onboarding effectively - you can create a smooth and efficient hiring process that opens doors to global talent.

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Sometimes it's better to let an expert handle your international hiring and global payroll management, this is when a global employment service like Teamed can be your best partner. Whether hiring your first international employee or expanding your global workforce, here to help you navigate the process successfully and get everything done like a breeze.

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Further Resources

• Compliance Quiz

• EOR Services Overview

• Customer Success Stories

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