Expanding into Europe brings growth opportunities, but employment compliance can trip you up. This blog outlines why EU compliance matters, the five key risks you must manage, the impact of “compliance creep”, and real-world case studies showing what happens when it goes wrong.
Expanding your business across the European Union (EU) is a smart move, diverse talent, strong economies, and strategic location make it a prime growth destination. But hiring in the EU without understanding local European employment regulations can feel like walking a legal tightrope blindfolded. One misstep, and you’re dealing with fines, lawsuits, or reputational damage.
This guide is built for scaling businesses, especially those with limited in-house legal teams, and helps you navigate the complex world of EU employment compliance. From contracts to termination, it breaks down the real risks and what you can do to stay compliant while scaling fast.
Why Employment Compliance in the EU Matters
Hiring across borders means navigating 27 different labour law systems. This complexity highlights the critical need for robust international labour law compliance. What’s legal in the Netherlands might be illegal in Spain. A mistake in France could cost you thousands in back pay or litigation fees.
The costs of cross-border hiring compliance failures are significant:
EU labour fines can range from €500 to over €250,000 depending on the severity and country (European Labour Authority, 2023).
61 % of US businesses and 71 % of UK businesses consider international hiring crucial, yet only 20 % feel confident in their ability to hire compliantly in foreign markets
In Germany, failing to follow local employment rules (e.g. co-determination laws) can invalidate employment contracts.
The Big Five: Compliance Risk Areas You Must Nail
The “Compliance Creep” Problem: When global HR compliance risks accumulate
When you hire one person in a new country, compliance feels manageable. But things change fast:
Soon, your lean People Ops team is buried in legal reviews and urgent compliance fixes.
This is “compliance creep” - a slow buildup of risk that eventually breaks your HR stack or leads to fines. It’s especially common in Series A-B funded companies aggressively expanding into the EU.
When Compliance Goes Wrong: Real Cases
These real-world examples highlight the tangible costs of neglecting EU employment compliance and international labour law compliance. Learning from these mistakes can help your scaling business avoid similar pitfalls.
Case 1: The Misclassified Contractor in Italy
Scenario: A US-based SaaS company hired a worker in Italy as an independent contractor, without seeking local legal advice.
Outcome: Italian authorities reclassified the worker as an employee, triggering a demand for €20,000 in back pay, missed social security contributions, taxes, and severe penalties.
What Went Wrong: Failure to understand Italy’s strict contractor rules. Courts scrutinise contracts for signs of an actual employment relationship.
What They Should Have Done: Used local counsel or an EOR to ensure compliant classification from day one.
Case 2: The Ignored Redundancy Process in Spain
Scenario: A UK fintech initiated layoffs without understanding Spain’s mandatory redundancy processes.
Outcome: They were hit with a €250,000 legal claim from former staff due to non-adherence to required consultation periods and severance calculations.
What Went Wrong: Misjudged how complex EU redundancies can be.
What They Should Have Done: Engaged Spanish labour law experts or an EOR.
Case 3: German Co-determination and Foreign Direct Employer (FDE) Risk
Scenario: A US tech startup hired directly in Germany with over 500 staff globally, no entity, and no co-determination compliance.
Outcome: The termination process triggered a court case and €46,000 in damages.
What Went Wrong: Violated Germany’s employee representation rules and operated as an unregistered FDE.
What They Should Have Done: Assessed local obligations and used an EOR or an expert in foreign direct employer (FDE) to stay compliant (Such as Teamed)
Conclusion
EU employment compliance is complex, fast-moving, and unforgiving. Whether you’re hiring one person or scaling into multiple markets, overlooking compliance can cost you time, money, and reputation. But handled well, it becomes a competitive advantage.
Frequently Asked Questions (FAQ)
Q: What is EU employment compliance?
A: It refers to following the laws around hiring, contracts, payroll, benefits, and terminations in each EU country.
Q: Why does it vary so much by country?
A: The EU sets directives, but each country applies them differently. So you need to follow national laws, not just EU rules.
Q: What happens if I get it wrong?
A: You could face fines, legal disputes, invalid contracts, or employee claims for back pay or benefits.
Q: Do I need a legal entity to hire in the EU?
A: Not necessarily. You can hire through an EOR who acts as the legal employer on your behalf.
Q: What is compliance creep?
A: It’s the gradual buildup of risk as your hiring expands across borders without a proper compliance framework in place.
Global hiring offers incredible opportunities for businesses to expand, diversify, and access top talent. But for lean HR teams juggling compliance, payroll, and onboarding across multiple regions, it’s not just a challenge, it’s a balancing act.
According to Gallup, 60% of full-time employees report feeling overworked, and HR professionals often carry the heaviest burden, managing rising administrative and strategic demands.
The big question is: Should you take the do-it-yourself approach when your people strategy requires hiring talent across borders, or should you partner with an Employer of Record (EOR) to simplify the process and avoid stretching yourself too thin?
We think it’s best to learn from others. Here’s why businesses like City Relay, MyTutor, and Data Science Talent decided to do so for their global hiring needs.
DIY: The risks and reality
Going it alone might seem like a straightforward option, but the reality is often far from simple. The challenges of doing it yourself:
High costs and long timelines: Setting up a legal entity can take months (or even years) and cost tens of thousands of pounds. And don’t forget, closing one down is just as complicated.
Unreliable local support: Sourcing local lawyers, accountants, and payroll processors can mean relying on unvetted providers who may not align with your standards.
Limited scalability: What works in one market might not be transferable to others, leaving you stuck when you want to pivot or expand.
Cultural and compliance pitfalls: Misunderstanding local regulations, benefits expectations, or payroll processes can lead to costly mistakes, employee dissatisfaction, and even reputational damage.
👉 Read more: Our blog on employee or contractor highlights how misclassification risks could make a DIY approach even riskier.
Why lean HR teams choose an EOR partner
Partnering with an EOR transforms a complex, time-consuming process into something smooth and scalable.
What makes an EOR the better choice?
Simplified compliance: An EOR acts as the legal employer for your global hires, ensuring you meet local labour laws and avoid misclassification risks.
Cost-effective scaling: With no need to set up legal entities, you can expand into new markets quickly and affordably.
Enhanced employee experience: Localised contracts, tailored benefits, and smooth onboarding keeps your global talent engaged and supported.
Speed and flexibility: Onboard employees within 24 hours and pivot to new regions as your strategy evolves.
👉 Want to know how an EOR works? Check out our article: What is an EOR?
Real results: Why businesses trust Teamed
City Relay: Expanding without the stress
When City Relay decided to grow internationally, they needed a partner to navigate compliance and operational hurdles. With Teamed, they:
Expanded their workforce by 80%, growing from 2 hires in Spain to 10 in the Philippines within 18 months.
Cut employment costs by 80%, leveraging lower regional costs.
Onboarded employees within 24 hours, keeping their momentum intact.
“Having Teamed as a partner made launching in a new market much easier. They handled onboarding, compliance, and everything else, so we could focus on our business.” – Amy, Head of People, City Relay
MyTutor: Retaining top talent across borders
MyTutor wanted to retain employees relocating abroad but lacked the infrastructure to manage compliance and payroll internationally. With Teamed, they:
Supported employee relocations to Spain and South Africa without operational disruption.
Introduced a “working abroad” policy, allowing employees to experience new regions while staying engaged.
Expanded their talent pool to include strategic global hires.
“Managing overseas employees feels easy now because of how intuitive the platform is.” – Leadership Team, MyTutor
Data Science Talent: Seamless entry into new markets
This boutique recruitment firm needed to hire in South Africa without setting up a local entity. Our team partnered with Data Science Talent and delivered:
100% compliance with local labour laws.
Tailored onboarding processes that aligned with their tight timelines.
Ongoing support for their growing global workforce.
“Teamed feels like an extension of our team. Their human touch is rare and invaluable.” – Rachel, People Operations Manager, Data Science Talent
What’s next? Why Teamed is the right choice
If your HR team is feeling stretched, we can help:
Simplify compliance: We handle contracts, tax regulations, and local laws, so you don’t have to.
Save time and money: Avoid the cost and complexity of setting up legal entities.
Enhance employee experience: From localized benefits to bespoke onboarding, we ensure your global hires feel valued.
Scale with ease: Enter new markets and onboard employees in as little as 24 hours.
👉 Ready to simplify global hiring? Book a call today and discover how Teamed can support your growth.
In small and mid-sized businesses (SMBs), HR teams often bear the brunt of competing priorities. They’re asked to manage recruitment, payroll, onboarding, employee engagement, compliance, and more often with fewer than two HR professionals per 100 employees. This “lean and mean” approach might save on staffing costs in the short term, but the cracks in this model are beginning to show.
Recent research paints a clear picture of the pressure HR teams are under:
Nearly 44% of professionals feel overworked, with HR leaders disproportionately affected as they balance administrative and strategic demands. (Gallup, 2024)
Turnover costs are climbing: disengaged employees cost organisations up to 18% of their annual salary.(Gallup, 2024)
Compliance missteps are costly: misclassification fines and missed tax filings can cost SMBs tens of thousands in penalties annually. (PwC Global Workforce Report, 2023)
The problem isn’t just about having too few hands on deck. It’s a lack of strategic investment in HR as a business partner. As SMBs grow and adapt to hybrid workforces, global hiring, and increasingly complex compliance demands, HR needs more than time; people teams need tools, resources, and support to thrive.
This is a call to action. If businesses want to thrive in 2025, it’s time to rethink how their people function. Lean teams don’t just need more time; they need the right tools, partners, and strategies to shift from survival mode to proactive people planning.
Because when HR teams are supported, businesses gain the resilience and adaptability they need to succeed in today’s complex world.
Why is this problem growing? The systemic challenges facing HR teams
The challenges facing HR teams aren’t just about doing more with less. They’re rooted in larger changes to how businesses operate and grow. Let’s break it down.
As companies expand and adapt to remote work, hybrid setups, and global hiring, the role of HR has grown far more complex over the past decade. Where historically an HR department might have been tasked with handling admin and strategic work for just one country or region, many people teams are now managing multiple countries and territories. They’re doing this with outdated tools and limited resources.
Let’s continue with remote work as an example. Global telecommuting has opened up incredible opportunities for hiring worldwide, but it’s also added layers of complexity. HR teams now find themselves navigating cross-border compliance, local tax laws, and onboarding requirements that differ from country to country. What used to be straightforward, like drafting a contract or running payroll, can now take hours of research and coordination. Even then, it might not be handled compliantly. When your people team is already stretched, this added complexity eats into the time they need for strategic initiatives.
Compliance is another growing pressure point. Employment laws are changing rapidly, and missteps can be costly. From worker misclassification to missed tax contributions, the risks of getting it wrong are higher than ever. Lean HR teams often end up stuck in reactive mode, trying to catch up with evolving regulations while balancing day-to-day tasks. This leaves little room for proactive planning, let alone supporting employee engagement and development.
What makes this even harder is that many businesses are scaling in chaos. Each new market, hire, or process introduces a fresh set of challenges. Instead of building scalable systems, HR teams are stuck reinventing the wheel for every new hire or region. Without the right tools or support, even simple tasks can become time-consuming bottlenecks, taking HR further away from the people strategy that drives long-term growth.
This isn’t just an issue for HR; it’s a challenge for the entire organisation. When HR is stretched too thin, engagement drops, compliance risks grow, and opportunities for growth slip through the cracks. The real problem is the lack of strategic investment in HR as a true business partner.
Solutions for lean HR teams: Time to rethink the approach
The truth is, asking lean HR teams to do more with less isn’t sustainable. These teams are already stretched thin, balancing compliance, recruitment, onboarding, and people strategies. Instead of pushing harder, businesses need to step back and ask how they can work smarter, not harder.
First, it starts with equipping HR teams with the right tools and support.
When repetitive tasks like payroll, benefits, and compliance are automated or managed externally, HR can focus on the big-picture priorities. For instance, an Employer of Record (EOR) can take on compliance-heavy responsibilities like managing local tax filings and employment laws, especially when businesses are expanding into new markets. This doesn’t just save time; it reduces risk and gives your team breathing room to focus on what matters.
Next, you need to commit to effective workforce planning.
It’s not enough to hire quickly. HR needs the space to think strategically about how each hire contributes to long-term goals. Testing markets with contractors, planning for growth in stages, and partnering with global experts for cross-border hiring are ways to reduce the pressure while maintaining momentum. These strategies aren’t about cutting corners; they’re about being deliberate with time and resources.
But let’s be clear, cultural change is just as important as operational improvements.
Many businesses still treat HR as a transactional function, yet research shows that employee engagement and retention hinge on how people feel about their workplace. Gallup found that over half of employees believe their companies have lost the human touch, and that impacts productivity, loyalty, and morale. The businesses thriving today are the ones that recognise HR as a critical driver of organisational health, not just an administrative necessity.
Finally, businesses need to stop normalising overstretching as a solution. It might feel like short-term gains are being made, but the reality is that constant overstretching leads to burnout, costly errors, and missed opportunities. Lean HR teams need support, whether that’s in the form of tools, additional hires, or strategic partnerships that lighten the load.
The solution isn’t about piling on more responsibilities and hoping for the best. It’s about focusing on the things that truly make a difference. That means streamlining processes where possible, investing in tools that empower teams, and building a culture that recognises and values the pivotal role HR plays. When HR has the capacity to think and plan strategically, the entire business benefits.
We can’t keep expecting more without giving HR the resources to succeed. It’s time to break the cycle, make smarter investments towards streamlining operations, and create an environment where people teams, and the people they support, can truly thrive.
When you’re part of a stretched HR team, choosing the right global hiring partner isn’t just about ticking boxes; it’s about finding a solution that works for your business and your people. Here’s what you need to know before making your decision.
Myth 1: EORs are only for large businesses.
The truth: EORs support businesses of all sizes. Whether you’re a scrappy startup or a scaling organisation, EOR services provide the infrastructure you need to grow globally without overburdening your team.
For lean teams, EORs like Teamed extend your HR capabilities, reducing admin workloads so you can focus on strategic goals.
👉 Example in action: City Relay grew their workforce by 80%, expanding from Spain to the Philippines, while cutting costs significantly by hiring abroad instead of in London.
Myth 2: EORs are just payroll providers.
The truth: Payroll is just the start. A strong EOR partner acts as the legal employer for your global hires, managing:
Compliance with local laws.
Contract creation and employee onboarding.
Guidance on where to hire and how to structure offers.
Teamed takes it further with personalised support and local expertise. From market insights to long-term hiring strategies, we’re here to help.
👉 Example in action: With Teamed’s guidance, Data Science Talent onboarded employees in South Africa seamlessly, staying 100% compliant while meeting tight timelines.
Teamed simplifies it all. Our transparent pricing means no hidden fees, so you can budget confidently while expanding globally. Plus, by hiring in cost-effective regions, you can significantly reduce expenses.
👉 Example in action: City Relay saved up to 80% in employment costs by building a team in the Philippines, benefiting from lower regional costs without sacrificing quality.
Myth 4: EORs can’t handle complex situations.
The truth: High-quality EORs thrive on complexity. Whether it’s managing redundancies, performance improvement plans, or navigating local regulations, Teamed is built to help.
Our in-country experts ensure compliance while delivering a human-first service. For instance, when MyTutor faced employee relocations, we supported their team through seamless transitions and even helped implement a flexible “working abroad” policy.
Myth 5: Using an EOR harms employee experience.
The truth: A great EOR enhances the employee experience. With Teamed, employees benefit from:
Localised benefits packages tailored to their region.
Transparent, compliant payroll systems.
Bespoke onboarding pages that ensure clarity and build trust.
Global hiring: Big opportunities, bigger responsibilities
Expanding internationally can open up exciting opportunities, such as accessing new talent, markets, and skills, but it’s not without risks. For HR teams already stretched thin, tackling compliance across multiple regions can feel daunting. Missteps can lead to hefty fines, legal issues, or reputational damage.
To help, we’ve outlined five of the most common compliance challenges growing businesses face and some practical ways to navigate them. These aren’t scare tactics; they’re real challenges we’ve seen businesses struggle with, and we’re here to help you sidestep them.
1. Employee Lifecycle Management: More than just compliant hiring
What it is:
Employee lifecycle management is about more than just compliant hiring and contracts. It spans every phase of an employee’s journey, from onboarding and probation periods to certifications, promotions, redundancies, and even post-employment admin like deregistering with local authorities. Each stage is filled with opportunities for compliance issues, especially when scaling across multiple regions.
Why it matters:
Overlooked processes create big risks: Missing probation deadlines or mishandling redundancies in countries like South Africa, where strict labour laws govern notice periods and performance improvement plans, can lead to fines, legal disputes, or invalid contracts.
Retention and morale: Retention and morale: A poorly managed lifecycle damages trust, increases turnover, and weakens your employer brand. According to a recent survey, nearly 1 in 10 employees leave a job within 90 days of joining, often due to inadequate onboarding and management practices
Scaling inefficiencies: When lifecycle processes aren’t streamlined, bottlenecks form, time is wasted, and compliance risks multiply.
Data spotlight:
In South Africa, probation periods aren’t just time-bound; they require performance feedback, improvement plans, and fair processes for terminations. Mishandling this is one of the top causes of disputes brought before labour courts.
PwC’s report on workforce challenges revealed that 41% of HR leaders experience compliance issues tied directly to lifecycle processes like terminations or severance disputes.
How to manage it:
Build scalable systems: Automate lifecycle tasks like probation tracking, certification renewals, and legal deadlines. Centralised systems reduce errors and free up valuable HR capacity.
Plan for the full lifecycle: Before you hire, map out how you’ll handle key lifecycle stages in that region, from onboarding to exit. This includes understanding local severance laws, deregistration costs, and notice periods.
Bring in expertise when needed: Partnering with local professionals or global hiring experts helps ensure compliance at every stage while giving your team room to focus on employees, not paperwork.
Pro tip: Start by streamlining one lifecycle stage, like probation periods. Aligning this with local laws can immediately reduce risks and improve employee trust.
👉 Check out our Hiring and Firing Guide for region-specific insights on navigating the entire employee lifecycle here.
2. Misclassifying Contractors and Employees
What it is:
Misclassification happens when a worker is wrongly classified as a contractor instead of an employee, or vice versa. Each type has different legal rights and tax obligations, and the rules can vary widely by country.
Why it matters:
Financial penalties: Misclassified workers may claim retroactive employee benefits, such as holiday pay or pensions.
Reputational damage: Lawsuits or public disputes about worker rights can harm your brand.
Operational risks: Misclassification disputes can impact employee morale and productivity.
How to manage it:
Conduct role assessments: Regularly evaluate job roles to ensure correct classification based on current duties and local legal definitions.
Provide manager training: Educate managers on the distinctions between contractors and employees to prevent misclassification at the hiring stage.
Local experts, like those at Teamed, can help audit your classifications and ensure your contracts are compliant with local laws.
Pro tip: If you’re unsure whether your current contracts are fully compliant or if a worker should be classified as an employee or contractor, we’ve built a simple tool to help. Our Contractor vs Employee Quiz can guide you through the key considerations and flag any potential risks.
3. Tax Compliance and Contributions
What it is:
Each country has its own rules for taxes, social contributions, and payroll filings. Staying compliant requires keeping track of deadlines, calculating the right amounts, and filing the correct paperwork.
Why it matters:
Hefty fines: Missing a single tax filing can result in steep penalties.
Double taxation risks: Mismanaging tax treaties between countries could mean paying the same taxes twice.
Operational impact: Tax audits can disrupt day-to-day business and take time to resolve.
How to manage it:
Use payroll systems or partners with deep expertise in local tax laws to ensure timely and accurate filings.
or,
Maintain a compliance calendar: Create a centralised calendar with all tax filing deadlines for each operating country to prevent missed filings.
Engage local tax advisors: Consult with tax professionals familiar with regional laws to navigate complex tax treaties and obligations.
Pro tip: Managing international taxes doesn’t have to be complicated. A trusted global hiring partner can handle compliance and contributions for you. Learn more about international payroll solutions.
4. Understanding Local Labour Laws
What it is:
Labour laws vary by country, covering everything from benefits and working hours to probation periods and termination procedures.
Why it matters:
Compliance risks: Failing to meet local requirements can lead to lawsuits or penalties.
Hiring roadblocks: Without competitive, compliant contracts, attracting top talent is harder and could lead to e.g. legal procedures with union representatives.
Financial setbacks: Missteps often result in fines, compensations, or settlements.
How to manage it:
Tailor your employment contracts to meet local standards. Working with global hiring partners can ensure compliance without the guesswork and added strain to your team.
5. Data Organisation: Keeping employee data safe, accessible, and efficient
What it is:
Managing employee data across multiple regions quickly becomes chaotic. Different countries often require separate systems for payroll, compliance, and record-keeping. Without a single source of truth, businesses risk losing track of critical information, like work permits, certifications, and local tax filings.
Why it matters:
Operational inefficiencies: Juggling multiple systems is a recipe for confusion. If you have a separate payroll provider for every country, keeping track of deadlines and data becomes overwhelming.
Compliance risks: Disorganised records make it hard to stay ahead of renewals and legal requirements. Expired work permits or missing certifications can result in fines or disrupt operations.
Employee trust: People expect their sensitive information to be managed securely. Poor data organisation damages trust and could hurt your reputation as an employer.
Data Spotlight:
Deloitte found that 32% of businesses struggle with compliance due to fragmented HR systems.
A Forrester survey showed that 64% of employees trust companies more when their employment data is transparently and securely managed.
How to manage it:
Centralise your systems: Use a single platform to manage employee data for all regions. This makes it easier to track compliance and access records when needed.
Automate key tasks: Tools that send alerts for deadlines, like visa renewals or tax filings, reduce the risk of missing critical dates.
Stay audit-ready: Keeping a digital audit trail of all employee records ensures you’re prepared to provide compliant documentation at a moment’s notice.
Pro tip: Centralised platforms don’t just improve compliance; they save time and create consistency across the organisation. If you’re scaling quickly, this can be the difference between smooth growth and chaotic bottlenecks.
👉 Learn more about simplifying global hiring and chat with our team → book a call with our hiring experts here!
How great global hiring partners simplify compliance
Global compliance can feel like a minefield, but you don’t have to tackle it alone. A reliable hiring partner can guide you through the complexity while keeping you compliant and your team focused on strategic growth.
Here’s how a great partner can help:
Expertise on local laws: Regional experts handle compliance, payroll, and benefits so you don’t have to.
Tailored solutions: Contracts and benefits customised to fit your goals and the laws of each country.
Secure data handling: Systems that prioritise employee data protection and meet global standards.
Ready to make global compliance stress-free?
Global hiring doesn’t have to be overwhelming. By working with a partner like Teamed, you can focus on growing your team while we handle the complex details.
Rachel Gething, People Operations Manager at Data Science Talent:
“Teamed feels like an extension of our team. They just take care of compliance so seamlessly that we never have to worry about it. Their human touch and expertise make all the difference.”
Global hiring opens doors to untapped talent pools, new markets, and innovative perspectives. But for stretched HR teams, managing compliance, payroll, and onboarding across borders can feel overwhelming. According to Gallup, nearly 44% of U.S. professionals feel overworked, with HR leaders facing added stress in balancing administrative and strategic demands. One wrong move in global hiring can lead to costly fines, employee dissatisfaction, or reputational damage.
This means that the stakes are high. With every new hire, you’re not just building a team, you’re safeguarding compliance, maintaining company culture, and ensuring the success of your business in a new market.
To navigate this complexity, our team outlined 10 great questions which HR leaders should ask before hiring internationally. These aren’t just random suggestions, they’re rooted in years of practical experience and built around frameworks like the HR Systems Model and Ulrich’s HR Roles.
We’ve kept things simple (no jargon, no fluff). These questions span three key areas: strategic alignment, operational readiness, and employee experience. For each, you’ll find practical tips and examples, helping you make decisions that align with your big-picture goals, address logistical challenges, and ensure your people feel supported.
Strategic Alignment: Define the big picture
Understanding your goals upfront will help ensure that international hiring decisions align with your business strategy.
1. Why are we hiring internationally?
Purpose matters. Is this about accessing specialised skills, testing a new market, reducing costs, or workforce diversification? Without a clear “why,” it’s easy to get lost in the complexity, and you may not target the right regions.
Example: A fintech client recently partnered with Teamed to access blockchain talent in South East Asia. Their clear goal allowed us to refine their hiring strategy and deliver results quickly.
2. What regions align with our goals?
The right location depends on your objectives. Are you prioritising cost savings, specific skills, or proximity to existing markets? Consider regulations, talent pools, and cultural fit when choosing a region.
Example: A UK-based SaaS company used Teamed to hire developers in South Africa, combining cost-effective salaries with high-quality engineering expertise.
3. What does success look like for this hire?
Define clear metrics for success. Is this about project delivery, long-term retention, or market entry? Aligning on these expectations ensures clarity for both your HR team and external partners.
Alice, Onboarding Lead at Teamed, says: “Defining success early allows us to design the onboarding experience and ongoing support to align perfectly with your goals.”
Operational Readiness: Address the logistics
Effective global hiring depends on having the right infrastructure in place.
4. Do we need a legal entity in this market?
Setting up a local entity can take months and cost tens of thousands. Partnering with an Employer of Record (EOR) like Teamed bypasses this complexity, enabling you to hire quickly and compliantly.
Example: City Relay expanded their team in the Philippines without establishing a legal entity, saving both time and money.
5. Are we prepared to handle compliance and payroll?
Compliance is non-negotiable. Local tax laws, benefits, and probation periods vary widely. Working with a trusted EOR ensures you stay on the right side of the law while avoiding payroll errors.
Example: Data Science Talent onboarded employees in South Africa seamlessly with Teamed’s compliance expertise, meeting tight recruitment deadlines.
6. What is the total cost of hiring in this region?
Consider base salaries, benefits, taxes, and EOR fees. A clear cost breakdown helps you budget effectively. Teamed’s hiring cost calculator can simplify this process.
Tip: Avoid unexpected costs by partnering with an EOR that offers transparent pricing and ongoing support.
Employee Experience: Focus on your people
Great hiring is about more than compliance, it’s about creating an environment where employees feel valued and supported, no matter where they’re located.
7. What does the ideal candidate experience look like?
First impressions matter. Consider the onboarding process, cultural integration, and clarity around role expectations. A bespoke onboarding experience can make employees feel welcome and engaged from day one.
Example: MyTutor praised Teamed for delivering a seamless onboarding process, allowing employees relocating to Spain to hit the ground running.
8. What benefits will we offer?
Localised benefits, such as healthcare, paid time off, and pensions, are critical to attracting top talent. They show that you value your team and respect local norms.
Tip: Partnering with Teamed ensures your benefits packages are competitive and compliant in any market.
9. How will we support employees long-term?
Global hires need ongoing support to thrive. Performance reviews, feedback loops, and career development opportunities are just as important for remote employees as for those at HQ.
Alice, Onboarding Lead at Teamed, adds: “We believe onboarding is just the beginning. Continuous support is how you build long-term success for your global hires.”
10. How will we ensure cultural alignment?
Hiring globally means navigating cultural differences. Tailored training and regular check-ins help bridge gaps and foster a cohesive team dynamic.
Example: A US-based professional services company partnered with Teamed to build a support team in Poland, relying on our in-country expertise to integrate cultural insights into their hiring strategy.
What’s next? Let Teamed guide your global hiring journey
Global hiring doesn’t have to be overwhelming. By asking the right questions and partnering with an EOR like Teamed, you can navigate compliance, payroll, and employee engagement with confidence.
Here’s how Teamed supports HR leaders like you:
Strategic alignment: Clear goals, tailored hiring strategies, and transparent pricing.
Operational readiness: Seamless onboarding, compliance expertise, and quick market entry.
Employee experience: Personalised support, competitive benefits, and cultural integration.
👉 Ready to make global hiring stress-free? Let's chat
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.
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.
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:
Insight
What it means for you
Source
1 in 10 workers would take a pay cut for better benefits
Benefits can outweigh salary in candidate decisions
Forbes
51% say flexible hours are a major concern
Work-life balance isn't a perk—it's expected
Forbes
30%+ of 18–41-year-olds want pet insurance
Younger talent values non-traditional benefits
Forbes
Career development improves millennial retention by 85%
Growth opportunities are a retention lever
Getbridge
61% evaluate work-life balance when considering offers
Mental health support is non-negotiable for younger workers
Zapier
65% of employees who feel cared for are more loyal
Perceived care drives retention
MetLife
"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.
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.
Why South Africa is an ideal destination for global hiring
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
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.
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.
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:
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.
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.
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
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.
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:
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
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
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.
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!
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.
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.
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.
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.
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.
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.”
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.
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.
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.
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.
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.
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
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.
Why do businesses need Global EOR services?
To hire abroad without establishing foreign legal entities, while meeting all local regulations and payroll obligations.
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.
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.
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
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.
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.
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.
Success stories: how two UK companies already benefit from global hiring
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.
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.
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.
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.
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.
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.
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.
“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
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.
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.
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
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.
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.
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.
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!
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