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

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

Employment Dynamics in the Philippines

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

Legal and Regulatory Frameworks in the Philippines

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

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

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

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

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

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

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

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

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

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

Human Resource Potential in the Philippines

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

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

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

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

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

Working with an EOR Partner in the Philippines

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

Selecting the right EOR

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

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

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

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

Contractual agreements and responsibilities

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

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

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

Confidentiality and data protection

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

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

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Roles and Responsibilities of an EOR in the Philippines

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

Hiring and Recruiting through an EOR

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

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

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

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

Payroll and Benefits Management

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

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

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

Legal Compliance and Risk Management

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

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

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

Reporting and Record-keeping

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

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

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

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

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

Collaborate with an EOR to expand your organisation in the Philippines

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

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

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

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

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

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

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

Why this award matters

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

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

Want to see behind the scenes?

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

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What this means for you

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

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

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

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

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What’s next?

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

Celebrate with us

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

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

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

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

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

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

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The reality of a talent shortage 

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

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

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Navigating the crisis with planned global hiring

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

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

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How an Employer of Record (EOR) simplifies global hiring 

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

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

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

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The broader implications for the professional services industry 

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

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

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Time to turn the challenge into an opportunity 

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

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

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

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

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

Getting Started with Building a Business in the Philippines

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

Initial investment

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

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

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

Permits

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

Tax Benefits

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

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

Hiring in the Philippines: What You Need to Know

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

Wages and Overtime

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

There is no one set minimum wage in the Philippines.

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

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

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

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

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

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Expected benefits

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

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

Employer contributions

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

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

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

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

Pag-IBIG is a national affordable housing fund.

Tax

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

Work culture

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

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

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

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

Hiring remotely

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

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

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

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

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

Other Ways of Hiring in the Philippines

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

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

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

Outsourcing

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

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

Branch office

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

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

EORs

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

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

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

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

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

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

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

Choosing an EOR

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

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

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

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

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Get Started in the Philippines

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

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

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

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

Contact us today to get started.

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

Key takeaways

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

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

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

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

What is an employer of record (EOR)?

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

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

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

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

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

Pros and cons of an EOR 

What is a staffing agency?

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

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

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

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

Pros and cons of a staffing agency

Key differences between EOR and staffing agencies

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

Compliance and risk management

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

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

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

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

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

Legal and administrative responsibilities

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

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

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

Flexibility in hiring

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

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

Control over employees and workplace

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

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

Costs

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

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

When to choose an employer of record or staffing agency

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

Which option is right for your business?

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

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

Factors that decide what you should choose

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

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

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

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

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

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

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

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

Scenarios where a staffing agency is the better choice

Scenario 1: Direct control and supervision

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

Scenario 2: Temporary or Project-Based Staffing

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

Key takeaways

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

Find the right match

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

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

Frequently Asked Questions

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

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

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

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1: Define job requirements and qualifications

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

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

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2: Source and attract global talent

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

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

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3. Understand the legal requirements

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

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

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

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4: Evaluate candidates and conduct interviews

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

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

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

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

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

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

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

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6: Onboard the employee and manage their employee experience

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

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

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

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Hire internationally with Teamed

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

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

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Further Resources

• Compliance Quiz

• EOR Services Overview

• Customer Success Stories

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EOR vs. PEO: The best choice for your global growth

Expanding your business globally presents numerous challenges - managing compliance, handling payroll, and onboarding international talent being just a few. For companies exploring global growth, two key models are available:  Global Employer of Record (EOR) and Professional Employer Organization (PEO). But how do you determine which one fits your business? It depends on your specific goals, size, and the markets you’re entering.

In this guide, we’ll explore the critical differences between an EOR and a PEO, dive into real-world scenarios, and help you make an informed choice tailored to your growth needs.

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What is a Professional Employer Organisation (PEO)?

A PEO partners with companies to provide HR services such as payroll, benefits administration, and compliance. The relationship operates on a co-employment model, meaning that while the PEO manages HR functions, your company retains legal responsibility as the employer. As per a report, the PEO industry's market size is all set to surpass $158.99 billion by 2031, expanding at a CAGR of 10.9%.

PEOs are especially useful for businesses that already have a legal entity in the country and are looking to outsource HR operations. However, PEOs generally work within specific countries, limiting flexibility if you’re expanding into multiple new regions.

Example: A mid-sized tech company based in the UK may use a PEO to outsource its HR functions within Europe. While the PEO manages payroll and benefits, the company is still legally responsible for the employees.

‍Related Resource: Employer of Record vs Staffing Agency article.

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The advantages of PEOs

In HR outsourcing, Professional Employer Organizations (PEOs) have emerged as a popular choice for many businesses.

Their comprehensive services and shared responsibility model offer a unique blend of benefits.

A Professional Employer Organization (PEO) provides several benefits:

• Comprehensive HR Services: PEOs offer various HR services, including payroll processing, benefits administration, and compliance management.

• Shared Responsibilities: PEOs share employment responsibilities with the client, allowing businesses to maintain control over their workforce.

• Scalability: PEOs can quickly scale their services to match the growth of your business.

• Access to Expertise: PEOs have experts in various HR disciplines, providing businesses with access to knowledge and skills that may not be available in-house.

• Cost Savings: PEOs can offer cost-effective solutions for benefits administration and other HR services by pooling resources from multiple clients.

The limitations of PEOs

While PEOs are a boon for many businesses, they come with their own set of challenges. Businesses must be aware of these limitations to make an informed decision.

However, there are some limitations to consider with PEOs:

• Legal Entity Requirement: PEOs require the client business to have a legal entity, which may only be feasible for some companies.

• Shared Liability: In a PEO arrangement, the legal liabilities from employment are transferred between the PEO and the client business.

• Less Control: While PEOs share responsibilities, they also share control, which may only be ideal for some businesses.

• Cost: PEO services can be expensive, especially for small businesses.

• Dependent on Business Size: PEOs work best for small to medium-sized businesses. Larger organizations may find a PEO's services less tailored to their needs.

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What is an Employer of Record (EOR)?

An EOR takes on full legal responsibility for your employees, acting as the official employer in the country of operation. This is particularly valuable when you want to expand into new markets without the need to set up a legal entity. The EOR handles payroll, compliance, benefits, and taxes, while you retain control over day-to-day operations. The EOR market is growing rapidly. It's projected to grow at a CAGR of 6.8% from 2023 to 2029, reaching $6604.4 million.

Pro Tip: EORs are ideal for businesses looking to scale quickly and compliantly across borders, particularly for those expanding into multiple countries where they lack a legal presence.

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The advantages of EOR

Companies constantly seek ways to gain a competitive advantage in the cutthroat global business environment.  An EOR brings several advantages to the table:

• Global Talent Acquisition: EORs empower businesses to recruit talent globally without establishing a local legal entity.

• Compliance Management: EORs ensure compliance with local labour laws, tax regulations, and compliance measures, reducing the risk of non-compliance.

• Payroll Management: EORs manage all aspects of payroll, including wage distribution, tax deductions, and benefits administration.

• Risk Mitigation: As the official employer, the EOR takes on all employment-related risks, offering a safety net for the client company.

• Streamlined Operations: By handling HR and payroll, EORs allow businesses to focus on their core operations.
  

With some EOR services providers, you also benefit from a combination of fast onboarding with human touch and competitive pricing, ensuring a seamless and cost-effective experience. Have a chat with us to find out more - Talk to us.

The limitations of EOR

While EORs offer many benefits, it's important to consider certain limitations when opting for their services.

Here are some considerations when using an EOR:

• Limited Control: As the EOR assumes the role of the legal employer, businesses may have limited control over certain aspects of employee management.

• Dependency: Businesses may become reliant on the EOR for critical functions, which could pose a problem if the EOR fails to meet expectations.

• Cost: EOR services come with a price tag that must be considered in the overall HR budget.

• Cultural Differences: Many EORs rely on computer-automated onboarding, which may not fully grasp the unique cultural nuances of your business. This could affect employee engagement and satisfaction

• Legal Entity Restrictions: Businesses with an existing legal entity in a foreign market cannot use an EOR service to hire local employees.

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EOR vs. PEO: The key differences

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1. Legal responsibility

• PEO: Your business remains the legal employer, and the PEO provides HR support. You must have a legal entity in the country to use a PEO.

• EOR: The EOR is the full legal employer, eliminating the need for a local entity. You avoid legal exposure, while the EOR manages all employment-related compliance.

‍For more details: Read more about the ease of staying compliant whilst hiring globally in our casestudies.

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2. Global Flexibility

PEOs are excellent for handling domestic HR needs or in countries where your business is already established. However, if you’re expanding into multiple countries, managing multiple PEO relationships can be complex.

In contrast, an EOR allows you to hire in multiple regions without the need for legal entities in each country. This gives businesses entering new markets unparalleled flexibility.

Example: A US-based startup looking to enter five European countries can use an EOR to manage hiring and compliance without needing a legal entity in each country.

Related Resource: Check out our Guides and insights for detailed advice on navigating the global hiring landscape.

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3. Compliance and risk management

One of the major differences between an EOR and a PEO is how they handle compliance. A PEO provides guidance but does not assume full legal responsibility, which leaves your business open to legal risks in the event of non-compliance.

An EOR assumes full legal responsibility for compliance, ensuring that local regulations, labour laws, and tax filings are met in each country. This significantly reduces risk, especially when navigating complex international labour laws.

Related Resource: Learn how to avoid employee misclassification and other compliance risks with our Employee misclassification blog.

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4. Costs and scalability

PEOs tend to charge a percentage of payroll or flat fees based on the services provided, and their costs are often lower than EORs. However, businesses still need to bear the costs of setting up and maintaining a local legal entity, which can add up over time.

An EOR, while often more expensive upfront due to the comprehensive services provided, eliminates the need for a legal entity, streamlining long-term operational costs, particularly for scaling globally.

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Pro Tip: Companies that expand into 5+ countries with an EOR model see a 50% reduction in administrative overhead compared to those using PEOs with local entities. Speak to our team today to see what's the best option for you.

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The right option for your business - When should you choose an EOR or a PEO?

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Scenario 1: A Growing Startup Expanding Globally

Use an EOR: A tech startup based in the US wants to hire talent in Spain, Portugal, and France. By using an EOR, the company can onboard employees quickly without worrying about local legal complexities or setting up multiple entities. The EOR handles payroll, compliance, and taxes, allowing the startup to focus on its core growth strategies.

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Scenario 2: A Mid-Sized Business Expanding Regionally

Use a PEO: A mid-sized business already operating in the US and Canada wants to outsource HR tasks within these countries. Since the company already has legal entities, it can benefit from using a PEO to manage payroll, benefits, and compliance, while maintaining control over its employees.

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Related Resource: Discover how other businesses have successfully moved to global hiring via an EOR arrangement over PEO on our moving to Teamed page.

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Elevating your HR strategy with us

Whether an EOR or a PEO is the right choice depends on your global growth strategy and the complexities of the markets you’re entering. If you’re expanding into multiple countries or need to hire quickly without setting up legal entities, an EOR offers the flexibility, compliance, and risk management needed. On the other hand, a PEO is ideal for companies that already have a legal presence and are looking to streamline HR functions within specific regions.

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fI your business is looking to expand globally without the hassle of setting up legal entities in every new location, an Employer of Record (EOR) could be the ideal solution. With Teamed, you can leverage our global EOR solution to hire, onboard, and manage your international workforce with ease and confidence. Elevate your HR strategy with Teamed and take your business to new heights.

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Further Resources:

• Compliance: Global Compliance Solutions

• Case Studies: Teamed Success Stories

• Pricing: Teamed pricing

• Blog: Everything You Need to Know About Employer of Record

• Hiring Guides: Explore Country-Specific Hiring Guides

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• Nick Waller, founder of Global M, shares key insights on today's top talent priorities and current global investment trends.
• We also talked about a specific concept: ‘Having the right people and their talents is more crucial than a business plan itself’.
• He highlights the immense potential Africa holds for business growth. “Africa is a prime spot for business expansion and talent acquisition”.

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Global M is an international recruitment consultancy helping start-ups and large technology corporations recruit top professionals to rapidly scale their tech teams. It’s specially dedicated to supporting clients by seamlessly integrating with their cultures, environments, and tools. Recently, we had the opportunity to interview Nick Waller, the founder of Global M, who shared insights into their unique approach and vision.

Nick from Global M mentions that "supporting the client daily and integrating with their culture, environment, and tools is crucial. Being on-site allows us to integrate on a personal level, enhancing mutual understanding." This approach underscores Global M’s commitment to aligning closely with their clients.

One of the main topics was the current investment landscape, where Nick shared with us an interesting perspective: “While investment has reduced, it’s leading to more positive outcomes in the long run and better recruitment strategies”. “Investments are now given with the expectation of profitability, not just growth for the sake of growth”, he added.

Part of our conversation focused on Africa and the wide opportunities for companies to expand their teams there. Nick believes that “Africa is a fantastic place for us and other organisations to grow. The strong university systems produce very smart and eager people”. He also added that “Africa's rich natural resources attract global investment, providing economic advantages without compromising on talent quality.” Regarding today’s top talent, Nick notes that "the benefits are the top priority. ‘Is the organisation going to pay me what I deserve? Are they going to give me a good salary? Are they going to offer benefits that provide flexibility and support my environment?’”.

Nick further emphasises the importance of having the right people, stating that "having the right people and their talents is more crucial than a business plan itself. Your business will be successful when you start testing it in the market with the right people who can adapt to changes and see opportunities."

Lastly, Nick points out how AI enhances the interview process: "AI makes the interview process fairer by using video software and AI tools that analyse keywords and what people are saying, reducing subjectivity." This use of technology ensures a more objective and efficient hiring process.

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Highlights from Nick

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• Being on-site allows Global M to integrate personally, enhancing mutual understanding.
• Africa's rich natural resources attract global investments from countries like China, the US and Russia.
• Benefits are a top priority: ‘Is the organisation going to pay me what I deserve?’
• Having adaptable people who can see opportunities is more crucial than the business plan itself.
• Investments are now given with the expectation of profitability, not just growth for the sake of growth.
• AI makes the interview process fairer by reducing subjectivity.

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Full interview

What’s the main thing you aim to achieve at Global M, and how does this set you apart from other firms?

‍Global M is an international talent consultancy. We work with startups, scale-ups, and corporates, supporting them in finding, hiring, and analysing top talent.It really depends on a case-by-case basis, the size of the business, and the type of roles they're hiring for. We tailor our solutions specifically to each client. This usually involves providing a recruiter from our experienced talent acquisition team. This recruiter finds profiles, analyses them, and provides succinct feedback to hiring managers and internal teams. They are embedded in the organisation, supporting the client daily and integrating with their culture, environment, and tools. They have access to an email address, applicant tracking system, and other tools, and often work on-site.

‍Being on-site allows them to integrate on a personal level, such as going for a coffee and discussing daily events, or attending conferences to learn more about the organisation. This deep integration gives us a thorough understanding of the client and vice versa, leading to excellent service delivery. We enjoy this approach as it makes us feel part of the team and enhances our accountability.

On top of this, we've been going for 12 and a half years now, and we've got international employees. We've got people based in Ukraine, South Africa, and the US. This gives us a good understanding of different cultures since we employ people from diverse backgrounds. Having offices in these locations gives us a great perspective. Our Spanish office provides a good overview of Europe, our South African presence offers insights into Africa and parts of Asia, and our US office covers Canada and South America. These different elements give us a well-rounded global view.

Could you describe a typical scenario Global M encounters in global hiring?

‍I think nowadays, especially with the current climate, it has really shaken up recruitment and people's views on it. Recruitment activities have become a bit more inconsistent. We've found that it's not so typical anymore. Although that's part of your question, we find that companies usually come to us because they don't have the speciality in that specific sector. They've done some cost savings and planning, which means they didn't need to hire the number of people they actually do need. So, they come to us and say, "Look Nick, we are struggling to meet our numbers. We need your support."

So actually, it really varies why people come to us, but dominantly, it's because they are behind their hiring goals and need additional external support. The second reason is that they see us as a partner who can help and support them, not just in finding talent, but in providing insights as well. They see us as a potential partner, and it gives us a chance to learn from them too. It’s a two-way street, which is why many see us as an integrated partner rather than just an external agency.

What inspired Global M to open offices in South Africa and Ghana, and how has this expansion impacted your growth and partnerships?

‍I think there are a couple of elements in this question. So, personally, being born and raised in Kenya was a wonderful experience, and I'm very grateful to my parents for giving me that. It gives you an international perspective. Growing up in a country with significant social and class divides, as you get in Africa, you soon pick up on these disparities. I think this awareness becomes a part of you, and you start to question why such divides exist in the world. This perspective has stayed with me throughout my life and career, and it's a core reason why Global M focuses on supporting people in finding jobs and enhancing their careers.

From a personal perspective, my background has shaped my career and our business. We wanted to invest in Africa because of my personal connection. People from Africa are incredibly resilient and positive despite facing significant hardships and infrastructural challenges. They are friendly and optimistic, which is an admirable way to look at life. We invested in the continent by opening an office in South Africa and employing South African staff. We also have employees in Ghana and East Africa.

It's been a good experience. There are cultural nuances and environmental factors we've had to learn, but embracing these elements has been rewarding. We've had very positive experiences with our African team members, particularly in South Africa and Ghana.

We're looking to build on these experiences by growing partnerships in Africa and working with more companies there. There's great talent in Africa, supported by strong university systems, with very smart and eager people. We believe Africa is a fantastic place for us and for other organisations to grow.‍

What benefits do companies gain by hiring in South Africa, Ghana, or Kenya?

‍The benefits of hiring in South Africa, and Africa in general, are numerous. In Africa, the principal countries where much of the business is conducted are South Africa, Kenya, Nigeria, and Morocco. These countries produce a significant amount of talent and business, making them focal points for commerce. We have offices in South Africa and Ghana, which gives us a solid understanding of these specific locations.

‍South Africa is particularly interesting because many people there have a European cultural synergy, partly due to historical ties with Dutch colonizers. This cultural fit makes it easier to hire and integrate them into teams. Despite facing hardships such as government issues and unreliable internet access, South Africans have developed resilience, an essential trait for the workplace. This resilience makes them adaptable and client-oriented employees.

‍Similarly, Nigeria is a wealthy country with many fantastic entrepreneurs and a burgeoning technology scene. There's increasing investment in Nigerian startups, with venture capital firms specifically created to invest in African businesses. This trend is fostering a vibrant entrepreneurial ecosystem.

In Kenya, Tanzania, and other locations, we see similar patterns of growth and talent. French companies also benefit from working in Morocco and Tunisia, where French is widely spoken, providing a cultural connection that facilitates business operations.

Additionally, the cost of hiring in Africa is generally lower compared to places like Copenhagen, offering economic advantages without compromising on talent quality. The lower cost of living in Africa means you're not having to pay as much in salaries, which reduces expenses related to infrastructure. This is a significant benefit for some companies, making Africa a cost-effective choice for many businesses. Because you can get highly effective people for less money, Africa is an excellent place for building a cost-based operation. However, it’s important to remember that working in Africa may not be the same as working with Nordic countries, DAC (Germany, Austria, Switzerland), or the UK, where infrastructure and work environments might differ.

Overall, Africa is a diverse and dynamic continent with immense potential for growth, making it a strategic location for businesses looking to expand and tap into new talent pools.

Could you share some information about which countries are investing the most in Africa?

‍Africa's rich natural resources attract global investment, including significant infrastructure projects by countries like China, Russia, and the US. This investment enhances the business environment and creates more opportunities for skilled workers. However, the most notable growth is in the tech sector.

What are the top three things that influence top talent today?

‍I think the number one concern is always the benefits. While people often say it's about the opportunity, the role, or the progression, the benefits are the top priority. “Is the organisation going to pay me what I deserve? Are they going to give me a good salary?”

Everything needs to be perfect, even though it rarely is. “Are they going to offer benefits that provide flexibility and support my environment?” With COVID, flexibility has become incredibly important, whether that's being fully remote or hybrid. There's a bigger push for hybrid now because many people feel burnt out from being fully remote and want some time in the office. If you're in the office, even for just a day or two a week, it can benefit your communication and career more than being fully remote. Top talent wants a good salary, benefits, and flexibility. Secondly, they look for opportunities for growth and leadership within an interesting company.

Lastly, we're seeing a growing concern for sustainability and the good an organisation does for the world. Top talent wants to work for a company with a good ethos and sustainability agenda. They want to be proud to talk about their company with family and friends. Even if the company isn't in the energy or climate sector, it can still provide good to the world. This is becoming increasingly important for top talent.

Could you expand on the concept that “having the right people and their talents is more crucial than a business plan itself”, and how this philosophy shapes your approach to team building and pitching to investors?

‍Business plans are important, as they ensure you have your ideas, concepts, and commercial aspects backed up. However, the true test of whether your business will be successful comes when you start testing it in the market. This means selling, pitching, and showing your product to see if customers are willing to pay for it. Your original idea might not be what customers are willing to pay for; it might be an incredible idea that the market isn't ready for yet, possibly for another 10-20 years.

It's crucial to test your business to ensure it's viable. Many people talk about minimal viable products (MVP) or proof of concept, but even simple businesses, like selling something online or making food for someone, need to find out if people are willing to pay for it. That's when you know you have a real business.

‍Having the right people is vital because they will be on the front lines, seeing opportunities and adapting to changes. It's important to have common-sense, entrepreneurial people who are ready and adaptable. Some people struggle with change because they have a fixed idea of how things should go, but life and business are unpredictable. Things change, move, and alter, and it's essential to be prepared for that.

How are current trends in investor interest affecting the global talent landscape, and what implications does this have for talent development and recruitment strategies?

‍We've seen a significant dip in investment in startups and scale-ups over the last 18-24 months. Post-COVID, there was a surge in investment as many people were working remotely and relying more on technology, causing metrics for tech companies to soar. This led to a lot of venture capital (VC) investment in technology startups. It was also a favourable climate for borrowing money, as it wasn't hard or expensive.

However, over the past 18-24 months, interest rates have increased, making it harder and more expensive to borrow money. This has changed the landscape, leading to a decrease in investment. But this shift is positive, as it encourages companies to be more sustainable. Investments are now given with the expectation of profitability, not just growth for the sake of growth. This change is pushing organisations to adopt more sustainable working methods.

Founders are now more cautious about how they spend and use their money. This cautious approach is beneficial for recruitment, as companies come to us with more specific and detailed business needs, leading to more successful partnerships. It's something I really enjoy seeing—companies with a clear plan and way of working.

Overall, while investment has reduced, it’s leading to more positive outcomes in the long run and better recruitment strategies for organisations.

What’s your opinion about AI recruiting systems?

‍AI systems are going to be really helpful in recruitment, and their impact is largely positive. Currently, AI is used for generating emails to candidates and clients, helping us explain what we do more effectively. It speeds up the process of reaching, attracting, and engaging candidates. Additionally, AI makes the interview process fairer by using video software and AI tools that analyse keywords and what people are saying, reducing subjectivity.

‍Recruitment has always been quite a subjective process and likely will be for some time. However, AI software helps eliminate some of the natural biases, making our industry better. Despite this, the human element in recruitment remains crucial. Speaking to people on the phone and helping them through the process is something AI will struggle to replicate.

AI can significantly improve the outreach and interview processes, but the human touch will always be important in recruitment.‍

After global recruiting what is next?

‍After successfully recruiting globally, the next step is to ensure seamless employment and optimal onboarding of your diverse team. At Teamed, we are witnessing a significant increase in hiring top talent from Africa, especially in tech companies.

One of our top countries for employing employees from our clients is South Africa, where we partner with global recruiters like Global M and have local specialists ready to help you with regulations, payroll, and more to simplify your hiring processes. With Teamed as your Employer of Record (EOR), you can build a world-class team no matter where they are located, while we handle the complexities of hiring, paying, and taking care of your remote workforce. The Teamed difference lies in our top human support for both companies and employees, ensuring everyone feels valued and supported throughout the employment process.

‍Let's focus on growing your business with the right people, without borders!

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The importance of maintaining strong connections with team members cannot be overstated. Building trust in remote teams through unique communication strategies is key to ensuring these connections are meaningful and lasting. Regular check-ins have emerged as a vital strategy for fostering trust and inclusivity in virtual teams. 

As Paul Arnesen, a seasoned Global HR expert, shared in a recent interview with Teamed, “In a remote setting, regular check-ins are very important… make sure that you have some sort of strategy in place to ensure that everybody is being seen and heard.” This insight, coupled with data from recent studies, highlights how intentional communication can make or break remote work dynamics.

A report by Buffer's "State of Remote Work 2023" found that 24% of remote workers cite loneliness as their biggest struggle, and 21% report difficulties with collaboration and communication. These results highlight a strategic need to enhance employee engagement. A key approach to achieving this is through structured employee check-ins and one-on-one meetings. When conducted effectively, these strategies help bridge the gap between isolation and engagement, ensuring that team members feel connected and supported—an essential foundation for building trust.

By addressing individual needs and preferences, a more inclusive and valued workplace culture is cultivated, which is foundational to trust in remote teams. 

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Watch this video where Paul Arnesen, Global HR expert, and Calum Lyle, founder of Zest, explain how to build trust in remote teams through different communication approaches and what it truly means.

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What sets remote managers apart 

Paul also noted that effective remote managers excel in communication, such as scheduling regular check-ins, which fosters a unique kind of trust. “The best remote managers I’ve seen are the ones who really understand communication.”

“Those remote managers who stand out are those who manage to transition from being good at face-to-face communication to being just as effective online. This ability is what makes them unique. It builds a different kind of trust,” added the Global HR expert. This trust is the bedrock of high-performing remote teams, where communication isn’t just frequent, but also meaningful and supportive.

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Creating connection and belonging in remote work through human experience

But beyond just connecting team members, these check-ins touch on something more profound: the human experience. Remote work, by its nature, can strip away the small, everyday interactions that make work feel personal and human. It’s these moments [an informal chat over coffee, a quick check-in at someone’s desk] that are often missing in a virtual setting. These interactions are key for creating a sense of belonging and psychological safety within a team, which are essential components of trust.

‍Calum Lyle, a Tech Sales & Marketing recruitment specialist and founder of Zest, reinforces this idea, stating in an interview with us, “You don’t need to be in the same room… but you do need to push that culture and put a few small things in place which enable people to be their true authentic self.” 

This perspective aligns with findings from the Society for Human Resource Management (SHRM), which indicate that employees who feel their managers care about them as individuals are 86% more likely to stay at their jobs. Regular, thoughtful check-ins are a crucial element in demonstrating this care and in fostering trust.

By focusing on the human experience, managers can elevate their check-ins from mere routine to a powerful tool for empathy, connection, and trust-building. Paul’s emphasis on having a structured approach to check-ins also resonates with data from Gallup, which shows that teams that have regular, meaningful communication are three times more likely to be engaged at work. This engagement is not only about productivity; it’s about creating a work environment where employees feel valued, trusted, and part of a cohesive unit.

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The role of psychological safety in building trust

Psychological safety is key to building trust in remote teams. It creates an environment where team members feel safe to express ideas and take risks without fear of judgment. This is especially important in remote settings, where the lack of face-to-face interaction can lead to feelings of isolation and misunderstanding.

‍Google’s Project Aristotle, a study on team effectiveness, found that psychological safety was the most critical factor in determining a team’s success. In remote environments, where communication barriers can be more pronounced, fostering psychological safety is essential. 

By creating a supportive atmosphere during check-ins [through active listening, encouraging feedback, and acknowledging challenges] managers can build stronger trust and engagement. This ensures that communication in remote teams is not only frequent but also meaningful and supportive, fostering more connected and trusted teams.

How your EOR perfectly aligns with the essence of the Human Experience

As previously highlighted, effective remote managers excel by adapting their communication strategies to meet the unique challenges of a virtual environment. This approach not only reinforces the importance of meaningful and supportive interactions but also ensures that the human element remains central, addressing individual needs and preferences. This focus on the human experience is fundamental to creating a cohesive and inclusive team culture.

At Teamed, we understand that the human experience is at the heart of every successful remote team. We place it at the top of our priorities, ensuring that our support and services are designed to help companies build and maintain trust through thoughtful and tailored communication strategies. 

By partnering with Teamed, you are not only simplifying global employment but also investing in the well-being and success of your remote workforce. Chat with our team today! 

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When hiring and managing global teams, transparency and cost-effectiveness are key. Many companies are discovering that the real cost of using Employer of Record (EOR) platforms can be higher than expected due to various fees. These fees can accumulate, turning what seemed like a cost-effective solution into a financial burden. Additionally, the efforts to find and recruit global talent can make these processes even more costly for many companies.

EOR services are essential for companies looking to hire talent in countries where they don’t have an official entity. From payroll to taxes, benefits, and compliance with local employment laws, an EOR takes on the legal responsibilities of employing staff on behalf of another company. This arrangement allows businesses to quickly and compliantly hire employees in different regions.

However, many companies end up frustrated by the high fees associated with certain EORs. In this article, we will examine some common fees in popular EORs to help you understand these risks from the outset.

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The 5 Most Common Fees in EOR Platforms

Using an EOR platform can introduce several potential fees that can accumulate quickly:

1/ Management Fees: Many EOR platforms charge a standard management fee per employee, which can significantly impact your budget, especially when managing a large team.

2/ Handling Fees for Agreements: Some EORs charge for executing hard copy agreements with wet-ink signatures. While these fees may seem minor, they can add up if you frequently onboard new employees.

3/ Payroll Service Fees: On-demand payroll services can be costly, especially if you require frequent payroll adjustments or assistance.

4/ Legal Fees: Handling complex terminations can incur high hourly fees. These fees can quickly escalate in complicated legal situations, adding unforeseen expenses.

5/ Off-boarding and Setup Fees: Termination of an employee can incur additional fees. If an employee is terminated within the first few months, you may face further setup fees.

These are just a few examples of fees that can accumulate rapidly, leading to higher costs than initially anticipated. This lack of upfront transparency can be frustrating and financially straining for companies aiming to manage their global workforce efficiently.

It's essential to have this knowledge from the moment you contact an EOR. Your global hiring provider should inform you from the beginning about all the requirements, specifications, and risks associated with hiring in each region. At Teamed, for example, both you and your global hires will be assigned a local specialist who will make you aware of these potential scenarios from the moment you contact us, without any commitment on your part.

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Transparent Pricing from the Start

At Teamed, we believe in transparency and honesty from the very beginning, providing a close and accurate price from the first meeting. There are no hidden fees, no unexpected costs—just clear, straightforward pricing.

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"No hitches, all straightforward and without a hefty price tag! Thank you!", mentions Julia Mardell, Operations Director at Classic Folios.

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Our team is dedicated to providing human-centric service, ensuring you have the support you need, exactly when you need it. This approach not only enhances the overall experience and helps you navigate the complexities of international employment with ease but also keeps you informed about all the details relevant to hiring in each country, depending on salaries and the positions of your new hires. 

Our goal is to ensure a transparent and trustworthy relationship from the very beginning, which means clearly showing you all potential risks.

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"Teamed's proactive approach flagged potential issues with employees we weren't even aware of. Their service has been absolutely brilliant", highlights one of our clients, Shivani Phu, VP of Finance & Investment at Pixelynx.

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At Teamed, we provide you with accurate costs upfront and assign dedicated regional specialists to support your every need, ensuring a seamless and efficient global employment experience.

We finish this article by sharing some of our discoveries regarding Deel’s fees for hiring an employee in the US. This is just an example of what you might encounter. Our purpose here is solely to share this data, which might be updated by the time you read this. We just want to give you all the info you need to pick the right EOR for your company.

Understanding the Unexpected Costs from Other EOR

When choosing an Employer of Record (EOR), it's important to consider all potential costs. Among all EORs, we have chosen one of the most popular, Deel, for this example. We have noticed a significant number of migrations from Deel to Teamed. Deel’s fee structure includes various additional charges that can quickly accumulate. Here’s a simplified breakdown of some of these fees*: 

*Note: Data was collected in June 2024.

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Ready to check if you could be better off working with an EoR with superior service and without the hidden costs? Chat with our team today! 

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• Isabel Strijland, Chief Growth Officer and Co-founder of Acelr8, explains that hiring globally is also about understanding the requirements and benefits of hiring in different locations.
• She highlights the “importance of partners like Teamed in navigating global hiring complexities”.

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Isabel Strijland, Chief Growth Officer and Co-founder of Acelr8, is transforming how companies hire. Acelr8's mission is to make quality hiring seamless by deeply

integrating with clients, making their talent partners an extension of the client's team. By embedding into recruiting teams from the start, Acelr8 leverages market insights to ensure a perfect fit.

Isabel identifies the top three factors attracting top talent: flexibility, purpose, and strong compensation. "Flexibility has become incredibly important," she notes. "There's also a significant need for purpose in people's roles, especially among our generation." Competitive pay reflecting employees' value and expertise is also a key factor. Isabel states, "Understanding the local market averages and potentially offering slightly above those rates can help attract the right talent."

"Align your benefits packages with these values while conducting diligent market research to stay competitive in each region. This approach ensures that you meet both regulatory requirements and employee expectations, fostering a cohesive and attractive benefits package," she adds. To build the right remote team, Isabel recommends: "When hiring remotely, set clear targets and expect independent work."

Additionally, Acelr8 prioritises diversity and inclusion (D&I) from the start. "It's important to have a diverse interview panel to ensure candidates feel included."

Isabel also stresses the role of AI in recruitment: "Training that AI muscle allows recruiters to spend more time engaging with the right candidates, focusing on the human aspect."

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Highlights from Isabel

• Our mission is to make quality hiring seamless, by embedding our talent partners into (recruiting) teams, making our talent partners an extension of their team.
• Get hiring right from the start with our recruiting team's market insights.
• Flexibility, purpose, and strong compensation are key to attracting top talent.
• Design benefits packages based on local market averages to attract top talent, meet regulations, and align with employee expectations.
• Set clear targets and expect remote talent to work independently.
• Having a partner like Teamed is crucial in navigating these complexities.
• Understand the requirements and benefits of hiring in different locations.
• Prioritise diversity and inclusion (D&I) from day one with a diverse interview panel.
• Integrating AI allows recruiting specialists to focus more on engaging with the right candidates.

The commitment to innovation, inclusivity, and excellence is transforming how companies attract and retain top talent globally. Discover how Isabel Strijland’s insights and strategies are reshaping recruitment in our full interview.

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Full Interview

What makes Acelr8 stand out from other agencies?

The word "accelerate," which we often use in business development and client calls, highlights how we can speed up your hiring process. Though it's spelled uniquely, it embodies our mission to accelerate recruitment.

What sets Acelr8 apart from other agencies is our team of talent partners who deeply integrate with our clients. This means they work remotely or visit the client's offices to manage the entire recruitment cycle. They don't just fill positions—they immerse themselves in the client's culture, understand their products, and grasp their specific hiring needs. This thorough approach ensures we bring in talent that not only fits the job requirements but also aligns perfectly with the company's culture and long-term goals.

Additionally, we apply this model to our executive search services. Our executive partners collaborate closely with clients to understand the nuances of each role, evaluate candidates effectively, and create scalable hiring processes. By doing so, we challenge traditional agency methods with our embedded approach, providing a seamless and enriched experience for both candidates and companies.

In essence, our talent partners become an extension of the client's team, working from within to ensure a high-quality recruitment process. This embedded model is not just about filling vacancies—it's about building lasting relationships and ensuring the right fit for both the candidate and the company. This is how we consistently deliver exceptional results and stand out in the recruitment industry.

You mention in your values, "Get your hiring right." Could you elaborate on this statement? Additionally, what aspects of traditional recruitment do you believe need improvement?

We have our mission, or the families that we have in the business, is to really get hiring right for our clients. And I don't think it's anything new or groundbreaking, but it's so needed to really give recruiting a seat at the table and make it a strategic partner in who you bring on board, how many headcount you have, and at what levels. I think too often recruitment is seen as a service center that just executes whatever is told by the people team, the C-level team, or a founder when companies are a bit smaller. 

But it's so important to involve the recruiting team from those first conversations about who to hire because they have insights on the market. They know what kind of skills and what kind of talent is available, and they can really also say if certain goals are realistic and if it's actually needed to hire that team in the structure that is proposed as well.

And we do that with a lot of our clients by being embedded. We also are part of those conversations, and with that, we sort of try to change hiring one company at a time and implement the right recruiting practices and processes. And with that, we should have a strong outcome, on the other side, with some great talent joining the company and making your business a success.

What are the top three things that attract the best talent today?

Flexibility has become incredibly important, especially after the pandemic. Many companies shifted to remote or hybrid models, giving their employees the freedom to work at different times and from various locations. This trend is now common among the tech startups we work with.

In this environment, there are still many jobs that require being in the office. However, the tech startups we collaborate with often hire talent remotely and offer this flexibility.

Additionally, there's a significant need for purpose in people's roles, especially among our generation. Work is no longer seen as separate from life but as an integral part of it. People want to engage in meaningful work that benefits others or contributes to the well-being of the planet. We see this a lot when hiring for green tech and AI companies, which attract talent driven by a sense of purpose.

Lastly, strong compensation packages are crucial. Candidates are now more informed than ever about salaries, thanks to numerous platforms that compare compensation data worldwide. You can no longer mislead talent about their worth. Companies need to offer competitive pay that reflects the value and expertise of their employees. In this context, comprehensive compensation packages can make a significant difference.

In the context of setting up employee benefits packages, how can companies effectively account for the differences in regulations and expectations across various countries?

Effectively accounting for differences in regulations and expectations across various countries when setting up employee benefits packages requires a multi-faceted approach.

Firstly, it's important to consider the type of company and the culture you want to establish. For fully remote companies operating across Europe, where location is less of a concern, it's beneficial to create packages that are averaged based on country-specific standards. For example, a well-known remote company, Hotjar, employs this strategy by hiring both full-time employees and freelancers, yet maintains a leveling approach to salaries to ensure fairness and alignment across different regions.

For companies targeting specific regions for their hires, conducting thorough market research is essential. Understanding the local market averages and potentially offering slightly above those rates can help attract the right talent. This strategy not only ensures competitiveness with local companies but also aligns with the company's compensation culture and values.

In summary, begin by defining your company’s compensation culture and values. Align your benefits packages with these values while conducting diligent market research to stay competitive in each region. This approach ensures that you meet both regulatory requirements and employee expectations, fostering a cohesive and attractive benefits package.

What do clients usually ask for when they want to hire international talent?

Clients now ask for candidates to be very skilled and highly autonomous, especially with the rise of remote work. With access to talent from various locations, clients can tap into a wide range of skills that students and professionals bring from different places. Autonomy is vital here because, when hiring remotely without a local office, companies need to set clear targets and expect their talent to work independently.

For example, we worked with a co-op, a French startup based in Paris. They quickly realised that their engineering talent was spread across Europe. We helped them identify the right markets, conduct market mapping to find niche roles, and ultimately hire ten people across Europe. This approach went against the traditional French startup model of staying local, making it an international company. We guided them through the process, one hire at a time, ensuring they could manage their remote talent effectively.

How do you handle the challenges of hiring globally, and how do you solve them?

Hiring globally presents a unique set of challenges, and having a partner like Teamed is indispensable in navigating these complexities. Each country has its own requirements for hiring, as well as specific benefits you must offer or can offer. When conducting market mapping, it's not just about sourcing talent or identifying challenges; it's also about understanding the requirements and benefits associated with hiring in different locations.

For example, if you're looking to hire for sales roles in Spain, you need to be aware of the legal requirements, the benefits you can offer, and what is prohibited. This allows you to make informed decisions. We're currently working with a fintech company to identify where to hire German-speaking talent both within and outside of Germany. Given the high demand for German talent in Germany, we're exploring other parts of Europe for German speakers who can meet the company's needs.

This process involves more than just identifying talent sources; it also includes evaluating whether it makes sense to open a remote office there or hire through providers like Teamed.

Another critical aspect we've learned from working with our clients is to prioritise diversity and inclusion (D&I) from day one. Taking hiring seriously means taking D&I seriously, which can be challenging initially but is essential. Making D&I a priority means integrating it into every step of your hiring process.

This includes defining what diversity and inclusion mean for your company, incorporating these principles into skill assessments and hiring criteria, using inclusive language in job descriptions, and being flexible with skill requirements to attract diverse candidates. It's also important to have a diverse interview panel to ensure that candidates feel included.

Additionally, implementing strategies like gender quotas can help ensure diversity in your hiring pipeline. For instance, if you're hiring an engineer, you might aim for a 50% male and 50% female pipeline before making a decision. Every step in the recruitment and hiring process should incorporate D&I principles to ensure a truly inclusive approach.

What are your insights on the current effectiveness of AI recruiting systems?

I think for recruitment, it's really a must. I'm really happy that ChatGPT went with the strategy they did, where everyone is using it—from our recruiters internally to my mother at home. This widespread usage has raised literacy in AI, similar to how smartphones familiarised people with touchscreens. Now, people are starting to understand how to use AI in their daily lives and work.

At Acelr8, we actually have a working group with some of our talent partners who are very excited about AI. They experiment with new AI tools, dive deep into ChatGPT, and develop use cases for how to best utilise AI in recruitment. It's about training that AI muscle and knowing how to integrate it into your work.

I don't think AI will replace any roles in recruitment. Instead, recruiters who can effectively work with AI will outperform others. AI can handle repetitive tasks, research, sourcing, and outreach, leading to a higher quality pool of candidates. This allows recruiters to spend more time engaging with the right candidates, which ultimately benefits both the recruiters and the candidates. When set up correctly, AI can ensure candidates are better informed and communicated with throughout the process.

Additionally, how do you envision their evolution and impact over the next five years?

You see a lot of recruitment agencies and teams already applying various AI tools. I think there's definitely an overload of tools at the moment. It's important to find a few that really fit your workflow and ensure your team fully adopts and uses them daily.

In the next five years, I envision these AI tools improving significantly. They will increasingly handle repetitive tasks, reducing the workload for recruiters. This will allow recruiters to focus more on the human aspect, which is crucial for both candidates and companies.

As AI continues to evolve, it will enhance efficiency in the recruitment process, enabling recruiters to provide a more personalised and engaging experience. This shift will ultimately benefit the entire recruitment ecosystem by fostering better matches between candidates and companies.

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After global recruiting what is next?

The future of global employment is all about seamless integration and strategic partnerships. This is why we work closely with recruiting agencies like Acelr8, who excel in finding and placing the right talent. Once the ideal candidate is hired, we step in to manage the employment process, ensuring a smooth transition and seamless experience for both the client and the employee.

At Teamed, we handle the entire employment lifecycle effectively, from onboarding to compliance, payroll, and benefits. All supported by personalised and dedicated assistance for both employees and companies. That's what makes our TeamedDifferent, a key factor that sets us apart from the rest.

As Isabel's insights confirm, flexibility is crucial, especially in today’s global work environment. We support remote work models, enabling clients to attract top talent from anywhere in the world.

Ready to transform your workforce and harness the power of global talent? Connect with Teamed today!

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Just as in the formation of any new relationship, first impressions during employee onboarding are essential, setting the tone for the entire employee journey. It's a well-known fact that a thought-out onboarding process can be a game-changer in employee retention and engagement. But what happens when your teams are spread across different countries, each with their own and unique nuances?

This is where Teamed shines, stepping in to make the global hiring and onboarding process not just seamless, but a great experience with human touch and dedicated onboarding experts.

Real stories from the Teamed journey

With global employment and onboarding, what could be a simple routine operation, such as ensuring your employee tax and social contributions are correct, can have unforeseen challenges. This is where our commitment to excellence in onboarding is not just a promise; it's a reality that resonates in the feedback we receive from our clients. Recently, one of our people operations experts navigated complex negotiations with the Tax Office in the Netherlands, showcasing our dedication to going the extra mile to facilitate smooth collaborations across borders. The client was immensely appreciative of the effort and dedication put into supporting them and their employees.

In an age of automation and AI, it can be so easy to focus on optimising and automating a new hire's journey with us. In a recent case, Teamed's people-first approach highlighted the importance of the human touch when, during an initial discussion with a company planning to expand in New York, we received some really encouraging feedback. The primary contact at the company noted that their experience with Teamed was "a million times better" compared to their past engagements with other EORs (Employers of Record). They were particularly impressed with our approach to customer service, which they found to be more friendly, human, and genuinely supportive, marking a refreshing change from their previous experiences. This early positive feedback is a promising indicator of a blossoming partnership, underscoring the importance of getting the onboarding process right.

Retention: More than just numbers

SHRM research shows that organisations with an excellent onboarding process experience a 52% increase in the retention rate of new hires. This shows how retention is not just about keeping employees; it's about fostering a community where they want to stay, grow, and thrive. And it all starts from the beginning of the employee lifecycle. At Teamed, we take this to heart, crafting onboarding experiences that resonate with individuals, no matter where they are located. Dive deeper into this topic with our earlier post on Cultural Differences in Global Teams: Unlocking 21% Higher Profitability and Success.

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"The onboarding process was a smooth process. Alice was helpful and made sure I understood the terms." Ketshepile A.

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Engagement: The heartbeat of a happy team

Working with a range of HR professionals and businesses, we've come to understand that engagement isn't merely a metric; it's the heartbeat of a happy, productive team. In addition to our own expertise, a variety of studies have revealed that effective onboarding strategies indeed lead to a higher level of employee engagement. As an example, BambooHR reports that effective onboarding results in 89% of employees feeling very engaged at work. We believe that engagement starts with feeling seen and valued, a principle that is deeply embedded in our onboarding process.

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"The onboarding process was seamless. The team at Teamed is super friendly and helpful and it helps. Friendly staff. Always keen to help. Feel like they are on employees side and not just working for a company." Helena V.

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Productivity: Setting the stage for success

A structured onboarding programme is not only fantastic for fostering engagement, but also plays an important role in boosting the productivity of new hires by up to 70%. At Teamed, we view this as laying the foundation for individual success, providing both new hires and their employers with the essential information and time needed to integrate fully and contribute meaningfully right from the outset, without concerns over contract compliance or international payroll challenges. Organising a few meetings to get your new starters and processes up and running swiftly is a no-brainer.

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Teamed approach to global onboarding

At Teamed, we're not just adapting to the changing landscape of global employment; we're leading the charge. Our mission is to democratise employment, making it straightforward and human-centric, even when it spans continents. We're here to ensure that no remote employee feels like a second-class citizen, fostering a culture of inclusivity and respect.

"We looked at Deel, Remote, Oyster… the lot. Teamed offered the same product at a lower price. In fact, that's not fair. It's a better product because the customer service goes way beyond what the others offer, and they never charge extra fees." | Anil Kumar, Luganodes

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

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Conclusion

We know that international onboarding experience is more than a process; it's a statement of how we value our employees. As you expand and start to navigate the intricate landscape of international employment, we at Teamed stand next to you offering innovative solutions that are as humane as they are strategic.

Remember that at Teamed, we believe that all great journeys begin with a few, well-planned steps. Let's redefine what hiring global talent and how their onboarding should look like, together.

Get in touch or continue learning more about on how to facilitate onboarding by checking our blog post: Tips to Effectively Onboard International Employees.

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