Companies in general, as well as recruitment agencies, can make use of an EOR (Employer of Record) but what would the advantages be, instead of say using a PEO (Professional Employer Organisation)? Both can assist and deliver HR services that can help you expand locally or globally.
First, what is a EOR exactly? An Employer of record is a third-party organisation contracted to take responsibility for paying employees. This includes dealing with payroll, taxes, visa and sponsorship applications, benefits and insurances.
In addition, what is an PEO exactly? A professional employer organization is sometimes referred to as an employee leasing company, which is a human resources company that is contracted by small and medium sized companies to take over certain administrative functions, such as payroll, taxes, and employee benefits.
So, if you are looking to fill contractor-based roles for shorter term projects then a third-party organisation like an EOR would be a good option for you as they hire and pay the employees on behalf of your company and take responsibility for all formal employment tasks. An EOR also take on the responsibility as the legal employer, employing and managing the staff. They often work with seasonal workers, contractors, project-specific hires, and country employees.
However, if you’re looking at hiring a higher number of employees for a longer period, a PEO might be your best option. Working with a PEO means there is a co-employment, which goes on between the PEO and the organisation. The PEO will work closely with you taking on all the HR admin that comes with expansion. This includes payroll, risk management, contracts, taxes, benefits etc. They also handle the on boarding, terminations, employee reviews and insurance. Your organisation maintains full control of the employee’s day-to-day activities but the PEO helps in managing this.
Benefits of working with an EOR
The cooperation is risk averse as the EOR will be the legal employer of the employee as there is a direct contract between the employee and the EOR. You will have a service agreement though, where you negotiate all details of the contract and with the other parties involved.
Your organisation can hire in countries without registering an entity. An EOR already have a registered business in the country of interest. This can save you time and money meaning your business can expand faster and is more flexible. This can be particularly beneficial when requiring a contingency workforce for meeting business demand.
With an EOR, you can bring in a contingency workforce to help expand your business at very short notice and can work with a short project period.
How TCP can help
TCP is a European Professional Employer Organisation, a compliance specialist and an Employer of Record (EOR) with over 25 years’ experience. We work with many different professional employer organizations (PEO’s)
Our expertise lies in the employment of skilled temporary/contract workers on behalf of clients. TCP operate in 8 countries across Europe, with partners worldwide. Take a look at the countries we operate in here.
We are always aware of changes in legislations in all countries we operate, meaning we can provide the most suitable solutions per contractor. Would you like to know more? Call our UK office on: 0044 208 5 800800 or fill in our contact us form here and a member of our sales team will get back to you as soon as possible.