An Employer of Record (EOR) is an organization that handles the hiring and compensating for employees on behalf of another company.
The EOR takes responsibility for the following backend operations:
Essentially, your Employer of Record acts as the “employer” for all or a small subset of your workforce. The EOR would handle all your HR and payroll needs so you can devote more time to business operations.
An EOR is similar to a PEO or Professional Employer Organization, but their overall functions are very different. A PEO provides co-employment services; both the client company and the PEO share in employee management and assume legal liabilities. On the other hand, an Employer of Record is employing the worker on behalf of the client company; ensuring compliance according to local laws and labor regulations, and handling payroll and other HR/administrative tasks. The day-to-day management of the workers remains the responsibility of the client company.
A staffing agency acts as a middleman between hiring companies and talent. Their responsibility is finding the right candidate to match the job vacancy. Depending on the staffing agency, the services can include anything from advertising the job to filing paperwork and running background checks. A company that is strictly an EOR does not play a role in talent acquisition; instead, they come into play when the right candidate is selected. Some companies provide multiple services, including staffing and EOR.
An EOR provides a wealth of background knowledge and expertise in compliance laws and regulations, allowing them to handle back-office operations and allowing you to focus on what makes your business successful. As companies embrace remote and online work, markets open up all over the United States, providing opportunities for business expansion and the chance to recruit talent from a broader area. These opportunities introduce some legal challenges when hiring out-of-state employees. This is where the Employer of Record services come in.
Headway Workforce Solutions is a leading B2B (Business to Business) provider of workforce solutions with an array of contract-based integrated services and national staffing solutions. Our managed services approach provides substantial operating performance improvements and cost savings over traditional staffing for industries with complex, recurring, multi-location human capital needs.
Headway Workforce Solutions can relieve the burden of your back office. With EOR, Headway takes on the entire employer function of your workers, letting you get back to what you do best. Wrestling with the complexities of back-office employee administration isn’t the path to growth. From payroll and taxes to compliance and risk mitigation—and everything in between—Headway provides customized, flexible, and hands-on Employer of Record services.
Benefits reach every corner of your business: