A study found that 60% of small and medium businesses claimed it is now difficult to find qualified employees.
If you are having trouble in hiring employees, it might be helpful to work with a staffing company or employer of record services. However, both of the services have a few distinctions.
So, the question arises, “Which is the greatest option for employing employees—a staffing agency or employer of record services?
Employer of record services are the best option for hiring employees because it handles a company’s human resources obligations and recruitments, payroll, and manages the employees. On the other hand, a staffing agency only has to match skill sets for the demands of the open positions.
Let’s discover which service is better for your business!
Explore Which Service Is Better for Your Business?
Employer of Record Services:
Employer of Record services hire workers legally in a certain nation. Due to this, the employer of record services handle all areas of employment compliance, such as payroll, taxes, statutory benefits, and many more.
Moreover, if the workers are traveling to foreign nations, they will also handle the visa applications and sponsorship management.
Doing background checks, drug tests, firing employees, and administering benefits are all part of employing a permanent employee.
Staffing agencies conduct reference checks, review resumes, create short lists, arrange interviews, and hire people to work on-site on the employer’s behalf.
Usually, these relationships are contract-based or temporary. Employers and employees can communicate more easily because of the staffing agency’s management of resume databases.
On the other hand, a staffing company will only find individuals for a brief period of time to fill your open roles.
So, by comparing the both services it is understandable that employer of record services should be your best choice. You won’t have to worry about recruiting or other HR-related responsibilities if you use EOR services.
Discover The Benefits of Hiring Employer of Record Services and Staffing Agency
Employer of Record:
- Handles the labor-intensive operations, including processing payments, taxes, and other employee perks. So, you can spend more time at the workstation.
- Ensures all of your confidential information for each of your employees is kept up to date.
- Reduces significantly the clients’ compliance risks.
- Continue to operate by changing labor laws and employment contracts.
- Before offering temporary employees a permanent position, you can evaluate their work performance.
- May make connections for you with specialists who will meet the particular requirements of your business.
- Employers can focus on other elements of their businesses while saving time and money by using staffing firms to assist recruit temporary employees.
- It lowers turnover costs and raises engagement levels.
What Are the Main Differences Between Employer of Record Services and Staffing Agency?
Let’s have a closer look at the differences between the two services:
Employer of Record
|1. Manages all of your HR-related activities.||1. Does not manage your HR responsibilities.|
|2. It handles administration, payroll, and taxes.||2. Manages only the recruitment process|
|3. Performs background checks, manages benefits, fires workers, and may deal with employee difficulties.||3. Hires workers and assigns them for temporary skill shortages, seasonal jobs, or special projects.|
|4. Clients may quickly build up staff and operations in a specified country.||4. May provide their clients with top-notch employees.|
|5. They will oversee all the simplified procedures, including background checks, and unemployment benefits.||5. They are in charge of locating, enlisting, and placing employees.|
The Cost-Efficient Service for You
The majority of EOR providers charge extremely reasonable prices for their services, making it easy to compare them to the cost of performing all of those functions in-house.
By using employer of record services, the agency can operate more cost-effectively and efficiently, freeing up resources for their organizational capabilities. By outsourcing, huge financial savings may be realized.
Most staffing solution owners won’t have the knowledge in finance, risk, legislation, HR, etc. to satisfy the clients.
Under a legal obligation, it serves as the contingent workers’ employer for tax purposes and handles all personnel duties.
While the employee works for a different company, it acts as the employer for tax purposes. The EOR takes on the duties and liabilities of a traditional employee.
The EOR is responsible for maintaining regional legal requirements to make sure the client company may employ locals. Remote functions as an EOR in all the countries, states, and provinces we serve.
Employer of Record services will provide a registered entity for managing a legal local payroll inside the host country, and be able to give you legal advice on local contracts, worker protections, and termination policies.
Your work permit and visa will be sponsored by EORs, enabling you to live and work legally in the nation.
To Sum Up
An international staffing agency should be used if a company needs short-term services or a few employees for a specific task.
However, an Employer of Record will be most suited for this if a firm plans to enter a new worldwide market or hire specialists globally or from a specific country. We are offering the best employer of record services by maintaining all the rules and regulations. Get in touch with us for more detail.