Employer of Record (EOR) services explained

More global companies are adopting EOR (Employer of Record) services to manage their payroll across multiple borders. However, since it is a relatively new concept, statistics are limited.

An Employer of Record (EOR) company is a specialized organization that serves as the official employer for a workforce, managing all aspects of employment, payroll, HR administration, and compliance on behalf of other companies. In essence, the EOR takes on the legal responsibilities and liabilities associated with employment, allowing client companies to focus on their core business activities without the administrative burden of managing employees directly.

EOR companies are particularly useful for businesses expanding internationally or seeking to engage remote workers, as they provide a convenient solution for managing a global workforce while ensuring compliance with local labor laws and regulations.

Still, there is high hope for EOR services globally, driven by the need to access talent from anywhere while ensuring meeting local labour laws. Similarly, the desire to reduce costs is another factor that could help EOR services skyrocket.

Some companies have already transitioned to using EOR services for various needs, including hiring and managing employees. Innovative entrepreneurs choose EOR companies with the experience and tools to gain high-quality results.

So which are the best EOR services in 2024? The information below provides information on the five best employers of record services.

But first, here's what makes them stand out. 

Characteristics of Good EOR Services

Good EOR services offer flexibility to meet the specific needs of a company. Companies have varied needs based on their size, industry, and speciality. A good EOR company can conform to a company's specific requirements, helping them achieve their goals. 

Extensive Services

Good EOR companies often provide a wide range of services. Most offer all employee-related services, including HR management, organizing and running payroll, tax filing, hiring and onboarding, and processing benefits.

Solid Reputation

Good EOR service providers let their partnerships and reviews speak for them. A strong reputation means the company can achieve high-quality results and consistently put in effort, grow, and improve. 

Excellent Customer Service

All companies, including those providing EOR services, must have good customer services characterized by responsiveness, knowledgeability, and ease of contacting through various means.   

Compliance Expertise

Good EOR service providers well-understand local labour laws and regulations. In addition, they should know compliance requirements in various jurisdictions. The whole point of hiring an EOR service is compliance, so the company should be very good at it. 

Tech-driven solutions.

Effective EOR service providers use modern technology that automates and streamlines the process. The company should make it easier to manage employees and HR processes.

Transparency

And finally, a good EOR service provider retains transparency throughout the process. They ensure that fees and services are clear and concise from the beginning. Contracts and pricing have no hidden costs. 

Top 5 EOR Services in 2024

1. Workpay

Workpay is an EOR service provider in Kenya offering a wide range of management solutions t. The company assists companies entering the African market. Some of Workpay's highly-rated services include:

• Payroll management. The company offers comprehensive payroll processing, including calculations, deductions, and processing through the preferred means.  
• Tax compliance. Workpay is keen to meet all tax and regulatory compliance needs on behalf of companies, including remittances, filings, and statutory deductions. 
• Talent management. The EOR provides job advertising, onboarding, recruitment, contract drafting, and performance management services for the company. 
• Visas and work permits. Workpay can process the required permits and visas according to jurisdictions. 
• Employee benefits. On top of payroll processing, Workpay handles benefits programs and packages, including health insurance. 

2. Globalization Partners

Globalization Partners is a leading EOR company with a good reputation among countries worldwide. Some of the services they offer include:

• Compliance. The company ensures the meeting of legal and regulatory requirements for each country its clients operate in. 
• Mobility. Globalization Partners also helps with mobility through travel management, relocations, and visa and immigration support.
• HR support. Globalization Partners provides support through performance management, employee relations, plus training and development. 
• Talent acquisition. But before they provide HR support, the company helps clients source, hire, and onboard talent in new markets.
• Payroll. The company ensures employees are paid on time, using fast, cost-effective, and efficient tools that work for the client and the employees. 

3. Elements Global Services

Elements Global Services is another well-recognized EOR service provider recognized in Asia, North America, and Europe. Elements Global Services serves clients in the following ways:

• Benefits administration. The company helps its clients develop and administer benefits that attract top talent based on the country the employees are in. 
• Talent acquisition. Elements Global Services sources, hires, and onboards new talent in markets worldwide. 
• Compliance. Like any other EOR company on this list, Elements Global Services ensures compliance with legal requirements, including employment regulations, taxes, and deductions. 
• Risk mitigation. Elements Global Services provides expertise on local employment laws, tax requirements, and other essential business practices. Thus, they help their clients mitigate risk as they venture into new markets. 
• Payroll. The company helps to prepare, run, and manage payroll for employees in different countries.  

4. Papaya Global 

Papaya Global is a globally-functioning EOR. The company has headquarters in Tel Aviv, Israel, New York City, London, and Kyiv. Some of the solutions Papaya Global provides include:

• Payroll management. Papaya Global has an efficient payroll management system that makes it easier for clients to pay their employees on time and using mutually-beneficial payment channels. 
• Benefits administration. Similarly, the company offers reasonable benefits management solutions that help clients attract and retain top talent. 
• Onboarding and offboarding support. Papaya Global supports the onboarding and offboarding process of employees in different countries for their clients. It involves unique services such as visa and documentation checks, background checks, and work permit applications.

5. Velocity Global

Finally, Velocity Global is an EOR service provider based in Colorado. However, it has additional UK, Brazilian, and Singapore offices. The enterprise is a significant player in the EOR industry, providing services such as:

• Compliance. As an EOR, Velocity Global helps companies comply with employment, tax, and compensation laws for the markets clients enter. 
• Payroll management. Velocity Global offers payroll management services, including paying employees in various companies, paying them on time, ensuring the proper tax deductions, and compliance with payroll regulations. The company also provides real-time analytics for the service. 
• Immigration and visa. The company assists with work permits, visas, and other necessary immigration documents that help make the complex hiring process more manageable. 
• Expansion strategy consulting. Velocity Global also offers potential clients consulting services. These services are vital in assisting clients to create and execute expansion strategies successfully in various countries.  

Final Thoughts

To summarize, EOR services are becoming more popular in Africa and globally as the world becomes more connected. More companies must access top talent from anywhere while keeping costs low and ensuring compliance with local authorities.

Companies should rely on good EOR services that ensure flexibility, extensive services, good customer service, modern tech solutions, and expert compliance. The above companies have proven themselves as top EOR companies that can help companies venture into new markets without hassle.