If global expansion is new to you, then often so are many of the terms you might find, and many of the options you have available to choose from. EOR, PEO, staffing agency, contractor, what do they all mean? We know it can be a little bit confusing, but that’s what Just Payroll Services are here to help with!
You might have seen people comparing an employer of record (EOR) and staffing agencies, and it can be hard to know what each one offers when you’re looking to hire the top international talent, but they are different and each one has different services.
What is an EOR?
Let’s start with what is an Employer of Record? An EOR is a company who hires your employees on your behalf. They will be considered the legal employer of your worker, but the employee will do work for your company. An EOR will not help you find the talent; you must do this yourself. EOR’s offer legal and admin services such as:
- Performing employee background checks
- Drafting a localized employment contract
- Hiring and registering employees
- Managing employee benefits
- Processing payroll
- Handling payroll taxes and social security contributions
- Organizing visa and work permits
- Providing legal advice
- Maintaining employee records
- Terminating employees
What is a staffing agency?
So, what is a staffing agency? Sometimes also called international staff agency or staffing firm, a staffing agency essentially does the bit that an EOR doesn’t offer—they help you find your international talent. They specialise in finding the right personnel for your company, whether it’s for temporary positions, short-term projects, or permanent roles.
Temporary staffing solutions
If your business requires temporary staff to fill gaps, handle special projects, or address seasonal demand, staffing agencies are your go-to solution. They maintain a pool of talent, ready to meet your short-term staffing needs.
Recruitment Expertise
Staffing agencies are experts in hiring. They can help with sourcing, vetting, and presenting potential candidates for your job openings, saving you time and energy. The services that they offer usually include:
- Advertising of open job position on behalf of their client
- Reviewing resumes and other application-related documents
- Vetting process of potential candidates
- Enabling contact between client business and potential candidates
EOR vs staffing agency
We’re finally at the big question, how do you choose which one to use when you’re hiring international employees?
Responsibility: EORs handle HR responsibilities and compliance, staffing agencies focus on recruitment, and temporary staffing solutions provide short-term workforce support. So, if you have the internal HR resources to manage your employees—from day-to-day HR to compliance—but are struggling to find the right fit, then a staffing agency should be your go-to choice. But if you’re looking for a solution to ease your employment burden in different locations, then an EOR is better suited.
Long-term: An EORs is better suited for longer-term employment solutions as they offer support throughout the full term of employment. They will help from onboarding to continuous HR support of payroll, administrative tasks and manage employee records.
Short-term: Staffing agencies are usually better when you’re in need of short-term, temporary, or project-based positions, they can offer a solution which will fill immediate workforce needs.
How to choose?
For starters, you don’t always need to. As they offer different services, you could choose to use both for different purposes when looking to hire a permanent member of your team. Staffing agencies can help with recruitment, and once you’ve found your new team member you can use an EOR to onboard and pay your employees.
If you are only looking for a short-term employee or quick hire, you might not need an EOR as this is something you can use a staffing service for. So, it’s best to consider your business needs before selecting an EOR vs staffing agency.
Just Global Payroll can help. Our team of global experts know everything there is to know about global expansion, and with a quick chat, you’ll know whether our employer of record services are the right solution for you. Get in touch today!