What’s the difference between an EOR and a PEO?

An EOR isn’t the same as a professional employer organization (PEO). A PEO operates under a co-employment model and works with companies that already have their own established entities. A PEO doesn’t take on all employer responsibilities and generally only helps with certain HR functions. Learn more about EOR vs. PEO.

What’s the difference between an EOR and a staffing agency?

A staffing agency connects employers with qualified candidates to fill open roles. The hiring company typically remains the legal employer. An EOR, on the other hand, is the legal employer for your global team members and handles compliance, payroll, and HR tasks. Learn more about EOR vs. a staffing agency.

What’s the difference between an EOR and an umbrella company?

An umbrella company is primarily used in the U.K. to hire independent contractors working on fixed-term projects. It acts as an intermediary for payroll processing. An EOR provides a more comprehensive solution for hiring full-time employees and independent contractors globally. EORs manage the entire employment lifecycle, not just payroll. Learn more about EOR vs. an umbrella company.

What’s the difference between an EOR and an AOR?

An agent of record (AOR) focuses specifically on classifying and paying independent contractors. An EOR is the legal employer for a company's global workforce. EORs like G-P also have a Contractor offering for extra flexibility. Learn more about EOR vs. AOR.

What’s the difference between using an EOR and setting up an entity?

Establishing a legal entity is the traditional approach to global employment. It’s a time-consuming and expensive process. An EOR allows you to bypass this requirement entirely. You can use the EOR’s existing legal infrastructure to hire talent quickly and compliantly in minutes, anywhere in the world. Learn more about EOR vs. a global entity.

What is an Employer of Record (EOR)? Global EOR Guide

Key takeaways

What is an EOR?: An employer of record (EOR) legally hires employees on your behalf. It manages payroll, benefits, taxes, and ensures local compliance.
Hire globally without entities: The main advantage of partnering with an EOR is the ability to hire global talent quickly and compliantly, without establishing a local entity.
Mitigate risk and ensure compliance: EORs manage complex local labor laws and regulations, so you don’t have to. This minimizes the legal and financial risks of business expansion.
Key selection criteria: When choosing an EOR, look at their entity infrastructure, confirm they provide direct access to in-region HR and legal experts, and make sure they prioritize data security to protect your information.

Companies of all sizes are increasingly looking to expand worldwide to achieve greater success. However, managing international teams is tricky. From onboarding and compensation to compliance oversight, navigating these responsibilities can be challenging.

A global employer of record (EOR) can simplify all aspects of global employment. It allows you to seize international opportunities without the time and cost of entity setup. Explore how a global employer of record operates, the benefits, and how to choose the best provider for your needs.

What is an EOR?

An EOR legally employs workers on behalf of another company. Say you want to hire someone in another country, but you don’t have a legal entity set up in that region. With an EOR, you can skip entity setup entirely and start hiring in minutes, not months.

The employer of record manages all aspects of employment, including payroll, taxes, benefits, HR tasks, and compliance obligations. The employer of record is responsible for ensuring compliance with local labor and employment laws, so you can hire anywhere without the risk.

With an employer of record you can

Hire globally in minutes. G-P's EOR platform uses automated workflows and proactive agentic AI to manage the entire hiring lifecycle. You can generate locally compliant contracts and onboard new employees in over 180 countries in minutes, not months—all without setting up a legal entity. This allows you to hire the best person for the job, anywhere in the world, and start operations immediately.
Global payroll and compliance. An EOR simplifies operations by acting as the legal employer and managing locally compliant payroll for your team. Our platform leverages Agentic AI to ensure your team members are paid accurately and on time, in their local currency. This Agentic AI approach is backed by the industry's largest team of in-country HR and legal experts, ensuring unrivaled compliance with all local tax and labor laws through a proactive compliance shield provided by GCE. Each and every task in-platform is monitored for compliance.

According to 2025 global talent trends, enhancing pay practices is a top priority for 33% of HR professionals. Our global employment platform streamlines global payroll and offers equity-based compensation in supported countries. With us, you can enjoy the peace of mind knowing that payroll reporting and tax withholdings are compliant.

G-P EOR accelerates payroll management with additional tools and expanded guidance.

3. Automate contract generation. A strong EOR partner generates locally compliant employment contracts. Our Employment Contract Generator allows companies to generate compliant contracts tailored to each individual and country with just a few clicks.

4. Assure compliant tax withholding. Legal responsibilities like filing taxes can be a major hassle for many companies. An employer of record handles these complexities, including making the appropriate tax deductions and filings for each employee, including dealing with social security, unemployment taxes, and income taxes.

5. Streamline benefits enrollment for your team. EORs handle benefits administration, including contributions to private health insurance (if applicable) and specific government programs like social security and workers compensation. The best employer of record companies support businesses in offering competitive benefits packages aligned with country-specific labor laws and employee expectations.

What are the benefits of an employer of record?

A global EOR helps companies of all sizes hire internationally, without the legal risk. Despite concerns about the macroeconomic climate, two-thirds (67%) of executives are still prioritizing growth over the next year (an increase of 7% from 2024). And they’re turning to EORs to build their workforce efficiently, manage compliance, and reduce overhead costs.

EOR services play a crucial role in maintaining compliance with local labor laws. An EOR gives you access to local HR and legal experts with a deep understanding of jurisdiction-specific requirements. G-P Assist, our AI-powered assistant within G-P EOR provides fast and accurate answers to labor law questions and best practices across the globe. This support ensures your workforce operates within legal parameters. Using an AI-powered employer of record is the best way to avoid costly missteps and uphold your reputation on the global stage.

From every corner of the globe, an EOR can help you:

1. Expand to global markets with ease. The employer of record market is expected to grow at a compound annual growth rate of 6.9% from 2022 to 2028. EOR services open avenues for swift global expansion. They eliminate the need for setting up a legal entity, allowing you to explore and enter new markets, without the long-term commitment. This flexibility allows you to scale your team up or down as needed while ensuring compliance with local employment laws from day one.

2. Access global talent. Companies need to attract top talent to stay competitive. With a USD 8.5 trillion talent shortage looming in 2030, global hiring is more important than ever. An EOR gives you quick and easy access to global talent pools. The ability to offer locally compliant contracts and attractive benefits packages will help you build a robust global team.

3. Mitigate risks and streamline operations. Managing payroll, benefits, tax filings, and other administrative tasks is complex in new markets. EORs streamline these processes, ensuring compliance and minimizing risks related to employee misclassification.

G-P experts have in-depth knowledge of local laws and can help simplify onboarding and handle offboarding with sensitivity and care. Our AI-powered guidance, sourced with information on the latest regulation changes, reduces delays and automates efficient onboarding. With G-P EOR, you can accelerate large-scale onboarding with our bulk onboarding feature or easily mass convert contractors to full-time employees in just a few clicks.

What are the key considerations when choosing an EOR?

While a global EOR can help you expand, not all EORs are created equally. The quality of the technology and expertise behind it will drastically impact your success.

When evaluating the right employer of record for you, ask yourself a few key questions:

Does the EOR own entities in your priority countries?

Entity ownership is key. Some EORs rely on infrastructure from local third parties. Make sure the EOR you partner with has established legal entities in your target countries and a team of in-region HR and legal experts to provide direct support. G-P has 100+ wholly owned entities to help companies enter new markets anywhere in the world, quickly and compliantly.

Does the EOR offer in-region HR and legal support?

Avoid EOR providers that use a middleman to handle legal queries. Inefficient processes can lead to poor experiences and slow response times. The right EOR will offer direct access to its own in-region HR and legal experts for reliable guidance.

Does your employer of record technology offer automation, AI-powered features, scalability, and robust security?

To effectively manage global employment, you need a comprehensive platform that streamlines and automates manual processes, from global payroll to benefits administration. The ideal platform should also provide real-time updates and proactive protection on regulatory changes and leverage secure AI to simplify global employment.

Does the EOR have a proven track record?

The right EOR has done this before, and you should be confident in their experience. Consider customer reviews to analyze the EOR’s strengths and weaknesses. An independent analysis from QKS Group 2025 SPARK Matrix™ Employer of Record Solutions report identifies G-P as the industry leader.

Does the EOR prioritize data security?

Data protection and customer satisfaction are top priorities when collaborating with an EOR. Strong security measures for safeguarding employee information and payroll data is vital. Make sure your EOR provider understands how crucial data security is and implements stringent processes to prevent breaches.

Employer of record services in key markets

Looking for an employer of record in a specific country? G-P EOR can help you hire, onboard, and manage teams in 180+ countries, including:

No entity? No problem. Hire globally with G-P EOR.

Hire the best person for the job, anywhere in the world. Our global employment products and EOR solutions offer everything you need to find, hire, and manage global teams — without setting up new entities. Our dedicated team of in-region HR and legal experts have over a decade of experience supporting companies of all sizes. Tell us where you want to hire. We’ll do the rest.

What is an Employer of Record (EOR)?