When your company is ready to hire international talent, it’s simple to be overwhelmed by the number of choices. Do you use a staffing firm? Or do you use an Employer of Record (EOR)? They both can assist you in creating a team, but they have very distinct functions. Knowing the difference is crucial to selecting the correct solution that aligns with your business objectives, particularly while expanding worldwide.
Let’s get into the universe of global employer of record services and staffing agencies, and determine which one may be the best for you.
First Things First: What Is a Staffing Agency?
Staffing agencies, also referred to as recruitment agencies, assist businesses in finding and placing candidates into temporary or permanent positions. They take care of the recruiting side — from advertising job openings to screening resumes and arranging interviews.
Once you’ve hired a candidate, you usually assume responsibility for the employment duties, such as payroll, compliance, taxes, and benefits (except if you’re filling a temp position, where the staffing agency may hire the employee directly for a short-term project).
Overall, staffing agencies are more about finding people, rather than hiring them for you in the long run, particularly when hiring abroad.
What Is a Global EOR Solution?
If you’re wondering what a global EOR solution is, here’s a simple explanation: An Employer of Record (EOR) acts as the official employer for your international employees.
You still manage the day-to-day work and business operations, but the EOR takes care of hiring, onboarding, payroll, taxes, benefits, and compliance with local labor laws.
Global EOR services are particularly valuable if you need to recruit across borders without the hassle of establishing a local company in every country.
EOR vs. Staffing Agency: The Main Differences
1. Scope of Services
Staffing agencies concentrate primarily on sourcing candidates. Then, you’ll take care of the rest. EORs, however, provide end-to-end employment services, managing contracts, benefits, taxes, and compliance. When you use a global employer of record services, you’re not just getting recruitment assistance — you’re getting a complete legal structure to hire overseas.
2. Legal Employer
With a staffing agency, as soon as a permanent employee is hired, you’re the legal employer.
With an EOR, the EOR is technically the legal employer on paper, and you get to control the daily work of the employee.
3. Compliance and Risk Management
International hiring creates compliance issues. Staffing agencies do not typically assume compliance risk — that remains your responsibility. However, with global EOR services, the EOR handles all legal compliance, tax reporting, and employment legislation in every country, lowering your risk significantly.
4. Flexibility for Global Expansion
Staffing agencies are great for short-term hiring, local recruitment, and filling gaps quickly.
If you’re thinking about expanding into new international markets, though, an EOR offers far more flexibility, scalability, and simplicity without the need for a local subsidiary.
5. Cost Considerations
Staffing agencies usually charge according to the candidate’s salary. EORs charge a fee for hiring and managing the employee, which may appear higher at first glance, but considering legal compliance, payroll management, and risk mitigation, the value provided by global EOR services is apparent for international operations.
Why EOR Could Be the Better Option for International Recruitment
If you only need to hire a handful of local workers in your hometown, a staffing agency may be the solution. However, if your company is expanding borders and needs a compliant, dependable, and efficient method of hiring in multiple nations, global employer of record services provide some real benefits.
More businesses are turning to EORs in 2025 because:
- It’s more efficient and cost-effective than creating local legal entities.
- Compliance issues are outsourced to experts.
- You can pilot new markets without making long-term commitments.
- You receive centralized payroll and benefits administration.
- You steer clear of legal liability and fines associated with labor law transgressions.
Understanding what a global EOR solution is and how it contrasts with a staffing agency can save your company time, money, and aggravation.
Final Thoughts
The decision between a staffing agency and an EOR is based on your business objectives.
For local talent acquisition, temporary agencies perform a satisfactory job. However, with international growth, global employer of record services supply the framework, compliance, and support you need to achieve success.
If hiring globally with ease is what you’re prepared for, Engage Anywhere exists to assist with complete EOR solutions to render international hiring quick, easy, and riskless.