EOR services explained: the key to global workforce expansion

• EOR services allow companies to hire workers in new countries quickly and compliantly without setting up local entities.
• Using an EOR reduces risk, cost, and administrative burden while supporting smooth global workforce expansion.
• EOR partners such as Mauve Group provide the expertise and infrastructure needed to compliantly employ and pay workers across multiple international locations.

Going global is no longer solely the terrain of large corporations. In today's world, cultivating a strong international workforce is a possibility for companies of all sizes. Since COVID, remote and hybrid working models have remained the norm. The changes implemented within the working world to facilitate this shift have meant that hiring overseas is more accessible than ever.

Leading this new era of work is the Employer of Record (EOR) model. While global hiring is now common, it is far from straightforward. Each country operates its own local employment laws, tax systems, cultural expectations and compliance requirements. For organisations without an established international presence, navigating these complexities can be daunting and expensive.

Partnering with an EOR means you don't have to face this treacherous terrain alone. EOR solutions are a vital tool for organisations seeking fast, compliant and cost-effective routes to global workforce expansion.

So, what is an Employer of Record (EOR) and how can it help your business to expand?

What is an Employer of Record?

An Employer of Record or an EOR is a third-party organisation that legally employs a worker on behalf of a client company. The client directs the daily work and responsibilities of the employee. Meanwhile, the EOR takes on the legal obligations associated with employment in that country.

This includes managing employment contracts, payroll, tax withholdings, social security contributions, statutory benefits, compliance with local labour laws, and reporting requirements. The EOR shoulders the legal responsibilities and legal requirements of international employment.

Companies use EOR services when they want to hire in a country where they do not have a legal entity. Alternatively, they may not wish to go through the time-consuming and costly process of establishing one. By using an EOR, businesses gain immediate access to a workforce in almost any location while avoiding the risks of non-compliance.

How EOR works

If a company wishes to hire a worker overseas, they can do so via an EOR. An EOR has legal presence in multiple countries. For example, Mauve Group has legal entities in 70+ countries. This means that the client company does not have to spend time and money setting up a local business through which to hire the worker.

As a result, the company can hire the worker quickly and compliantly via the EOR.

The EOR drafts a compliant employment contract tailored to the laws of the local jurisdiction. The EOR then onboards the employee and manages payroll. It also ensures adherence to holiday, working time and labour regulations, and manages the offboarding process if required.

Meanwhile, the client company remains responsible for overseeing the individual’s day-to-day activities. It controls work allocation, performance objectives and integration into the wider team. This separation of responsibilities reduces risk and ensures clarity for both the employer and employee.

Using an EOR does not change the practical working relationship. Employees still operate as full members of the client company’s team. The EOR simply handles the legal and administrative aspects that could otherwise be a barrier to international hiring.

The benefits of using EOR services

Faster global expansion

Setting up a foreign entity can take months, with complicated administrative requirements and significant upfront investment. EOR services eliminate these delays. Businesses can hire workers within days. This enables them to test new markets, build teams quickly or support customers in new regions.

Reduced compliance risks

Every country has its own rules on hiring, termination, probation, benefits and taxation. Failure to comply can result in heavy penalties or reputational damage. An EOR has expert knowledge of local regulations and ensures all employment practices remain aligned with national laws. This protects both the organisation and its employees.

Lower operational costs

Building a global workforce internally requires investment in HR, legal, finance and administrative resources. It may also require ongoing audits, insurance, and reporting obligations. EOR services consolidate these responsibilities into one service partner, reducing the financial and administrative burden on the business.

Access to global talent

The competition for skilled employees has never been fiercer. EOR services allow companies to recruit the best talent regardless of geographical boundaries. Employers are no longer limited by the need to hire only in countries where they have established entities. This flexibility can be transformative in fields like technology, engineering, creative industries and specialist roles.

Scalability and flexibility

An EOR solution supports agile business strategies. Organisations can scale teams up or down in different regions without being tied to the long-term commitment of entity ownership. This is particularly valuable for project-based work, temporary market exploration or responding to seasonal demands.

Improved employee experience

A strong onboarding process and reliable payroll system are crucial for building trust with international employees. EOR services provide compliant contracts, accurate pay, correct benefits and clear communication. This ensures employees feel supported and secure, which is essential for long-term retention.

EOR vs PEO: what is the difference

Some companies use the terms Employer of Record and Professional Employer Organisation (PEO) interchangeably, but the two models function differently.

An EOR becomes the legal employer and allows hiring in countries where the client does not have an entity. A PEO, however, partners with the company through a co-employment model but requires the client to have a legal entity in the country of hire.

For global growth, particularly when entering a new market for the first time, the EOR model is far more suitable as it removes the need for the company to establish an entity.

Why EOR is crucial for global workforce expansion

EOR services provide the infrastructure that modern organisations need to operate on an international scale. They remove the traditional barriers to global hiring, offering a streamlined solution that supports compliance, reduces risk and enables fast market entry.

In a world where companies increasingly rely on distributed teams, remote working and access to talent across borders, EOR has become an essential strategic tool. It gives organisations the freedom to hire the people they need, where they need them, without sacrificing compliance or operational efficiency.

How Mauve Group can help

Mauve Group is a pioneer in global employment solutions with more than 27 years of experience supporting organisations across more than 70 countries. Its Employer of Record service provides the expertise, infrastructure and compliance support needed to hire internationally with confidence.

Mauve manages employment contracts, payroll, benefits, taxation, and local compliance, ensuring that workers feel secure and valued while employers benefit from a seamless and efficient hiring process. With Mauve Group as your EOR partner, expanding your global workforce becomes straightforward, compliant and strategically advantageous.

Frequently asked questions

Can an EOR help if I only need to hire one employee in a new country?

Yes. EOR services are ideal for both small-scale and large-scale hiring. Whether you need one employee or an entire team, an EOR provides a compliant and cost-effective way to hire without creating a local entity.

Does using an EOR change how I manage my employees?

No. You continue to direct all daily tasks, responsibilities and performance conversations. The EOR only handles legal and administrative aspects such as contracts and payroll.

Is an EOR a temporary or long-term solution?

Both. Many companies use EOR as a long-term model for global hiring, while others use it as a temporary bridge until they establish their own entity in the country. The flexibility of the service allows it to support a range of expansion strategies.