HR and Employer of Record (EOR): supporting employees globally

• HR and Employer of Record (EOR) models make it possible to hire and support employees across borders without setting up local entities.
• Employer of Record solutions simplify compliance, payroll, and risk management for global workforce management.
• Combining people-focused global HR practices with an Employer of Record helps create a consistent and positive employee experience worldwide.

For start-ups and SMEs with operations previously limited to domestic markets, managing the people side of global expansion naturally poses challenges.

Hiring internationally offers a number of exciting opportunities such as access to wider talent pools and diversified revenue streams. However, complex legal and cultural challenges also await.

This is where global HR strategies and the Employer of Record model unite to support global workforces while ensuring compliance and sustainable growth into the future.

Understanding Employer of Record

An Employer of Record (EOR) is a third party with legal entities set up all over the world. Through these entities, the EOR can legally employ workers on behalf of other companies which wish to hire in a foreign country without the long-term cost and commitment of establishing their own entity overseas. The EOR retains responsibility for employing, paying, and providing HR support to the global workers. Meanwhile, the client company retains the day to day running of the business.

For businesses pursuing international growth, the Employer of Record model removes the need to establish a local legal entity. This allows faster market entry and reduces administrative burden, making it a practical solution for global workforce management in both emerging and established markets.

The role of HR in a global context

HR plays a crucial role for global businesses, focusing on creating positive employee experiences and aligning human resource strategies with business goals. In an international context, this means understanding diverse employment cultures, expectations, and regulations while maintaining consistent values and standards.

When managing international teams, HR leaders must adapt policies and practices to local norms without losing sight of the organisation’s overall culture. This includes being aware of differing cultural norms and expected local practices within onboarding, performance management, learning and development, and employee engagement. Without the right structures in place, certain employees may feel underrepresented, misunderstood, or disrespected, leading to low morale and inequity across global offices.

How Employer of Record supports global workforce management

Global workforce management requires accuracy and transparency across multiple jurisdictions. Employment laws, tax rules, and benefits frameworks vary significantly from one country to another and change frequently.

An Employer of Record provides local expertise to ensure compliance with employment legislation and payroll requirements. This reduces the risk of misclassification, penalties, or reputational damage. From an HR perspective, it also ensures employees are paid correctly and on time, with access to statutory benefits that meet local standards.

By outsourcing these responsibilities, internal HR teams can focus on people-centred activities rather than administrative complexity.

Enhancing the employee experience worldwide

Employees hired through an Employer of Record still expect clarity, security, and support from their employer. A strong HR approach ensures that these expectations are met consistently.

Clear communication is essential so employees understand who their legal employer is and how HR support is delivered. Effective collaboration between the client organisation and the Employer of Record helps provide seamless onboarding, responsive HR support, and alignment with company culture.

When HR and Employer of Record services are integrated effectively, employees benefit from local compliance combined with a global employee experience.

Scaling internationally with confidence

For organisations at different stages of growth, the combination of HR and Employer of Record offers flexibility. Start-ups can test new markets quickly, while established businesses can expand or consolidate operations without unnecessary complexity.

Since the pandemic, remote and distributed teams are more common than ever. The winning combination of global HR services and Employer of Record has helped these working models become the norm the world over. By using an Employer of Record, businesses can hire the best talent regardless of location, while maintaining control over performance and engagement through solid HR practices.

Why Mauve Group is a trusted global partner

Mauve Group specialises in supporting organisations with international expansion through Employer of Record and global HR solutions. With expertise across multiple countries, Mauve Group helps businesses manage compliance, payroll, and employee support while maintaining a strong people-focused approach.

By combining deep local knowledge with global oversight, Mauve Group enables organisations to build and manage international teams with confidence and care.

Global HR and Employer of Record services play a vital role in supporting employees globally. Together, they simplify global workforce management, ensure compliance and help deliver a consistent employee experience across borders.

With the right partner, organisations can focus on growth while knowing their people are supported wherever they are in the world. Mauve Group offers the expertise and infrastructure needed to make global employment straightforward and people centred.

FAQs

What is the difference between an Employer of Record and a local entity?

An Employer of Record legally employs staff on your behalf, removing the need to set up a local entity. A local entity requires full legal registration and ongoing compliance management in that country.

Is an Employer of Record suitable for long term global workforce management?

Yes, many organisations use an Employer of Record as a long-term solution, particularly for remote teams or in countries where they do not require a permanent presence.

How does Mauve Group support employees hired through an Employer of Record?

Mauve Group manages local employment contracts, payroll, benefits, and compliance while working closely with clients to ensure employees feel integrated, supported, and aligned with the organisation’s culture.