Global hiring is easier than it used to be, but it can still be complex, especially if you want to hire people across borders.
In that case, you need to follow local country-specific labor laws, run payroll, handle taxes, and offer the right benefits. Employer of record (EOR) software helps with this, allowing you to hire international employees without opening a local company in every market.
In this guide, we take a look at the best employer of record software for growing teams, startups, and companies that want a simpler way to manage global hiring.
From smooth onboarding and employee relocations to efficient and compliant payroll, Deel lets you meticulously keep all HR tasks in check. Particularly well-suited for global teams, the service has subsidiaries in over 150 countries. Along with facilitating international hires and employee management without the need for a local entity, the service handles visa sponsorships.
Deel supports over 120 currencies, integrates with apps like Slack and Teams, and offers a free version for businesses. The company provides discounts through package bundling, although most prices are only disclosed once you contact the sales team.
Justworks PEO is a comprehensive solution that provides a full suite of HR services, perfect for businesses looking to streamline administrative duties and improve efficiency. It extends Justwork Payroll’s capabilities by offering benefits administration, compliance support, HR consulting, time tracking, and employee self-service.
Subscribing to Justworks PEO requires companies to pay a monthly fee per employee, which can be as low as $59, depending on the company size. In addition, Justworks has a referral program where customers can earn up to $10,000.
There's no question that remote work dominates today's corporate world. For employers, this means the talent pool has grown as they expand their recruitment efforts to an international level. But this comes at a cost. As each new employee brings their country's unique employment laws and stipulations with them, the reality of hiring globally can create an admin-induced headache. Fear not – Oyster has found the solution. Much to the relief of HR personnel, the service carries out the tiresome tasks of researching, understanding, and implementing each country's tax and employment laws, and local benefits. This global HR software helps you hire and onboard contractors for $29 per contractor per month and full-time employees from $399 per person per month. Essentially, Oyster HR minimizes the stress and time associated with global onboarding, allowing your company to easily access the highest quality and most suitable candidates.
An employer of record is a company that legally employs workers on behalf of another business.
In practice, your business still manages the person’s day-to-day work, goals, tasks, and team structure, while the EOR handles the legal employment side. This includes managing contracts, payroll, taxes, benefits, social security payments, and ensuring compliance with local labor laws.
For example, if a U.S. company wants to hire someone in Spain but doesn’t have a Spanish entity, an EOR can hire that worker legally in Spain. While the employee works for the U.S. company, the EOR is the official employer on paper.
Fundamentally, businesses use EOR software to make international hiring faster and less risky.
Without an EOR, a company may need to set up a legal entity in each country where it wants to hire, which can take months and cost a lot of money.
That’s why an EOR platform can be highly useful: you can hire new talent across different markets more quickly, reducing admin work for HR and finance teams.
EOR software is most useful for startups testing a new market, remote companies hiring globally, and larger businesses expanding into multiple countries simultaneously.
Most EOR services charge a monthly per-employee rate, with costs ranging from a few hundred to over one thousand dollars per employee per month, depending on the provider, country, and services included.
While some platforms offer transparent pricing, others require companies to request a quote. The final cost can depend on local employment rules, benefit requirements, currency, and the level of support needed.
When subscribing to an EOR service, we recommend checking for additional fees, such as setup, offboarding, payment, contractor management, visa support, or premium benefits.
Additionally, entity ownership can affect pricing and service quality, as some EOR companies own their local entities, while others work with third-party partners. In practice, owned entities may offer more direct control, but partner networks can sometimes provide wider country coverage.
| Positives | Negatives |
|---|---|
| Hire in other countries quickly | More expensive than hiring through your own local entity |
| Reduces compliance pressure | Less control over employment terms |
| Makes onboarding and payroll easier for global workers | Less control over benefits and some country-specific processes |
It’s important to weigh the pros and cons of paying for an employer of record service, considering what you’re looking for and the size of your business.
In general, an EOR is often best for early expansion, testing new markets, or hiring small teams abroad. On the other hand, for hiring long-term teams in a single country, opening a local entity may be more cost-effective.
When evaluating EOR platforms, there are a few features that matter most:
People often confuse an employer of record with a professional employer organization (PEO), but they’re not the same thing.
| Difference | EOR | PEO |
|---|---|---|
| Legal employer | The EOR is the legal employer | Your company remains the legal employer |
| Best use case | Hiring in countries where you do not have a legal entity | Managing HR in countries where you already have a legal entity |
| Compliance responsibility | The EOR manages local employment compliance | The PEO supports compliance, but your company keeps more responsibility |
| Expansion speed | Usually faster for entering new international markets | Usually better for supporting existing local operations |
To put it simply, an EOR is designed for businesses that want to hire internationally without a legal entity. At the same time, a PEO is better suited for businesses that already have a legal entity and want help managing employees in that country.
Choosing the right EOR software depends on your company’s size, hiring goals, and the countries where you plan to employ people.
For startups hiring one or two people abroad, a platform with clear pricing, fast onboarding, and reliable employee support may be enough. For larger companies, the approach is a bit different, especially if they’re expanding into multiple markets. In that case, they should look for strong country coverage, access to local compliance experts, flexible reporting, and integrations with their existing HR and payroll tools.
Before choosing a provider, we recommend comparing support quality, contract terms, extra fees, and whether the company owns its local entities.
In the end, the best EOR platform is the one that helps you hire safely, pay people correctly, and grow internationally without adding unnecessary complexity.
An employer of record is a company that legally employs workers on behalf of another business. It handles payroll, taxes, benefits, contracts, and local compliance.
The EOR hires the employee through its local entity. Your company manages the person’s daily work, while the EOR handles the legal and payroll tasks.
Many EOR platforms integrate with HR, payroll, accounting, and identity tools. The available integrations depend on the provider.
EOR software stores sensitive employee information, so strong providers use secure systems, access controls, and privacy policies that support data protection rules.
An EOR is the legal employer when you do not have a local entity. A PEO supports HR and payroll when your company already has a local entity.
Most EOR platforms charge a monthly fee per employee. The price depends on the country, provider, benefits, and any extra services.
A company should use an EOR when it wants to hire in another country without opening a local entity.
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