Global Employer of Record (EOR) | A Comprehensive Guide

Do you intend to take your company into new markets? Global expansion is a big move for any business and this move requires a lot of preplanning regarding relocation and recruitment of new employees. Your business can be protected and promoted as it expands into new nations with the assistance of a global employer of record.

An international employer of record comprises specialists in the area of international business and can give you the tools and resources you need to succeed in your business.

What is a Global Employer of Record?

A global employer of record enables businesses to interact with workers legally around the world without the need to establish a local corporation or run the risk of breaking regional labor regulations. Consider a global EOR as your international HR staff that is familiar with the intricate payroll rules and labor laws of the various markets where your employees are located.

What Does Global Expansion Mean?

Global Expansion is the process through which businesses from one market (commonly referred to as their home market) expand their business operations into a different market, particularly in another country, which is known as global expansion (often referred to as the target market).

This can be done regionally or one market at a time, extending to the entire Middle East rather than Qatar or Saudi Arabia from the United Arab Emirates.

How Do Businesses Benefit From a Global Employer of Record Services?

The advantages of using a Global Employer of Record payroll services are numerous for businesses. An EOR payroll enables you to hire top people from anywhere and assist them according to their local needs because the majority of businesses lack the resources or in-depth knowledge necessary to hire legally in foreign markets. You benefit from having an international employer of record because of:

  • Hiring the talent proactively.
  • Spend less money than setting up a corporation.
  • Maintain talent and provide extensive benefits programs.
  • Keep up with changing labor regulations and employment contracts.
  • Get continual assistance from HR even when you are not present at the work location.

Why Do Businesses Decide to Expand Globally?

For several substantial benefits, companies plan to expand on a global level. Some of the most common benefits that companies avail after a global expansion are as follows:

  • Access to global talent – Global expansion gives the benefit of new, talented, and skilled human resources to businesses. Through an EOR PEO businesses can very conveniently get expert talent on board for their company.
  • New horizons for potential revenues – Global expansion means entering into a new country or region with a brand-new market. Every market has its logistics and dimensions of revenue generation. Through global expansion, businesses may also experience better revenues.
  • Cultural diversity – Global expansion allows businesses to interact with people from different countries, ethnicities, and cultures. The multicultural work model encourages diversity in a company which is a good thing for any business.
  • Improving business reputation – It is a known fact that global businesses have a better reputation as a brand or company. With global EOR services companies who wish to expand internationally take advantage of not just getting their human resources on board in a new country but also getting facilitation in legal and administrative workload on account of the company. This makes them law compliant and hence, improves the credibility and reputation of the company.

Is EOR PEO the Same Thing?

Payroll, benefits, and employment administration are all services that employers of record companies offer that are comparable to those that PEOs offer. EORs do not, however, create a co-employment relationship with the employees like PEOs do.

Additionally, PEO-only businesses might not have the same level of legal competence as global EOR service providers. It’s crucial to keep in mind that while an EOR can offer all the HR services your company needs, including payroll and benefits management, your EOR will always serve as the official local employer of your employees. Having a single EOR partner to take care of these crucial procedures in addition to your compliance requirements can make life a lot simpler when you plan to expand your business globally.


One of the most well-known and reliable employers of record companies in the MENA region is Payroll Middle East. Our team of experts has years of expertise in assisting companies like yours to expand and be successful in new markets. We are prepared to assist you in overcoming the difficulties posed by international expansion because we are aware of them.

Contact us right away if you want to learn more about our global employer of record services or our employer of record payroll services in the UAE.