As industries become more complex, job roles more niche, and competition for talent fiercer than ever, companies are realizing that generalist recruiters can’t always deliver the precision, speed, or insight needed to fill critical roles.

Hiring internationally is not a copy-paste exercise.

Too often, companies expand into new regions with the same hiring playbook they use at home—and then wonder why their top-choice candidates ghost, the roles remain unfilled for months, or the hires don’t stick.

As companies increasingly look abroad to expand their business and tap into wider talent pools, HR teams must manage employees in different countries efficiently and according to local labor laws. The resources and costs of setting up and maintaining a tax entity abroad can stack up, which is why many organizations are turning to an Employer of Record (EOR) to help avoid this problem.

When planning for international expansion, businesses face an important choice: should they set up a local entity or utilize an Employer of Record (EOR) service?

Here, we outline the main differences to help you make an informed decision that aligns with your global goals.

When hiring talent globally, accurately classifying employees can become quite complex. Managing a diverse workforce that includes remote workers, distributed employees, and international contractors while adhering to different country laws and payroll regulations poses a significant challenge.