The Benefits of Acquiring an Employer of Record Service


Many companies interested in entering the global market can effectively do so with the help of an Employer of Record (EOR).  

An EOR in the Philippines, such as One CoreDev IT, allows companies to outsource employment concerns to a third-party organization. These typically include managing payroll and ensuring compliance with local labor laws. One CoreDev IT provides IT services, from software management and back-office services to project management services

EORs benefit companies of different sizes. They provide numerous financial services and take responsibility for legal procedures, allowing you to focus on your company’s growth. Partnering with them is best if you want your business to enter a new market but don’t yet have a complete staff or the necessary infrastructure. 

If you’re still on the fence about offshoring some of your business functions, keep reading. This article discusses the benefits of using an employer of record and answers questions you might be having about the process.

5 Benefits of Using an Employer of Record (EOR) Service

laptop on table, video conference

The benefits of EOR services to your business span more than just your team’s productivity: it helps you cut costs and mitigate risks that come with expanding to a new market. Take a look at the EOR benefits below to learn more.

1. Reduces cost of operation

Recruiting foreign employees comes with unexpected expenses, including establishing a legal entity in your expanding country. You’ll also likely hire human resource, financial, and legal teams to help you stabilize your operations. An EOR helps you to manage and potentially reduce these expenses because it covers these tasks for you. 

Additionally, offshoring your team with an EOR allows you to leverage different countries’ lower living costs; the cost of living in the Philippines, for instance, is half (52.6%) that of the United States, helping you save on salary costs. 

2. Provides legal compliance

Hiring and employing remote employees is challenging if you’re unaware of their country’s employment and labor laws. 

For instance, if you want to outsource to the Philippines, it’s crucial to understand the country’s different types of employees, such as regular, casual, project, seasonal, fixed-term, and probationary. Each has regulations you’ll need to comply with, or you risk facing legal trouble. 

3. Eases expansion 

The typical route to expanding your business globally is establishing a legal entity in the area first, often in the form of a physical office. However, it’s a tedious and lengthy process. You must sift through stacks of legal documentation to register your business in the country before you even begin working with your first remote employee. 

An employer of record benefits you here because they’re registered in the country and have the legal authority to employ employees for you, considerably easing the expansion process. 

4. Saves time

Running a business is hectic. Accounting tasks, employment paperwork, and software management needs can overwhelm you and prevent you from working on projects that move the needle for your company, such as finding new clients or improving business strategies. 

Fortunately, an employer of record handles these tasks for you, freeing up valuable hours in your calendar to focus on core business functions. 

5. Protects your employees’ welfare

The torrent of work from owning a business makes it easy to forget about properly managing and monitoring each employee. An employer of record helps you ensure that your employees receive the appropriate benefits and insurance, making it one less concern for you.

Frequently Asked Questions About Using an Employer of Record 


As beneficial as an EOR is, trusting third parties is still difficult if it’s your first time outsourcing. It’s why researching as much as you can about EORs is crucial to avoid costly mistakes.

If you’re looking for an employer of record guide, let the answers below to the frequently asked questions be your starting point for exploring this industry. 

• Are there any limitations to using an Employer of Record (EOR)?

Yes. Despite EORs taking charge of managing employment duties—including payroll, benefits administration, onboarding, and termination—you’re still responsible for assigning the daily tasks and managing your offshored team

This limitation confuses many business leaders because, on paper, the employee is under the EOR since they’ll handle payroll duties, too. You must be aware that using such a service will require you to surrender some level of control over your employees. 

• How does an offshore Employer of Record work internationally?

In simple terms, EORs focus on taking care of your employees, giving you space to focus on the progress and success of your business. They handle payroll, contracts, recruitment, and benefits, to name a few. 

On paper, the EOR is an offshored employee’s legal employer; they have legal entities in different countries, which you can leverage to grow your workforce. However, it will still be you, the client company, who will be responsible for business decision-making, assignment delegation, marketing, and strategy. 

• How much does an EOR cost?

The cost of an EOR varies. In most cases, packages already include taxes. However, the final cost will still depend on your company’s requirements, such as the needed tasks and deliverables. 

• Why should I use an EOR?

You should use an EOR because it frees up your time and lets you focus on core business functions such as growing the company and improving customer experiences. An EOR handles employment and administration responsibilities and addresses foreign legal matters to help you smoothen operations, improve productivity, and reduce costs.  

Delegate and Collaborate for International Success

As a business owner, you’d want to focus as much of your time on your company’s growth and success. But, various responsibilities—such as payroll, accounting, and software or project management—can clog your calendar. 

An employer of record alleviates some of the most pressing financial and operational burdens of expanding your business to other markets. Their deep knowledge of employment in different countries allows them to recruit the best talent for your team while keeping costs down and your business compliant with local labor laws.  

Check out One CoreDev IT for industry-leading EOR services if you’re expanding your operations to the Philippines. Contact us today to learn more! 

More insights

Share on social media