HR Outsourcing
Youstina Essam
April 23, 2025Expanding your business into new markets offers exciting opportunities but also presents legal and compliance challenges, especially when hiring international talent. An employer of record (EOR) service provider, like Tawzef, can simplify this process and help you overcome these challenges.
Growing rapidly, the EOR market is projected to rise from $5.23 billion in 2024 to $9.17 billion by 2033, at a compound annual growth rate (CAGR) of 6.8%.
This growth is mainly driven by small to mid-sized businesses. These companies make up around 87% of the global EOR market and seek efficient solutions for international talent acquisition.
As companies globalize, EOR services are becoming essential for managing international recruitment and employee management complexities.
In this article, we’ll highlight the main benefits of working with an employer of record and explain why Tawzef is your ideal EOR partner for navigating international expansion with confidence.
What is an employer of record service provider?
An EOR is a third-party provider that legally employs workers on your behalf. It manages critical employment functions such as payroll, tax filings, employee benefits, and compliance with local labor laws.
While the EOR is the official employer on paper, your company retains full control over the employees’ daily tasks and performance.
This approach enables companies to onboard employees quickly and operate in foreign markets without the need to establish a local legal entity.
EORs also ensure compliance with local employment regulations, reducing administrative burdens and lowering the risks associated with global hiring.
Benefits of working with an EOR provider
Collaborating with an EOR provides numerous advantages that can enhance your growth and success in the global market.
Here are some of the top benefits of partnering with EORs:
Easier global expansion
Expanding into foreign or global markets can be a costly undertaking. The expenses related to setting up a local legal entity and managing administrative overhead can significantly strain your budget.
However, using an employer of record offers a more cost-effective solution for expansion.
With EOR services, you can hire international workers without incurring the high costs associated with traditional expansion methods.
Streamline HR and payroll operations
An EOR service provider streamlines international HR functions like onboarding and orientation, benefits administration, contracts, and compliance. They ease administrative burdens while ensuring legal compliance.
Many countries require companies to use a registered local entity for payroll. By using an EOR, companies guarantee adherence to local payroll laws.
The EOR also handles statutory deductions, ensuring timely payments and payroll processing in the employees' local currency, removing currency conversion fees and issues.
Ensure compliance and mitigate risks
Navigating global business needs requires tackling legal responsibilities, financial risks, and compliance challenges. EOR providers effectively manage these liabilities by ensuring compliance with labor laws, handling payroll taxes, and resolving employee disputes with local authorities.
By using EOR services, you can confidently expand your business with a secure foundation.
Manage employee experiences
Partnering with an employer of record can greatly improve employee satisfaction and strengthen your employer brand.
An EOR not only manages key administrative tasks like payroll, taxes, and HR compliance, but also handles areas such as employee engagement strategies, exit interviews, and other internal HR functions and tasks.
An employer of record can help you support your teams and their professional development, boosting satisfaction and retention.
Access to large, global talent pool
Leveraging a global EOR service provider, like Tawzef, offers a powerful advantage: direct access to a diverse and vast talent pool.
Managing various recruitment services, EORs can efficiently recruit on your behalf from anywhere in the world, enabling you to eliminate geographic constraints and construct a highly skilled, culturally diverse team. It’s an opportunity to elevate your workforce.
Manage employee benefits
An employer of record simplifies employee benefits administration and management. They are responsible for designing competitive salary structures and compensation and benefits strategies and packages that comply with local regulations.
Services and benefits covered may include health insurance, retirement plans, and paid time off (PTO).
By leveraging the EOR's expertise, you can offer attractive benefits with minimal administrative burden. This can help you attract highly talented individuals, retain them for longer, and improve employee satisfaction, all while ensuring compliance with labor laws.
Further reading: How to Create a Compensation & Benefits Policy? 5 KPIs to Measure
More focus on core business functions
When your business is burdened by the complexities of global HR management, it can be challenging to maintain focus on your core competencies.
Working with an employer of record means having an expert, or group of experts, handle all employment-related matters.
This allows your business to redirect its energy towards what it core business functions, be they development, marketing, sales, or something else. In other words, an EOR provider, like Tawzef, helps you boost innovation and drive growth.
Further reading: 5 Reasons Why Developing an HR Strategy Is So Important
Opportunity to scale your business
An EOR provides a flexible way to expand into new markets without the need to establish a legal entity. This reduces the time, cost, and complexity of international expansion.
The EOR manages your international workforce, enabling you to quickly onboard talent, test new markets, and scale operations.
Industry and professional knowledge and expertise
An EOR service provider's expertise in international employment law and best practices offers valuable insights for your global expansion. Leverage their knowledge to navigate challenges, avoid costly errors, and build a strong foundation for international growth.
Why choose Tawzef as your EOR service provider
It’s not easy finding the best employer of record service provider for your business.
Here are a few reasons you should consider Tawzef’s employer of record services along with what to expect when working with us.
Dedicated team and account manager
Choosing Tawzef means you will have a dedicated team that supports your specific needs. Led by a single point of contact, your dedicated account manager, this arrangement ensures attention and a deep understanding of your business requirements.
Instead of navigating various teams or speaking to multiple representatives, you get a consistent partner who knows your account well.
At Tawzef, we care about streamlining communications and issue resolution. This personalized approach fosters a strong working relationship and ensures your needs are addressed efficiently and effectively.
Timeliness and commitment
At Tawzef, we understand the importance of timely and reliable service. We are committed to delivering on our promises, ensuring critical tasks such as payroll processing and compliance filings are handled accurately and on schedule.
Our dedication to timeliness minimizes potential disruptions, ensuring your employees are paid correctly and on time, while your business remains compliant with all relevant regulations.
This commitment provides you with peace of mind, knowing that your EOR is handling everything with precision and care.
Regular reporting
Tawzef provides you with regular and comprehensive reporting, giving you clear visibility into your global workforce management.
These reports can be customized to meet your needs, offering insights into payroll, benefits administration, and other key HR metrics.
Depending on your needs, we can provide other reports such as recruitment KPIs and metrics, training and development KPIs reports, among others.
This data empowers you to make informed decisions about your international talent strategy, track costs, and ensure team productivity.
Variety of services
For us, every business and its needs are unique. Accordingly, we provide a wide range of EOR and HR services to meet those needs.
Besides offering customized solutions, we offer solutions that vary from simple recruitment cycle development to creating an in-house HR strategy to business process outsourcing (BPO) services, to HR consultancy services.
Tawzef also provides you with relevant salary surveys for the roles you’re hiring and locations you’re hiring in.
For companies that need it, we offer mass recruitment services, performance management, including different types of performance reviews, among other services.
Experience with various fields
Tawzef has a proven track record of working with businesses across a diverse range of industries. From oil and gas to construction to real estate to FMCG and food-and-beverage (F&B), to renewable energy, and software development, just to name a few.
This extensive experience allows us to understand the unique challenges and requirements of different industries and sectors.
Whether you operate in technology, healthcare, manufacturing, or another field, our team possesses the expertise to provide tailored EOR solutions to meet your unique needs.
A partner, not just a third-party
At Tawzef, we strive to be more than just a service provider. We aim to be a true partner in your global growth journey.
We take a proactive approach, working closely with you to understand your business objectives so we can provide strategic guidance on international employment and needs.
Invested in your success, our team is always available to offer support and expertise. We believe in building long-term relationships based on trust, transparency, and a shared commitment to achieving your global ambitions.
Wrapping it up
Understanding the significant advantages of an Employer of Record is crucial for businesses aiming for international success. From ensuring full legal compliance and enabling cost-effective global outreach to simplifying HR processes and mitigating potential risks, the benefits are compelling.
In a dynamic global business landscape, an EOR serves as a strategic ally. And Tawzef is expertly positioned to fulfill this role, empowering your business to flourish beyond its domestic borders.
Therefore, when considering how to minimize risks, optimize your operations, and achieve swift and efficient global expansion, Tawzef's Employer of Record services present an ideal solution.
Partner with Tawzef today to confidently navigate your journey towards international business achievement.