Global expansion is one of the fastest ways for a company to grow—new markets, new customers, and access to the best talent from around the world. But anyone who has tried expanding internationally knows one thing: it's complicated. Every country has different labor laws, tax rules, payroll systems, and compliance requirements. Setting up a legal entity can take months. Hiring employees can bring unexpected risks. And managing an international workforce without the right support can overwhelm even the strongest HR teams.
That's exactly how an Employer of Record simplifies global expansion. An EOR removes the toughest barriers to entering new markets, so companies can hire, onboard, and manage talent faster—with far less risk. Instead of spending months building a legal entity, businesses can start operating within days.
What Is an Employer of Record—and Why Does It Matter?
An Employer of Record (EOR) is a third-party organization that becomes the legal employer of your workers in another country. Your business still manages the employee's day-to-day tasks, but when you hire abroad with EOR services, they take care of everything related to employment under local law.
That includes:
Employment contracts
Payroll, taxes, and benefits
Visas and immigration documents
Local mandatory social contributions
Employee onboarding
Compliant terminations
Global HR management support and benefits administration
Government reporting
This model eliminates the need for a company to set up a foreign entity, dramatically reducing cost, time, and compliance risk.
It also means you can legally hire a top engineer in Brazil today, onboard a remote marketing specialist in France tomorrow, and pay a team in Singapore next week—with one partner, one system, and one global process.
How an Employer of Record Simplifies Global Expansion
Here are the top benefits of EOR services and the reasons why companies of all sizes are moving toward an EOR model to grow internationally without the usual headaches.
1. You Don’t Need a Local Entity to Hire Talent
In a traditional expansion model, you must incorporate a local entity before hiring even one employee. That process can take:
Weeks or months (depending on the country)
Thousands of dollars in legal and accounting fees
Ongoing annual maintenance and reporting
An EOR eliminates all of that. The moment you want to hire in a new country, your EOR already has an entity in place. That means:
Immediate hiring
Zero setup costs
Faster market entry
It's one of the biggest benefits of EOR—and one of the main reasons companies turn to Atlas HXM when they want to scale quickly across borders.
2. Faster Onboarding and Global Payrolling
We are always asked, “How quickly can an employee be hired through EOR?” Once you select your candidate, the EOR issues a compliant contract, handles onboarding, and activates payroll immediately. This is where Employer of Record payrolling shines. Instead of navigating years of country-specific payroll and tax rules, your EOR simply manages everything.
Companies that use Atlas HXM benefit from:
Automated global payroll
Accurate tax withholding
Country-specific benefit packages
Real-time payroll insights
Streamlined expense and leave tracking
This is why Atlas HXM is consistently listed among the best global Employer of Record partners—because payroll and compliance need to happen flawlessly in every country, every time.
Find out how to pay offshore employees in this simple guide.
3. Guaranteed Compliance with Local Labor Laws
Compliance is one of the biggest risks in global expansion.
Every country has its own rules for:
Taxation
Social security contributions
Overtime
Working hours
Termination protections
Sick leave and vacation
Maternity and paternity leave
Mandatory benefits
Even a small mistake can cause big legal issues, fines, or damage to your brand.
This is where EOR compliance becomes critical. EOR service providers monitor regulatory changes, adjust contracts, and ensure every employee is hired, paid, and managed correctly under local law.
Atlas HXM differentiates itself by owning its entities in 160+ countries, giving companies direct access to local experts—something many of the best EOR providers cannot offer or outsource to third parties.
4. Lower Costs and Reduced Legal Risk
Setting up an entity is expensive. Managing foreign HR, payroll, and tax systems adds even more costs. And hiring international legal experts to navigate everything quickly multiplies the expense.
When you hire a foreign employee with EOR services, there are:
No entity setup costs
No local accounting fees
No long-term commitments
No legal exposure as the employer
This makes the EOR model especially attractive for:
Startups testing new markets
Mid-sized companies scaling quickly
Enterprises exploring multiple regions at once
5. Access to Global Talent—Immediately
When you hire a foreign employee with EOR services, you hire the best person for the job, no matter where they live. Whether your next great engineer, sales manager, or data scientist is in Ireland, Kuwait, Brazil, or Singapore, you can hire them instantly through a compliant, local contract.
This expands your access to talent—something essential in today's competitive market. It's a core reason more companies rely on the best EOR services to build global teams fast.
6. Scalable Hiring for Teams of Any Size
Some companies hire one remote employee abroad. Others build entire global teams.
Both options are simple with an EOR.
Whether you're hiring:
One designer
A five-person sales team
A full engineering hub
A seasonal or rotating workforce
This is one area where Atlas HXM stands out compared to the best EOR providers, offering consistent service, global HR tools, and employee development capabilities that grow with you.
Learn more about when to use an EOR for a growing company here.
How Atlas HXM Supports Your Employees—Not Just Your Expansion
At Atlas HXM, we believe global expansion is not only about compliance—it's about people. That's why our platform integrates workforce support directly into the global employment experience.
Atlas HXM Learning + Udemy: A Global Upskilling Advantage
Unlike competitors, Atlas HXM is the first and only EOR to partner with Udemy Business. Through the Atlas HXM platform, employees gain access to:
Thousands of Udemy courses
Professional development training
Personalized learning insights
Accredited certificates
Courses in their native language
This means every employee hired through Atlas HXM has access to the skills they need to grow.
Global companies using Udemy Business experience:
27% higher productivity among trained employees
12% productivity gains overall, equal to 4.8 hours of extra performance per employee per week
Nearly 5× more employees upskilling after implementation
Why Companies Choose Atlas HXM Over Traditional EOR Services
Many EOR companies claim to offer global hiring support. But Atlas HXM is different in key ways:
Direct EOR model (not dependent on partners): Atlas HXM owns its entities in the countries where we hire—unlike many EOR providers who rely on third parties.
Predictable EOR pricing with full transparency: No hidden fees. No surprises.
Workforce development built into the EOR experience: Between global HR management tools and Udemy-powered learning, Atlas HXM supports full employee lifecycle needs.
Stronger protection through end-to-end EOR compliance: Our in-country legal experts ensure every employee is hired and managed correctly.
Consistent Employer of Record payroll services: Centralized international payroll keeps everything accurate and transparent.
When companies search for the best global Employer of Record solution, Atlas HXM frequently becomes the top choice because we do more than hire—we help employees thrive.
Global Hiring Motivations & Trends
The 2025 Global Atlas Report found that:
86% of companies with international presence say compliance is the biggest challenge in global expansion.
55% of companies with international presence hire globally to access specialized talent and solve skills gaps.
41% already hire abroad with EOR services—and adoption is accelerating.
56% of North American companies plan to reduce their number of foreign entities in the next 12–18 months.
54% of HR teams rely on AI tools for compliance research, even though AI often provides incomplete or incorrect guidance.
Benefits of Partnering with Atlas HXM
You hire talent instantly without setting up an entity
Payroll, taxes, and benefits are handled for you
Compliance risks disappear
Costs drop dramatically
Your teams can scale quickly
Employees receive world-class support and development
Expand Globally with Confidence Today
Atlas HXM simplifies your journey with:
Direct-to-entity EOR coverage in 160+ countries
Expert EOR compliance support
Integrated Employer of Record payrolling
Workforce development through Udemy Business
The most comprehensive Employer of Record payroll services in the industry
Global growth doesn't have to be complicated. With Atlas HXM, it's simple, compliant, fast—and built for people.
Contact Atlas HXM to get started today!
FAQs
How much does an Employer of Record cost?
Most EOR companies charge a flat monthly fee per employee or a small percentage of the employee's salary. It's usually far cheaper than setting up a legal entity and covers payroll, benefits, contracts, and full compliance.
Is an Employer of Record legal to use in other countries?
Yes. EORs operate within local labor and tax laws, making it a fully legal and compliant way to hire internationally without opening an entity.
Can an EOR help with visas or work permits?
Many EORs can support visa applications and work permits so employees can work legally in their new country.
How is an EOR different from a PEO or staffing agency?
A PEO shares employment with you, and a staffing agency helps you find talent. An EOR is different—it becomes the legal employer in another country and handles payroll, benefits, taxes, and compliance so you can hire globally with ease.