Growing a company is exciting—but expanding into new countries, hiring international talent, and managing global HR rules can also feel overwhelming. That's exactly why many companies look into using an Employer of Record (EOR).
In this guide, we'll break down when to use an EOR for a growing company, EOR benefits, what you should look out for, and how to avoid risks when hiring globally. We'll also walk through EOR compliance, payroll, HR support, and EOR pricing.
Contact Atlas HXM today to simplify your global expansion needs!
Key Takeaways
Use an Employer of Record (EOR) when expanding globally without setting up a legal entity, especially when your company needs to hire fast and legally in new markets.
EORs support growing companies by handling global compliance, payroll, benefits, HR tasks, contracts, and immigration, reducing operational risk.
An EOR is the best choice when you lack an international HR/legal team or want a reliable global payroll system without managing multiple country rules.
EORs are ideal for testing new markets, converting contractors to employees, and offering strong local benefits that improve global talent retention.
An EOR reduces major compliance risks including worker misclassification, tax errors, noncompliant benefits, and improper terminations—especially important for early-stage global growth.
Choose a direct EOR like Atlas HXM when you want predictable, transparent costs; Atlas HXM’s flat-fee model (starting at $599/month per employee) with discounts for larger teams simplifies budgeting.
EORs like Atlas HXM improve employee experience with localized onboarding, HR support, and compliance expertise delivered directly by in-country specialists.
What Is an EOR—and Why Growing Companies Use One?
An EOR legally hires employees on your behalf in countries where you don't have a local entity. You still manage your team's day-to-day work, while the EOR service provider, like Atlas HXM, handles:
Local labor laws
Payroll and taxes
Benefits
Work contracts
Onboarding and offboarding
Visas and immigration
Employment compliance risks
When to Use an EOR for a Growing Company
The solution to your problems is an EOR service provider, but when do you know it's time to implement this solution? Here are a couple of scenarios of when to use an EOR partner for your company's global expansion needs.
1. When You Want to Hire Quickly in a New Country
If you're expanding into a new market, speed matters. Maybe you found an amazing candidate abroad. Maybe you're opening a new region. Maybe a competitor is moving fast, and you want to stay ahead.
Setting up a legal entity can take months (sometimes up to a year), plus thousands of dollars in legal fees, registrations, and ongoing admin.
Using an EOR like Atlas HXM lets you:
Hire in under two weeks, not months
Skip entity formation
Avoid confusing foreign rules
Eliminate global hiring risks
Start building a presence immediately
Try out our Global salary calculator today to see exactly how much your global hire would cost.
2. When You Need Strong Global Compliance Support
As your company grows, EOR compliance becomes extremely important. Every country has its own:
Labor laws
Required benefits
Tax rules
Termination procedures
Hiring restrictions
Data protection laws
A strong EOR handles all of this for you. Atlas HXM, for example, has fully owned entities in 160+ countries, meaning no third parties—and far fewer compliance gaps. Our global teams understand the local laws, requirements, and expectations so you don't have to.
Use Atlas HXM's Global Compliance Risk Calculator to access your company's risk within minutes.
3. When You Don’t Have an International HR or Legal Team Yet
Growing companies often don't have large HR departments. In many cases, one or two people manage HR, and no one specializes in global rules.
This is where EOR HR support makes all the difference.
An EOR becomes your local HR partner for:
Benefits
Payroll
Onboarding
Employee questions
Contract updates
Labor law changes
Instead of hiring a full HR team in each country, the EOR does all the heavy lifting through in-country experts.
4. When You Need Reliable Global Payroll
International payroll is complicated.
Currencies, taxes, deductions, government filings, pay cycles—they all differ across countries. Missing a deadline or filing incorrectly creates serious risks.
Using Employer of Record payrolling services lets you:
Pay global staff on time
Handle taxes correctly
Stay compliant
Avoid penalties
Simplify multi-country payroll in one system
Learn how to pay offshore employees without setting up a legal entity!
5. When You Want to Test New Markets Without Big Costs
Many companies use an EOR strategy to test new markets before fully committing.
An EOR is perfect for:
Hiring and testing global employees
Running international teams
Piloting operations
Pausing or exiting quickly if needed
This reduces risk because you're not locked into long-term legal commitments.
Instead of spending $50k+ setting up an entity, you can hire through an EOR, see how the market performs, and scale up later.
6. When You Want High-Quality Employee Benefits for Global Talent
Top international talent expects strong benefits. But offering benefits in foreign markets can be confusing and expensive.
A high-quality EOR provider like Atlas HXM handles:
Local health insurance
Life insurance
Retirement contributions
Mandatory benefits
Paid leave
Travel or wellness perks
This is a major Employer of Record benefits advantage: employees receive a strong, locally compliant benefits package even if they're your first hire in that country.
7. When You Want to Reduce Risk Before Establishing an Entity
Companies often ask about Employer of Record pros and cons. One of the biggest pros is risk reduction.
An EOR protects you from:
Misclassifying workers
Incorrect tax payments
Contract mistakes
Improper terminations
Noncompliant benefits
Payroll errors
Remember: not all EORs are equal. Atlas HXM uses a direct EOR model, which avoids the third-party partners used by many competitors. This reduces both operational and compliance risks.
8. When You Want a Smoother Employee Experience
Employee experience matters more than ever.
Growing companies want their teams to feel supported, engaged, and valued—no matter where they live.
Atlas HXM's EOR platform offers:
24-hour human support
Onboarding in local languages
Mobile apps for HR tasks
Learning & development with thousands of courses
Local HR specialists in each region
This creates a sense of belonging and professionalism from day one.
9. When Using Contractors No Longer Works
At some point, contractors may not be enough. You may need:
Full-time employees
Longer commitments
More control
Stronger IP protections
Better loyalty
Atlas HXM lets you convert contractors into legal employees safely, with proper EOR payroll, benefits, and contracts.
10. When You Want Predictable Costs Instead of Surprise Expenses
One question companies always ask is: How much does an employer of record cost?
EOR pricing varies by country, employee salary, and the level of services included. Most EORs charge a monthly fee per employee with additional costs for add-ons, or hidden prices. Atlas HXM on the other hand offers transparent pricing so you know exactly where your money is going.
Atlas HXM EOR Pricing Model
Atlas HXM’s standard rate starts at US $599 per employee per month.
This base “flat-fee” covers core services: EOR payroll, local compliance, legal employment administration, contract management, and HR support.
Atlas HXM also offers volume-based discounts — meaning the per-employee monthly fee can decrease as you hire more people.
The $599 fee is “all-inclusive pricing” (no hidden fees or surprise markups), in contrast with modular or add-on–heavy models from some other EOR providers.
When you sign up, your monthly payment typically covers:
Legal employment and contract setup under local laws
Payroll processing, including local tax and statutory benefit contributions
Local HR support (onboarding, employee management, compliance, etc.)
Access to the global HXM platform and services in 160+ countries, managed directly by Atlas HXM (i.e. Atlas HXM owns its entities in each country)
For many growing companies, this is cheaper than:
Hiring internal HR teams
Paying legal firms
Maintaining international payroll tools
Setting up foreign entities
11. When You Want to Focus on Growth—Not Paperwork
Scaling a company is a full-time job. Global admin shouldn't slow you down.
Using an EOR like Atlas HXM helps you focus on:
Products
Customers
Revenue
Expansion strategy
Team building
Market testing
Brand development
Meanwhile, your EOR partner handles:
Paperwork
Compliance
Payroll
Taxes
Local laws
Contracts
HR workflows
Employer of Record Pros and Cons: Quick Overview
Here are some of the benefits and disadvantages of working with an EOR company.
Employer of Record Benefits
Fast hiring
Reduced compliance risks
No need for legal entities
Easy Employer of Record payrolling
Strong employee benefits
Less HR workload
Flexible global scaling
EOR Disadvantages
Long-term costs may rise
Less customization than running your own entity
This is why the decision depends on your company's phase of growth.
Partner with Atlas HXM for Successful Global Expansion
Use an EOR when you want to expand globally fast, stay compliant, lower risk, and avoid building full HR and payroll teams in every country.
As your company matures, you may choose to set up your own entity later. But for fast, safe, affordable hiring, an EOR is usually the smartest first step.
Atlas HXM's direct EOR model gives growing companies:
Faster hiring
World-class compliance
Better employee experiences
Strong global payroll support
No third-party partners
Human-led service in local languages
Contact Atlas HXM today to get started!