Employer of Record vs staffing agency: The main differences

If you’re looking for a third party that can supply staff for your business, perhaps you’ve already considered two main options. Employer of Record vs staffing agency are the most common solutions for organizations that want to hire workers since they offer several advantages.

As a business, you may face several challenges with recruitment, but with the right partner you can overcome them successfully. However, before deciding to jump into any negotiation with a service provider, it’s necessary to understand how they work. There are several differences between the employment models of an Employer of record and staffing firms, and it’s crucial for you to know about this.

In this article, you’re going to learn everything about staffing firms and Employer of record responsibilities. This way, you’ll be able to identify which solution could be the perfect one for your business. Let’s observe:

  • Employer of Record vs staffing agency: The main differences
  • What is the definition of an Employer of Record?
  • How is defined a staffing agency?
  • What are the roles and purposes of an EOR?
  • What are the responsibilities of a staffing agency?
  • Which benefits can you get by working with an EOR?
  • What are the advantages of partnering with staffing agencies?
  • How can you get more benefits for your workforce?
  • Which differences are regarding liabilities?
  • How can you differentiate easily between these two employment models?
  • Why is Connect Resources your best solution for your workforce?

1. Employer of Record vs staffing agency: The main differences

As a business owner, you may be looking for solutions to improve your hiring. Maybe you have tried hiring by yourself but you haven’t got the results that you expected. If you don’t have enough resources and experts, you have to consider choosing between an Employer of Record vs staffing agency since they can ensure a better result.

Some businesses tend to confuse them, but they’re actually two separate employment models and therefore they have some differences. In fact, they offer different services, so if you’re looking for something specific, it’s essential to know which one can give you what you expect.

1.1 Why are bad hires detrimental for your business?

Bad hires are the main reason why an organization decides to get Innovative workforce solutions and partner with a service provider. When you’ve been hiring the wrong person over and over again, you may feel like it’s time to do something different.

The truth is that a bad hire is a big drawback for your business and can cause the following consequences:

  • Increment your turnover rate
  • Make you spend more money in hiring and training
  • Waste your resources and efforts invested in hiring them
  • Make you invest time in carrying out a recruitment and hiring process again

As you can see, you can’t overlook recruitment but you have to consider it as a crucial part of your business. For this reason, you should choose between an Employer of Record vs staffing agency so you can have the perfect ally to get the best workers for your business.

Learn more about the Executive Search service offered by Connect Resources.

1.2 Why is a service provider your best solution for hiring?

Whether you’ve tried to hire by yourself or you’re considering doing it, perhaps you feel like you don’t have to contact a service provider since you think you can obtain great results by your own. However, it’s important to know that by counting with a partner you can optimize your resources and efforts.

It doesn’t matter if you decide to partner with an EOR or a staffing firm, you can get outstanding benefits either way. These are the following reasons to partner with a service provider:

  • Save costs in hiring
  • Use your time for your core activities while the provider handles your human resources
  • Get workers in shorter time
  • Write compliant contracts
  • Get assistance with employment laws, rules and regulations
  • Not having to deal with immigration
  • Access to a vast pool of talent to choose employees
  • Access to a wide range of benefits to offer attractive benefits to your employees

Learn more about the Emiratisation service offered by Connect Resources.

2. What is the definition of an Employer of Record?

What is the definition of an Employer of Record?

Before starting to analyze the difference between an Employer of Record vs staffing agency, it’s important to clear up the definitions. An Employer of Record is a third-party that focuses on assisting businesses regarding international matters. Also known as EOR, for short, it’s a service provider that can be the perfect ally for your global expansion.

If you’ve heard about a PEO provider, you must know that many businesses refer to an EOR like an International PEO. This is because they carry out similar tasks, the difference is that one covers domestic matters while the other focuses on international expansion.

If you’re looking for Innovative Employee Solutions, you can trust in Connect Resources to get an amazing service. We can help you hire employees for your organization, and we’ll also assist you with your international expansion. As you can see, we offer a comprehensive service.

Learn more about the basics of employee relocation to the UAE.

2.1 How does an EOR work?

To know the Employer of record responsibilities it’s essential to know first how they work. When you contact this service provider and you enter into a contract, this third-party becomes the legal employer of your employees.

However, it’s important to note that you’ll still remain operational control. Some businesses fear that once they partner with an EOR they will lose control of their company. But this isn’t true. The EOR handles everything related with your HR tasks but they can make any decisions in terms of your operations. So, what are the responsibilities of an EOR? Let’s observe the following:

  • Recruitment: with an EOR, you can get the perfect employees for your job openings. Whether you need a recently graduate or a senior executive, you can trust in this partner to find it. In addition, you won’t have to involve in any step of the recruitment process and the partner with take care of onboarding too.
  • Immigration: the EOR will handle everything related with the processing of visas, work permits and any other paperwork.
  • Payroll: the EOR will be responsible of making payments, administering the payroll, generate reports, and any other task related.
  • Compliance: with an EOR, you won’t have to worry about non-compliance. Its experts will write compliant contracts and will ensure you comply with local laws and regulations. In addition, you can be sure that you won’t incur in any liabilities with your payments and taxes
  • Taxes: filing and reporting taxes is a complicated and challenging task, but the EOR can handle it for you.
  • Risk management: the EOR can help you avoid any challenges and issues that may arise with your workforce.

3. How is defined a staffing agency?

An important step to know the difference between an Employer of Record vs staffing agency relates to learning about the basics of these two employment models.

If you don’t want to deal with the Employer of record pros and cons, you can always contact a staffing agency. However, you should know that a staffing firm doesn’t handle as many tasks as an EOR.

Learn more about the Recruitment Agency in Dubai by Connect Resources.

3.1 What is a staffing agency?

Basically, a staffing agency or staffing firms is the connection between an employer and a potential employee. Unlike an EOR, a staffing agency won’t handle all of your HR management, but it will focus on recruitment and hiring.

Why do staffing agency don’t handle HR-related tasks? Sometimes they don’t have enough resources or personnel to deal with all of your human resources. Therefore, they focus on finding qualified candidates for your business. This is their sole purpose.

However, if you’re looking for Innovative workforce solutions you can trust in a staffing firm since they can help you find great candidates by applying new techniques that perhaps you haven’t considered before.

Learn more about how to take your business globally.

4. What are the roles and purposes of an EOR?

Employer of Record vs staffing agency

To know the difference between an Employer of Record vs staffing agency we should focus on roles and purposes. An Employer of Record provides a great solution for your business if you’re looking for getting assistance with your HR management. In addition to recruitment, the EOR will handle your payroll, taxes, and more.

Some of the tasks carried out by an EOR are the following:

  • Hiring and recruitment: assistance with job description, candidate profile, review applications, candidates’ screening, background checks, shortlisting, interview, onboarding, and more.
  • Payroll: process payments, deductions, compensations, benefits, reports, and more.
  • Taxes: calculate taxes, file taxes, reporting, and more
  • Employment: write compliant contracts, terminations, leaves, vacations, handle employment issues, and more.

As you can see, an EOR offers Innovative Employee Solutions that cover several areas of your business.

4.1 How can an EOR help you with your expansion?

Expanding internationally could be highly difficult for any business. And, when you’re planning on opening a branch in a country that is completely different from yours, it could be even more challenging. In this sense, an EOR could be your perfect ally.

Many businesses opt for partnering with an EOR since it can ease up the expansion process. Let’s observe the following benefits you get by working with this service provider:

  • No need to establish a company
  • The EOR handles your international payroll
  • You won’t have to worry about immigration matters
  • Get assistance from local EOR employees in terms of local laws and regulations
  • Ensure best international practices
  • Save time, costs and efforts when hiring internationally

If you still don’t know how to choose between an Employer of Record vs staffing agency, you can contact Connect Resources to clarify all of your doubts. Whether you need a total handling of your HR management, or you’re just looking for employees, here in Connect Resources we can offer you a perfect solution adapted to your needs.

Learn more about the Payroll Outsourcing service offered by Connect Resources.

5. What are the responsibilities of a staffing agency?

When it comes to responsibilities, there are several differences between an Employer of Record vs staffing agency in this regard. A staffing firm focuses on assigning employees to your business. It may seem like an easy task, but it covers many small tasks to ensure you get a top-level employee.

It’s important to note that you shouldn’t confuse a staffing agency with an EOR since they’re two separate entities. Although some EORs work with a staffing agency, they’re not the same.

So, considering the differences between an Employer of Record vs staffing agency, here we have the responsibilities of the latter:

  • Write job descriptions
  • Help you with your company’s image and branding
  • Job postings and advertisement
  • Reception of applications
  • Review resumes and applications
  • Find passive candidates to fill your executive positions
  • Assign all kind of employees, from temporary to permanent
  • Create a talent pool for your business
  • Supply personnel when you need to scale up or down your workforce

As you can see, it’s a service dedicated to help you with the supply of personnel. It’s a way of relieving the burden from your HR team. Since the agency will handle everything related with recruitment, your HR workers can focus on other activities to ensure smooth operations with your management.

When you’re looking for Employer of record and staffing firms, you have to consider which service you need. If you only need to get workers for your business, a staffing agency may be the best choice. But, if you’re planning an expansion or you’re having troubles handling your HR management, an EOR is the right option.

Learn more about how to handle an international payroll.

6. Which benefits can you get by working with an EOR?

Beneficios Laborales - Banco de fotos e imágenes de stock

The benefits that your business get are a crucial part of differentiating between an Employer of Record vs staffing agency. Once you know that an EOR can be the perfect ally for your international expansion, you have to understand the benefits you’ll get by working with this service provider.

When you consider the advantages, you have to evaluate the Employer of record pros and cons. This will help you decide if this is the perfect solution for your business.

Some of the pros of working with an EOR are the following:

  • Enter new markets easily and quickly
  • Have an outstanding international workforce suited to your needs
  • Stay in compliance with local regulations
  • Get assistance with all of your HR functions
  • Assistance with your international payroll and administration
  • Not having to worry about immigration, liabilities and taxes

6.1 Are there any cons of working with an EOR?

Although working with an EOR is a perfect solution when you’re looking for assistance with going global, there may be some aspects that aren’t as great for some businesses. However, you can sort them out if you partner with an outstanding EOR like Connect Resources.

Some of the drawbacks that you must evaluate are the following:

  • Less control and influence in terms of administration
  • External influence in your company’s culture
  • Potential changes and modifications in your business’ standards

If you still want to know how Employer of record and staffing firms can benefit your business, you can contact Connect Resources to help you. We can supply staff for your international branch and we can also handle the HR tasks of your international workforce. Our goal is to offer you a comprehensive solution that takes your business in the road to success.

Learn more about the latest improvements in technology for global mobility.

7. What are the advantages of partnering with staffing agencies?

Learning about the pros of both an Employer of Record vs staffing agency is the perfect way to understand how they differentiate.

When you partner with a staffing firm you get the following benefits:

  • Get staff immediately whenever you need it
  • Fill last-minute vacancies caused by absences
  • Have a flexible workforce
  • Hire any type of workers (temporary, temp-to-hire, permanent, contract)
  • Handle seasonal hire and deal with peak demand

After understanding the advantages of partnering with a staffing firm and knowing the Employer of record responsibilities, you can have a better overview that will allow you to determine which choice you should make.

If you still don’t know if you want to choose an Employer of Record vs staffing agency, you can contact Connect Resources to help you decide. We will understand your particular requirements and advice you on which could be the right choice. Our team of specialists is readily available to help you solve all of your inquiries regarding our service.

Learn more about how to select the best EOR service provider.

7.1 When is it advisable to partner with a staffing agency and when it’s not?

When it comes to international expansion, you can partner with a staffing agency if you want. However, keep in mind that they will focus solely on assigning workers but there are many other tasks that they don’t handle.

So, let’s consider the best scenarios when it’s advisable to contact a staffing agency as follows:

  • Special projects
  • Seasonal demands
  • Scale up or down your workforce
  • Create a talent pool to select workers anytime
  • Reach up passive candidates

The good news is that a staffing agency is part of the Innovative Employee Solutions. You can get outstanding employees for your business while you focus on your core activities. Forget about having to deal with all the paperwork involved with recruitment since the agency can do it for you.

Learn more about the basics about HR outsourcing firms.

8. How can you get more benefits for your workforce?

Employer of Record vs staffing agency

Since your workforce is one of the greatest assets of your business, you should focus on offering outstanding benefits. Therefore, learning about this matter is crucial to understand the difference between an Employer of Record vs staffing agency.

With either solution you can get outstanding benefits for your workforce. There are several advantages of working with each employment model, you just have to evaluate your current situation to determine which solution can be the perfect one.

8.1 The best benefits for your business

Some of the benefits you can get for your workforce are the following:

  • Save time: carrying out the recruitment process by yourself could be time-consuming and difficult for your HR specialists. However, with a third-party you won’t have to worry about this since they will take care of everything. With an EOR it’s even better, since you won’t have to handle any HR task.
  • Workload: if you don’t have enough workers in your HR team, carrying out an international recruitment could be daunting. When you don’t have sufficient personnel, each worker has to work a lot and they have a big burden. With an EOR or a staffing agency, they can get relief since there are many tasks that they won’t be handling anymore.
  • Onboarding: having a partner like an EOR or a staffing firm can bring several benefits to your new hires. The third-party will make sure to train them and teach them about your company’s culture so they can have a smooth transition. However, when it comes to onboarding international employees, an EOR may be the perfect fit. There may be some Employer of record pros and cons, but in this case, it can offer several advantages.
  • Compensations and benefits: with a third-party you’ll be able to offer better benefits to your workers. In addition, you get access to a wide package of benefits so you can choose the best ones for your workforce. From healthcare plans to retirement plans, you have plenty of options to choose from.

9. Which differences are regarding liabilities?

Liabilities are highly important for any business. There’s difference between an Employer of Record vs staffing agency in relation on how they handle this matter.

An EOR can help you handle your duties and liabilities related with your workforce. However, with a staffing agency this is not the case. Since the staffing firm can’t meet the demands of being your employees’ employer because they usually don’t have enough resources, then it can be liable for them.

In term of dealing with liabilities, perhaps you’re looking for Innovative Employee Solutions that ensure a decrease in risk. With Connect Resources you won’t have to worry about anything because we will ensure your business stays in compliance with local UAE laws.

Learn more about how to have better results when hiring internationally.

10. How can you differentiate easily between these two employment models?

How can you differentiate easily between these two employment models?

Perhaps you feel like there’s too much information and you’d like to get a summary about how to differentiate between an Employer of Record vs staffing agency. For this reason, there are simple and easy ways to know it without having to learn so much about each employment model.

10.1 Roles as businesses

The main difference between an Employer of record and staffing firms relates to their roles. With an EOR, you get a third-party that will handle all of your HR-related tasks. But, with a staffing agency, you get a partner that will assist you only with recruitment.

So, if you need a partner that takes care of everything (not only recruitment) an EOR is the best option for you. Whereas a staffing firm can be a great choice if you just need personnel for your business while your in-house HR team takes care of the management.

10.2 Responsibilities

An EOR will be responsible for handling all your HR tasks, while the staffing agency will focus only on assigning employees to your business. With a staffing agency you’ll have to deal with payments, taxes, and many more responsibilities, while with an EOR, you won’t need to do all of this.

If you want to get Innovative workforce solutions, you can partner with an EOR or a staffing agency. Just keep in mind that they vary in terms of responsibilities.

10.3 Liabilities

The EOR assumes all your business’ liabilities. It’s the perfect solution if you’re entering a new market and you don’t want to face any issue. The EOR also assumes total compliance with several areas of your business such as payroll, taxes, administration and more.

With a staffing firm you have to be careful in this matter. An agency won’t assume your HR liabilities because they’re not the employer of your employees. It only focuses on providing staff, but it’s not liable for them. So, it’s something you should consider.

Once you know the staffing firms and Employer of record responsibilities, you may be clear about which one could be the perfect one for your business. Here in Connect Resources we want to help you find a great solution that benefits your workforce. Consider contacting us to get a comprehensive service.

Learn more about how to understand PRO services in Dubai.

11. Why is Connect Resources your best solution for your workforce?

Connect Resources

When you’re considering between an Employer of Record vs staffing agency, you have to evaluate both options to choose the best one for your business. Here in Connect Resources we want to help you obtain amazing results for your workforce.

Although you may think that there are Employer of record pros and cons, you won’t have to worry about this. We will provide a customized solution based on your particular requirements, so you don’t have any risks of getting a bad hire.

Here we have the benefits you’ll get by working with Connect Resources:

  • Get top candidates for your business from our vast talent pool
  • Achieve your goals in terms of recruitment
  • Boost your business’ productivity by obtaining high-quality workers
  • Get assistance in each step of your hiring process
  • Forget about dealing with immigration paperwork
  • Have a dedicated account manager for your business
  • Get experts and expertise at competitive prices

If you’re looking for Innovative workforce solutions, you can trust in us. Our team of specialists will ensure you receive an outstanding service. With our comprehensive solution you can get the workers that you need to fill your vacancies.

Would you like to contact Connect Resources for Staffing Services? You can call at +971 433 166 88 or send an email to contact@connectresources.ae, and you’ll talk to one of their representatives that will gladly answer all of your questions.

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