What is the difference between Employer of record vs staffing agency?
Finding a partner that can help you with recruitment could help you overcome several challenges involved with finding top talent. For this reason, many organizations look for a third-party that can assist them. However, first it’s important to know the difference between Employer of record vs staffing agency so you can choose the best provider for your business.
In this article, you’re going to learn the top reasons why an EOR is different from a staffing agency. In addition, you can understand which employment model can be the perfect fit for your corporation. Let’s observe:
- What is the difference between Employer of record vs staffing agency?
- What is an Employer of Record?
- How can you identify a staffing agency?
- What are the pros and cons of an EOR?
- Which advantages and disadvantages can you find in a staffing agency?
- What are the main differences between these two employment models?
- Why is Connect Resources your best option to improve your workforce?
1. What is the difference between Employer of record vs staffing agency?
As a business owner, you want to have a top workforce so you can boost your operations. However, this may seem like something impossible to achieve since recruitment can be very difficult. In addition, if you don’t have enough resources or experts, you may end with a bad hire, which in turn can be more costly for your business.
Therefore, a service provider could be the perfect solution for your business. Once you have considered finding a partner that helps you with recruitment, you found out that there are several options. Therefore, you evaluate the differences between Employer of record vs staffing agency so you can find out more.
If you’re overwhelmed and you don’t know which can be the right one, it’s time to learn more about each provider.
1.1 Why should you consider working with a service provider?
Perhaps you think that you don’t need to contact an EOR or a staffing agency since you want your HR team to carry out the recruitment. However, there are many considerations you should take if you want to achieve great results.
Here are some reasons why a service provider could be a great option for your business:
- Helps you save time and money
- Allows you access passive candidates
- Provides staff quickly and effectively
- Ensures compliance with employment law and regulations
- Helps you overcome immigration challenges
- Reduces risks of non-compliance
- Gives you the opportunity to offer a better compensation package to your employees
- Saves you having to deal with hiring complexities and challenges
If you want to get Innovative workforce solutions, you should consider partnering with a third-party that has enough experience and expertise to deal with recruitment. Focus on your core business activities while your
2. What is an Employer of Record?
To know the difference between an Employer of record vs staffing agency, it’s important to begin with the definitions. For this reason, let’s find out the main characteristics of an Employer of Record.
These are the following characteristics of an EOR:
- A company that becomes the employer of your employees
- Becomes responsible of paying your employees and dealing with their requirements
- Handles and files taxes
- Provides insurance and benefits to your workers
- Carries out the visa and sponsorship applications
- Handles all HR-related tasks such as payroll, employment contracts and more
- Performs background checks, interviews, onboarding and terminations
If you’re looking for an Innovative Employee Solutions, you can trust in Connect Resources to help you find the top talent you need. When you’re hiring you need to attract top talent, and thanks to our vast talent pool you can get access to high-quality candidates.
2.1 When is it advisable to work with an EOR?
Businesses that work with an EOR do it because it’s a great tool for dealing with international hiring practices. It’s the perfect solution if you don’t want to set up an entity in your target country, since the EOR is legally responsible for paying your employees as well as handling with other HR tasks.
So, it’s best to work with an EOR when you’re moving your business internationally, planning an expansion or opening a branch in another country.
3. How can you identify a staffing agency?
Once you know how an EOR works, it’s important to understand the difference between an Employer of record vs staffing agency by defining the latter. Many companies tend to confuse an EOR with a staffing agency and although they often work together, they’re two different business entities.
In this regard, a staffing agency focuses only on recruiting employees for its clients. Its main purpose is to match employees with employers, whether for short or long-term assignments. The main tasks carried out by this service provider are the following:
- Review applications and resumes of candidates
- Assign employees for worker absences, seasonal work, temporary skill shortages or special projects
- Provide all kind of employees to the business: temporary, temp-to-hire, permanent workers
- Be the point of contact between the employer and employees
- Create a talent pool to provide high-quality candidates to its clients
4. What are the pros and cons of an EOR?
To have a better evaluation of the Employer of record vs staffing agency you must understand the pros and cons of each employment model.
4.1 Advantages of an EOR
Working with an EOR gives your business several benefits. These are the following advantages of this service provider:
- Expand to global markets easily and hassle- free
- Provide a suitable work environment to your international employees
- Get assistance with all your HR tasks since the EOR will take care of everything
- Compliance with local rules
- Not having to deal with additional payroll taxes
- Have an arrangement that benefits both parties
- Takes the work load off your in-house HR department
- Assumes liabilities and responsibilities for employment issues
As you can see, an EOR is an ideal solution for your business if you’re looking to easily expand into global markets. It’s valuable if you’re considering a country with complicated employment laws since you can ensure you stay in compliance.
Here in Connect Resources we can offer you Innovative workforce solutions that allow you to get top talent. Whether you’re looking to fill a junior position or an executive one, you can trust in our comprehensive service.
4.2 Disadvantages of an EOR
Although an EOR can be a perfect solution for your organization, there also some drawbacks which are as follows:
- You have less control and influence of your workforce
- It can affect your company’s culture
- It can influence in potential changes of your company standards
Don’t be discouraged about the cons since all of these can be solved with a great agency like Connect Resources that provides a service fit to your needs. And, as you can see, these are small cons that don’t affect the deliverance of the service.
5. Which advantages and disadvantages can you find in a staffing agency?
There are several advantages and disadvantages of working with a third-party. To select between an Employer of record vs staffing agency you have to know the weaknesses and strengths of each one.
A staffing agency can be the perfect solution to solve any issue that may arise in our workforce, but perhaps isn’t the best for international expansion. However, it’s time to evaluate its pros and cons.
5.1 Advantages of staffing agencies
Staffing agencies are a great tool to solve your hiring needs. Here are some of the advantages of this employment model:
- Helps reduce business liability
- Have a vast talent pool to select the right employee
- Save times and resources when hiring
- Have flexibility to scale up and down your workforce
- Fill vacancies during peak season
With a staffing agency you get the employees you need depending on your particular requirements. It’s a quick and easy solution whenever you have to fill a vacancy and you don’t want the position to remain empty for a long time.
5.2 Disadvantages of staffing agencies
Even when you can get an outstanding service with a staffing agency, there are also several cons of working with this provider, which are as follows:
- You lose control of the hiring process
- Potential culture issues
- Staffing agencies usually don’t handle the other HR-related tasks
- Don’t have the resources to meet the demand of being an employer
It’s important to note that staffing agencies usually don’t have the capacity to deal as an employer of your employees. Therefore, if you’re looking for a comprehensive solution you may not get it with this employment model.
6. What are the main differences between these two employment models?
Once you know how each employment model works, you must understand the main differences between Employer of record vs staffing agency.
We can summarize the differences between these two employment models as follows:
- HR tasks management: the EOR will handle everything related with your personnel functions. In contrast, the staffing agency only handles the recruitment and assignment of employees. If you’re looking for a more comprehensive solution, an EOR is the best option for you.
- Payroll and accounting skills: staffing agency won’t become the employer of your employees; it will only ensure a fast and quality deliverance of employees. With an EOR, you won’t have to worry about the payments since it will take of everything. It’s a perfect option when it comes to handling international payroll.
- Compliance knowledge: an EOR focuses on writing employment contracts that are in compliance with the local laws and regulations. It has an entity in the local country so its employees will ensure compliance. Whereas a staffing agency may not have enough knowledge about compliance particularly when it comes to international contracts.
6.1 When do you need an EOR? In which cases is it better to count on with a staffing agency?
As you can see, there are some scenarios where it’s better to have an EOR as a partner. Especially when you’re planning relocating employees or hire employees in another country. A staffing agency may be the best option when you need to fill vacancies quickly.
The following scenarios apply better with one employment model:
- EOR: international expansion, management of international workforce, international payroll processing, open a branch without establishing a business.
- Staffing agency: work in special projects, meet peak season objectives, get temporary workers, get temp-to-hire employees.
As part of our Innovative Employee Solutions, we can provide you the top candidates that you require to fill your open positions. Connect Resources is your best ally for your expansion and growth so don’t hesitate to contact us.
7. Why is Connect Resources your best option to improve your workforce?
When you’re looking for top candidates for your business you need all the help you can get. Here in Connect Resources we can help you achieve your goals of recruitment. We can place high-quality employees in your business so you can boost your productivity.
Our team of specialists is readily available to assist you in each step of your recruitment process. We can provide you a comprehensive service that ensures you get top talent so you can take your business in the road to success. Don’t worry about paperwork, immigration, or any other issue because we will take care of everything.
Would you like to contact Connect Resources for Staffing Services? You can call at +971 433 166 88 or send an email to email@example.com, and you’ll talk to one of their representatives that will gladly answer all of your questions.