Why an Employer of Record (EOR) is a Cost-Effective Option for Hiring Across Asia Compared to a Recruitment Agency

When expanding across Asia, businesses often face high employment costs and compliance risks. While recruitment agencies help find talent, an Employer of Record (EOR) offers a more cost-effective solution by managing both hiring and ongoing employment needs.

Compliance and Cost Management

Hiring abroad involves complex compliance requirements, from local employment laws to payroll taxes. Miscalculating these costs can lead to significant financial strain. An EOR reduces these risks by handling all compliance and cost management, ensuring businesses avoid unexpected expenses.

Employer of Record vs. Recruitment Agency: Cost Comparisons

1. Direct and Indirect Costs: An EOR covers all employment costs—salaries, benefits, taxes, payroll and compliance fees—helping businesses save on both direct expenses (like wages) and indirect expenses (such as legal fees and HR management). Recruitment agencies only handle the initial hiring, leaving companies to bear ongoing costs.
2. Recruitment and Onboarding: EORs include recruitment and onboarding in their service package, which reduces administrative burdens and eliminates separate fees associated with recruitment agencies.

Conclusion

An Employer of Record provides a comprehensive, cost-effective solution for international hiring, covering all aspects of employment and compliance—unlike recruitment agencies that focus only on talent acquisition.

To learn more about how AYP can help you navigate the hiring journey with confidence, visit our website.