There’s often a common misconception that Employer of Record (EOR) services are just a startup thing. Basically, it’s a scrappy solution for small teams trying to go global on a tight budget.
But that’s far from the full picture.
The truth?
Companies of all sizes — including well-funded scaleups and global enterprises can use EORs to move faster, reduce legal risk, and navigate the growing complexity of international hiring.
When you're hiring across borders, it’s not just about money. It’s about compliance, timelines, and getting it right the first time.
Take PandaDoc, for example. They are closing in on 1,000 employees and they use RemoFirst to stay agile while hiring across new markets. Watch their story.
Here’s how large companies also utilize an Employer of Record internally.
1. Testing New Markets Without Overcommitting
Even global giants don’t always want to set up a legal entity every time they enter a new country. Why? Because launching in a new market is a bit like dating. You want to test the waters before making it official.
But, opening an entity can cost $20k-$150k per entity, plus ongoing maintenance fees, and it could potentially be months before you can even onboard employees.
Hiring through an Employer of Record (EOR) lets companies explore new regions with far less risk. You can onboard local talent, stay compliant with local laws, and see if the market is a good fit without the cost and complexity of forming a legal entity upfront.
History is full of cautionary tales. Uber, for example, ran into legal and cultural roadblocks in several markets because they moved too quickly without enough local insight.
2. Hiring Fast to Support New Initiatives
When opportunity knocks, timing is everything.
Even large companies often need to act quickly to stay competitive. Whether it’s spinning up a new business unit, testing a regional strategy, or jumping on an unexpected growth opportunity.
But internal hiring processes can be anything but fast.
Legal reviews, payroll setup, local labor law considerations, and entity formation can all slow things down. And by the time everything’s ready, the moment may have passed.
That’s where an Employer of Record makes a real difference.
With RemoFirst, companies can hire employees in a new country in a matter of days. You don’t need to wait for entity setup or untangle international compliance issues — we handle that for you.
This flexibility is ideal for launching pilot programs, building out new go-to-market teams, or standing up short-term initiatives without locking yourself into long-term infrastructure.
You get the agility to move at the speed of business, without compromising on compliance or employee experience.
3. Managing Headcount Caps or Budget Restrictions
Big companies don’t always have unlimited flexibility.
Even with healthy budgets, many face internal hiring freezes, headcount caps, or departmental budget restrictions. And that happens especially during economic uncertainty or planning cycles.
However, business doesn’t pause just because approvals are delayed. Teams still need to launch, deliver, and grow.
Hiring through an Employer of Record gives enterprises a compliant workaround. It allows companies to bring on full-time talent without months of legal processing and opening entities.
Unlike independent contractors, EOR employees receive proper protections, benefits, and payroll support — all while staying off the company’s official employee roster.
This kind of flexibility is especially useful when a new initiative can't wait for next quarter's headcount review.
HR and finance teams can stay within budget, avoid compliance risks, and keep strategic projects moving forward without red tape slowing them down.
4. Handling Niche Roles or Short-term Hires
Not every hire needs to be permanent or part of a long-term expansion plan.
Sometimes, you just need a local expert for a few months or a highly specialized role to support a specific project. Other times, you’re filling a temporary gap or testing out a contract-to-hire arrangement.
For these cases, setting up a legal entity doesn’t make sense. It’s costly, time-consuming, and may never pay off, especially if the role is short-term or tied to a one-off initiative.
That’s where an Employer of Record is especially useful. EORs make it easy to compliantly hire in countries where your company has no local presence and may never plan to establish one.
Whether it’s a compliance consultant in Germany, a UX researcher in Japan, or a backfill for a parental leave in Chile, RemoFirst can help you get the right talent in place quickly and legally.
This approach gives you the freedom to solve urgent talent needs without overcommitting on infrastructure. And if that short-term hire turns into a long-term fit, you're already set up to make the transition smooth.
5. Simplifying M&A and Regional Compliance
Mergers and acquisitions are complex enough without adding international employment laws into the mix.
When companies combine forces, they’re often faced with a patchwork of employment contracts, local labor regulations, and entity mismatches that can slow down integration and create compliance risks.
An Employer of Record can serve as a bridge during these transitions.
Whether you’re retaining employees in a region where the acquiring company has no legal presence, or transferring contracts across borders, an EOR keeps the workforce stable while legal and operational details get sorted out.
This flexibility is especially helpful post-acquisition, when companies need to unify payroll, benefits, and employment terms across different countries — without violating local labor laws or risking misclassification.
With RemoFirst, enterprises can focus on strategic alignment and integration, while we handle the complexity of regional compliance and employee continuity.
6. Supporting Globally Distributed Teams
Remote work isn’t just for startups anymore. Even large enterprises are building remote-first and hybrid teams to attract talent, increase flexibility, and reduce office overhead.
But with that flexibility comes a whole new layer of complexity, especially when employees are spread out across multiple countries.
Managing payroll, benefits, tax compliance, and labor regulations in multiple countries can quickly become a logistical and legal headache. That’s where an Employer of Record brings order to the chaos.
With RemoFirst, companies can centralize the management of global teams while maintaining compliance in each local market. We handle employment contracts, statutory benefits, tax withholdings, and more. All through one platform with clear, transparent pricing.
Whether you're hiring a software engineer in Portugal or a customer success lead in South Africa, an EOR makes it easier to scale your distributed workforce without sacrificing consistency or control.
7. Navigating Labor Shortages with Global Hiring
Talent shortages aren't just a local problem, they're a global one.
From tech to healthcare to specialized manufacturing, many industries are struggling to find the right people with the right skills at the right time.
We just surveyed 300 HR and People leaders, and 74% said labor shortages are already very or extremely challenging.
For enterprises facing these gaps, international hiring isn’t just smart. It’s essential.
Employer of Record solutions open up the entire world as your talent pool. Instead of waiting months to fill a role locally, companies can tap into global markets where qualified talent is ready and available.
This not only speeds up hiring but also improves access to diverse perspectives and skill sets that may be scarce in your home market.
The Modern Enterprise Playbook Includes EORs
Employer of Record solutions aren’t just for small businesses or startups. They’re becoming a key part of how large companies stay nimble, compliant, and competitive in a global market.
From testing new markets and speeding up hiring to managing headcount caps and navigating M&A transitions, EORs give enterprises the flexibility to grow without friction.
And with RemoFirst, you get all the benefits of global reach and compliance without the complexity or hidden costs.
Whether you're expanding into new regions or simply trying to move faster with fewer roadblocks, an EOR can be the difference between staying stuck and scaling smart.
Want to see how it works in practice? Chat with our team of experts.
