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"Take a closer look at Global Hire platform with local entity advantages"

Review different EOR business models. Local entity vs multi-partner, which is better?

Despite the growth in the EOR industry in the last few years, little is known about the business models used by different EOR and global PEO services providers. The overall image appears to be one of assumption, that all providers operate the same principles, and any differences are in brand or business strategy. However, as this whitepaper shows, this couldn’t be further from the truth. The reality is that business models play an important role in the efficacy of an EOR solution, particularly at scale.

Most EOR solutions that you will have heard of operate like brokers and don’t actually hire your employees and contractors themselves, but subcontract the employment to local partners in each location. This means that the way your worker is treated in one country will differ from how your worker is treated in another.

Problems don’t end there. Every time there’s a query, you have to wait for a long chain of communication between the middleman platform and their partners and back before you can resolve it. This takes time and often gives unsatisfactory results. Using a direct local entity business model, Remundo is able to provide consistent level of service to every employee in every location, and solve queries in-house, without having to pass information through long chains of people and partners. Additionally, the local entity model provides compliance assurance because you’re dealing directly with the Employer of Record, not a middleman.

In summary, when it comes to hiring and managing your global talent, this whitepaper presents evidence that direct entity business models for EOR services are the optimal choice.

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