Why partnering with an Employer of Record (EOR) can help you cut costs and go global

Fotografia de Marina Pinho
Written by

Marina Pinho

Communication Manager

Making a business grow has never been easy, but right now it seems like it’s getting particularly difficult. From the uncertainty of the financial market, to the demands of customers and the lack of great professionals, if a company is looking to expand, they have they’re work cut out for them. Besides that, going international can be a daunting task, with various challenges that can arise when it comes to managing HR and payroll processes in a foreign country. However, partnering with an Employer of Record (EOR) can be a game changer for businesses looking to go global. But what exactly is an EOR and how can it make your business succeed? 

In this article, we’ll explore the world of EOR services, breaking down what they are, what they do, how they can benefit your company and how to choose the right one. By partnering with an EOR, you can reduce administrative burdens, achieve compliance with local labor laws and enjoy cost savings and operational efficiencies. So whether you’re just starting out or looking to expand your remote workforce, keep reading to learn how an EOR in Portugal can help you achieve your goals. 

What is an Employer of Record (EOR)?

Ok, so let’s start with understanding first what is exactly an EOR. It’s basically a company that acts as the official employer for workers hired by another company. If you have a business that you want to expand internationally you can either open an office in another country - which means you need to find a place to rent, hire people to manage it and educate yourself on the laws of said country (in other words, it’s a hell of a lot of work) - or you can simply work with a company that already operates there and that manages all of that bureaucracy for you. 

This is what an EOR does, it takes on the responsibility of managing HR and payroll tasks, including employment contracts, benefits, taxes and compliance with local labor laws. It doesn't just provide help with recruitment and placement like staffing agencies do, they offer a much more comprehensive support. 

What are the benefits of an Employer of Record (EOR)?


One of the key benefits of partnering with an EOR is that it helps companies comply with local labor laws and regulations since they are experts on this matter. In Portugal, for example, there are specific requirements around minimum wage, working hours, and employee benefits that must be followed. By outsourcing these responsibilities to an EOR, companies can ensure that they remain in compliance and avoid potential legal issues.

dellent eor global

Less administrative burdens

Moreover, an EOR can help companies reduce administrative burdens associated with managing HR and payroll in-house. This can include tasks such as payroll processing, tax filing, and maintaining employment contracts, which can be time-consuming and complex for companies not familiar with local regulations. 

More cost efficient 

By partnering with an EOR, companies can often save money, time and resources compared to managing HR and payroll in-house. This is because EORs can leverage their expertise and economies of scale to reduce costs associated with things like benefits administration and payroll processing. Moreover, if you choose to hire professionals from other countries to work remote, you can also benefit from lower costs associated with the wages practiced in those countries. 

Access to a larger talent pool

If companies have the flexibility to hire remote workers for their teams, they can also benefit from a larger array of candidates that are technically qualified and also skilled in English, and who can start to contribute to their projects immediately. If companies opt to work with an EOR that also helps with the recruitment process, they can have a double advantage since they’ll not only be able to hire professionals from other countries easily, but also at a much faster pace. 

How to select an EOR? 

Ok, so imagine you already think this is the best for your business, how do you choose the right company to partner with? Well you should keep in mind some factors: 


The first thing you should be aware of is the knowledge and experience the EOR has about HR processes, payroll management and the labor laws and regulations of the country. This is very important. You need to trust that the company has the necessary expertise to be able to comply with relevant requirements and avoid potential legal issues. Also, if they are doing the recruitment process as well, they need to understand your needs correctly so you won't waste time in the long run with unqualified candidates. 


This is also very important as it will impact your own reputation with the candidates you hire through them. If they have a lot of complaints, maybe you should stay away. Do some research on them first. You can look through their social media, the way they treat their employees and the way they address their clients, and don’t forget to read some online reviews as well. Companies with better reputations will also attract better candidates for you. 


Although this shouldn’t be the only factor to look into, it is an important one to consider. You should choose an EOR that shows transparency in pricing, with no hidden fees or unexpected charges. Sometimes they can also help you expand by offering you some flexibility when paying, so you can start to develop your project with the right candidates, but paying some days later. 

dellent benefits of an eor

Range of service

Depending on your company needs, you may require different services from an EOR partner. That is why you should evaluate their services to make sure they are able to offer the range of services required, such as payroll management, legal and compliance support and talent acquisition. You should also be certain that you can communicate effectively with them in english so it won’t be a problem in the future. 

Is an EOR the right choice for your company needs? 

This, only you can tell. However, if your company is looking to expand internationally, needs to find great IT professionals quickly and wants to save some costs, then this might be a great option. 

An EOR can provide a range of benefits to companies such as the ability to grow on a global scale, comply with local labor laws, reduce administrative costs and burdens, and streamline recruitment processes. Besides that, a good EOR will also help you understand and ease into a different culture, which can also be an obstacle since each country has their own set of values regarding work and business. 

If Portugal seems like a good place for you to grow your business, then you can talk with us so we can find the best way to help you in that. At Dellent we provide not only the HR management and payroll services, that include employment contracts, benefits, taxes and compliance with local labor laws, but also a comprehensive approach that includes talent acquisition services and all the support your company might need.