The Limitations of an EOR
An employer of record handles all legal matters pertaining to employment, however they are not in charge of giving instructions to the worker.
Top Temporary Staffing Services Company in Ahmedabad, and India. The client of the EOR handles performance management, goal-setting, daily work assignment, and staff onboarding. For the sake of argument, the EOR would still be used to make the payment if they wanted to give the worker a performance bonus.
Top Temporary Staffing Services Company in Ahmedabad, and India. The employee is essentially a member of the client's workforce. When a customer wants their talent to benefit from full-time employment (or part-time employment), this is usually a long-term relationship. The client may choose to hire a temporary employee, freelancer, or contractor if they require talent on a project basis.
Nevertheless, EOR services are far more extensive. Hiring freelancers or contractors is made easier by a number of EOR service providers. Through an EOR, you can even begin working with talent on a contract basis and transition to a full-time agreement without physically changing businesses.
The Differences Between a Staffing Agency and an EOR
On the other hand, a staffing agency is largely responsible for hiring workers for other businesses. When a company's hiring demands exceed its capacity or it lacks an internal recruitment team, it usually hires a staffing agency.
Typically, the duties of the staffing firm include posting job openings, vetting applicants, and conducting first interviews. A hiring manager from the client company becomes involved to make the ultimate decision after the agency has narrowed down the pool of prospects.
Additionally, depending on the organization, they may offer additional services like:
Background check: The majority of employment agencies are able to check a candidate's criminal, academic, and professional histories.
Drug testing: Some organizations offer pre-employment drug tests that check for opiates, cocaine, marijuana, and other illegal substances.
Skills training: Employees may receive training as needed from staffing firms that specialize in a certain field.
The employment agency will not be able to legally hire the chosen applicant if they offer these recruitment services. Unless they also require the services of an EOR, their client is the employer. When the customer extends an offer to their top prospect and the candidate accepts, the staffing agency considers the job done.
EOR and employment services have different pricing structures. EOR services are typically more costly than the alternative because they are typically based on a recurring, subscription-based approach. Contrarily, staffing firms usually impose a placement fee, which is sometimes expressed as a percentage of the worker's salary.