Employer of Record (EOR) services in the Nordics

Employer of Record (EOR) providers offer comprehensive employment outsourcing services for companies that want to hire international talent without worrying about compliance or establishing legal entities in each location. EORs operate through their own legal entity in the country where they hire employees on behalf of their clients. This is particularly useful for companies entering new markets without the complexity of global employment regulations.

Key services:

• Employee benefits management
• Payroll processing
• Compliance management
• Provision of compliant employment contracts
• Administration
• Acting as the legal employer for new hires
• Arranging visas and work permits
• Acting as an intermediary between employees and government authorities
• Offering legal advice on issues like notice periods, termination rules, severance pay, and more

When a company utilizes an EOR, a three-party agreement is signed by the company, the employee, and the EOR:

• The company and the employee maintain a direct relationship. The company is responsible for assigning tasks, managing performance, and overseeing other aspects related to the work itself.
• The EOR acts as the legal employer of the employee, handling administrative and legal responsibilities such as payroll, taxes, benefits, and compliance. For global EORs, this may also extend to managing employee visas and addressing taxation issues in the host country.
• The employee is responsible for fulfilling the duties outlined in their job description.

An EOR assists businesses in hiring and managing a global workforce, while a PEO provides support for companies with domestic HR and workforce functions where they already have legal entities.

With a PEO, you enter into a co-employment arrangement, meaning you remain the legal employer of your hires and retain responsibility for any legal or compliance issues that arise. In contrast, an EOR becomes the legal employer, assuming full responsibility for your team.

If your focus is on domestic operations, a PEO is a great choice. However, if you’re looking to expand internationally while streamlining HR, payroll, and compliance, an EOR is the ideal solution.

1. Assess your business needs and the services required for international hiring. Create a shortlist of potential EOR providers and refine it further by evaluating the pros and cons of each option.
2. Verify that the EOR has its own entity in Sweden, like BTR, rather than outsourcing services to a third party. Relying on a partner-dependent EOR could introduce risks, such as limited control over costs and security, due to the reliance on external companies.
3. Since the EOR manages everything from onboarding to payroll on your behalf, ensure they provide a positive experience for your employees. For instance, do they respond promptly to inquiries and offer support when needed? Do they ensure timely salary payments? Is their onboarding process engaging and thorough?
4. Confirm that your EOR offers a competitive and fair compensation and benefits package to help attract and retain top talent. Work with the EOR to develop a benefits package that reflects the employee’s role, skills, experience, and local employment regulations. Additionally, ensure the EOR prioritizes security and compliance to safeguard your intellectual property and company data.

The cost of using an EOR can vary depending on factors like the services needed, the location of your employees, and the number of workers you plan to hire. Typically, prices range from $599 to over $2,000 per employee, per month.

If you come across EORs offering lower rates, make sure they provide the same level of security and compliance as more established providers.

For pricing, it’s best to choose an EOR that offers clear, flat-rate pricing for a comprehensive set of services, including onboarding, benefits, taxes, payroll, compliance, and data protection.