Multiplier Logo
Loading Animation Image

Employer of Record

4 Mins Approx

The Strategic Advantages of EORs For SMEs

For a long time, global expansion was largely the domain of corporate giants. Small and medium-sized enterprises (SMEs) were confined to the limits of their domestic boundaries.

Big corporations have the finances to make heavy investments in international expansion plans. They benefit from economies of scale in production, distribution, and procurement. Large-scale companies also have an established infrastructure that creates a strong foundation for entering foreign markets.

The combination of financial strength, being in a better position to negotiate with suppliers, and already having the groundwork laid out makes it easier for sizeable organizations to go global.

However, SMEs no longer have to stand by while major companies reap all the benefits. Gusto found that three-quarters of SMBs in the US alone plan to grow their international headcount to fuel expansion and manage costs better.

Thankfully, Employer of Record (EOR) services have changed the game for SMEs to cross into other countries. With EORs, you can expand your footprint into international territories without breaking your budget or having an established infrastructure. 

Let’s examine the obstacles SMEs face in expansion and uncover the strategic advantages EORs offer. Then, we can see how other SMEs are already capitalizing on what EORs bring to the table.

The advantages SMEs need for expansion

By utilizing the expertise and infrastructure of EORs, SMEs can confidently navigate the complexities of global expansion. You’re enabled to tap into new markets swiftly while ensuring your compliance is within legal standing.

EORs offer many strategic advantages that fuel growth, mitigate risks, and reduce expansion costs.

Compliance and risk mitigation

EORs help you manoeuvre through the complications of legal and regulatory frameworks in foreign markets. They ensure you comply with all local labor laws, tax regulations, employment standards, and compliance requirements. 

EORs also assume the legal responsibilities associated with global talent management, reducing the risk of non-compliance penalties and legal disputes.

Rapid market entry

Partnering with an EOR allows you to quickly establish a presence in overseas markets. There isn’t a need to set up legal entities and payroll systems or traverse the bureaucratic processes.

Accelerated market entry empowers you to start operating in your area of interest without significant delay. As a result, you can seize new opportunities and capture market share faster.


EORs can be more cost-effective than setting up and maintaining a foreign subsidiary or hiring local employees directly. 

They generally offer competitive pricing models with bundle packaging, including payroll processing, benefits administration, employee onboarding, and other HR support.

Bundling your HR needs together reduces overhead costs and administrative burdens.

Scalable and flexible

EORs offer flexibility and scalability to adapt to changing business needs and market conditions. You can easily scale your global operations up or down without the constraints of long-term commitments or expensive restructuring.

Whether hiring a small team in a new country or planning to ramp up production, EORs can adjust their services to your business needs. This gives you the agility needed to respond to market opportunities and industry challenges as they develop.

How EORs solve real-life business problems

Here are a few examples of how other SMEs use EOR services to overcome the hurdles along their global expansion journey.

Wanting to expand at a rapid pace, MoEngage encountered challenges in scaling its workforce to new geographies. Establishing legal entities in each location and navigating the difficulties with local compliance, visas, and international employee benefits was far too cumbersome.

MoEngage tried a few other EOR solutions but found them to be restrictive. They found Multiplier and decided to use its EOR services to tackle their local compliance issues, cut expansion costs, and significantly reduce legal fees.

DB Results is another SME that experienced difficulties expanding into new areas. To be precise, they had a region-specific problem.

DB Results ran into compliance challenges in Asia, where hiring and contract management can be time-consuming and costly. Depending on the country, payroll can easily take several hours to a few days to complete.

Multiplier’s EOR solution was instrumental in simplifying this process and opened them up to hire quickly. In fact, DB Results onboarded 100 employees from the Philippines within a timeframe of only ten months without having to set up an entity.

The company expanded its team without the typical costs of global hiring. Due to the quality, efficiency, and responsiveness of the EOR platform, DB Results also improved their retention rates.

A strategic HR solution

You don’t have to be an industry giant to pursue growth beyond your own borders. EOR services offer a holistic solution to the multifaceted challenges of global expansion and provide you with the tools and support you need to operate in international markets. 

An EORs’ expertise, vast network, and infrastructure give you a firm footing to get started with little risk. Partnering with one is a strategic HR solution that removes the barriers to global commerce for SMEs.

What’s holding you back from taking the leap? 

Discover how Multiplier’s EOR services can empower your business to excel in foreign markets. Let’s streamline your global expansion journey together. No matter the size of your business, we’re here to help you succeed on the world stage.

Speak with one of our experts today.

Will Smith
Will Smith

Content Writer

Will is a Content Writer at Multiplier. With a background in technology journalism, he is passionate about busting jargon, getting to the heart of complex topics, and writing pieces you'll enjoy reading.

Employ the best person for job, regardless of location

Employ the best person for job, regardless of location

Footer 24x5 New Img2x

An all-in-one international employment platform