Employer of Record vs Recruitment Agency: What’s the difference?

Building an international team is not as easy as hiring someone in your country. There are different ways to address this challenge, but the two most common are the recruitment agency and the global employment platform (Employer of Record in Dubai).

In this article, we will explain what is the difference between a global employment platform (Employer of Record) and recruitment agencies. Also, what should companies seeking globalization know about the two options?

  1. What is a global employment platform (EOR)?
  2. Recruitment agencies: Advantages and disadvantages
  3. What does each type of agency do?
  4. Key features and differences
  5. Which one best suits your needs?
  6. How can they help you enter new markets?
  7. Responsibilities of a local EOR employer
  8. How can we help you obtain more information about Employers of Record and staffing agencies in Dubai?

1. What is a global employment platform (EOR)?

When dealing with international recruitment practices, one of the first tools you will come across is the Employer of Record in Dubai. A global employment platform is a solution that is legally responsible for paying people employed internationally, as well as managing taxes, insurance, and employee benefits.

For employed persons, moving countries, a global employment platform (Employer of Record) is also responsible for managing immigration processes, visa, and sponsorship applications.

1.1 Advantages of the Employer of Record in Dubai

Global employment platforms are ideal for any company looking to expand into global markets while still offering a suitable work environment. All responsibilities rest with the global employment platform, which brings with it superior compliance.

For countries with complicated international labor laws, this can be invaluable. Using a global employment platform (Employer of Record in the UAE) also means that companies do not have to worry about additional payroll taxes or co-employment arrangements.

1.2 Disadvantages of the Employer of Record in Dubai

There are some issues regarding the use of a global employment platform for international recruitment. On the one hand, the employing entities have less control and influence over the international teams. While it takes the burden off your internal HR department, it can also bring about significant changes in company culture and standards.

2. Recruitment agencies: advantages and disadvantages

The other most prevalent tool for globalization and recruitment practices is to use of a recruitment agency. These agencies work by linking the employed persons with the employing entities registered with the agency.

These attachments may be temporary or long-term contractors. Therefore, with them, you can find contractors for hire and full-time workers. Recruitment agencies will manage things like resumes and application documents, as well as contact between the employing entity and the person employed. They will also gather feedback from job placement to improve their services.

2.1 Advantages of recruitment agencies

Recruitment agencies reduce business liability and recruitment time by linking employing entities with employees from different existing groups. They save employers money and offer flexibility by tapping into established talent pipelines.

2.2 Disadvantages of recruitment agencies

Recruitment agencies also have their negative side. They probably have large talent pools, but training contractors and employees take time. Distance and the hiring process can create issues with company culture and team bonding.

Employer entities also have less control over the hiring process. It is possible to find recruitment agencies with inferior selection processes.

3. What does each type of agency do?

For companies that want to skip the costly and time-consuming process of direct hiring, employment and staffing agencies can be great options, but both are not suitable for the same circumstances.

3.1  Global employment platform

Employment agencies specialize in finding qualified employees to fill long-term job vacancies.

These agencies usually have a pool of educated and experienced applicants who are actively seeking employment, and when a company approaches them for a position, the employment agency sends qualified people to the company. The hiring manager can decide whether or not to hire any of the people sent by the agency.

This process allows employers to avoid wading through a pool of qualified applicants and helps job seekers find relevant job opportunities more quickly.

3.2  Staffing agency

You may also see staffing services agencies called temporary agencies. This is because, unlike employment agencies, staff outsourcing specializes in filling temporary vacancies.

For example, if one of your employees is on family leave, takes an extended vacation, or gets sick, you may have to temporarily fill the position until they return. In this case, you may want to avoid long-term direct hiring.

Instead, human resources may contact a staffing agency to find qualified, pre-screened job applicants for temporary openings. Staffing agencies can also be very helpful for seasonal businesses that need extra help during peak seasons.

4. Key features and differences

Although both temporary staffing solutions serve different purposes, they still have many similarities.

Before choosing one or the other, it is important to consider these similarities and differences to find the best solution for you. While employment agencies and staffing agencies generally differ when it comes to long-term versus short-term employment, they do have several characteristics in common, including:

  • Intermediaries: both types of agencies act as intermediaries between job applicants and employers, making it easy for hiring managers to find qualified candidates quickly.
  • Long-term employment: while staffing agencies specialize in providing temporary workers, it is common for these temporary workers to become full-time employees as they demonstrate their value and experience to employers.
  • Shortlisted employees: both employment and staffing agencies shortlist employees, so you can be sure they are qualified to fill the position.

Ultimately, both options offer viable solutions for companies that need to find qualified job applicants as quickly as possible.

4.1 Differences

Although there are some similarities, the differences between these types of organisms are much more significant. These differences include-

  • Long-term vs. short-term: staffing agencies are more suitable for companies that need temporary assistance. Employment agencies specialize in finding a long-term fit.
  • Private vs. public: employment agencies can be run by the private sector or run by the government, while all staffing agencies are private.
  • Employment levels: staffing agencies can accommodate entry-level positions as well as management positions, while many employment agencies only deal with mid-level and senior employees.
  • Industries: staffing agencies are often limited to a few select industries. Employment agencies tend to deal with a wider variety of companies and industries.
  • Hiring and paying: in general, employment agencies do not hire or pay employees, they simply provide workers. Staffing agencies typically hire and pay employees, with the client paying the staffing agency directly.
  • Interviews: workers placed by staffing agencies generally do not interview before being placed in a new position. Employees provided by employment agencies are almost always interviewed before being hired.

5. Which one best suits your needs?

Since both staffing solutions serve different purposes, neither is inherently a better option than the other. The right choice depends entirely on your needs as an employer.

Let us take a closer look at what circumstances each type of agency is best suited to.

5.1 Reasons to select a global employment platform

Companies should contemplate choosing an employment agency if:

  • You must fill a continuing position
  • Your enterprise want more control over the interview and hiring process
  • You need to fill a higher level or highly qualified

5.2 Reasons to select a staffing agency

On the other hand, it would be better to choose a staffing agency if:

  • You must fill a temporary position.
  • Your enterprise wants to test an employee before hiring them for a full-time position.
  • You want to evade keeping track of employment rules and taxes.
  • Your enterprise wants to skip the hiring and interview process.
  • You need to discover workers with a niche set of services.

In general, employment agencies are more suitable for employers who need highly skilled and long-term workers. For example, if you need to fill a senior management position, employment agencies are likely to be your best bet.

Meanwhile, staffing agencies are more suitable for employers who need short-term workers to fill unskilled positions.

6. How can they help you enter new markets?

Today’s talent market is highly competitive and companies need to act quickly if they want the best employees. It can be a challenge to find and hire the best talent quickly. While complying with the complexity of labor laws.

The process of finding and hiring the best talent is often slow and cumbersome. Navigating the complexities of employment law can be daunting, and many companies are not flexible or adaptable enough to keep up with the changing marketplace.

Using an Employer of Record platform can help your business overcome these challenges. By working with a trusted provider, you can quickly access highly-skilled talent without worrying about compliance issues. In addition, you will be able to remain agile and flexible to stay ahead of the competition.

7. Responsibilities of a local EOR employer

A top Employer of Record service does not always take care of the same functions, since these will vary depending on the needs of the company that hires their services. Still, an EOR entity typically has a fairly well-defined set of core responsibilities.

7.1  Assume the local responsibilities of creating a subsidiary

An Employer of Record in Dubai is a legally constituted entity in the country or countries in which they operate. By assuming control of the staff of the company that hires their services, they also assume the process of creating a subsidiary, which greatly simplifies the work of the parent company. The EORs go on to represent the company as legitimate employers in the local market.

7.2  Ensure legal compliance

When a company decides to start operations in a market other than the one in which it normally operates, compliance with new rules and regulations is often one of the greatest sources of risk. An Employer of Record guarantees compliance with local labor and tax legislation by taking charge, among other things, of drafting contracts following with current regulations.

7.3  Manage the affiliate squad or local team

An Employer of Record in Dubai acts as an employer and human resources manager for all purposes. This implies that the best Employer of Record service takes care of everything related to the hiring and incorporation of new talent, the necessary work permits, the management of contracts (including their termination, if necessary), and the management of salaries. Also, the rest of the benefits, such as vacations, pension plans, or medical leave.

7.4  Manage the correct payment of taxes

The payrolls are structured by the EOR in such a way that they comply with all the financial regulations of the local market. In other words, the best Employer of Record service in Dubai ensures that the proper withholdings are applied and that the payment of taxes is correct. Consequently, an EOR entity has the necessary knowledge and means to manage the taxation of the subsidiary’s workforce.

Usually, an EOR also offers consulting services, advising the contracting company on the best practices for organizing the workforce and managing talent under the current legislation. In short, the best Employer of Record service in the UAE is a key tool for simplifying the process of opening a subsidiary abroad or starting operations in a new market and reducing the risks involved.

8. How can we help you obtain more information about Employers of Record and staffing agencies in Dubai?

Finding contract workers is a topic that can be fairly broad. Nonetheless, EOR Middle East will supply you with the greatest contract staffing and labor solutions available. Our services are available in several Middle Eastern countries:

We are making costs to assist industries all over the world in realizing their objectives of thriving and expanding into innovative markets in all of the Middle East. As a result, if you require assistance, please do not hesitate to contact us.

Would you like to get in touch with EOR Middle East to learn more about the advantages of contracting employment for businesses? Send us an email at [email protected] if you would want us to assist your company with our HR management experience. Also, you can call us and ask for more information at +971 43 316 688.

You can also visit thetalentpoint.com today if you are looking for the perfect career opportunity. You can, on the other hand, send an email with your CV to [email protected]. Our recruiters will make certain that you are placed in a position in the UAE that suits your qualifications.

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