Employer of record or embedded team: which fits a growing company?

An employer of record (EOR) legally employs a worker for you in a country where you have no entity, and handles payroll, taxes, benefits and contracts. You still find the person and manage their work. An embedded team goes further: the partner finds the expert with you, employs and equips them, and manages HR, performance reviews and reporting, while you direct the daily work.

When an employer of record is the right choice

• You have already found the person you want to hire.
• You have the time and the managers to onboard and lead them.
• You mainly need the employment to be legal and the payroll to run.

When an embedded team fits better

• You need help finding the right people, not only employing them.
• You want equipment, IT and HR handled without building an HR function abroad.
• You want regular reporting on output and quality, and someone accountable alongside you.
• You expect to grow from one person to a small team across functions.

Side by side

• Finding the person: with an EOR, you; with an embedded team, the partner, with you.
• Legal employer: the EOR, or the embedded-team partner.
• Payroll, benefits and contracts: handled in both models.
• Equipment and IT: varies by EOR provider; included with an embedded team.
• Daily direction of the work: you, in both models.
• Performance reviews and reporting: you, with an EOR; shared, with an embedded team.

Questions to ask either provider

1. 01Who is the legal employer, and under which country’s law?
2. 02What exactly is included each month, and what is extra?
3. 03Who provides the equipment, and who owns it?
4. 04How is data protection handled?
5. 05What happens if the person leaves?

How GrowAxis fits

GrowAxis is not a classic employer of record. Its embedded experts in Egypt are employed by GrowAxis, which also finds them with you, equips them, and handles payroll, benefits, licences, data protection, performance reviews and monthly reporting. If you have already found someone and only need payroll, a plain EOR may suit you better; if you want the whole picture handled, an embedded team does that.