Supply chain companies are scaling rapidly, but building global teams is no easy feat. With increasing demand for skilled professionals and the pressure to expand operations across borders, many supply chain companies are facing significant hiring challenges.

A study by Alcott Global found that 48% of companies view the talent shortage in supply chain roles as a critical challenge. Hiring supply chain leaders is particularly difficult due to the need for specific skill sets (65%), a shortage of talent with specialized expertise (59%), lengthy hiring processes (36%), lack of diversity in candidate pools (27%), and issues with talent retention (22%). To address both workforce shortages and the operational hurdles of international hiring, many companies are turning to flexible global employment models. 

Employer of Record (EOR) services offer an effective way for supply chain businesses to expand internationally without setting up local legal entities. By handling employment, payroll, and compliance, EOR providers help businesses quickly access skilled talent across borders.

This approach is especially popular among agile organizations: 47% of startups and small to medium-sized enterprises (SMEs) entering new markets already utilize EOR services to assess foreign labor pools without committing to long-term arrangements.

Understanding EOR Services

An Employer of Record is a third-party service provider that legally employs workers on behalf of another company, taking on the legal responsibilities for employment tasks such as payroll, tax filings, employee benefits, and legal compliance. The hiring company, however, maintains control over the employee’s day-to-day work and operations.

Main Functions of EOR Services:

• Global hiring without establishing a local entity: EOR providers enable startups to legally employ talent in foreign countries without having to register a local business. This simplifies international hiring by removing the need for legal, tax, and administrative setup in each new location.
• Payroll management: EOR services handle payroll processing, ensuring that employees are paid on time and in compliance with local tax regulations.
• Compliance with local labor laws: EOR providers ensure that the hiring company adheres to each country’s employment rules—covering areas like minimum wage, statutory leave, termination rules, and tax withholding.
• Employee benefits: From health insurance to paid leave and pension contributions, EORs manage country-specific benefits packages that align with local standards and employee expectations.
• Risk mitigation: By managing employment contracts, terminations, and legal documentation, EOR services reduce exposure to compliance penalties and employment-related legal risks.

In the context of supply chain companies, EOR services can simplify international workforce management by eliminating the need to navigate complex local regulations, ensuring companies can scale rapidly while staying compliant.

Why Supply Chain Companies Are Choosing EOR Providers

1. Accelerated market entry and global expansion

One of the most significant benefits of EOR services is the ability to expand into new markets without the need for establishing local entities. Supply chain companies can hire employees in multiple countries almost immediately through EOR providers. This eliminates the long setup times and high costs associated with forming legal entities in each country. EOR services allow supply chain companies to scale into international markets almost instantly, giving them a competitive edge in a fast-paced global economy.

2. Simplifying compliance in diverse markets

Navigating the regulatory requirements of each country can be overwhelming. Labor laws differ significantly across regions, and non-compliance can lead to costly fines, lawsuits, or operational disruptions. An EOR provider takes care of all these issues, reducing the risk of legal problems in new markets. By leveraging the expertise of EOR providers, supply chain companies can ensure they are adhering to local employment laws and avoid costly fines and penalties.

3. Cost efficiency and administrative simplicity

Beyond simplifying global hiring, EOR services help reduce the hidden costs of international expansion. By outsourcing complex HR tasks like payroll processing, tax filings, and benefits administration, startups can avoid hiring in-house legal or HR staff for each new location. This not only cuts expenses but also frees up internal teams to focus on product development, customer growth, and business strategy.

4. Focus on core operations

Supply chain companies are primarily concerned with managing logistics, optimizing inventory, and enhancing operational efficiency. Handling the complexities of international workforce management can distract from these critical activities. By outsourcing HR functions such as payroll and compliance to an EOR, companies can redirect resources and focus on optimizing their supply chains and growing their business.

Notable EOR Providers for Global Hiring

Multiplier

Multiplier offers EOR services with a focus on providing scalable solutions for businesses across multiple regions. The platform is known for its ease of use and flexibility in managing employees worldwide. According to a Multiplier review, users appreciate the platform’s intuitive design, but some have noted that the customer service could be more responsive during high-demand periods.

Velocity Global

Velocity Global offers end-to-end global employment solutions, allowing businesses to hire, onboard, and manage employees in over 185 countries. Their platform ensures compliance with local labor laws and provides support for payroll, benefits, and taxes, helping companies build global teams with ease.

Native Teams

Native Teams offers highly customizable EOR solutions, with a focus on offering flexibility in terms of compensation packages and benefits. Their platform enables businesses to hire internationally while providing comprehensive compliance management. A Native Teams review indicates that their global reach and local expertise are valuable, although, as per some users, onboarding can take longer than expected.

Omnipresent

Omnipresent simplifies international hiring by providing a comprehensive employment platform that ensures full compliance with local labor laws. With access to a global network of experts, Omnipresent supports payroll, benefits, and tax management in more than 150 countries, making it easier for businesses to hire and manage remote teams globally.

G-P

Globalization Partners provides a comprehensive EOR service with a broad international footprint. Their services include payroll management, compliance assurance, employee benefits administration, and more. A Globalization Partners review highlights the company’s strong expertise in navigating complex global employment laws, but some users have found the pricing structure to be on the higher end for smaller businesses.

Papaya Global

Papaya Global offers a cloud-based global payroll and workforce management platform that enables businesses to hire employees in more than 140 countries. Their platform automates compliance, payroll processing, and tax filings, allowing companies to manage a global workforce efficiently without dealing with complex legal requirements.

WorkMotion

WorkMotion offers EOR services that focus on simplifying the global hiring process for remote teams. They are known for their user-friendly platform and strong compliance capabilities. According to a WorkMotion review, users value the platform’s automation and compliance management, although some customers have noted the need for more flexibility in customizing employee benefits.

Note that there are many Employer of Record providers worth exploring beyond the ones mentioned above. The right choice depends on your company’s specific goals, target countries, industry regulations, and internal HR capabilities.

How Supply Chain Companies Are Using EOR Services: Real-World Examples

U.S. Transportation & Logistics Company

A U.S.-based company in the transportation and supply chain sector faced operational challenges with its global business center in North Africa due to time zone differences and national holidays. To improve efficiency, the company decided to relocate its operations to Mexico. By partnering with Prodensa for Employer of Record services, they were able to quickly hire local talent, ensure full compliance with Mexican labor laws, and streamline payroll management. As a result, the company successfully established a remote team in Mexico with 100% legal compliance and reduced employee turnover to under 10% annually.

Floship

Floship, a company in the logistics and supply chain sector, faced challenges in hiring and managing remote employees globally. They needed a solution to handle global hiring, compliance, and payroll more efficiently. By partnering with Deel services, Floship was able to quickly hire workers from different countries, manage payroll, and ensure compliance with local labor laws. As a result, Floship was able to build a strong, remote team worldwide and focus on growing its business without worrying about the complexities of international hiring and compliance.

How to Choose the Right EOR Provider for Supply Chain Companies

When selecting an EOR provider, supply chain companies should consider several factors to ensure that the provider can meet their specific needs and support their international expansion. Here are some recommendations:

• Global reach: It is essential to choose an EOR provider with a broad international presence. The provider should be able to manage employees in all of the regions where the supply chain company operates or plans to expand.
• Compliance expertise: The EOR should have in-depth knowledge of local labor laws, tax regulations, and employee benefits requirements in each market. Their compliance capabilities will help mitigate risks related to legal and financial penalties.
• Flexibility and scalability: Supply chain companies often need to scale their workforce quickly. The EOR should be able to offer flexible solutions that grow with the company’s needs.
• Technology and integration: A good EOR provider will offer a seamless, user-friendly platform that integrates well with existing HR and payroll systems.
• Customer support: Consider the level of customer support provided by the EOR. The provider should offer strong support and assistance to resolve any issues that arise quickly and efficiently .

Final Thoughts on EOR for Supply Chain Workforce Management

EOR services offer supply chain companies a strategic advantage in managing global workforces. By simplifying the complexities of compliance, payroll, and benefits management, EOR providers enable companies to scale quickly and efficiently in new markets. As global expansion continues, EOR services will remain a key solution for supply chain companies seeking to optimize workforce management while focusing on core business functions. Choosing the right EOR provider is critical, as it ensures compliance, minimizes risk, and provides the flexibility needed to support international operations.

Author Bio : Yaryna Kobryn is a skilled writer with over 8 years of experience, Yaryna specializes in producing clear, engaging content that demystifies global employment and EOR solutions. Her expertise helps businesses navigate the complexities of expanding remote teams. With a strong background in working alongside product and software development teams, Yaryna brings a tech-savvy perspective to her writing, delivering insightful, in-depth analysis for her readers.

Linkedin: https://www.linkedin.com/in/yaryna-kobryn-1b4774339/