Global Hiring Is Easier Than You Think and Riskier Than You Realise

By Ivy Muiga, MKR Development Organizational Fellow, 5 min read

If you're reading this, you've probably had this experience: you find an incredible candidate halfway across the world, and immediately start wondering about the paperwork nightmare ahead. I talk to companies facing this challenge every day. That's why I want to share what I’ve learned about a solution that's changing how businesses build global teams. It's called an Employer of Record, or EOR for short. 

An Employer of Record is a third-party organization that legally employs workers on behalf of another company. Companies use EOR services when they want to hire talented people in new countries without the hassle of setting up a local legal entity.

What International Hiring Looked Like Before

Traditionally, companies had two options. The first was setting up a local entity. This meant registrations, lawyers, accountants, tax filings, and ongoing compliance obligations. It is a serious commitment and makes sense only when you are ready to build a full presence in that country.

The second option is hiring contractors. This can work in some cases, but it often creates grey areas. People work full time but are treated as external. Benefits are missing. Local protections are ignored. Over time, this exposes both the company and the worker to unnecessary risk.

We saw many businesses delay or abandon international hires simply because neither option felt right.

What EORs Do Differently 

Their role assumes the risk. They become the legal employer in the employee’s country by issuing locally compliant contracts, running payroll, calculating and remitting statutory deductions, and administering benefits according to local requirements.

For example, in Kenya, this includes contributions to the Social Health Insurance Fund (SHIF) and the National Social Security Fund (NSSF). These are not optional, and getting them wrong can cause real problems. Our job is to make sure those basics are handled correctly every month.

You, as the client, remain in control of the work. You decide what the role looks like, how performance is measured, and how the employee grows within your organisation.

Why More Companies Are Choosing This Route

From my perspective as an EOR Provider, the value of an EOR comes down to a few very practical realities.

#1 Faster and More Flexible Hiring

Without an EOR, hiring in a new country can take several months before the first employee is legally onboarded. With an EOR, the timeline is significantly shorter. This matters when you are hiring for a specific skill, responding to a market opportunity, or building a team around a time bound project. It allows leadership teams to act on hiring decisions without putting the business on pause.

#2Confidence in Local Compliance

Employment compliance is not intuitive across borders. Every country has its own rules around payroll taxes, statutory benefits, notice periods, leave entitlements, and termination procedures. For example, in Kenya, employers are required to remit contributions to the Social Health Insurance Fund and the National Social Security Fund. Missing or miscalculating these contributions can quickly lead to penalties and reputational damage.

An EOR is built around understanding and applying these local requirements correctly. This allows companies to focus on building teams without constantly worrying about whether something has been missed.

#3 Hiring Based on Skill, Not Geography

One of the most meaningful shifts I have seen is how EORs support fairer hiring decisions.

When geography is no longer the deciding factor, companies can hire based on capability, experience, and cultural alignment. A growing business does not need to be headquartered in the same country as its best talent. This opens doors on both sides. Companies access wider talent pools, and professionals gain access to roles that were previously out of reach simply because of where they lived.

#4 Establishing Proper Employment Standards

This part matters more than many people realise. When someone is hired through an EOR, they receive a proper local employment contract. They are enrolled in statutory benefits. They have clarity on leave, notice periods, and protections.

This creates stability. Employees know where they stand, and companies build trust from the start. We see better engagement and longer working relationships when people feel properly employed rather than loosely attached.

Looking to Work With an EOR?

Working with an Employer of Record does not remove your responsibility as an employer. You are still accountable for leadership, culture, feedback, and performance. What it does remove is the need to become an overnight expert in labour laws across multiple countries.

Our role is to carry the administrative and compliance side of employment so that you can focus on running your business and supporting your people. If you are considering international hiring and want to do it properly from the beginning, an Employer of Record can help you get there without unnecessary complexity.