High-volume recruitment, mass hiring, or mass recruitment is the act of hiring many people in a short period & usually for the same roles. It is an approach useful for businesses looking to expand quickly or manage seasonal surges.
Whether opening new locations or handling sudden growth, companies need a non-risky way to fill multiple roles.
The first challenge lies in hiring in large numbers- while also ensuring the hires are effectively qualified for the role. The second challenge is hiring multiple people in a short period.
This responsibility would drain any recruiter. As it requires repetition, extreme focus, and accuracy. So, this is where Employer of Record (EOR) solutions come in.
In this article, we explain how EOR solutions can be a game-changer in recruitment. Particularly in a bulk hire or mass recruitment.
What’s an EOR and What does it do?
An EOR is a third-party service that acts as the legal employer for your employees in countries where you don’t have a local entity. An EOR takes on all the administrative tasks related to the hiring.
Upon partnership, they are responsible for monitoring compliance requirements and ensuring your operations stay within legal frames.
Setting up a local entity in a foreign country can take months and might cost you a lot of time, energy & resources. However, utilizing an Employer of Record (EOR) can reduce the associated risks and expedite the overall setup. EORs possess the expertise and necessary resources to streamline global recruitment
Another perk offered by these Employers of record is that you hire employees almost immediately, often within just a few days.
Another significant benefit is cost-effectiveness. Through this partnership, you can avoid the substantial expenses associated with establishing and maintaining a legal entity in multiple countries. This includes costs such as registration fees, office space, and additional administrative expenses.
3 Reasons to Work with an EOR for Mass Hiring
Reason #1: Compliance with Labor Law & Risk Mitigation
Hiring in multiple regions comes with the challenge of adhering to various labor laws, tax regulations, and employment standards. These laws can differ between countries, and failure to comply can result in fines and legal issues- which could hurt your company’s reputation.
EORs take full responsibility for ensuring compliance, handling everything from employment contracts to social security contributions.
For example, consider a company hiring in both the United States and France. In the U.S., employment is often “at-will,” meaning employees can be terminated without notice.
In contrast, French labor law requires companies to provide specific notice periods and severance packages. An EOR knows these laws and can handle these requirements much swifter, allowing you to focus on your core operation and innovation.
A survey showed that 95% of companies using EOR services cited legal compliance as the primary reason.
Reason #2: Faster Mass Hiring & Reduced Time-to-hire
In a study, companies using EORs for global recruitment saw a 30-50% reduction in the time required to hire international employees.
For mass hiring and recruitment, speed is key. Companies often need to onboard large numbers of employees quickly to meet business demands, such as seasonal hires or expanding into new markets.
Setting up a legal entity in each new region can take months, delaying your ability to hire the necessary staff. EORs solve this problem by allowing you to hire workers immediately in foreign countries without establishing local entities.
For instance, imagine a company that needs to recruit 500 employees in Brazil for a new project. Establishing a legal entity there could take 6-12 months, but by using an EOR, the company can hire and onboard those employees in just a few weeks.
The EOR handles contracts, payroll, and benefits, ensuring everything is in place to get employees working as soon as possible.
Reason #3: Saving Costs Related to Legal Setup
According to research, companies using EORs save approximately $30,000 to $80,000 per year by avoiding the overhead costs associated with legal setup and in-country HR teams.
One of the most significant financial burdens when expanding globally is the cost of setting up and maintaining legal entities in each country where you want to hire. EOR services remove this need, allowing businesses to avoid the costs associated with international compliance, payroll management, and benefits administration.
For example, instead of spending tens of thousands of dollars to register a legal entity in Germany and hire an in-house HR team to manage local payroll, a company could hire an EOR for a fraction of that cost. This is particularly useful in mass recruitment, where scaling costs need to be tightly controlled.
Why EORs are becoming critical for future workforce needs
The global talent shortage is projecting a gap of 85 million jobs by 2030. Potentially leading to $8.5 trillion in unrealized annual revenue.
Aging populations and a lack of skilled workers drive this shortage. Japan, Brazil, and the U.S. are expected to face this problem severely.
In light of this, companies must prioritize upskilling and creating talent pipelines to stay competitive.
What better solution than an EOR to help you do this? With the support of an EOR, companies can address recruitment and mass hiring challenges in no time.
The Employer of Record (EOR) market is projected to grow at an annual rate of 6.9% through 2028.
Are you ready to take your recruitment efforts to the next level? Check out our EOR services today!
