Why EORs and AORs Make HR Administration Easier

As your company grows or brings on a mix of employees, contractors, and freelancers, managing your workforce can get more complicated.

Employers of Record (EORs) and Agents of Record (AORs) are the workforce solution your organization needs.

While EORs focus on full-time employees and AORs specialize in contractor compliance, both support administrative tasks so your HR team can focus on the big picture.

EORs and AORs: How They Support Workforce Management

1. Ensure All Labor Laws Are Followed

Labor laws are constantly changing, and even minor oversights can result in significant penalties. Your EOR proactively monitors regulations for employees—from overtime rules to workplace safety standards—while your AOR audits contractor relationships to ensure adherence to local laws, such as U.S. independent contractor rules, U.K.’s IR35 and European Union directives. Together, they minimize legal exposure and provide your HR team with valuable peace of mind.

Explore:

• Essential Questions to Ask When Evaluating EORs
• Essential Questions to Ask When Evaluating AORs

2. Avoid Compliance Risks and Liabilities

Workforce mismanagement can expose your business to costly disputes. Your EOR serves as the legal employer for your new team members, mitigating payroll errors and workplace safety risks. Your AOR, while not the legal employer, protects against contractor misclassification lawsuits and compliance penalties. These solutions offer complete compliance coverage, which relieves administrative burdens across all business functions—not just HR.

See:

• 3 Benefits of Creating a Workforce Compliance Program

3. Manage Contracts and Other Critical Documentation

Contract management carries significant risks. Your EOR drafts locally compliant employment agreements and securely stores tax forms and benefits documentation. Similarly, your AOR manages contractor agreements, NDAs, and project-specific terms and verifies classifications and updating contracts as laws evolve. By maintaining rigorous standards, both of these partners enable HR to focus on more strategic talent initiatives.

Check Out:

• Common Myths About EORs
• Common Myths About AORs

4. Simplify Payroll Management

EORs and AORs handle all aspects of payroll processing, which eliminates administrative burdens. Your EOR manages global employee payroll, including tax withholdings and benefits, so that everyone receives accurate, timely payments. Your AOR oversees contractor payroll while ensuring proper classification and compliance with IRS or international tax requirements. With all this in order, your HR team can dedicate their efforts to strategic priorities like talent acquisition and creating an exceptional workplace culture.

Learn More:

• EOR vs. AOR: The Benefits for Your Organization

5. Make Onboarding Easier for Employees and Contractors

Onboarding and offboarding often consume valuable time with administrative tasks. Your EOR simplifies employee onboarding by managing orientation, payroll setup, and benefits enrollment. The AOR supports contractors with convenient payment setups, tailored service agreements, and ongoing audits. These partnerships create a more positive experience for both your company and its workforce.

Discover:

• 7 Ways to Onboard Independent Contractors Faster

6. Reduce Overall Workforce Spend

In today’s job market, many companies struggle to find the right skills and experience. Independent professionals offer a cost-effective solution, helping your company save money and reduce paperwork. Outsourcing parts of the hiring process can further speed up recruitment and lower costs by re-engaging trusted talent.

See:

• 3 Ways Independent Contractors Are Cost-Effective

EOR and AOR Solutions With MBO Partners

Whether you’re hiring employees globally or managing a blended workforce, MBO Partners provides services and support tailored to your needs. Our EOR solutions handle payroll, benefits, and other administrative duties for your employees, while our AOR solutions do the same for your contractors while also ensuring workforce compliance and risk mitigation.

Ready to simplify workforce management?

• Explore MBO’s EOR Solutions
• Explore MBO’s AOR Solutions

Connect with MBO Partners today to design a workforce solution that fits your specific needs.