Hiring models explained
Employer of Record vs Staffing Agency: What’s the Difference?
Employer of record vs staffing agency is a common question when hiring abroad. An EOR employs your worker on paper; a recruitment agency finds the right person. GV Staffing is a recruitment agency: we help you hire vetted professionals from Pakistan, and you choose how to engage them.
General information only, not legal or tax advice. Confirm your structure with a qualified adviser.
What Is an Employer of Record?
An employer of record (EOR) is a company that legally employs a worker on behalf of another business. It runs payroll, handles tax withholding and employment paperwork in the worker’s country, while the client business directs the day-to-day work. It lets companies employ people abroad without a local entity.
An EOR doesn’t usually find candidates. You bring the person you want to hire, and the EOR takes care of the employment side, typically for a recurring fee per worker on top of salary and employment costs. Services and country coverage vary by provider, so the details always depend on the contract you sign.
What Does a Staffing or Recruitment Agency Do?
A staffing agency helps businesses find workers, but the term covers two different services. A recruitment agency sources, screens and introduces candidates, and you hire your choice directly, usually for a one-time placement fee. A temporary or contract staffing agency also employs the workers it places and bills you an ongoing rate for their time.
So the real distinction in the employer of record vs staffing agency question is between finding talent and employing it. An EOR employs but doesn’t find; a recruitment agency finds but doesn’t employ; some contract staffing agencies do both.
Employer of Record vs Staffing Agency at a Glance
A general comparison of the three services people most often confuse.
| Question | Recruitment agency (GV Staffing) | Employer of record | Contract staffing agency |
|---|---|---|---|
| Main job | Finds and screens candidates | Employs a worker you already chose | Supplies and employs workers |
| Legal employer | Not the agency — you engage the hire | The EOR | Usually the staffing agency |
| Who directs the work | You | You | You |
| Payroll and employment admin | Not included | Included | Usually included |
| How fees work | One-time placement fee per successful hire | Recurring fee per worker | Ongoing rate that includes a margin |
| Finds candidates | Yes | Usually not | Yes |
Descriptions are general. Each provider’s services, coverage and terms differ, so read specific contracts carefully.
Where GV Staffing Fits
GV Staffing is a recruitment agency. We find, screen and introduce remote professionals from Pakistan, you interview and choose your hire, and a one-time placement fee applies under your recruitment agreement. We do not employ your hire, run payroll or act as an employer of record.
Once you’ve chosen your hire, you decide how to engage them. Businesses commonly use one of three routes:
- A direct contractor agreement between your business and the professional, who invoices you for their work.
- Your own entity, if your business is already set up to employ people in Pakistan.
- A third-party employer of record, which employs the professional on your behalf while you direct their work.
Each route has different legal, tax and practical implications for you and your hire. We can explain how our recruitment process works alongside each one, but we don’t give legal or tax advice, so confirm the right structure with a qualified adviser in the relevant countries.
Using a Recruiter and an EOR Together
If you want a well-screened hire and a formal employment arrangement, the two services fit together like this.
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Step 1: Recruit the right person
GV Staffing defines the role with you, screens candidates in Pakistan and sends you a shortlist.
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Step 2: Choose your hire
You interview, select and agree the role, pay and start date in principle.
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Step 3: Choose an engagement route
With your advisers, decide between a contractor agreement, your own entity or a third-party EOR.
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Step 4: Set up the engagement
If you use an EOR, it issues the employment contract and runs payroll; otherwise you contract directly.
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Step 5: Onboard and manage
Your hire joins your team and tools, and you direct the work under whichever route you chose.
See how our recruitment process works in detail.
Which Do You Need: an EOR, a Recruiter or Both?
If you already know who you want to hire and only need help employing them formally abroad, an EOR addresses that need. If you need to find and assess the right person, you need a recruiter. If you want both — a well-screened hire, employed through a formal local arrangement — you can use a recruiter for the search and an EOR for the employment.
Questions to ask yourself
- Do I already have a candidate, or do I need to find one?
- Do I want to employ the person formally, or engage a contractor?
- Does my business have, or plan, an entity abroad?
- What ongoing cost per worker am I prepared to carry?
- Have I confirmed the structure with a qualified adviser?
How the Costs Differ
An EOR typically charges a recurring fee per worker for as long as it employs them, in addition to the salary and employment costs it pays on your behalf. A contract staffing agency builds its margin into an ongoing rate. A recruitment agency like GV Staffing charges a one-time placement fee per successful hire, defined in your recruitment agreement, with no ongoing fee afterward.
If you combine a recruiter with an EOR, you pay both: the placement fee once, and the EOR’s fee on an ongoing basis. For a wider comparison of models, see our guide to remote hiring solutions, our page on remote direct hire recruitment and the overview of offshore staffing.
FAQ
Employer of Record vs Staffing Agency FAQs
Is a staffing agency the same as an employer of record?
No. An employer of record legally employs a worker you have already chosen and handles payroll and employment admin. A recruitment agency finds and screens candidates for you to hire. Some contract staffing agencies do both, but the services are distinct.
Is GV Staffing an employer of record?
No. GV Staffing is a recruitment agency. We recruit remote professionals from Pakistan for you to hire, and charge a one-time placement fee per successful hire. We don’t employ your hire, run payroll or handle employment compliance.
Can I use an EOR to employ someone I hired through GV Staffing?
Yes, that is one option. After you choose your hire, you can engage them through a third-party employer of record. Check how the EOR covers Pakistan, its fees and terms, and confirm the arrangement with a qualified legal or tax adviser.
Do I need an employer of record to hire someone in Pakistan?
Not necessarily. Many businesses engage remote professionals through a direct contractor agreement, while others use their own entity or an EOR. The right route depends on your situation and the nature of the role, so take advice from a qualified adviser.
Who handles payroll if I hire through GV Staffing?
You, or the provider you choose. With a contractor agreement, your hire typically invoices you and you pay them. With an EOR, the EOR runs payroll. GV Staffing doesn’t process payroll for clients or their hires.
What does an EOR cost compared with a recruitment agency?
They are priced differently. An EOR usually charges a recurring fee per worker on top of employment costs. A recruitment agency like GV Staffing charges a one-time placement fee per hire. The two aren’t substitutes; they solve different problems.
Need Help Finding the Right Hire?
Whichever way you plan to engage your hire, the search comes first. Tell us about the role and we’ll explain how recruitment and the one-time placement fee work.