What is the Difference between Employee of Record Services and Staffing Agency?

 Every small business owner wants to hire the best people at the lowest prices. But starting a company can be expensive, so how do you find good people without breaking the bank?

 

One way is to hire a staffing agency or use an employer-of-record service. This article explains the difference between these two options. So, if you want to know the dynamics of both the services, stay tuned.

 

Let’s begin!

 

Most of the time, the very big difference between staffing agency and employer of record is not clear. They are both helping you find employees, but they have different ways to do so. In some cases, one way is more suitable than the other.

 

An employment agency is an organization that helps you find employees by posting job listings on their website or networking with other companies. So they may take a cut from your salary.

 

In contrast, an employer of record is actually the company that hires your employee (not through an agency). They will assume all legal and tax responsibilities for the employee. The employee will work under their guidance and according to the terms and conditions mentioned in the hiring document after considering the rules and industry standards of the geographical location they are operating.

 

So, this was about the difference between employees of record services and staffing agencies. We hope we are clear with the idea. If you need outsourcing services like accounting services, HR, and more, you can consider taking help from Benett & Peterson. We would love to help you out!