The difference between staffing and EoR
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Staffing, commonly referred to as 'uitzenden' in Dutch, involves a temporary employment structure where a staffing agency provides employees to companies on a short-term basis. These employees remain on the payroll of the staffing agency, which handles all administrative tasks such as salary payments, tax withholdings, and benefits.
This arrangement offers businesses flexibility in managing their workforce, especially during peak periods or for specific projects. The staffing agency assumes the employer's responsibilities, including compliance with labor laws and regulations, making it a convenient option for companies looking to quickly scale their workforce without the long-term commitment.
Employer of Record (EOR), commonly referred to as 'Payrolling' in Dutch is a service where the EOR agency assumes the legal employer responsibilities for a company's employees. This includes managing payroll, taxes, compliance with labor laws, and providing benefits. The employees remain under the operational control of the client company while the EOR agency handles all employer-related administrative tasks.
This model provides an efficient way for companies to manage their workforce without the burden of administrative overhead. It is especially beneficial for businesses with international employees, ensuring that all legal and regulatory requirements are met in different jurisdictions.
The primary difference between staffing and payrolling lies in the recruitment and selection. With staffing the staffing agency is recruiting the employee and match the recruited employee(s) with the needs of the client, with EOR the client is recruiting the employee.
In addition, an employee from the staffing agency is not made exclusively available to the client. With the EOR agency the employee is exclusively available for the client. Furthermore, with staffing the hirer's remuneration applies, but with EOR all terms and conditions of employment of the company where the employee works apply. As from 2026 also staffing agencies will need to apply all employment conditions of the client.
One of the key benefits of Outsourcing is the reduction of administrative burdens. By outsourcing payroll and compliance tasks, businesses can focus more on their core activities and strategic objectives. This is particularly advantageous for start-ups, small and medium-sized enterprises that may lack the resources to manage these functions in-house.
Additionally, Outsourcing provides a layer of compliance assurance, as the Staffing or EOR agency ensures adherence to all relevant labor laws and regulations. This minimizes the risk of legal issues and financial penalties, offering peace of mind to businesses operating across multiple regions. Furthermore, it can lead to cost savings by streamlining payroll processes and reducing the need for an extensive in-house HR department, especially for smaller enterprises and start-ups in the Netherlands.
Make sure you work with a fully certified and trustworthy Staffing or EOR agency, where compliance is guaranteed, in order to avoid potential (chain) liabilities). Exterus of course has all the required certifications and quality marks as well as the in-house knowledge to off EOR-services in a fully compliant way.
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