One of the biggest perks of hiring an Employer of Record is the ability to streamline operations. Smaller companies see the biggest benefit of this, since administrative work such as managing employee paperwork and staying up-to-date on employment laws takes up time that could be spent on core business operations.

The Wall Street Journal explains that employees of small businesses stand to benefit from co-employment. According to Frank J. Casale, chief executive of research for consulting firm Outsourcing Institute, the EOR can pool together workers to offer lower rates on health insurance and other advantages that typically aren't seen in smaller outfits, such as extra training, a crisis counseling hotline and access to benefits information.

In addition, EORs can provide a legal safety net for companies that can't afford liability insurance. If a worker files suit, the business is protected by the employment services' coverage.

Staffing Industry Analysts reports that according to the Bureau of Labor Statistics, employment services – such as EORs and employment placement agencies for temporary or contract workers – lost 2,200 jobs in May. However, temp jobs are holding steady at 9.1 percent, equaling April's total. 

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