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8 min read

Employer of Record Solutions for Staffing Firms: Cut Costs & Scale Faster

Employer of record

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Author

Jemima Owen-Jones

Published

November 25, 2024

Last Update

January 29, 2025

Table of Contents

Budget more effectively

Lower costs

Streamline global payroll

Minimize compliance risks

Save on labor costs

Source top talent quickly

Redeploy contingent workers seamlessly

Retain your best workers

Maximize margins with one reliable partner: Deel

Key takeaways
  1. Staffing agencies can stabilize their profit margins and boost profitability by choosing Employer of Record (EOR) providers with transparent, predictable pricing like Deel.
  2. It’s easier to set budgets when you outsource to a single, consolidated EOR rather than legacy solutions reliant on in-country partners with variable fees and different pricing models.
  3. Top providers like Deel also provide significant cost savings by helping you boost efficiency, source and retain talent, and allocate resources more effectively while you focus on growing your business.

In today’s increasingly competitive and cost-sensitive market, staffing agencies are under pressure to balance expanding their service offerings with keeping operational costs low. But unpredictable pricing models — especially those tied to legacy Employer of Record (EOR) providers — can create financial headaches, chipping away at profit margins and hindering growth.

At Deel, our global reach and transparent pricing transform these challenges into opportunities, helping staffing agencies like yours gain clarity and control over costs.

By consolidating payroll, ensuring compliance, and providing upfront pricing without the risk of hidden fees, Deel empowers staffing firms to budget confidently, allocate resources effectively, and stay ahead of the competition.

With results ranging from streamlined processes to leaner operations, we’ve helped agencies stabilize and grow their profit margins. Here’s how Deel EOR can optimize your agency for success across borders.

Budget more effectively

Predictable pricing models allow your staffing agency to budget more confidently. They eliminate the risk of unexpected expenses and provide financial stability across countries, making it easier to maintain healthy profit margins.

Legacy providers can’t offer predictable pricing due to their limited coverage. They rely on in-country partners to fill the gaps, meaning they often set prices based on local arrangements. This fragmented approach makes it impossible to maintain consistent costs across regions, forcing you to either adjust client rates or absorb the additional expenses yourself.

Additionally, their reliance on local partners makes it harder to get upfront quotes. When handling new client requests, you can’t be sure how well these proposals will fit into your budget.

Look for EOR providers with an extensive global network to avoid budgeting issues. For example, Deel has owned legal entities and infrastructure in over 100 countries, including the US, UK, and Germany. We can give you an upfront quote and guarantee there will be no costly surprises.

See also: EORs with Owned Entities vs. In-Country Partners: What’s Better?

What people used to do is […] go through third-party agencies that [...] take a pretty hefty pay cut, 20, 25% of the salary of that person, in order to employ them locally for local agencies. We really changed the game by owning all of the infrastructure all the way from entity, but also lawyers in every country, payroll managers in every country, so that you can really hire quickly.

Alex Bouaziz,

Co-founder and CEO, Deel

Deel Employer of Record
Hire employees globally with the #1 Employer of Record
Deel provides safe and secure EOR services in 100+ countries. We’ll quickly hire and onboard employees on your behalf—with payroll, tax, and compliance solutions built into the same, all-in-one platform.

Lower costs

Global EOR providers usually offer the most competitive prices. As they have a direct presence in most countries, they can keep their rates low and minimize unnecessary charges. They don’t have to inflate prices to account for the fees charged by local partners and intermediaries.

Additionally, global providers can leverage economies of scale to reduce prices further. They’re able to spread costs across all their clients in one region, allowing them to charge less per employee. On the other hand, legacy providers using an aggregate model can’t go lower than what their local partners charge them.

This means global providers like Deel are more likely to offer the best deal, even in countries with high setup costs, such as the UAE and Germany.

Discover how Braintrust, a talent-based platform, is helping its clients with Deel's solutions.

See also: Cost Comparison: EOR vs. Opening an Entity

Streamline global payroll

Managing payroll across different regions can be costly. Global EOR providers make expenses more manageable by consolidating payroll for all your employees and offering one fixed rate.

By contrast, legacy providers either don’t offer payroll services or outsource these processes to their in-country partners. Again, these partners are likely to have different pricing models with variable fees, making it difficult to analyze costs and forecast expenses.

Global EOR providers also handle complex currency exchanges to keep payroll costs predictable. For example, Deel uses a method called Forward Rates, which are agreed-upon fees for a specific day. This shields your staffing agency from sudden fluctuations and potential disruptions to your cash flow.

Discover how Deel and AI recruiting platform, Torre, partnered to uncomplicate global payroll.

See also: 9 Benefits of Consolidated Payroll for Global Teams

Deel Global Payroll
Truly simple, truly global payroll
Consolidate and streamline your international payroll operations. We’ll handle compliance, tax deductions and filings wherever you have entities—all supported by our team of in-house payroll experts.

Minimize compliance risks

Global providers offer superior compliance management compared to legacy systems, significantly reducing the risk of costly issues. As they maintain full control over every process, there’s no chance of gaps that can cause errors or mismanagement.

Like all Employer of Record services, legacy providers should assume liability for compliance issues since they legally employ your workers. The trouble is that they can’t shield you from all the repercussions. For example, suppose there’s a case of worker misclassification at your agency. The EOR may bear the legal costs but you still have to amend the contract or end the placement early, causing a lot of disruption to your client’s operations.

Frequent issues may frustrate clients and cause them to leave your services, instantly reducing your net revenue. That’s why it’s best if the EOR service not only assumes liability but also guarantees continuous compliance with all the relevant local labor laws and regulations.

Direct oversight also holds global providers fully accountable for compliance. If you ever have doubts or uncertainties about using Deel, for example, you can contact your customer success manager.

As legacy systems rely on in-country partners, it may be unclear who bears ultimate responsibility for compliance management. You may find yourself chasing different people instead of getting a fast resolution to issues.

Discover how Renrui HR and Deel join forces to expand global hiring services.

Before Deel, coordinating numerous local partners caused delays and extra costs. Compliance was also a challenge.

Terry Ouyang,

Head of International Business at Renrui HR

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Save on labor costs

Relying on one consolidated provider means you spend less time on logistics. Instead of coordinating with multiple vendors, you can deal with a single point of contact for all processes.

For example, Flexhire cut the time spent on administration tasks by 80% after switching from another EOR provider to Deel.

Global EORs also standardize processes and policies across regions, meaning your team doesn’t have to keep adapting to different workflows or resolving inconsistencies. For example, you only have to learn to use and manage one type of software. This consistency ensures smoother internal operations and allows you to allocate resources more effectively.

As a result, you can maintain a lean HR function and spend less of your agency’s budget on labor costs. Your existing employees will have fewer back-office administrative burdens and focus more on client relationships and service offerings.

Discover How DevSavant, a talent provider for tech startups, saved 77% of admin time with Deel.

For us, Deel is more than a platform; it’s a strategic partner that has enabled us to connect top Latin American talent with global clients fast and without worrying about any administrative complexities.

Daniel Peña,

CEO, DevSavant

Source top talent quickly

Chances are that recruitment is one of your costliest operations. Research shows staffing agencies spend an average of $16,388 per month on job listings alone.

While global EORs can’t reduce your hiring costs, they can guarantee a return on your investment. They streamline the onboarding process across locations, ensuring you can source niche expertise and tap into foreign talent pools. This makes it easier to fulfill client needs and maximize your earning potential.

For instance, Deel can onboard workers in a new location in as little as one day. There’s virtually no risk of you losing them to competitors in such a short time frame.

Legacy providers can’t make these guarantees as they rely on in-country partners. There are likely to be different timelines and varying standards across locations, making it difficult to develop cohesive hiring processes. You may be unable to move quickly enough when you interview a promising candidate.

Discover How Bubb streamlines global recruitment while Deel handles payroll and local compliance for every hire.

The level of service from Bubb & Deel is equally high touch. We’re a fast-growing business that’s expanding internationally at a rapid rate, and both Deel & Bubb are super attentive.

Justin Teo,

Head of International at Eucalyptus, a Bubb & Deel client

Platform Tour
Test out Deel HR
Say goodbye to spreadsheets and scattered HR systems. Deel HR lets you manage full-time employees, contractors, and freelancers all in one place. Click to launch an interactive demo of Deel HR and elevate your HR operations.

Redeploy contingent workers seamlessly

Growing staffing agencies are twice as likely to be redeploying workers than competitors. This strategy reduces your turnover rates and allows you to fulfill more client requests.

The challenge is relocating talent across borders, given the complexity of many visa and immigration processes. If there are any delays or complications, workers might not arrive at their placement as scheduled.

Top providers like Deel offer visa and immigration services, including:

  • Eligibility checks
  • Document management
  • Assistance completing forms
  • Fee payments
  • Regular updates

Global providers transfer workers between their own EOR entities, which means you don’t have to coordinate with other partners or intermediaries. You only need to communicate with the worker and your customer success manager. By keeping the relocation process simple, you can avoid complications that leave top workers out of action and delay placements getting filled.

Discover How TalentQL relocates talent and supports knowledge exchange with Deel.

Having a partner like Deel makes corporate immigration and global expansion much easier. Deel helps us get results without any stress.

Adewale Yusuf,

Co-founder, TalentQL and CEO of AltSchool Africa

See also: A Guide to Contingent Staffing: Risks & Rewards

Retain your best workers

Global EORs provide a smoother, more consistent experience for employees than legacy systems, helping you to foster loyalty among your team. This lowers your recruitment costs as you have fewer roles to replace.

The provider’s standardized processes mean everyone receives equal care and support. For example, Deel is always available to help, as we have local teams everywhere we operate. Employees can get their questions answered no matter their time zone, location, or issue. This consistency prevents feelings of unfairness or disparity from arising and strengthens your reputation as a dependable agency.

With a dedicated point of contact, you also don’t need to navigate multiple providers. You can access local expertise quickly and get fast resolutions to employee issues.

Most importantly, when there are none of the complications of a legacy agency, contingent workers have a better experience. They can focus on their jobs without worrying about payroll, tax, or compliance issues. When their placement is over, that means they’ll be more likely to return to your agency.

Discover how DevSavant enhanced its contractor experience with Deel.

Our contractors recognize the platform’s simplicity. Deel connects their professional and personal lives, giving them peace of mind.

Daniel Peña,

CEO of DevSavant

See also: How Staffing Agencies Can Guarantee a Good Employee Experience With an EOR

Maximize margins with one reliable partner: Deel

To remain competitive, staffing agencies must expand their services while preventing costs from spiraling and eating into their profit margins.

Partnering with an EOR like Deel helps you keep tight control of your finances and manage your budget effectively. Our transparent pricing model and detailed quote calculator provide you with clear, upfront costs, so you don’t have to worry about surprise expenses.

All Deel’s customers can benefit from:

  • Broad, international coverage
  • The option to add global payroll
  • Visa and immigration support
  • Scalable technology
  • Detailed, upfront quotes
  • Transparent pricing
  • Flexible payments
  • Predictable monthly costs
  • Local compliance expertise
  • 24/7 responsive customer support

The cost of going [at] it alone in new geographies when hiring globally does not make financial or business sense. There’s incorporation and time investment that’s needed to get up to speed with employment regulations in different countries, not to mention the risk associated with worker misclassification…With Deel, we have complete control without compromise. The process is quick, robust, and transparent.

Dean Morrison,

Chief Operating Officer at Flexhive

Ready to begin your staffing agency’s digital transformation? Book a 30-minute call with Deel to learn more about our EOR services.

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About the author

Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.

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