The Employer of Record (EOR) industry has grown rapidly thanks to globalization, international hiring, and remote work demands. Global EOR providers promote service scope, compliance coverage, competitive pricing, and digital platforms to attract clients. Here is the uncomfortable truth, most EOR marketing is designed for employers, not employees.
Companies look at EOR services for scalability, local compliance, and cost efficiency. Yet the human element, the help, communication, and real support that employees need, is often treated as a secondary factor. Digital onboarding has streamlined paperwork but created a new gap, employees face administrative hurdles, isolation, and slow answers with no personal contact.
At Ambacia, a leading Employer of Record operating in Croatia and Serbia, we ask a direct question. How much do companies value employee wellbeing and how effectively do EOR providers support it?
The paradox of employee wellbeing in the EOR model
The employer perspective: compliance and cost efficiency
Companies publicly focus on employee wellbeing and remote employee engagement. They invest in flexible work policies, benefits programs, wellbeing budgets, and corporate HR tech. When the subject becomes EOR outsourcing, the priority shifts. Employers use EOR services to test new markets without creating a legal entity, expand global workforce capacity, and simplify international payroll and HR operations.
The contract framework is simple. The employer manages performance, objectives, and work tasks. The EOR manages HR administration and local compliance. On paper it sounds complete, in practice it is not.
The employee reality: isolation and administrative uncertainty
Remote employees hired through an Employer of Record model often face challenges that affect morale. They have no daily team interaction, no informal office culture, no immediate access to HR guidance. They often ask simple questions.
Who handles sick leave requests? How do I understand my local payslip? Who prepares documents required by a bank? Who explains tax contributions under local labour law?
Many EOR providers use a generic request mailbox or hotline. The result is digital only support with slow communication and limited knowledge of local regulations especially when support teams are outside the country. When companies switch EOR provider to reduce costs, employees experience confusion, onboarding delays, and unclear procedures.
Employees ask a basic question, is a small monthly saving worth the stress and frustration created by a service change?
The Ambacia approach, human first EOR
Ambacia has seen what happens when employees are ignored in the EOR decision process. We built the success of our EOR Croatia, and duplicated it in Serbia, around direct communication and local expertise.
- Onboarding with a human approach
We meet employees before onboarding to explain the Employer of Record structure, answer questions, and set expectations. We invite clients to include employees in introductory calls for transparency and clarity.
- Local compliance knowledge and accessibility
Our teams are located in Croatia and Serbia with practical knowledge of local labour law, employment regulations, payroll norms, and administrative procedures. Employees can contact our HR specialists directly without generic inboxes.
- Digital tools supported by real communication
We use HR CRM tools to streamline EOR operations, time tracking, document storage, and employee onboarding. Technology supports communication, it does not replace it. Employees can reach us anytime for questions about payslips, documents, or local compliance.
- Involving employees before choosing an EOR provider
Before switching EOR provider, we suggest employers talk with employees, ask them how satisfy they are with current setup. They will be directly affected by the quality of service. In several cases employees contact us after being transferred to another provider because the new EOR cannot answer basic questions. This is a sign every employer should consider.
Employers, it is on you!
When planning international hiring through an Employer of Record, ask these questions.
- How will employees receive support on a daily basis?
- Who do they contact for questions about sick leave, payroll, contract, and local compliance?
- Is the EOR team based in country with real understanding of local regulations?
- Can you speak with current employees supported by this EOR provider?
- Will employees get fast human communication or an automated email system only?
Low cost EOR services may save money at contract signing. They can also reduce employee satisfaction and increase the hidden cost of turnover and disengagement.
Final thought, employee wellbeing drives business success
An employee wellbeing strategy is directly tied to performance and retention. Choosing an EOR is not a technical process. It is a decision that affects the human side of international employment. When you select an Employer of Record provider, you are not outsourcing payroll only, you are trusting someone to care for your employees.
Before signing with an EOR provider, ask if you are protecting your employees or focusing only on cost savings, and most importantly if your future provider understands you and if he can support.
Support local EOR providers and choose a human first approach to global hiring.
