# Recruitment agency vs EOR: what each does, and why you often need both

Source: https://www.tessera.partners/recruitment-agency-vs-eor
Language: en
Last updated: 2026-10-02

Agency vs EOR

An employer of record (EOR) employs and pays someone you have already found. A recruitment partner finds and evaluates that person. Most companies hiring abroad need both: a partner to choose the right hire, and an EOR or their own entity to employ them legally.

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## How they compare

|  | Recruitment partner | Employer of record (EOR) |
| --- | --- | --- |
| What it does | Maps the market, approaches candidates, assesses them and supports the offer. | Becomes the legal employer in the hire's country and runs payroll, taxes and benefits. |
| Cost model | A one-off fee per hire. At Tessera Partners: 10% of first year base salary and a 750 EUR start fee deducted from the final invoice. | A recurring monthly fee per employee, on top of salary and employer costs. Each provider publishes its own pricing. |
| Timeline | First qualified shortlist in 21 days, then interviews and offer. | Starts after you have chosen the person. Onboarding time depends on the country and the provider. |
| Who carries legal employment | Never the employer. You or your EOR employ the hire. | The EOR is the legal employer in that country, under a contract with you. |
| When to use it | You need to find and assess the right person. | You have chosen the person and have no legal entity in their country. |

Deel, Remote, Oyster and Papaya Global are examples of EOR providers. Their services and prices change, so check each provider directly.

## How Tessera Partners works alongside EOR providers

We focus on finding and assessing the hire. When you already use an EOR, we confirm with each candidate that they accept that employment model before the first interview. Once you choose a candidate, we coordinate the start date and the information your EOR needs.

If you do not have an EOR yet, we can explain the main options so you can compare them. We do not give legal or payroll advice, so we always suggest confirming the details with the provider and your lawyer.

## Decision checklist

- Have you already chosen the person? If not, start with recruitment.
- Do you have a legal entity in the hire's country? If not, you will need an EOR or a contractor agreement.
- Will you manage the person like an employee, with set hours and close supervision? Then contractor status may not fit, and an EOR or entity is safer.
- Is the role senior, confidential or hard to fill? Then a recruitment partner adds the most value.
- Are you hiring five or more people in the same country? Compare an EOR with opening your own entity.
- Does the candidate accept the employment model you plan to offer? Ask before the final interviews.

## Frequently asked questions

### Can an EOR find candidates for us?

Some EOR providers offer recruiting add-ons, but their core product is employment, payroll and compliance. They rarely map a market or assess senior candidates in depth. Most companies use a recruitment partner to find and assess the hire, then pass the chosen person to their EOR for the contract.

### Do we need an EOR if we hire a contractor?

Not always. A contractor agreement can work for independent, project-based work. But if you manage the person like an employee, local law may treat them as one, with back taxes and penalties. That decision is legal, so check it with a lawyer or your EOR before you sign.

### How much does each option cost?

A recruitment partner charges once per hire. Our fee is 10% of first year base salary, plus a 750 EUR start fee deducted from the final invoice. An EOR charges a monthly fee per employee for as long as it employs the person. Each provider publishes its own pricing.

### Does Tessera Partners work with a specific EOR?

We work alongside whichever EOR you choose. Our job is to find and assess the right person, and to make the handover to your EOR smooth. If you have not chosen a provider yet, we can explain the common options so you can compare them.

### What happens to the 90 day guarantee if we hire through an EOR?

The guarantee covers the placement, not the employment contract. If the person you hired through your EOR does not work out within 90 days, we search again for the same role. There is no additional fee, and we keep the same 5-Lens standard.

## Related pages

### [Remote hiring in Latin America →](https://www.tessera.partners/services/remote-hiring-latin-america)

Time zones, written English and employment models.

### [Recruitment fees →](https://www.tessera.partners/recruitment-fees)

Our 10% fee, start fee and guarantee.

### [The 5-Lens Method →](https://www.tessera.partners/methodology)

How we assess every candidate.

## Not sure which you need? Talk to us.

[Book a call →](https://cal.com/tessera)