The case:

The company, a US-based SaaS startup, wanted to hire software engineers in Poland and Romania to strengthen its development team. Setting up a local entity was not an option. With Acvian’s comprehensive EOR (Employer of Record) support, the company managed to hire and onboard both teams within just 3 weeks and saved ~80,000 USD in setup costs.

‍

‍

Key figures:

Setup cost reduction:～80,000 USD 

Time saved (as opposed to other onboarding scenarios): 5 to 11 months

Employee retention rate after the first 12 months: 95%

‍

‍

The challenge:

The company’s management initially looked into the option of setting up local entities, but was put off by the duration of the process (6–12 months) and significant legal costs involved.

‍

‍

The solution:

Acvian offered an expansion model through EOR (Employer of Record). This solution enabled Acvian to act as the legal employer on the client’s behalf in Poland and Romania. Our team managed local employment contracts and compliance, handled payroll, taxes, and benefits administration, and provided on-site onboarding support for the smooth integration of the new employees.

‍

‍

The outcome:

Teams of engineers were onboarded within just 3 weeks instead of multiple months. The client avoided around 80,000 USD in setup costs, and the retention rate among the EOR-managed employees after 12 months was 95%.

‍

What makes EOR a risk-free option compared to setting up a local entity?

‍

An overseas legal entity is an entirely independent business unit. Registering one in Europe usually takes anywhere between 6 months and a year, involves a costly and highly bureaucratic process, and is not reasonable for companies that want to hire only specific teams, e.g. a remote IT department.

‍

An EOR provider already has a legally established presence in the country of your choice and acts as a legal employer for your overseas team. Within this model, you as a client don’t bear any but financial risks related to overseas hiring.