What is the role of a Staffing Agency, and is it different from an Employer of Record?

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The Differences Between a Staffing Agency and an Employer of Record

When it comes to managing workforce needs in Nordic countries like Denmark, Sweden, and Finland, businesses often face the decision of working with a staffing agency or an Employer of Record (EOR). This article provides insights into the differences between the two.

Staffing Agency

Staffing agencies specialize in recruitment and provide temporary or contract workers to businesses. Key points to consider:

  1. Flexibility: Staffing agencies offer quick access to a pool of pre-screened candidates, providing flexibility for short-term or project-based staffing needs.

  2. Recruitment Expertise: Agencies handle candidate sourcing, screening, and selection, saving businesses time and effort in the hiring process.

Employer of Record (EOR)

An EOR, such as GTS Nordic, acts as the legal employer for a company’s workforce, handling HR, payroll, compliance, and administrative tasks. Consider the following:

  1. Full Employment Solution: EORs provide end-to-end employment services, including onboarding, payroll management, benefits administration, and compliance with local employment laws.

  2. Local Expertise: EORs possess in-depth knowledge of labor regulations, tax requirements, and employment practices in Nordic countries, ensuring compliance and minimizing risks.

  3. Scalability and Expansion Support: EORs enable businesses to scale their workforce quickly, enter new markets, and expand operations without establishing a legal entity.


Selecting the appropriate workforce solution is crucial for businesses operating in Nordic countries. While staffing agencies offer flexibility and temporary staffing solutions, Employer of Record services provide comprehensive employment support, compliance management, and scalability. By understanding the distinctions between these options, businesses can make an informed decision that aligns with their unique workforce requirements.

Contact GTS Nordic today and let us find a solution for your unique situation.

Experience the Nordics

Relocating to another country is a daunting task. But your local assignment should not be about paperwork, complicated processes and tedious legislation. It should be about experiencing everything Denmark, Sweden or Finland has to offer. With GTS Nordic as your local partner, relocation becomes a smooth and hassle-free process.