Employer of Record for Biotech: EOR Expansion Support in 2025

Companies in the biotech industry face multiple specific and complex issues when considering global expansion. These include challenges not typical in other industries, often to do with the proprietary nature of the research involved, licensing mismatches, and specialized technical knowledge, among others. Enter the Employer of Record (EOR), a strategic partner that helps biotech businesses expand into new markets, streamline HR functions, and mitigate risk through legal and HR compliance assurance. For those unfamiliar with EOR services and their application in the biotech industry, this guide explores how an Employer of Record for biotech companies can transform workforce management and compete on a global scale.

What Is an Employer of Record (EOR)? A Complete Guide for Biotech

Employer of Record Meaning

An Employer of Record (EOR) is an HR and payroll services outsourcing specialist that legally employs workers on behalf of another company, typically in new markets. While the company directs the employees’ work, the EOR brings scaling and streamlining by managing all the administrative and legal responsibilities of employment, such as payroll, tax filing, benefits, and compliance, through their established company presence and industry-level systems.

What Is a Global Employer of Record?

A global EOR is a particular type of EOR provider that offers or specializes in supporting operations across borders, allowing companies to hire talent anywhere in the world and manage necessary HR functions without setting up a legal entity in each location.

For biotech companies, whether conducting clinical trials, expanding research operations, or launching new products globally, this model offers global mobility without the usual hurdles associated with becoming a global employer.

What Does an Employer of Record Do?

An EOR takes care of:

• Hiring and onboarding in local markets
• Offering expertise in the local market
• Matching needs with local benchmarks and best practices
• Managing payroll and taxes
• Ensuring labor law compliance
• Offering competitive benefits through schemes like medical insurance and retirement funds at scale
• Handling offboarding and contract terminations

Benefits of Using an EOR for Biotech Companies

Today, the biotech industry continues to push the boundaries of innovation. From breakthroughs in mRNA technologies and CRISPR to new ways of thinking around personalized medicine, the sector is booming.

However, behind these innovations lies a more practical challenge that companies must overcome if they wish to compete on a global scale. The question today is: how do biotech companies scale globally while maintaining compliance, managing complex workforces, and securing top talent?

Used by globally-minded companies for some years now, the benefits of EORs for biotech companies encompass both the general and the specific, including:

Ensuring Compliance with Global Labor Laws

Biotech companies may struggle to operate across multiple jurisdictions with varying employment laws, as these laws are typically strict concerning key elements of the industry, and different jurisdictions often have competing or differing legal requirements. An EOR can help to ensure compliance in each country, minimizing legal risks related to misclassification, improper terminations, or incorrect tax filings.

Streamlining Payroll and Tax Management Across Countries

Coordinating payroll across continents is always complex, but an EOR simplifies this by consolidating global payroll and handling tax filings using expert systems and knowledge, ensuring employees are paid accurately and on time, regardless of location.

Attracting and Retaining Top Biotech Talent Globally

Top-tier scientists, clinical researchers, and biotech engineers, among others, are always in high demand, with fierce competition in key markets. An EOR enables you to hire the best, no matter where they’re located, opening up a world of new talent pools while providing competitive local benefits and ensuring full legal compliance that will help to ensure long-term relationships.

Supporting Expansion into New Markets

Wherever you’re expanding, an EOR can onboard your first employees quickly while you test market viability, all without the upfront cost and time needed for establishing local subsidiaries. The right EOR can even offer key local insight, access to specialized resources and networks, and fast tracking through localization for key aspects of biotech operation requirements, all of which will bring you to market quicker and safer.

The Biggest Challenges Faced by the Biotech Industry

Talent Acquisition Challenges in Biotech

Limited Talent Pools in Specialized Roles

The biotech sector demands niche expertise, and waiting for the right talent for a role can slow or stall key projects. These roles are often difficult to fill locally, requiring companies to look globally for suitable candidates, yet the added complications of cross-border employment or relocation can often prove too much to do in-house.

Competition for Top Global Talent

Biotech professionals are regularly courted by major pharmaceutical firms, startups, research universities, and government labs. Without a global hiring strategy and strong benefits packages, smaller firms risk losing out on talent opportunities or losing key team members to headhunters.

Regulatory Compliance in Biotech

Navigating Complex Employment Laws in Multiple Countries

Each country has distinct labor regulations, from working hours and overtime pay to employee termination rights. While companies entering new markets are more likely to make errors due to unfamiliarity with local requirements, even a single misstep can lead to costly penalties.

Ensuring Compliance with Industry-Specific Regulations (e.g., FDA, EMA)

Beyond employment law, biotech firms must adhere to additional regulations specific to the industry, like drug development, clinical trials, and manufacturing. These systems are often enforced by bodies with wide-reaching powers, like the FDA (U.S.) and EMA (EU).

Scaling Operations Across Borders

Managing Payroll, Benefits, and Taxes in Diverse Markets

When expanding, many biotech firms struggle to provide consistent employee experiences across locations. This can include understanding and complying with varied tax laws and benefit structures. Unfortunately, inconsistencies can breed uncertainty or resentment, leading to the loss of key talent.

Addressing IP Protection in Cross-Border Operations

While research and innovation are the backbone of biotech, safeguarding intellectual property (IP) and data becomes a critical challenge when hiring or operating across borders.

When to Use an Employer of Record

• Exploring New Markets Without Establishing a Legal Entity – An EOR lets biotech firms test international markets, run pilot programs, or establish temporary research outposts without the cost and difficulties of setting up a new company entity in each target market.
• Attracting and Retaining Specialized Biotech Talent Globally – Need a CRISPR expert in Germany or a clinical trial coordinator in India? An EOR allows you to tap into specialized talent pools quickly and legally while managing everything from your current local company structure.
• Hiring Employees During Entity Setup in New Regions – Setting up a legal entity can take months and requires a lot of dedicated admin time. However, EORs allow you to begin operations immediately by hiring staff under their infrastructure while your own setup is underway. An EOR will even then help you to transition employees to your own entity safely and easily when you’re ready.
• Avoiding Misclassification of Contractors in Biotech Research – Using independent contractors in research roles is an increasingly popular practice, but it’s risky and can trigger misclassification risks, especially in jurisdictions like the U.S. and EU. EORs ensure workers are classified and treated correctly under local law.
• Cost Efficiency and Risk Mitigation Through EOR Services – EORs reduce the need for in-house HR, legal, and payroll teams in every market by taking on legal liabilities, lowering operational risk, and allowing your team to focus on R&D and innovation.

Why Leverage EOR Support Across Key Global Biotech Markets?

EOR in the United Kingdom: Supporting Biotech Innovation

According to the UK BioIndustry Association (BIA), the UK biotech sector raised £1.8 billion in investment in 2023, with a growing emphasis on early-stage R&D. Today, the United Kingdom remains one of the top global biotech markets, with London, Oxford, and Cambridge forming the so-called “Golden Triangle of Innovation”.

Post-Brexit, however, employment and immigration laws have become more complex, making it harder for foreign companies to hire researchers or clinical professionals directly, as much remains to be finalized in terms of these matters.

A UK-based Employer of Record (EOR) can help companies navigate new visa requirements, employment contracts under UK law, and tax structures as they continue to evolve, an especially helpful factor for overseas firms looking to tap into the UK’s deep biotech talent pool without setting up a local entity.

EOR in Germany: Navigating Complex Tax and Labor Regulations

Germany is Europe’s largest pharmaceutical and biotech market in 2025, with over 770+ biotech companies and strong continued government support for innovation projects. However, the country is also known for its especially intricate labor laws, including sector-wide collective bargaining agreements, extensive social contributions, and strict worker protections.

An EOR in Germany can help incoming companies manage these regulatory challenges by ensuring the correct classification of employees, adherence to national and EU-level employment laws, and compliant payroll management.

EORs also play a crucial role in handling regional nuances, such as tax withholding obligations that can vary by federal state.

EOR in the Netherlands: Supporting Clinical Trials and Research

The Netherlands has become a leading destination for clinical trials in Europe, thanks to its efficient regulatory environment and the relocation of the European Medicines Agency (EMA) to Amsterdam post-Brexit. Accordingly, the Dutch government has become a big supporter of biotech R&D through the WBSO R&D tax credit and innovation box tax incentives.

An EOR in the Netherlands can help companies tap into this growth by assisting with the employment of local trial coordinators, data managers, and regulatory experts without the need for legal incorporation.

With Dutch employment law favoring fixed-term contracts and transparent labor practices, an EOR is perfect for ensuring local contracts are structured to protect both worker rights and company interests while enabling quick deployment of clinical operations.

EOR in Canada: Accessing Government-Supported Biotech Programs

In 2024, Canada invested $2.2 billion in biotech-related innovation, particularly in areas like genomics and AI-driven health solutions. Canada is rapidly becoming a biotechnology powerhouse thanks to investments like this as well as strong government initiatives such as the Strategic Innovation Fund and Scientific Research and Experimental Development (SR&ED) tax incentives.

A Canadian EOR helps foreign firms legally employ staff in Canada to qualify for these tax credits, also offering compliant onboarding and payroll management aligned with various provincial labor laws like the Employment Standards Act (Ontario) or Labour Standards Act (Québec).

EOR in Australia: Hiring Talent for Advanced Biotech Research

Today, Australia is recognized for cutting-edge biotech research in oncology, rare diseases, and regenerative medicine that are increasingly seen as key parts of global projects. The country also offers a generous R&D tax incentive, reimbursing up to 43.5% of eligible R&D expenditures.

With institutions like CSIRO and the Murdoch Children’s Research Institute leading innovation in-country, demand for international collaboration with Australian biotech professionals is also growing.

To help, an EOR in Australia enables foreign companies to legally employ local scientists and research managers while managing region-specific employment benefits.

EOR in India: Tapping into Cost-Effective Talent Pools

India offers expertise in genomics, vaccine development, and bioinformatics at competitive costs and on an increasingly impressive scale. In fact, the Indian biotech sector reached $165 billion in market value in 2024, well above expectations.

Despite this potential, India’s labor laws, which are governed by both federal and state regulations, can be difficult to navigate for those unaware of local systems or practices. In particular, requirements around provident fund contributions, professional tax, and mandatory employee benefits can confuse even the most diligent of HR professionals without the experience or local know-how required.

A local EOR in India, therefore, ensures compliant hiring while helping foreign firms onboard high-caliber researchers, lab technicians, and regulatory professionals across the country.

EOR in Brazil: Expanding Biotech Operations in Emerging Markets

While wider economic issues remain, Brazil’s biotechnology industry is growing in 2025, particularly when it comes to agriculture biotech and public health (e.g., vaccines and tropical disease research). With nearly 300 biotech companies and national programs like Inova Saúde, the country is continuing to draw international attention and produce new talent.

However, Brazil’s notoriously bureaucratic tax and labor systems, including the Consolidação das Leis do Trabalho (CLT), pose significant challenges for companies looking to make the most of Brazilian talent by setting up a local team. Payroll taxes and social security contributions alone can exceed 70% of the gross salary, and local entity registration takes months, making hiring both difficult and expensive.

Fortunately, an EOR in Brazil can offer a solution by handling complex labor laws, managing local employment contracts, and mitigating the risks associated with cross-border hiring, getting you started without the need for a local structure.

EOR in Singapore: Establishing a Biotech Hub in Asia

Singapore is Asia’s leading life sciences hub, offering both strategic access to the broader Asia-Pacific market as well as top-tier infrastructure for R&D. Supported by the Biomedical Sciences Initiative and already home to global players like Amgen, Thermo Fisher, and Novartis, Singapore’s strong biotech sector continues to attract international partnerships and companies looking to hire the best.

However, the Economic Development Board (EDB) offers grants and tax incentives for biotech companies establishing operations in the country, making a local presence necessary in many cases. Fortunately, with strong IP protections and pro-business labor laws, Singapore is the perfect place for an EOR to help foreign biotech firms hire local researchers, clinical operations managers, and regulatory experts quickly.

Selecting the Right Employer of Record Partner for Biotech

Key Criteria for Choosing an EOR Partner

While there are plenty of global EORs on the market, whether they are specialized in the biotech industry or helping companies of all types work across borders, not all EORs provide the same levels of treatment. The recent boom in the EOR industry means that companies considering a partnership with an Employer of Record should consider the following in order to avoid less expert or experienced providers:

• Expertise or Familiarity with Biotech Industry Regulations – Choose an EOR that understands the biotech regulatory landscape, whether that’s understanding how national laws relate to clinical trial protocols, data security laws, or other industry-specific compliance issues.
• Global Reach and Market-Specific Knowledge – The ideal EOR should have strong reach in all the regions where your company plans to grow and have deep expertise in each market’s employment landscape.
• Helpful Platforms for Payroll and Compliance – A strong digital platform can greatly simplify multi-country payroll, as well as automate compliance tracking and provide greater levels of transparency into HR operations.
• Proven Track Record – Ask for case studies or references from other biotech firms or companies looking at the same markets you are. Experience matters when it comes to hiring and compliance, especially in high-stakes industries.

Questions to Ask a Prospective EOR Partner

• What is your experience with biotech clients?
• How do you ensure IP and data protection?
• What compliance guarantees do you offer?
• How quickly can you onboard talent in [specific country]?
• What tech tools do you use for payroll and HR management (and how well do they integrate with our existing ones)?

Employer of Record vs. Other Hiring Models

Employer of Record vs. PEO: What’s the Difference?

A PEO (Professional Employer Organization) is another type of HR outsourcing provider that co-employs your staff but typically still requires you to be registered as the legal employer in the country.

PEOs are excellent choices when you are willing or able to take on liability but still want to benefit from the expertise, compliance, and streamlining that an HR partner can provide in comparison to managing administrative tasks in-house. Alternatively, an EOR takes full legal responsibility for all legal employment matters and is ideal for hiring where you don’t have an entity.

Employer of Record vs. Staffing Agency: What’s the Difference?

Staffing agencies provide temporary workers through co-employment or seconding contracts, often on a large scale and generally for short-term roles, whereas EORs enable long-term employment, with full compliance and benefits handled according to your needs and not to premade contracts.

When to Choose an EOR Over Other Models for Biotech

Use an EOR when:

• You want to expand quickly with minimal risk
• You want to test a market or start small before transitioning to your own setup
• You’re hiring specialized talent in a high-compliance jurisdiction
• You want to avoid employee misclassification errors

How EOR Supports the Biotech Industry Specifically

EOR for R&D Operations in New Markets

R&D often requires setting up labs or remote research teams abroad for short-term or small-scale projects. These projects aren’t typically profitable, so they need to be kept to limited budgets and shouldn’t require many in-house staff to dedicate themselves to the additional administrative work they bring. Here, an EOR enables fast, compliant hiring in support of innovation, without the time or cost needed to normally send individuals abroad.

EOR for Supporting Cross-Border Clinical Trials

Running trials in multiple countries? Medical trials are generally subject to strict supervision and oversight according to local laws. An EOR can handle the local hiring needed to carry out trials and ensure regulatory alignment at every stage, allowing your trial managers to focus on execution.

EOR for Ensuring Workforce Compliance in Biotech Manufacturing

Manufacturing staff must adhere to GMP and other standards, which may differ at various points along the supply chain. EORs ensure local labor compliance while meeting industry-specific workforce criteria and help to consolidate compliance assurance using global best practices.

EOR for Facilitating Collaborative Research Across Borders

Biotech thrives on international collaboration, but hiring or relocation across borders can be complex, even as remote team tools and working styles are more and more accessible. An EOR helps assemble cross-border teams without administrative or payroll headaches, making global partnerships seamless.

Best Practices for Using an EOR in Biotech

• Aligning EOR Services with Biotech Business Goals – Work with your EOR to align hiring, compliance, and HR strategies with your short- and long-term goals, including clinical trial timelines and product rollouts.
• Establishing Clear Communication with EOR Partners – Define each party’s responsibilities, communication protocols, and escalation paths early. Regular updates and audits help maintain smooth operations and avoid compliance issues.
• Ensuring IP and Data Security in EOR Operations – Protect your research by ensuring your EOR partner enforces robust IP protections and complies with data privacy regulations, such as GDPR and HIPAA.
• Continuous Monitoring of Compliance and Risk – Compliance isn’t a one-time task. Ensure your EOR provides regular updates and compliance reports to minimize exposure and stay ahead of regulatory changes.

Future of EOR in the Biotech Industry: Emerging Trends in EOR for Biotech

Leveraging Technology and Automation in Payroll and Compliance

To stay ahead of the competition, many EOR providers are turning to advanced technologies such as AI, automation, and blockchain. According to a 2024 study, 92% of companies are looking to increase the use of tech-driven automation in the coming years. Tools like these help meet the increasingly complex needs of biotech companies operating across borders, but aren’t simply one-stop solutions due to their complexities or the risk of errors if used improperly.

Technological innovations can potentially enhance accuracy in payroll processing, detect compliance risks in real-time, and improve transparency in employment operations. AI-powered platforms, for instance, can automatically adjust compensation structures based on the latest tax laws and labor regulations, reducing the likelihood of non-compliance. Similarly, these tools can aid in the hiring process, reducing the time required to screen CVs or providing rapid responses.

Blockchain is also emerging as a powerful tool for secure documentation of employee contracts and audit trails, particularly vital in the biotech industry, where sensitive data and IP must be protected.

Increasing Demand for Flexible Global Hiring Models

As biotech companies increasingly adopt hybrid and remote work models to build teams that span the globe, the demand for flexible, cross-border hiring solutions that can hire and administer these teams is also surging. Remote R&D teams, global regulatory consultants, and decentralized clinical trial monitors are becoming standard across the life sciences sector.

Many biotech firms now operate distributed teams across multiple continents, highlighting the need for agile employment infrastructure, as setting up new company entities in each of these jurisdictions would be an administrative nightmare. EOR services enable these companies to legally employ staff in new markets without setting up local entities, ensuring compliance while offering competitive local benefits.

For example, a U.S.-based biotech company developing RNA-based therapies could work with an EOR to build a working model that hires specialists in the UK and Estonia, reducing setup time and avoiding contractor misclassification issues. This would allow the US company to remain competitive and avoid the issues of changing labor regulations while tapping into niche talent pools wherever they exist.

Final Thoughts: Opening Up New Markets for Expansion in Biotech – EOR Support Services by INS Global

The biotech industry is dynamic, innovative, and increasingly global, but growth comes with challenges. From the different labor laws and added difficulties of hiring talent across borders, to protecting IP and maintaining regulatory compliance, biotech firms face a complex operational environment when they take steps toward global expansion.

However, Employer of Record services offer a powerful solution. By outsourcing employment functions to a trusted partner with experience and expertise, biotech companies can focus on what they do best: researching, innovating, and transforming lives.

Whether you’re entering new markets, scaling your team, or managing compliance risks, contact our experts today to see how INS Global provides tailored EOR solutions for life sciences companies and those in many other industries, empowering your global biotech talent strategy in 2025 and beyond.