EOR vs. Traditional Hiring: Which One Is Right for You?

As more businesses expand into Thailand and the ASEAN region, one big question often comes up early in the process:

Should you hire through an EOR (Employer of Record), or build your own local team the traditional way?

Both approaches can help you grow in the region—but which one fits your business depends on your timeline, goals, and risk appetite. Let’s break down how they work and when to choose each path.

What Is an EOR?

An Employer of Record (EOR) is a service that lets you hire and manage employees in a country without setting up your own legal entity. The EOR legally employs the staff on your behalf, takes care of payroll, tax filings, social security, and labor law compliance—while you focus on managing their work and performance.

With Interloop’s EOR service, you can start building your team in Thailand or across ASEAN within days—without any company registration, legal hassle, or back-office admin.

What Is Traditional Hiring?

Traditional hiring involves setting up a legal entity in Thailand—such as a Thai limited company or a BOI-promoted entity—then directly hiring and managing employees under your own company.

It gives you full control over your local operations and brand presence, but it also means you’re responsible for everything: registration, labor compliance, HR policies, payroll, social security, tax filings, and more. This method works best for businesses that are committed to long-term growth in the country.

When EOR Makes Sense

EOR is ideal when you want to move quickly, minimize risk, or test the market.

For example, if you’re not ready to commit to a full company setup but still want to build a local sales or support team, an EOR lets you get started right away. It’s also perfect for remote-first teams, short-term projects, or expanding to multiple countries at once without setting up separate entities in each location.

Many of our clients at Interloop use EOR to hire one or two team members in Thailand while evaluating the market. Once they’re ready, we help them transition to a full business setup seamlessly.

When Traditional Hiring Is the Better Option

Traditional hiring is a better fit when you plan to build a permanent presence in Thailand.

This route makes sense if you’re opening a local office, launching a full product or service, or applying for BOI promotion. It allows you to directly employ and manage your team, issue work permits, sign contracts in your own company name, and claim tax and investment benefits.

Yes, it takes more time and resources—but if you’re investing for the long haul, it pays off in autonomy, brand control, and strategic presence in the market.

A Hybrid Approach

Here’s the smart move that many Interloop clients make: start with EOR, then transition to traditional hiring later.

It’s a low-risk way to test the market, hire fast, and stay compliant—without getting locked into a structure too soon. And when you’re ready to go bigger, Interloop can help you register your company, set up your legal and HR systems, and transfer your team from EOR to direct employment smoothly.

Final Thoughts

In short:

• EOR is perfect for speed, flexibility, and reduced risk.
• Traditional hiring offers full control and long-term stability.
• The hybrid approach gives you the best of both worlds.

Wherever you are on your business journey—just starting, scaling regionally, or going all in—Interloop Solutions & Consultancy is here to help you hire with confidence and grow with clarity.

Not Sure Which Model Is Right for You?

Let’s talk. Book a free consultation at inlps.com and we’ll guide you toward the best hiring strategy for your expansion goals.