Scaling Sales: How To Grow Your Sales Team On A Budget

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

June 3, 2026 8:18 pm

Category Tag: News

The rise of remote work made international expansion much easier in recent years, but hiring abroad still comes with legal and administrative complexity, as every country has its own labour laws and payroll rules that must be followed. In addition, not many companies can open a new entity in every new market that they are expanding into. That is when the Employer of Record (EOR) solution comes in handy.

The EOR serves as the legal employer on paper, while the client company manages important activities related to the employees responsibilities and performance.

In this guide we will cover what an employer of record is, how it works in detail, how much it can cost and which business should consider an EOR solution.

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third party service provider that legally employs a person on behalf of another company in the country where the employee officially resides. As an official employer the responsibilities of EOR include issuance of an employment contract, processing payroll and withholding taxes and necessary social security contributions, as well as preparation of offboarding documents or any documentation that need to be signed by the employer. In addition, EOR ensures the compliance with local labour laws and serves as a first point of contact for any legal disputes.

The client company that hired the employee through an EOR also has a list of responsibilities. As an Employer of Record does not have the visibility on operational activities behind the scenes a client company needs to provide direction and ensure proper team integration.

In simple terms, the EOR provider acts as a legal employer in the country of the employee’s residence, while the client company takes on day-to-day manager work.

Responsibility	Employer of Record (EOR)	Client Company
Employment contracts & any other official documentation
Payroll processing
Income tax & social security contributions
Compliance with local labour laws
Statutory benefits administration
Managing daily work and projects
Setting goals and performance expectations
Providing equipment and tools
Leading the employee’s team and workflow

Employer of Record solutions gain more and more popularity in the field of global expansion as they allow businesses to hire best candidates fast and easy while staying compliant with local employment regulations. More information about EOR service are available if you would like to understand more.

EOR Meaning

The term “EOR” is the abbreviation for Employer of Record.

Employer in this instance stands for the company that hires the employee and takes on duties related to it, such as onboarding and offboarding process, payment of wages and compliance with other legal requirements.

“Record” from the EOR perspective refers to official registration with government authorities. The name of the EOR provider is stated in all payslips and tax filings, and should also be listed by the employee in any documents where employer must be stated, such as mortgage or loan applications.

One might ask a question of why this legal structure exists. As it is not possible to provide an employment contract directly to a person that legally resides in another country, the business expanding abroad typically needs to establish a local entity. That involves legal registration, arrangement of local bank accounts and organisation of payroll structure, as well as compliance with local law.

EOR allows to simplify the global hiring and reduce administrative burden through their existing legal entity.

There are some other hiring models that can be confused with EOR.

EOR and PEO

Many sources online refer to EOR as “international PEO”, which may create confusion as these models have 1 important difference.

A Professional Employer Organisation (PEO) serves as a co-employer of a client company. In other words, a business must already have an established entity in the country. The hiring tasks are, therefore, shared between 2 companies, while legal liability stays only with the client company. In the EOR model all legal risks are being taken by the official employer. Read more about the difference between PEO and EOR here.

EOR and staffing agency

Staffing companies mainly provide assistance for short-term projects by providing temporary workers. If the client wishes to employ a person for a longer time, EOR approach must be chosen.

EOR and contractor model

Contractor agreements assume the involvement of independent workers rather than employees. This model is also often used for temporary, project-based assignments. It is important to remember that there is a big misclassification risk between a contractor and an employee in the company which can lead to potential legal issues. An EOR ensures that employment is legally compliant with local labour law.

How does an Employer of Record work?

While it may sound complicated at first, a process behind the employer of record model is relatively straightforward.

The operating company selects a candidate

The client company recruits the employee they want to hire in another country

The EOR becomes the legal employer & local employment contract is issued

The Employer of Record uses its local legal entity to prepare and issue an employment contract that complies with labour law of the country where the employee is based. Depending on case-by- case situation, the work visa might need to be secured beforehand. Our company provides immigration services, more details can be found here.

Payroll and taxes are managed

The EOR takes on recurring responsibilities related to a payroll and ensures correct processing of income tax, social security contributions etc

Benefits are administered

Paid leave, sick leave, pension contributions and any other statutory benefits are being managed by the EOR.

Ongoing compliance and HR support

It is the responsibility of the EOR to monitor changes in local labour law and ensure ongoing compliance.

Example:

Imagine a UK-based tech company found a perfect candidate in Germany for a position of a software developer.

Instead of going through the administrative burden of opening a legal entity in Germany, the company chooses to work with an Employer of Record. The EOR hires the developer under a German employment contract and manages payroll and taxes. At the same time the UK company welcomes the new employee in the team and manages the daily work of a developer.

What services does an Employer of Record provide?

The Employer of Record does more than just providing an employment contract to the employee. Typically a wide range of HR and compliance services is included in the EOR offer. For example, read about the services included in our EOR package here.

Employment and HR administration

Locally compliant employment contracts and support with other documents requested by authorities
Employee onboarding
Employee record management. For example, control over PTO

Payroll and tax management

Regular payroll processing
Tax withholding and reporting of social security contributions with authorities
Payslip generation and creation of annual wage tax certificates

Benefits administration

Management of statutory benefits
Pension contributions (where required)
Support with benefits such as maternity leave allowance, sick leave allowance etc

Compliance and risk management

Insuring compliance with local labour law
Management of onboarding and offboarding processes
Representation in difficult legal and court cases

Additional services:

Some EOR providers ( such as ThisWorks EOR Services) provide additional services such as:

Work permit and dependent visa support
Background checks
Relocation support
Value added services: support with housing, company car, banking, etc ( depending on the country).

This vast list of services allows businesses to manage international teams, while staying compliant and avoiding complex local employment administration.

Benefits of using an EOR service

There are multiple advantages the businesses can get from working with an Employer of Record provider.

Faster global hiring

Setting up a new entity can take up to several months. With an EOR the hiring process can take several days.

Reduced compliance risk

A trustworthy EOR provider ensures the compliance with all local regulations. As the labour law varies greatly between countries, having a knowledgeable party to rely on can make a big difference.

Lower expansion costs

Establishment of a new entity is not only a time-consuming process, but also costly. With EOR services these costs can be avoided.

Access to global talent

The location of a remote candidate is not a problem if the company uses Employer of Record services. In other words, the best candidate for specific business purposes can be chosen.

Scalable hiring model

EOR services are ideal for organisations that want to scale international hiring quickly. They are particularly useful in the following situations:

Remote-first teams and organisations
Companies testing new markets abroad
Startups expanding internationally

How to choose the right Employer of Record

Choosing between several EOR providers is important, as it influences not only compliance, but also employee experience for new hires and how your company is perceived on the job market.

Here are some important things to keep in mind when deciding on your EOR partner:

Geographic coverage

Make sure that EOR provider can cover the country where you want to expand globally. Read about our EOR coverage here.

Pricing transparency

Check that EOR provider does not have any hidden costs and the pricing is clearly outlined in your MSA.

Compliance expertise

A strong EOR provider should have a team of experienced local HR specialists who understands all in and outs of a national labour law.

In-house vs partner model

Some EOR providers rely on their third-party partners, while others manage employment directly through their own local entities.

Customer support

It is important to find a EOR partner that helps with any questions or concerns in a quick and professional manner. That can be crucial when dealing with employee offboarding or any legal disputes.

Warning signs

Understanding the importance of choosing a right party, your company should be cautious of providers that lack local expertise and cannot give clear answers to your labour law questions. In addition, companies with slow response times can prove to be unreliable in critical situations. Furthermore, providers with complex pricing models with many hidden fees can create a lack of cost transparency and result in unforeseen expenses.

By selecting a provider with strong expertise in local labour law and reliable support from dedicated teams, your company can ensure a smooth international growth. Learn why companies choose ThisWorks as their EOR partner.

How much does an employer of record cost

The vast coverage of services the employer of record provides makes many businesses ask how much an EOR costs.

Pricing models vary greatly on the provider and the country of coverage, but most EORs use one or more of the following structures.

Flat monthly fee per employee.

The EOR provider charges a fixed monthly fee for each employee they have on the payroll from the client.

Percentage of salary

While not being a popular approach, some EOR providers charge a percentage of the employee’s salary, typically ranging between 5%-15%.

Setup fees

Some providers charge onboarding or offboarding fee for each employee.

The fee that the business needs to pay to an EOR provider also depend on the location of a service. Local labour law complexity of some countries can influence the fee. In addition, some countries have specific statutory benefits and payroll administration requirements. Furthermore, employee headcount in the specific location can influence the fee.

EOR vs setting up a legal entity

To establish a new entity the organisations needs to go through legal and tax registration. In addition, accounting support and ongoing compliance costs such as the fees for local labour lawyers can make setting up a legal entity significantly more expensive.

An EOR allows companies to expand globally without these upfront investments.

EOR vs hiring contractors

Some businesses decide to hire international workers as contractors. However, this approach can often lead to a misclassification risk, which can cause legal and tax liabilities.

A professional EOR provider ensures that the new starters are compliantly onboarded under local employment regulations.

EOR FAQs

Is an EOR the same as a PEO?

No. PEO model assumes co-employment and requires the business to already have established local entity, while EOR employs new talents through its own entity only.

Can an EOR hire contractors?

While some EOR providers can support hiring contractors, it is important to remember that main function of EOR is the employment of full-time workers legally in a country. A risk of misclassification between EOR and contractor should be also considered carefully.

Is an employer of record legal?

Yes, when established and structured properly, Employer of Record entities are legal and widely used for international expansion by many companies.

When should you use an EOR?

The most common reason for using EOR include:

Hiring employees located in another countries remotely
Testing new markets before establishing an entity
Expanding internationally

Can you switch from EOR to your own entity?

Yes. Many companies initially hire through an EOR for the ease and speed of expansion and later transition employees to own legal entities upon their establishment. It is important to remember that some countries require specific procedure to be followed in such a scenario.

Get in touch with ThisWorks

Expanding your team globally does not need to be long and administratively complex.

With the use of Employer of Record the businesses can have access to the best talent from around the world while ensuring full compliance with local labour laws.

ThisWorks can support your global expansion with our compliant Employer of Record services.

Contact our team to find our how we can help your international team glow fast and compliantly!

Scaling Sales: Proven Strategies For Growing Your Sales Team On A Budget

Managing a sales team is critical when it comes to the growth of the business, and it is significant when expanding the team. It assists you in getting to the customers, making more sales, and enhancing market visibility without straining your pocket. But doing it on a budget is quite a daunting task. Hubspot says organizations with harmonious sales and marketing generate 208% more marketing revenue.

This blog will discuss How to Grow Your Sales Team on a Budget. The topics we will include are creating the proper framework, establishing proper sales team growth strategies, and utilizing technology to achieve the best outcomes. Also, we will talk about tips for hiring sales executives, Effective onboarding for sales reps, and sales team training programs at a low cost.

You will also discover the advantages of remote hiring for sales expansion, goal definition, and work environment promotion. Last, but not least, we will be answering some of the most frequently asked questions about scaling a sales team with a limited budget.

At the end of this blog, you should be able to implement actionable strategies and knowledge that can assist in growing your sales force efficiently with little to no cost. So, let’s get started and find out how to Grow Your Sales Team on a Budget.

1. Efficient Processes for Sales Team Management

It is essential to establish effective mechanisms for many employees in the sales department.

Here is how to grow your sales team on a budget:

Identifying and implementing efficient processes

Identify processes that create a backlog of work or how a project can be slowed down. After that, define clear task procedures to minimize the number of errors and maintain the same level of performance throughout the team. Ensure that these are done effectively and make changes to them as often as necessary.

Importance of process documentation and standardization

Writing down processes is essential to ensure everyone follows the set procedures. This is important to sustain quality as you grow in size and add more clients. It also facilitates new employees’ sales team training programs as it is less time-consuming. Standardized processes make it easy to scale because you do not have to change how you work to accommodate growth.

Tools and techniques for process improvement

CRM Systems:

Customer Relationship Management (CRM) systems are critical for managing customer interactions and information. It assists in the activities such as lead management, customer management, and sales management.

Sales Automation Tools:

Schedule follow-up emails, meetings, and report generation are some of the tasks that should be automated. This saves time and allows your sales team to work on other, more critical tasks, such as closing the deal.

Increase the sales team’s efficiency by optimizing Sales team growth strategies, describing and formalizing the best practices, and using the appropriate technologies. This not only assists in controlling the current load but also in preparing your team for future growth. Purchasing CRM systems and sales automation software will help minimize time wastage and increase efficiency in your business, leaving your sales representatives to do more of what they are hired for – selling.

2. Leveraging technology to maximize results

Today, technology is a critical element that determines the outcomes of sales operations. It increases productivity, facilitates communication, and offers information to assist your sales personnel in achieving their full potential.

Here’s how you can blend technology with Sales team growth strategies:

Essential tech tools for Sales teams:

Customer Relationship Management (CRM) Software: CRM systems communicate with customers, follow leads, and store customer information. They offer a single point of reference where all the information needed for the sales teams is available, thus creating effective communication and follow-ups.

Sales analytics and reporting tools:

These tools assist in analyzing the sales data and producing reports. They give information about sales, team and customers and their behavior. In this case, using data and information enables one to make rational decisions and enhance sales tactics.

3. Advantages of technology in Sales

Enhanced communication:

Technology enhances communication between the sales team and the clients. Communication tools such as Ims (The IP Multimedia Subsystem), VC (Venture capital) and collaboration software allow team members to pass information and communicate effectively regardless of the distance.

Better data management:

Technology helps in the organization of large amounts of customer data. CRM systems and data management tools assist in the arrangement of data in a secure manner so that they can be retrieved easily for analysis and decision-making.

Improved Sales performance tracking:

Performance monitoring tools give real-time information on the performance of the sales team. They assist in finding the best performers, keeping tabs on the sales goals, and tracking KPIs (Key performance indicators). It also enables managers to offer feedback and assistance to their employees.

The mentioned technologies allow you to optimize your sales activities, enhance cooperation between your employees, and obtain essential information about your sales activities. Embracing technology increases productivity and sets your business’s sales team up for the future. These tools should be adopted to get the best out of your sales and run ahead of your competitors in the market.

4. Cost-effective hiring strategies

Still thinking about how to grow your Sales team on a budget? Picking the right people for the sales team when working under certain constraints can be challenging; however, it can be done. Here’s how you can do it:

Use social media and professional networks

Publish your job vacancies to reach many people.
Be a member of groups and communities to find potential candidates.
Search for candidates who not actively searching for jobs, such as dissatisfied employees.

Utilise referral programs

Referral programs are cost-effective and attract the correct type of talent. Remind your current employees to recommend people they know through incentives such as bonuses and additional vacation days. There are usually people the employees know would be perfect for the company.

How to select candidates for development?

Behavioral Interviews:

Behavioral interviews specifically ask the candidate how they have dealt with particular issues. This will assist you to gauge their problem-solving abilities and how they handle stress. Ask questions like:

When have you achieved a specific sales target that you deemed challenging?
Do you shun your customers or handle it differently when they object?

Here you can find some tips on how to prepare for behavioral interview questions.

Assessing cultural fit:

Cultural fit is critical in the long term to guarantee that the chosen candidate will be an excellent fit for the team. When you are being interviewed, mention something about your company’s values and workplace environment. Then, perhaps observe the candidate’s response and decide if they fit the company. Consider questions like:

What kind of working environment do you like?
In what way do you relate with others in a group?

If you are interested in that strategy, Skima has put together some benefits and challenges for you.

There are ways to get great sales reps for less through the help of social media, referral bonuses, and interview strategies. These are some ways to identify talents who will give you a good return on investment and work for a long time with your organization.

5. Effective onboarding for Sales reps and training programs

Onboarding and sales team training programs can be crucial factors in defining its effectiveness.

Why is onboarding a significant aspect of talent management?

Onboarding is an art that ensures that the new employees are oriented and welcomed into the organization and can start functioning at optimum capacity as soon as possible. It saves them precious time reaching the output level and enhances their probability of success for a longer time with the organization.

Elements of effective onboarding for sales reps

Product Knowledge: Potential salespeople require knowledge of what they will sell. This involves the features, benefits, and other USPs (Unique Selling Proposition) that must be communicated to the target audience. Ensure they get all the required information about your products for their learning process.

Sales Techniques and Methodologies: Ensure that your sales personnel have the proper techniques and strategies for selling the product. This could include sales team training programs on, for example, objection handling, the closing of deals, and relationship building with the customers. There are some efficient approaches to this area, including role-playing scenarios.

Ongoing Training and Development: Training should be unrestricted when the employee is inducted into the company. Knowledge management is essential for the team’s training on new techniques, changes in the market, and new products. This can be done by conducting training sessions, workshops, and seminars to enable them to polish their skills.

Investing in an elaborate onboarding process and frequently training the sales team to ensure they are ready for the tasks ahead is essential. Organizational investment in their development increases their productivity and self-esteem, making them satisfied with their jobs, reducing turnover, and producing better results for your firm.

6. Remote hiring and team management

Remote hiring for sales expansion is now standard and has several benefits for growing your sales force. Here’s how it can benefit your business:

Advantages of remote hiring for sales expansion

Access to a larger talent pool: Remote hiring for sales expansion allows people from anywhere to be hired without meeting them face to face. This means there is no geographical restriction, and you can get the best talent irrespective of where they are from.

Cost savings on office space: Remote employees can be highly cost-effective for the company because you do not have to rent office space and other expenses that come with it. This entails reducing costs such as rent, utility bills, and stationeries, which can be used in different parts of the business if cut down.

Tips for hiring sales executives

Communication tools and strategies:

Communication is one of the most critical factors that must be maintained to ensure the smooth working of a remote sales team. Use Slack, Microsoft Teams, or Zoom for daily/weekly team or individual meetings. Promote team members’ communication and ensure they are included and aware of what is happening.

Setting clear expectations and performance metrics:

Set behavioral standards for remote sales employees. This means one should set key performance indicators and ensure that organizational performance is measured against them. This assists in keeping everyone on the same page, or in other words, having the same goals in mind. Make sure that the employees receive feedback quite often and appreciate their work.

Recruiting a powerful and productive sales force through remote employment opportunities and following the principles of remote work is possible. These tips for hiring sales executives widen the company’s candidate pool, lower expenditures, and increase efficiency, leading to its success in the current market.

7. Setting clear and achievable goals

Communication of goals is a significant factor in sales team management, ensuring everyone is working towards the company’s goals and objectives. We have put together some insights of how you effectively set and manage your sales goals:

Significance of goal setting in Sales

Goals are essential as they guide and encourage the sales team to perform better. They assist people within the team in knowing what is expected of them and direct their energies toward accomplishing given objectives. They also help evaluate performance and establish areas of strength and weakness.

SMART goals framework

Applying the SMART goals framework ensures that goals are easily understood and are realistic to achieve. SMART stands for:

Specific: Goals must be exact, and they can answer the questions of who, what, where, when, and why.
Measurable: They should be measurable based on specific criteria.
Achievable: A goal should be easily achievable based on the resources available and the time required to achieve that goal.
Relevant: Goals should have a relation to the overall organizational objectives.
Time-bound: The goals should be set with a timeline, which means there should be a definite time within which the goals should be achieved.

Wrapping Up

In this blog, we have reviewed how to grow your sales team on a budget. Thus, if you develop a solid base, utilize technologies, apply effective workflows, and create a favorable climate, you can expand your team successfully. Ensure that you have defined your goals well, recruited the right people, and trained your staff to deliver on those goals.

FAQs

How can I convert prospects into loyal customers on a budget?

Personalized communication and good customer relations services should be established as essential. Marketing should also be affordable, which includes the likes of email and social media marketing.

What are the critical steps in building and growing a sales force?

Mobilize people, clarify tasks, map activities, select employees, and educate them.

How do I set clear and achievable goals for my sales team?

Use the SMART framework: Specific: Measurable, Achievable, Relevant, Time-bound. Goals should be reviewed and modified according to the results obtained.