How to Secure Top Talent Using an Employer of Record in Singapore
Hiring skilled professionals in Singapore is a strategic move for many US companies expanding into Asia. The challenge is navigating local employment laws, payroll rules, and compliance requirements without setting up a legal entity. This article explains how an employer of record in Singapore enables faster, compliant hiring while reducing risk and operational complexity. We explore why this model matters, how it works in practice, common concerns, and what US-based teams should consider before hiring. By the end, you will have a clear view of whether this approach fits your Singapore expansion plans.
The global hiring shift US companies are facing
As remote work and distributed teams become standard, US companies are increasingly looking beyond domestic borders for specialised talent. Singapore stands out as a hub for technology, finance, and regional leadership roles. Its stable economy, strong IP protection, and skilled workforce make it attractive, but its employment framework is highly regulated.
For US founders and HR leaders, the pain point is rarely talent availability. It is compliance. Singapore’s Ministry of Manpower enforces strict rules around contracts, statutory benefits, taxes, and termination. Missteps can be costly and time-consuming, especially for companies unfamiliar with the local system.
Understanding the Employer of Record model
At its core, an Employer of Record, or EOR, is a third party that legally employs workers on your behalf. Your company directs the employee’s day-to-day work, while the EOR handles the formal employment relationship.
This includes:
- Issuing locally compliant employment contracts
- Managing statutory contributions and tax filings
- Ensuring adherence to MOM regulations
- Handling onboarding and off-boarding processes
By using an employer of record in Singapore, US companies can hire local professionals without incorporating a Singapore entity, significantly reducing setup time and administrative burden.
Why this matters specifically in Singapore
Singapore’s employment environment is transparent but unforgiving when it comes to non-compliance. Regulations cover areas such as:
- Central Provident Fund contributions
- Mandatory leave entitlements
- Notice periods and termination procedures
- Personal data protection obligations
An EOR with local expertise ensures these requirements are met from day one. This is particularly important for US companies that are used to different employment norms and at-will arrangements. The EOR model bridges that gap while maintaining a professional employee experience in Singapore.
Key benefits for US-based companies hiring Singaporean talent
Working with an EOR offers more than just compliance coverage. It also supports smarter market entry and talent strategy.
Key advantages include:
- Speed to hire: Onboard employees in weeks instead of months
- Lower upfront costs: No need for entity setup or local directors
- Risk mitigation: Reduced exposure to employment law breaches
- Operational focus: Internal teams stay focused on growth, not administration
Some providers also bundle payroll services in Singapore as part of the solution, creating a single point of accountability for employment administration.
How to get started without overcomplicating things
For US companies exploring this route, the process is usually straightforward:
- Identify the role and candidate you want to hire in Singapore
- Partner with an EOR experienced in local compliance
- Review and approve a compliant employment contract
- Onboard the employee while the EOR manages statutory requirements
Before moving ahead, it is worth clarifying service scope, data security standards, and how employee performance management is handled. A good provider will be transparent and proactive in guiding you through these details.
Common concerns and misconceptions
One frequent concern is loss of control. In practice, your company still manages the employee’s workload, goals, and performance. The EOR only handles the legal and administrative employer responsibilities.
Another misconception is that EORs are only for short-term hires. Many US companies use an employer of record in Singapore for long-term roles, especially when building a regional presence gradually.
Finally, some worry about employee perception. When handled well, local employees often value the stability and compliance that comes with a properly structured arrangement.
Final thoughts on hiring smarter in Singapore
For US companies, expanding into Singapore no longer requires heavy upfront investment or compliance guesswork. An employer of record in Singapore offers a practical, low-risk way to access top local talent while staying aligned with MOM requirements. It allows teams to test the market, scale responsibly, and focus on building real business value rather than administrative infrastructure.
If you are exploring compliant hiring options in Singapore, consider speaking with a specialist team at https://www.galaxyapac.com to understand what approach best fits your growth plans.
Simplify EOR. Strengthen Compliance.
Manage payroll in Singapore accurately and confidently with Galaxy Group.
FAQ’S
What is an employer of record in Singapore and who should use one?
It is a service that legally employs workers on behalf of foreign companies. It is ideal for US firms that want to hire in Singapore without setting up a local entity.
Is this model compliant with Singapore's Ministry of Manpower?
Yes, when the provider follows MOM regulations, issues compliant contracts, and manages statutory obligations correctly.
How does payroll usually work in this setup?
Most EORs handle salary processing, tax filings, and contributions. Some also offer standalone payroll services in Singapore for companies with existing entities.
Can we transition employees to our own entity later?
Yes. Many companies start with an EOR and later move employees in-house once a Singapore entity is established.
