Remote Well-being: How To Take Care Of Remote Employees’ Mental Health

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Gino Peters

Written By:

Gino Peters

Reviewed By: Belinda E.

May 17, 2026 3:02 am

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!

Conducting one’s work at a distance can be viewed as one of modern society’s most popular lists of tendencies and is successfully realized on a large scale. The shift in technology and the outbreak of diseases such as the coronavirus (COVID–19) has made it fashionable for many organisations to embrace work from home for business continuity. This means that when discussing remote work, one can talk about the positive effects, such as flexibility, less traveling time, or interruption of work-life balance. It also reveals some specific questions, such as the psychological conditions of the employees.

The importance of dealing with mental health problems among the staff distance working cannot be overstated according to remote work mental health statistics. Some of the effects of remote working may include higher loneliness, isolation, and even burnout compared to working in an office. Such problems can reduce productivity and commitment levels in personal and organizational processes.

This article will provide remote work mental health tips to help employees manage their well-being while working from home. Our focus will be on remote work mental health statistics by providing remote work mental health tips, strategies for combating remote work loneliness, practical remote team collaboration tools, remote employee motivation techniques, and online learning platforms for professional development.

Understanding remote work mental health statistics

The latest research on remote work mental health statistics suggests both positive and negative trends of remote work and its influence on employees’ well-being. A survey by Buffer says that 22% of remote workers complain that they cannot disconnect from work after working hours. Another 19% said that they always feel lonely. APA research of remote work and mental health statistics reveals that remote workers are more prone to anxiety and depression than their office-based counterparts.

Comparative analysis of remote vs. in-office mental health

Remote work mental health tips include increased autonomy and a better work-life balance, which can positively influence mental health. However, the lack of face-to-face interactions and social support can exacerbate isolation and loneliness. In contrast, in-office employees have more opportunities for social engagement and immediate access to workplace resources, which can mitigate mental health issues.

Challenges faced by remote workers

Remote workers often encounter unique challenges that can impact their productivity and well-being. Let’s discuss the top 3 challenges:

1. Loneliness and social isolation

Feeling lonely is one of the major problems that employees experience in remote work. Remote employees do not get social interactions. They are likely to feel that they do not belong to the organization. Such isolation results in depression, anxiety, and low job satisfaction among workers, as highlighted by remote work mental health statistics.

2. Work-life balance

· Challenges in Maintaining Boundaries

Regarding the statistics on remote work & mental health, working remotely creates no clear division between the professional and personal spheres of life, so it becomes challenging to maintain work-life boundaries. According to remote work mental health statistics, constant connectivity leads to stress and can even lead to burnout. Employees are facing challenges in maintaining boundaries.

· Consequences of poor work-life balance

Failure to properly balance work and personal life can harm remote employees. It results in chronic stress, physical ailment, and conflicts in family and other interpersonal relationships. They may get more often exhausted and have less well-being when they cannot distinguish between working and leisure time.

3. Communication barriers

· Issues with remote communication

Communication is always important for any team, regardless of location, but working remotely is difficult. It can cause a lack of efficient cooperation and result in miscommunication because people receive information with delays, often without body language, and might reply late. The remote workers may also feel isolated from other members of the team.

· Effects on teamwork and productivity

Effective communication is one of the most important factors of organizational effectiveness. Poor communication can impair teamwork and productivity. Sometimes, team members encounter communication difficulties, compromising the deadline and the standard of their work. Managers must foster clear, consistent, and open modes of communication for the remote working team and its employees’ satisfaction.

Strategies for combating remote work loneliness

We will discuss the best strategies to combat long remote work loneliness when working from home to prevent adverse effects on employees.

· Regular virtual meetings

Regular virtual meetings are essential for keeping remote employees connected and engaged, supported by remote work mental health statistics. These include team meetings to discuss projects, one-on-one meetings between managers and employees, and casual check-ins to maintain social connections.

· Benefits of consistent check-ins

Consistent check-ins help remote employees feel valued and supported. They provide opportunities for feedback, address concerns, and ensure everyone is aligned with the team’s goals. Regular interaction fosters a sense of belonging and helps mitigate feelings of isolation.

· Virtual social events

Virtual social events can replicate informal interactions in an office setting. These can include virtual coffee breaks, happy hours, game nights, or themed events that encourage team bonding.

· Peer support programs

Other support programs include peer support, like having a mentor and or a buddy in the company to help tackle any issues faced by employees working from home. It can also be effective to assign new employees a buddy who is a current co-worker, as it may contribute to better assimilation to remote work and increase the new employee’s sense of connection to the team. According to remote work statistics, peer support programs can improve mental health.

Effective remote team collaboration tools

Additionally, we will discuss practical remote team collaboration tools that can enhance communication and productivity.

· Slack

Slack is a popular communication app facilitating real-time encryption and text exchange among distantly located workers. They provide a channel for various undertakings, messaging, and connections with other applications, which can help organize tasks and communication.

· Microsoft Teams

Another highly reliable and versatile instrument utilized in communication is Microsoft Teams, which is a mix of chat, meetings, document sharing, and the use of apps. It is particularly helpful when a team already uses Microsoft Office 365, as it is fully compatible with other Microsoft items.

There are also some project management tools which are quite helpful:

· Trello

Trello is an open project management tool based on boards, lists and cards to make teams more efficient. A huge bonus to that is that it is intuitive and flexible, which allows it to be applied to different projects and teams of different sizes.

· Asana

Asana is an online project management application that enables planning and tracking work in a team. Its main functions are assigning tasks, setting project schedules, tracking progress, and enabling a remote team to manage their work.

Besides that, video conferencing tools can help you to stay connected and have online meetings regularly.

· Zoom

COVID-19 drivers include video conferencing platforms, including Zoom, which provides high-quality video and audio and allows for sharing screens and separate rooms. It is used mostly for team meetings, online classes, webinars, virtual parties, presentations, and conferences.

· Google Meet

Google Meet is a highly efficient video conferencing service part of Google Workspace. It offers safe, efficient video meetings, which are ideal for teams already utilizing Google’s platform.

Remote employee motivation techniques

Motivating remote employees requires innovative techniques to maintain engagement and productivity. Implementing regular virtual check-ins, offering flexible work hours, and recognizing achievements can significantly enhance remote employee motivation.

· Recognition and rewards

It is important to find out and acknowledge achievements and the good work made by the employees since this will enhance their morale working as per remote work mental health statistics. Gratitude for a good job may be done in an assembly meeting, via e-mail, or through a comprehensive and organized gratitude exercise. Using Bonusly, where staff can give points to another to redeem a gift. They foster appreciation in the workplace and double as incentives to ensure employees work to the best of their capabilities.

· Clear goals and expectations

It is also critical to ensure that expectations given to remote workers are realistic and specific to prevent being overwhelmed. By keeping such goals communicated, it assists in achieving great organization since everyone is informed of the goals to be met.

Keeping track of how far employees have gone and how they are doing is management’s way of ensuring work does not stall. Implementing such features as a weekly or monthly check-up or proper and consistent evaluation of one’s work allows a manager to learn of potential or actual shortcomings and progress in accomplishing goals and encourage employees in their work.

· Professional development

Training and development should be encouraged for the employees to make them feel wanted and to remain with the organization. Training programs, workshops, and courses that benefit the employees should be available, even for employees working from home.

· Impact on employee motivation and retention

Supporting employees in obtaining their certifications and upgrades indicates that the company cares for the employees and their progress. This may increase job satisfaction and organizational commitment and decrease turnover because employees can easily transition from one job level to another.

Online learning platforms for professional development

Online learning platforms for professional development can be just as effective as offline training sessions. These platforms offer flexibility, a wide range of resources, and the ability to learn at one’s own pace, making them an excellent option for continuous skill development. Some of them are:

· Coursera

Coursera is a web-based platform that offers the highest quality courses from universities and organizations worldwide. Some examples of widely offered classes for employees with remote work mental health statistics include “The Science of Well-being” from Yale University, Project Management: UC has a course tagged ‘Principles and Practices’ while UI offers a course in ‘Digital Marketing’.

Coursera provides flexible learning options and allows remote employees to take courses at their own pace.

· Udemy

Udemy is an e-learning business that certifies its tutors and offers thousands of courses in numerous categories. Popular courses for remote employees include “Time Management for Remote Workers,” “Communication Skills for Remote Teams,” and Leadership.

· LinkedIn Learning

LinkedIn Learning enlists professional courses for business, technology, and creatives. Some of the offered courses are “Remote Work Foundations”, “Managing Remote Teams”, and “Building Resilience.”

LinkedIn Learning integrates with employees’ LinkedIn profiles, allowing them to showcase completed courses and certifications.

FAQs

How can employers support the mental health of remote workers?

As per remote work mental health statistics, there are several ways that employers can assist remotely working employees with their mental issues, including offering employees an Employee Assistance Programme (EAP), phone hotline, and online therapy. The possibility of arranging workshops and webinars to increase employees’ knowledge about mental health issues and how they can be managed can also be helpful.

Employers should encourage employees to speak out about their mental issues in the workplace and implement measures to support them. Daily meetings and creating a safe space to speak up can reduce and solve problems before they escalate.

What challenges do remote workers face in terms of mental well-being?

The challenges faced by various employees include an isolated working sector, anxiety, and stress. The absence of a clear division of the working and private spheres enables getting under pressure and overworking. Furthermore, the inability to communicate face-to-face with other people can lead to loneliness.

How can companies address the issue of loneliness and social isolation in remote teams?

Companies can address loneliness and social isolation by organizing virtual social events like team-building activities, coffee breaks, and happy hours. Check this for further information.

Businesses can keep remote employees motivated by implementing reward programs. Acknowledging employees’ hard work and accomplishments through public recognition, bonuses, or other incentives can boost morale and motivation.

How can employers provide learning and upskilling opportunities for remote teams?

Access to e-learning market platforms such as Coursera, Udemy, and LinkedIn Learning must be granted to design learning and upskilling. These services enable the employees to subscribe to programs that enable them to train in areas of their careers’ interest.

Conclusion

Monitoring individuals’ remote work mental health statistics has an impact on organizational success. Problems associated with home-based work, such as isolation, increased blurring between work and home life, isolation, and poor communication patterns, may be responsible for mental health deterioration. Remote work and mental health tips include fostering a desirable organizational culture of remote working, which plays a huge part in employees’ mental well-being. So, how do you take care of your remote employee’s mental health? Managers in today’s workplace must foster workplace transparency, make mental health resources easily accessible, and incorporate measures for combating the difficulties of remote work. By creating empathy, recognition, and constant learning, companies guarantee the well-being of their remote employees.