When expanding into Turkey or hiring local talent, foreign companies are often faced with a critical decision: Should we work with a recruitment agency or use an Employer of Record (EOR) service?
Both options are designed to help businesses tap into Turkey’s skilled labor market. However, they offer vastly different levels of service, legal responsibility, and strategic advantages. The right choice depends on your company’s goals, compliance needs, and long-term presence in the country.
In this article, we compare recruitment agencies and EOR solutions in the Turkish context, highlight their strengths and limitations, and help you determine the best model for your hiring strategy.
1. Why Turkey? A Growing Hub for International Hiring
Before comparing options, it’s important to understand why Turkey is attracting global companies in 2025.
Key advantages of hiring in Turkey:
- Young, educated workforce: Over 60% of the population is under 35.
- Competitive labor costs: Salaries are lower than in Western Europe or the US.
- Strategic location: Access to Europe, Asia, and the Middle East.
- Multilingual professionals: Especially in tech, customer service, and finance.
- Remote work readiness: A growing culture of hybrid and remote employment.
As more global firms seek to recruit in Turkey, the debate between recruitment agencies and EORs becomes more relevant than ever.
2. What Is a Recruitment Agency?
A recruitment agency in Turkey helps companies find suitable candidates for open positions. These agencies focus on talent sourcing, screening, and shortlisting. Their services are typically limited to the initial stages of the hiring process.
Core services of a Turkish recruitment agency:
- Advertising job openings
- Sourcing candidates from databases and networks
- Screening CVs and conducting interviews
- Presenting a shortlist of suitable candidates
- Coordinating interviews between clients and candidates
Recruitment agencies are ideal for businesses that:
- Already have a legal entity in Turkey
- Want to handle employment contracts and payroll themselves
- Seek help with talent acquisition only
However, they do not handle employment compliance, onboarding, or payroll responsibilities. That remains the employer’s duty.
3. What Is an Employer of Record (EOR) in Turkey?
An Employer of Record (EOR) is a third-party service provider that legally employs workers on behalf of your company. The EOR handles all employment responsibilities—including contracts, taxes, benefits, and compliance—while you manage the employee’s day-to-day activities.
Core services of an EOR in Turkey:
- Drafting compliant employment contracts
- Registering employees with Turkish authorities (SGK, tax office)
- Running monthly payroll and paying employer contributions
- Managing benefits and insurance
- Ensuring full compliance with Turkish labor laws
- Handling offboarding and termination procedures
EORs are ideal for foreign companies that:
- Don’t want to set up a legal entity in Turkey
- Need to hire quickly and compliantly
- Want to test the market before full-scale entry
- Prefer outsourcing HR and legal complexities
4. Side-by-Side Comparison: Recruitment Agency vs. EOR
Here’s a quick comparison of the two models based on key factors:
| Feature/Service | Recruitment Agency | Employer of Record (EOR) |
|---|---|---|
| Talent sourcing | ✅ Yes | ⚠️ Optional (some offer this) |
| Legal employment | ❌ No | ✅ Yes |
| Employment contracts | ❌ No | ✅ Yes |
| Payroll & taxes | ❌ No | ✅ Yes |
| Social security registration | ❌ No | ✅ Yes |
| Work permit assistance | ❌ No | ✅ Yes |
| Entity required in Turkey | ✅ Yes | ❌ No |
| Onboarding support | ❌ No | ✅ Yes |
| Compliance monitoring | ❌ No | ✅ Yes |
| Best for | Local entity with HR team | Foreign companies without local presence |
5. Pros and Cons of Using a Recruitment Agency in Turkey
✅ Pros:
- Access to local talent databases
- Fast sourcing for popular roles
- Local language and cultural expertise
- Cost-effective if you already have a legal entity
❌ Cons:
- No support with contracts, payroll, or compliance
- You remain legally responsible for employment
- Doesn’t solve HR admin or expansion hurdles
- Not suitable for companies without Turkish presence
If you already operate in Turkey and simply need help finding candidates, recruitment agencies can be effective.
6. Pros and Cons of Using an EOR in Turkey
✅ Pros:
- No need to set up a Turkish entity
- Fully compliant hiring from day one
- Handles all HR, tax, and legal matters
- Fast onboarding (1–2 weeks)
- Scalable—ideal for testing or small teams
❌ Cons:
- Slightly higher monthly cost due to service fees
- Limited control over back-end HR processes (which are outsourced)
- Not ideal for large, long-term operations (>25+ employees)
If you want to hire in Turkey without complexity, the EOR model is the fastest, safest, and most compliant option.
7. Use Cases: When to Choose Each Option
✅ Choose a Recruitment Agency if:
- You already have a registered business in Turkey
- You’re building a large local team and want to handle HR internally
- You have in-house legal and payroll staff
- You only need candidate sourcing, not legal employment support
✅ Choose an Employer of Record (EOR) if:
- You don’t have a Turkish legal entity
- You want to hire quickly and legally without setup delays
- You’re testing the Turkish market before long-term expansion
- You want to hire remote employees in Turkey for your global team
- You want to avoid Turkish labor law complexity
8. Costs: Which Option Is More Cost-Effective?
Costs vary by role, location, and service provider. However:
- Recruitment agencies typically charge a one-time fee—often 15% to 25% of the candidate’s annual salary.
- EORs charge a monthly service fee, usually 10% to 15% of the employee’s gross salary, in addition to handling payroll, taxes, and compliance.
While EORs may seem more expensive month-to-month, they eliminate:
- The cost of incorporating a legal entity
- The need for local payroll and HR staff
- Legal risks and penalties from misclassified workers
In the long run, EORs can be more cost-efficient for companies with small teams or short-term needs.
9. Legal Considerations: Misclassification Risks
One major risk companies face when hiring contractors or freelancers in Turkey is misclassification. Turkish authorities are strict about ensuring workers classified as “freelancers” are not effectively acting as full-time employees.
Recruitment agencies don’t offer legal protection from misclassification. However, an EOR ensures legal employment status, shielding your business from fines and disputes.
10. Final Verdict: Recruitment Agency or EOR in Turkey?
When it comes to recruitment EOR Turkey strategy decisions, there’s no one-size-fits-all answer. The best option depends on your business model, local presence, hiring volume, and need for compliance.
If you need talent acquisition only:
➡️ Go with a recruitment agency—but only if you already have a Turkish legal entity.
If you need a turnkey hiring solution without legal exposure:
➡️ Choose an Employer of Record (EOR)—especially if you’re new to Turkey or hiring remote professionals.
We offer the two options ! Contact us !
Conclusion: Building the Right Recruitment Strategy in Turkey
Hiring in Turkey offers massive potential—but choosing the right model is crucial. Both recruitment agencies and Employer of Record (EOR) services have value, but they serve very different purposes.
If your goal is to enter the Turkish market quickly, compliantly, and without legal setup, the EOR model is your best ally. For companies already established in the country, recruitment agencies remain a powerful sourcing partner.
