
Industry Insights and Trends
Employer of Record (EOR) Explained: A Guide for Global HR
The complete guide to what an Employer of Record (EOR) is, and why your business might need one.

Lucas Botzen
Employee Benefits and Well Being
6 mins read
Our Employer of Record (EOR) solution makes it easy to hire, pay, and manage global employees.
Book a demoNepotism can quietly harm your workplace, especially in remote and international teams. If you have an in-house team paired with a remote one, it is important to ensure fairness. When hiring and promotions depend on personal connections, it is impossible to create a cohesive workforce.
In such an environment, your employees will lose trust, and engagement will drop. In remote teams, nepotism isn’t just about hiring family. It also includes proximity bias, where in-office employees get more chances than remote workers. You must recognize and address these issues if you want a fair and effective global workforce.
It’s not always easy to spot nepotism in remote teams, but there are warning signs. It often begins with unfair hiring, where jobs go to friends or relatives instead of the most qualified candidates. Favoritism may be at play if your company mostly hires from a specific location, social circle, or group without a clear reason.
When jobs go to personal connections rather than skilled candidates, it can hurt your team. If you or your managers often hire people from personal networks instead of reviewing all applicants fairly, it’s a red flag for nepotism.
If you work in a hybrid setup, you might favor employees you see in person. They might get better projects, faster promotions, or bigger raises, while remote workers are overlooked. Your remote employees may miss important meetings and decisions, even if they have the right experience.
If some employees always get the best projects while others are stuck with routine tasks, it can create frustration. The same goes for performance reviews. Fairness is lacking if some people face stricter evaluations while others get special treatment.
Nepotism doesn’t just frustrate employees—it can hurt your company’s culture and success. When workers think personal connections matter more than talent, they become disengaged. In remote teams, where trust and communication are already more challenging, favoritism can do even more damage. Here’s how nepotism can harm your global workforce.
Nepotism breaks trust. If employees believe promotions and opportunities aren’t fair, motivation drops. This is especially harmful in remote teams, where trust is key to collaboration. If favoritism is an issue, your team may stop sharing ideas, speaking up, or staying engaged.
Hiring globally brings fresh ideas, but you limit diversity if you mostly hire from one network or location. Without different perspectives, innovation suffers. Your company might struggle to adapt to new challenges.
Talented employees won’t stay if they see no room for growth. Your best workers will leave if promotions depend on personal connections instead of performance. High turnover is expensive and disruptive. This is especially true in remote teams where training new hires takes extra effort.
Different countries have strict hiring laws, and favoritism can lead to discrimination claims. If you hire internationally, you need to follow labor laws in each country to avoid legal trouble.
Fixing nepotism takes more than just noticing it—you need to act. By setting up clear policies, you can ensure fairness in hiring, promotions, and daily work. A structured system helps eliminate favoritism and gives every employee a fair chance, no matter where they live or who they know.
The best way to prevent nepotism is by making hiring and promotions transparent. Every job opening should be publicly posted with clear selection criteria. Interviews should follow a set process so every candidate is judged fairly. If you run a global team, make sure remote workers get equal opportunities instead of always hiring locally.
You can reduce proximity bias by focusing on results instead of visibility. Set clear performance goals for all employees, no matter where they work. Encourage remote workers to take leadership roles. Make sure they have the same career development options as office workers.
A fair feedback system helps prevent favoritism. Employees should feel comfortable reporting bias without fear of backlash. To spot problems early, use anonymous surveys or HR support channels. Also, train managers to recognize and correct their own biases to ensure fair decisions.
If nepotism or proximity bias is already a problem, start by collecting data. Look at hiring trends, promotions, and pay differences. Talk to employees about their experiences. If favoritism is harming your team, acknowledge it and take steps to fix it.
You may need to change policies to rebuild trust. This could mean revising promotion rules and using blind hiring practices. Or giving remote employees more leadership chances. Transparency is key—your team needs to see that merit, not personal connections, drives decisions.
You can create a fair and inclusive workplace by taking a proactive approach. Fixing nepotism isn’t just about avoiding problems—it’s about building a strong, engaged team that thrives on trust and equal opportunity.
Nepotism in remote work occurs when hiring, promotions, or special opportunities are given based on personal relationships rather than merit. It can also include proximity bias, where in-office employees get more visibility and advantages over remote workers.
You can prevent nepotism by implementing standardized hiring and promotion policies. You should ensure decisions are based on performance and train managers to recognize bias. Transparency and equal opportunities for all employees are key.
If employees suspect favoritism, address their concerns with open communication and objective assessments. Conduct anonymous surveys and review hiring and promotion trends. Also, take corrective action if needed to restore trust.
Lucas Botzen is the founder of Rivermate, a global HR platform specializing in international payroll, compliance, and benefits management for remote companies. He previously co-founded and successfully exited Boloo, scaling it to over €2 million in annual revenue. Lucas is passionate about technology, automation, and remote work, advocating for innovative digital solutions that streamline global employment.
Our Employer of Record (EOR) solution makes it easy to hire, pay, and manage global employees.
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