A Definitive Guide in Choosing an Employer of Record Service

by | Aug 21, 2021 | Employer Of Record

Choosing an Employer of Record service is critical to your international success. There are many services for your business requirements. These EOR services can support you in rapidly expanding your global workforce by hiring top talents on your behalf.

In this article, we will provide you with a simple guide to evaluating employer of record service providers.

But when all is said and done, it will all come down to your unique business requirements. So here we give you five questions that can help in your planning stages. 

WHAT do you need to look for in an Employer of Record service provider?

There are many EOR services in the market today. However, all providers have distinct offerings for their clients. Therefore, when choosing an employer of record service, you need to come up with specific requirements. It is not a one-size-fits-all process, yet your EOR provider can tailor-fit their services for your needs. 

Here are some points that you need to look for when choosing your EOR provider:

Point of Contact

First things first, you may want an account specialist with your employer of record service provider to be always available when issues arise. This point of contact serves as the messenger to your company, your remote workforce, and your provider. They need to communicate with you at a scheduled time to report any progress and changes. 

Do They Guarantee to Meet Your Requirements?

You may need to hire global talents or relocate your best employee to another country. If you have an existing distributed team, you may seek an employer of record service provider to process their payroll and taxes. As we said earlier, EOR providers differ in their services. Choose the one who guarantees to meet all your business goals. Most EOR providers offer complete cycle services, benefiting companies that want to start their global expansion. 

Methodologies and Business Model

The methods of how your EOR provider will render their services will influence the success of your global operations. In a perfect scenario, your employer of record service provider must use cloud-based platforms that enable you to respond in real-time to any situation. Unfortunately, the traditional methods of onboarding will most likely slow down the process.  

Do they offer full-cycle services?

You may ask if they provide full-cycle services for your HR requirements. It will determine whether they can cover all your business needs. EOR providers can offer a specific service for your requirements. For example, you only need visa and immigration services, or you only need international payroll services. They can set up tailored services for you.  

The Setting of Expectations and Responsibilities

Make your expectations clear to your employer of record service provider. For example, what international goals do you want to achieve? Furthermore, check on their billing and payment schedules if it is feasible for your financial cycle. It is vital if you’re both on the same page to avoid miscommunication on your targets. 

Contract Duration

Consider asking your employer of record service provider about the duration of the contract or the process if you want to end the agreement when you need to. Most EOR providers have a contract period before you can exit. 

Data Privacy and Intellectual Property Provisions

While reviewing the contract, keep your eyes on confidentiality agreements that protect your company from infringements and data privacy violations. Bear in mind that your employer of record service provider will also manage confidential data of your business and employees. It is also ideal that these provisions include a non-competition clause.

HOW to choose an EOR provider?

It is in the best interest of your business if you want to go all-in or you like to test the waters first by hiring a small remote team. It will also determine your budget for your international expansion. 

Here are some tips on how you can choose your employer of record service provider:

Make a list of the best EOR offers

EOR providers will process HR duties on your behalf. Hence, you may want to collect all the propositions of EOR vendors and evaluate them all. 

It is to your advantage since you can narrow down the options and select the ideal employer of record service provider for your company. You will also get the most out of your working budget for your international endeavor.

Learn the services of your chosen EOR provider

There are various services that an employer of record service provider can offer to your business. The most common services are the following:

  • Global Employer Services
  • International Payroll Services
  • Visa and Immigration Services
  • HR Consultancy
  • New Market Consultancy
  • Staff Planning

Depending on your specific needs, you may be able to request something that ensures you obtain excellent results. Ask them if they can give complete service. It is an EOR solution with a broad reach. It implies that the EOR provider can handle various aspects of your global workforce while you are free to focus on other matters.

Discuss Your Plans with your EOR provider

Once you have found a dependable employer of record service provider, discuss your plans to make the necessary adjustments. Allow them to handle your HR and admin duties to your remote team. Make it a point that they will send progress reports to update you.

WHEN do you need an EOR service?

If international expansion is part of your long-term plans, choosing an employer of record service provider eliminates all HR duties and ensures full compliance. Hence, it makes it easier for your business to enter the global market. In addition, setting specific timelines can determine the progress of your endeavor. It will also allow your employer of record service provider to adhere to your given requirements on time. 

Furthermore, there are time-consuming and expensive steps when you like to explore new markets in other countries. You may be required to set up your local legal entity or put up a branch office in these new markets. An employer of record service provider allows you to skip this process. They can jumpstart your international presence faster. 

However, if you are having second thoughts on deploying an EOR service to your global expansion, here are some questions to help you decide:

Do I have any legal obligation with my remote workforce if I have EOR services?

Your employer of record service provider acts as the ’employer on paper’ of your distributed team. Hence, they serve as the legitimate employer of your staff. It assumes responsibility for the employees’ well-being. EOR providers are experts in local laws. You can rest assured that they have the best labor practices under industry standards.

Does my EOR provider facilitate the benefits and insurance of my remote team?

Almost all of the countries require employers to pay for the benefits and insurance of their staff. In addition, it will cover medical expenses and loss of income for employees due to unwanted events. If you do not have a legal entity in the country, choosing an employer of record service provider to comply with this policy is needed. Furthermore, it protects your employees and safeguards your business from any legal action if it arises.

Does my EOR provider handle the payroll and tax process for me?

Yes, your employer of record service provider will handle all the aspects of payroll and tax computation for you. In addition, they practice full compliance with any tax and payroll regulations, so rest assured that all of your employees are happy.

WHERE do you want to start your global expansion?

Today, work-from-anywhere is the new normal for businesses. It removes geographical boundaries and allows every enterprise to access top global talents.

EOR providers have different capabilities and global reach. Therefore, it is ideal to hire an EOR service who has the expertise in your preferred country.  

An employer of record service provider must have a permanent presence or partner with local entities in the country you prefer. It ensures that they can manage your HR and payroll duties smoothly.   

For example, Employ is an employer of record service provider that helps businesses in America, Asia Pacific, Europe, Australia, and Africa. If you look into its global reach, you can see that they have covered most of the countries that you choose to start your international expansion. 

WHY do you need it?

Many growing organizations deploy EOR services. These are the common reasons why they leverage this HR tool. 

  • Save cost while expanding your business.
  • Stay compliant with tax, legal, employment, payroll, and state regulations.
  • Allow business leaders and staff to focus on other aspects of the enterprise.

Benefits of EOR Services

Here is an in-depth explanation of the benefits of having an EOR service. 

Save Valuable Time

Time is gold. No one can stop time. However, the pace of your business growth requires perfect timing and accurate planning. An EOR service is an efficient way to expand your organization with international talents overseas faster. It can also help you with admin tasks and compliance procedures. 


Your company can save thousands of dollars by eliminating the regulatory requirement to register a local entity. EOR service cost includes human resources, financial, and legal activities. Hence, you don’t spend additional resources on them.

Reducing Legal Liabilities

Your employer of record service provider is the legal employer of your remote workforce. They are responsible for providing all the mandatory benefits and securing the well-being of your staff. Hence, you will reduce legal liabilities with your team and still manage their job activities.  

Ensuring Compliance 

EOR providers are responsible for abiding by local labor laws. Therefore, they will ensure your company complies with all applicable legislation. Furthermore, they will see that your payroll processing follows all regulations in the country. 

Local Expertise

Your EOR partner must have the knowledge of local regulations to manage complex HR and compliance scenarios. Hence, choose an employer of record service provider with local expertise. To showcase the majority of their global footprint, some EOR providers claim to have direct partners with local entities. However, these claims may need further verification.

State-of-the-art Technology

Working with your international remote workforce requires the latest technology for collaboration and reporting. It is also true for your employer of record service provider. They must have the right technology to onboard your remote workforce, process payroll, taxes, and other documentation. 

Your EOR provider must also interact with you in real-time to report progress and other concerns. You should evaluate their cybersecurity infrastructure to safeguard all your confidential data and resources. 

Best-in-Class Employee Benefits

One good thing about having an employer of record service provider is that you will rest assured that your remote workforce receives mandatory benefits. Hence, your EOR provider must ensure that they are capable of facilitating these HR duties. 

Final Takeaways

Indeed, it is hard to choose an ideal employer of record service provider for your requirements. It implies all aspects of your business. However, you can utilize the benefits of having EOR services for your business. We hope that this quick guide helps you with vital information for your global success. 

Employ is an EOR provider that offers services like visa and immigration, global employer service, and international payroll. Is it the right time for your business to conquer the global market? Discover more about our EOR services today.   

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