Finding the Perfect Fit: Your Guide to Choosing the Right EOR Partner

Posted on  Oct 10, 24 by James Kelly

The world is more connected than ever, and your employee search no longer needs to be limited by geography. However, hiring overseas does present new human resources and compliance considerations that need to be taken into account.

The good news is that the right Employer of Record (EOR) partnership provides turnkey solutions that lift the burdens of local employment complexities off your plate by becoming the official legal employer abroad. EORs take care of everything from compliance and payroll to benefits and terminations, country by country.

Yet, not all EORs are created equal. Providers vary widely in capabilities, services, global presence, and approach to compliance management. With the multitude of options now available, how do you select the one that best fits your needs and plans? Here are five key factors to keep in mind.

1. Understand Your Global Hiring Needs

Choosing the right EOR starts with some introspection. Before you even begin browsing providers, it's crucial to take a step back and truly understand your company's unique needs and goals when it comes to international employment. This isn't just about ticking boxes; it's about finding a partner who aligns with your vision and can support your specific journey.

Consider these scenarios:

  • Employee Retention: Are you relocating existing employees to new countries? If so, the EOR should prioritise a consistent employee experience across regions, ensuring smooth transitions for payroll, benefits, and contracts. They should also be readily available to answer employee questions and provide support during the adjustment period.
  • New Talent Acquisition: Are you hiring new talent in foreign countries? A positive onboarding experience is critical for making a great first impression. The EOR should facilitate a seamless process, from contract signing to accurate and timely payroll, especially if you're hiring at volume.
  • Reclassifying Workers: Do you need to convert independent contractors into full-time employees? The EOR needs a strong understanding of worker classification laws and should guide you through this often complex transition, addressing potential concerns about pay and benefits.

By identifying your primary hiring needs, you can narrow down your Employer of Record options and focus on providers with relevant experience and expertise.

2. Support Levels that Match Your Needs

Realistically assess your internal HR capabilities. How much support will you need from your EOR partner? This will depend on factors like your company size, internal resources, and the complexity of your international hiring needs. As you take that into consideration, you can start mapping the level of needs. Loosely, they will fall in one of three categories

  • Light-Touch Support: You have simpler hiring needs, which are in countries with straightforward regulations. What you will need from the EOR is accurate payroll, benefits administration, and access to a self-service platform for support interactions.
  • Medium-Touch Support: If you believe your hiring needs are more complex (beyond basic chat support), you will potentially require specific expert consultations on compliance, localised benefits, and other nuanced HR needs. This could come in the form of a dedicated account manager helping you to stay on top of everything. Faster access to expertise may also be necessary to expedite matters.
  • High-Touch Support: In your evaluation of your support needs, it is possible that you may come to the conclusion you need a highly customised approach that not only comes with a dedicated account management, but also service level agreements (SLAs), and truly expedited support. You will likely find yourself in that bucket if you are undergoing high-volume hiring, senior-level positions, or expansion into countries with complex legal environments.

Don't hesitate to ask potential EOR providers about their support levels, SLAs, and the availability of dedicated account managers.

3. The EOR's Country-Specific Expertise

While many EORs boast extensive global coverage, it's essential to look beyond the number of countries they claim to support. A critical factor is whether the EOR owns its infrastructure in those countries.

Some EORs rely on third-party providers or "middlemen" to deliver services in certain locations. This can lead to several issues:

  • Reduced Service Quality: Relying on intermediaries can create communication gaps and inconsistencies in service delivery.
  • Compliance Risks: Third-party providers may not have the same level of expertise in local labour laws and regulations, increasing the risk of non-compliance.
  • Limited Expertise and Guidance: You may not have direct access to the EOR's in-country experts, hindering your ability to get timely and accurate guidance.

It's generally advisable to choose an EOR that owns its infrastructure in the countries where you plan to hire. This ensures greater control over service quality, compliance, and access to expertise.

When evaluating EORs, be sure to ask:

  • Do you have a local entity in this country?
  • How do you deliver services in this location?
  • Can you provide details about your in-country team and their expertise?

By understanding the EOR's operational model, you can make an informed decision and choose a partner that can truly provide the local expertise and support you need.

4. Quality of Onboarding and Employee Support

Making a strong first impression is key when bringing on new talent or transitioning employees to a new employment model. An exceptional EOR provides a seamless and positive onboarding experience that makes employees feel valued while also efficiently handling contractual details and conforming to local norms. This requires deep in-country expertise.

But onboarding is just the beginning. Ongoing employee support throughout the employment lifecycle is essential for satisfaction and retention. Employees will have questions about payroll, benefits, time off policies, regulations, and more. The EOR should readily address each inquiry with helpful and prompt support, serving as an extension of the company's HR team.

When evaluating Employers of Record, inquire about their onboarding process and employee support model. Ask how they handle inquiries, their service level agreements, and what communication channels they utilise to connect with distributed team members. The responsiveness and in-country knowledge of the EOR will directly impact the employee experience.

5. Ability to Handle Complexity and Find Resolutions

International employment is inherently complex. Unexpected challenges and situations can arise, requiring expertise and careful navigation of local laws and regulations. The right EOR partner will not only be prepared for these complexities but will proactively guide you through them. This includes expertise in:

  • Contract Drafting and Amendments: Ensuring contracts are compliant with local laws and adaptable to specific situations.
  • Navigating Local Termination Requirements: Understanding and adhering to the often complex termination procedures in different countries.
  • Resolving Disputes and Legal Issues: Having a clear and effective process for managing disputes and potential legal issues, keeping you informed and involved throughout.

When evaluating EORs, inquire about their experience handling challenging situations, their approach to compliance, and their process for resolving disputes. Ask for specific examples of how they have successfully navigated complex scenarios for other clients.

Enjoyed This Blog? Download our eBook for More!

This blog post has provided a valuable overview of the key factors to consider when choosing an EOR partner. But there's much more to learn!

Download our comprehensive eBook, "The Ultimate Guide to Employer of Record: How to Choose the Right EOR Partner For Your Business" to gain a deeper understanding of the intricacies of international employment.

In this eBook, you'll discover:

  • A detailed exploration of various EOR models: Understand the differences between owned infrastructure and aggregator models, and how they impact service quality and compliance.
  • Common misconceptions and red flags: Learn to identify potential issues and avoid common pitfalls when selecting an EOR.
  • In-depth analysis of legal and regulatory considerations: Gain insights into the complexities of international labour laws and how an EOR can help you stay compliant.
  • More practical tips for choosing your EOR partner: Go beyond the basics with expert advice and actionable strategies to select the perfect EOR for your specific needs.

Download your free copy and become an expert in navigating the world of EORs.

Take the Next Step With Boundless

Navigating international employment can be complex, but with the right EOR partner, it doesn't have to be. At Boundless, we act as your consultative partner, handling the intricacies of global hiring so you can focus on your core business goals. Here's what sets us apart:

  • Owned Infrastructure: We own and operate our infrastructure in every country we serve, ensuring quality and consistency.
  • Global Expertise with a Local Touch: Our in-country experts provide unparalleled support and ensure compliance with local laws and regulations.
  • User-Friendly Technology: Our platform streamlines onboarding, payroll, benefits, and more.
  • Transparent Pricing: No hidden fees or surprises, just clear and upfront pricing.
  • Baked-in Compliance: We stay ahead of evolving regulations to minimise your risk.
  • Dedicated Support: Our world-class support team is here to guide you every step of the way.

We're passionate about empowering businesses to access global talent and providing employees with the best possible experience. Get in touch with our team today to learn how we can help you achieve your global expansion goals.

The making available of information to you on this site by Boundless shall not create a legal, confidential or other relationship between you and Boundless and does not constitute the provision of legal, tax, commercial or other professional advice by Boundless. You acknowledge and agree that any information on this site has not been prepared with your specific circumstances in mind, may not be suitable for use in your business, and does not constitute advice intended for reliance. You assume all risk and liability that may result from any such reliance on the information and you should seek independent advice from a lawyer or tax professional in the relevant jurisdiction(s) before doing so.

Written by James Kelly

James Kelly is the Senior Content Writer at Boundless, where he crafts engaging stories and resources that help businesses navigate the world of global employment. With over five years of experience in B2B content marketing across SaaS, Tech, and Finance, James has a knack for making complex topics feel approachable and relevant.

Join our monthly newsletter!

Stay tuned with latest news and developments in global employment, HR compliance and international payroll.
blue blobsblue blob
© 2020 - 2024 Boundless Technologies Limited.
info@boundlessHQ.com
The Greenway, 112-114 St. Stephen's Green, Dublin, Ireland.
cross