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What Matters Most When Choosing an Employer of Record

An employer of record, or EOR for short, is a company who undertakes the responsibility of paying the employees you hire and takes on all the legal matters regarding benefits, visas, bonuses, sponsorships, and anything else related to HR. An EOR is designed to lessen your burden of handling the day-to-day and become the go-between for you and your employees.

Hiring online can be very convenient and also widens the talent pool to locate more suitable candidates. But when it comes to how you choose a global Employer of Record, there are a few things you need to keep in mind. 

How Reputable is the EOR?

You should always go for an EOR that is reputable. Take a closer look at their servicing model to get a clearer idea of how they intend to meet your needs. Upon review of their contract, you should have a better understanding of how trustworthy and reliable they are.

How do they outline the confidentiality agreement? Does the contract fully cover interest protection for all parties involved? There also needs to be a non-compete agreement somewhere in the documents. 

You can also utilize the Internet and read reviews of the EOR. Have they consistently handled cases well and earned 5-star reviews across the board? Do they have experience in dealing with your sector and your needs? If they have had previous clients in the same field, perhaps the results can speak for themselves in the form of references.

A reputable EOR will also have limited points of contact, maybe even just one. This will limit the risks of miscommunication. It’s also easier to manage all the comings and goings from a single point.

There are EOR companies that provide this service as a secondary one in addition to another main focus. An EOR company that is solely committed to one service will most likely offer you more attention and investment.

We know you shouldn’t enter into any type of relationship with the end already in your mind, but it’s important to make sure the EOR gives clients an easy way out. If there are many stipulations in the contract that will make it hard to leave if things aren’t working out, then that is a red flag, and we would advise you to reconsider.

Does the EOR have global employment experience in your geographic area?

A subsection of how to determine if the EOR is reputable is their experience in your geographic area. We understand it is difficult for any EOR service to be operational in all countries of the world. However, they need to have had experience in your particular sector to ensure excellent service. 

It’s also a bonus if the EOR has agents available in your geographic area due to time zone differences. If you have a team of employees working from around the globe, you want one reliable access point to handle all the operations. 

What Employee Benefits does the EOR Offer?

You should also consider the employee benefits your particular EOR offers. Some of the common ones to look for are:

  • The handling of necessary work visas if necessary
  • Payments and bonuses
  • Is the go-between for you and the employee
  • They conduct necessary background checks
  • Takes care of onboarding
  • Handles termination.

Not only does the EOR offer benefits to you as a client, but also to the employees. They will take care of the day to day minute details and handle everything legally to keep things legitimate and above board in areas you are unfamiliar with.

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