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Choosing The Employer Of Record Service For You: Ask And Compare The Right Way


Priming your business for global expansion is a daunting task that requires you to face the challenges of new international markets.

More often than not, issues arise in establishing an entity representative of the company in the specific country for your chosen expansion. This becomes an obstacle in adhering to the local compliance requirements affecting recruitment opportunities of top international talents. 

Since scaling activities to overseas markets take an enormous amount of time and resources, most businesses turn to Global Employer of Record (EOR) companies for cost-effective solutions. Through Global EORs, companies can directly hire international workers without the need to set up an entity while staying compliant with local laws and taxes. 

Essentially, Employer of Record services provides assistance in areas such as:

  • Human resource consulting
  • Onboarding and offboarding employees
  • Tax filing
  • Payroll processing
  • Compensation and Benefits Management
  • Insurance 
  • Risk mitigation 

However, not all EOR services are the same. 

To choose the best Employer of Record service, you need to ask the right questions to assess your company’s needs. In doing so, you’ll be able to compare different EOR services that fit your business effectively.

In this article, we’ll guide you through how you can evaluate your business needs and know what to look for in choosing the exemplary EOR service for you.

Assess your business with the right questions

In order to thoroughly understand your business needs, you must be open to asking the right questions. This means you critically construct your evaluations to reveal your business’ readiness for global expansion. 

You can start by asking the following questions:

  • What is the main reason for your global expansion?
  • What is your strategy for successfully establishing your company in other countries?
  • How do you plan to execute your strategy?
  • Have you considered foreign policies, compliances, and regulatory labor laws overseas?
  • Do you have enough assets for your expansion?
  • Do you have experienced employees in handling setting up your international entity?
  • Is your company equipped to handle international payroll processing?
  • What is your short, mid, and long-term plan for mitigating costs?

By honestly answering these questions, you’ll understand your company’s position comprehensively. You can also dig deeper with additional inquiries to identify the minute pain points critical to your assessments. 

Remember, being aware of your company’s intent, resources, and action plan can push you to discover the best EOR service at the moment. As your challenges evolve, you can repeat this process to fine-tune your solutions effectively. 

In time, you’ll have a more efficient and cost-saving service catered to your needs.

Comparing Employer of Record service providers the right way

Now that you have an accurate assessment of your business needs, you can move on to employing the best Employer of Record service provider in the market. However, with the sheer number of EOR services available, it may be difficult to choose the right one. 

That’s why it’s vital to look into the individual qualities of EOR services, as listed below, to avoid unnecessary costs in the future.

Reputation and Industry Expertise

In choosing EOR service providers, a reliable way of knowing their expertise hinges on their reputation. 

Researching their client base gives you a general idea of what they do. Asking for feedback from companies they serviced can provide valuable insights into the provider’s trustworthiness and work quality. 

Since various activities from administrative to human resources are assumed by the EOR service providers, handling sensitive information while following international compliance is crucial in determining their quality of service.

Therefore, be sure you want to employ EOR service providers with long-term experience to avoid compliance and workplace headaches in the future. 

Service Model

When evaluating the best EOR partner for your company, consider the types of service models they provide. Below are the three common models EOR service providers implement for their clients. 

  • Bespoke (fully customized) Model
  • Comprehensive (standard) Model*
  • Project-based Model

*Note – there may be slight differences for each Employer of Record provider depending on the comprehensive services available 

These models have different compatibilities, costs, and implementations depending on the needs of their clients. As such, with the proper appraisal of your company’s needs, you’ll be able to determine the most appropriate model for you. 

Data Security

EOR services handle sensitive employee information for payroll processing, compliance, and employee onboarding. Technology plays a large role in making sure every piece of information is secure and accounted for.

In this case, you want to choose an EOR service provider with a strong cybersecurity infrastructure. 

Since they will manage a significant portion of your employee database, a robust system ensures your employee information is safe and sound. This enables you to avoid legal repercussions and compliance issues in the long run.

Country Operations

As you’re looking to expand to other countries, knowing what countries International Employer of Record providers have entities in is important. 

Countries go by different compliances depending on their local tax and labor laws. So, where you’re planning to expand is one of the drivers for choosing which EOR service you can employ. 

Value for Cost

As you know, not all EOR providers offer the same level of service as others. 

Since they have varying levels of expertise, the costs of services may differ according to the provider. This is where the previous qualities we discussed come into play. By comparing your prospects’ reputation, service model, data security, and country operations, you can decide the best value for your price point.


With everything considered, you ultimately know what’s best for your company. Pushing your global expansion agenda requires you to fully grasp your company’s needs while distinguishing the international Employer Of Record provider landscape. 

Once you’ve decided, always reassess your goal so you can adjust the services you need for your EOR providers. 

Moving forward, with the right provider servicing your needs, you’ll see your success in expanding your company will slowly come to fruition