So, you’ve decided an employer of record is the best solution for your business; you’ve weighed up the benefits, looked at all the risks, and thought about the running costs and it’s still the right solution for you. Well, the next big step is deciding what the best employer of record service is.
What is an EOR?
An employer of record (EOR) is a service that acts as the official employer for workers, taking care of tasks like payroll, admin and benefits. The way that an employer of record works is that they’ll handle the nitty-gritty of employment, but you get the top talent working for your business!
EOR provider considerations
When it comes to choosing the best EOR provider, it can be tricky. Deciding who has the right options for your business, who will provide the best service, who is the most cost-effective and who will be trustworthy when it comes to compliance and security.
What should you consider when selecting who is the best employer of record provider?
- Global expertise – You need to ensure that the provider is aware of local and international employment laws, understands local customs and can communicate efficiently with any local authorities (and your newly hired employee).
- Risk mitigation – Assess what the EOR’s approach to risk management is, and their ability to handle any unexpected challenges. You should also check who is liable based on what is written in your contract with them.
- Transparent costs – Find out exactly what is included in the price you’re paying, you need a full list of included services as well as a price list for any potential extras you might need so there are no hidden fees.
- Technology – Look at what technology your EOR provider is using, make sure it aligns with the systems you’re using for efficient communication and data sharing.
- References and reviews – It’s vital to see what current clients of the EOR provider think of them, look for reviews or ask to speak to references of current clients.
- Flexibility and scalability – Find out how you can customise your EOR experience to suit your business’s needs, can you choose specific services and not take others. Can you change your services mid-way through a contract if you need to offboard someone or if your business grows?
- Security – You need to know that your data and employee’s data are safe.
- Employee benefits – Make sure that the EOR you’re selecting can provide any employee benefits you’d like to offer an employee. If it’s important for you to ensure that an employee has things such as pension plans, medical insurance etc. then check that this can be provided.
- Customer service – How are they going to handle any questions or concerns you might have? How quick are their replies? Is there a service level agreement in place? These are all things that you need to consider making sure you’re getting the best service.
- Onboarding process – How easy is it for your employees to actually be onboarded to the EOR service. You don’t want to start off your new employees’ job with you on a complicated footing.
- Exit strategy – Can you leave? You need to ensure that you understand the terms and conditions for ending the agreement with the EOR if the solution is no longer working for you. Look at any costs, obligations or risks that might be included.
You now know what you need to be considering when selecting an EOR, but how do you go about finding out this information? We’ve created a list of questions to ask a potential provider to help you really get clear information out of them.
Questions to ask a potential EOR provider
Global questions:
- How do you stay updated on changes in employment laws globally?
- Can you provide examples of how you’ve helped clients maintain compliance in various regions?
- In which countries do you currently have a presence, and how extensive is your global network?
- How do you handle employment matters in regions where you don’t have a physical presence?
Pricing questions:
- Could you provide a breakdown of your pricing structure?
- Are there any additional fees that might not be included in the initial quote?
Contract questions:
- What is the process for ending our engagement with your EOR service?
- Are there any costs or obligations we should be aware of when terminating the agreement?
Technology questions:
- How does your technology interface with our existing systems?
- Can you demonstrate the user interface of your platform?
Service questions:
- Can you share references from clients in a similar industry or with similar global requirements?
- Are there online reviews or testimonials available from your clients?
- How flexible are your services, and can they be customized to fit our specific needs?
- Can you provide examples of how you’ve tailored your services for other clients?
- How easily can your services accommodate our company’s growth?
- Are there any limitations to the number of employees or countries you can support?
- What is your standard response time for addressing client inquiries or issues?
- How do you ensure clear and consistent communication throughout the agreement?
- How do you handle unexpected challenges or changes in employment regulations?
- What types of benefits do you offer, and are they customizable to our preferences?
- How do you ensure competitive and compliant benefits in different regions?
- How streamlined is your onboarding process for new employees in different countries?
- Can you walk us through the typical steps involved in bringing on a new team member?
Compliance questions:
- Can you share an example of a situation where you helped a client navigate a compliance issue?
- What measures do you have in place to ensure the security and confidentiality of employee data?
- How do you comply with data protection regulations in different countries?
- What types of benefits do you offer, and are they customizable to our preferences?
- How do you ensure competitive and compliant benefits in different regions?
You’re now equipped with the questions to go ask some potential providers. To make sure that you’re selecting the best employer of record you need to meet with lots of different providers and really get a feel for who you’re going to work best with, don’t just settle for the first service provider you talk to.
We offer an EOR service if you’d like to find out more about what we can do, then get in touch today and a member of our team will be happy to answer your questions.