How to compare Employer of Record services

Global Employment and Mobility

By Leanna Seah
November 26, 2024

Updated
November 26, 2024

0 min read

The importance of comparing EOR services

Are you considering an Employer of Record (EOR) service provider to outsource your Human Resources functions?

For many small—to mid-size businesses experiencing growth, outsourcing can help them scale their activities during expansion, especially if they plan to set up a business in a foreign country.

Selecting the right solutions is essential to your success, and like any product or service in the market, there is much to choose from.

To learn more about an Employer of Record and how to determine if it's right for your business, read our article on questions to ask when choosing an Employer of Record.

So, how do you choose your Employer of Record service partner?

Much will depend on your unique situation. However, some common factors should be thoroughly researched to select a partner that best suits your needs.

Here are five factors to consider when reviewing Employer of Record companies:

Reputation
Geographic experience
Employee benefits offering
Technology
Servicing model

Read on to learn how to compare Employer of Record services.

1. How reputable is the Employer of Record company?

A hand holding a golden star against a blurred professional background, with text discussing business longevity and client experience.

First things first. How well-established is the company?

Research their time in business and what their current client base looks like. An Employer of Record assumes responsibilities for various administrative activities in your business operations.

These might include local payroll processing, appearing as a legal employer in your host country, sponsorship applications, compliance with international labour laws and managing benefits administration for your global employees.

Therefore, you want to ensure they have long-term experience in the above to ensure workplace safety, avoid compliance risks and give you the peace of mind that your business is in good hands.

2. Does the provider have global employment experience in your geographic area?

A globe nestled in hay, with text about local presence and established entities.

Employee payroll service is an intricate process that involves calculating tax withholdings, insurance deductions, wage garnishments, and sick and leave accruals.

Be sure that the Employer of Record you select has a track record of success in the geography you carry out your international business activity. Country, state and local tax laws and regulations vary by locality. Violation of such laws often carries the risk of civil penalties and fines.

Additionally, labour laws can vary depending on location, so you'll want to partner with an EOR familiar with international employment laws to ensure regulatory compliance.

3. What employee benefits does an Employer of Record offer?

Stacked wooden blocks depicting benefits-related icons, with text about benefit offerings and packages.

One of the greatest advantages of working with an EOR is the benefit systems they offer.

As they work with many businesses, EOR companies have greater buying power in the benefits market. This means that even a small business owner can offer their international employees the benefits plans typically seen in larger organisations.

Thus, you want to ensure that the EOR you choose offers benefits otherwise unavailable to your workforce.

Do they offer benefits in addition to the standard employment contract? For example, many EORs offer life insurance, training and development, and employee performance programs to permanent employees and independent contractors, among other employee benefits.

4. What technology do they use?

Two professionals collaborating on a tablet in an office, with text about data protection and software integration.

Technology is an integral part of working with an Employer of Record, as it is used for international employee onboarding, recording hours to process payroll and taxes, and ensuring compliance.

Ideally, you want to use a system that easily integrates with your organisation's software and allows you to manage the employee lifecycle seamlessly. Request a demo so you can determine how the user experience will work.

As you'll be transmitting large quantities of sensitive data that you have a legal responsibility to protect, you'll also want to assess the security infrastructures of their software to ensure your organisation's information remains safe.

5. What is the servicing model?

A serene woman meditating in a minimalist setting, with text about customisation and designated points of contact.

When assessing which provider might be the best partner for your organisation, consider their servicing model.

Is it a one-size-fits-all approach, or do they customise their model based on the needs of their client company? Do they primarily communicate through an online portal, or would you be assigned a designated point of contact to whom you can escalate issues and consult with queries?

Another factor to consider is whether the service you're interested in procuring is a core part of their business. Ideally, this would be the case, as you'd receive the care and attention you expect and deserve.

Find the best, cost-effective solutions for your business with Airswift

When weighing which company to partner with for comprehensive Human Resources services, assess a variety of factors to be sure that you're selecting a solution that allows you to focus on what matters most - your business's growth objectives and success!

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