The right Employer of Record partner can accelerate your business goals; the wrong one can create headaches or even land you in legal trouble. Here’s a useful guide to help you identify the good (and bad) providers out there.
1. Global reach and local expertise
Choose an EOR with proven experience in your target countries and regions. They should be able to demonstrate up-to-date knowledge of local employment laws, payroll, and compliance requirements for every market you are considering.
2. Value Alignment
If your organisation cares about purpose, sustainability, and social impact, look for an EOR whose values genuinely align. That might include charitable giving, fair employment standards, B Corp or similar commitments, and transparent ESG reporting.
3. Cultural Fit
The right partner should also be a positive cultural fit: how they treat their own people and your employees will reflect back on your brand, so look for signs of empathy, inclusion, and long-term people focus rather than a purely transactional mindset.
4. Reliable Tech and Human Support
Modern EORs should offer user-friendly, secure digital platforms for things such as contract management, payroll, and document storage. But ensure there is responsive, human support and ideally a dedicated contact who understands your account and growth plans.
5. Transparency and Pricing
Look for partners who are clear about costs, contract terms, and what is included in each service tier. Understand if there are set-up fees, minimums, notice periods, or add-ons for more complex scenarios such as equity, bonuses, or terminations.
6. Compliance and Risk Mitigation
Ask about their processes for staying compliant with labour laws, handling legal changes, and managing risk. A strong EOR should be able to explain how they reduce misclassification risk, handle audits, and manage sensitive issues such as terminations or disputes.
7. Flexibility & Customisation
Your needs will evolve, so find an EOR that can adapt as you grow – supporting new countries, different contract types, varied benefit structures, and smooth offboarding when roles or markets change. The best partners collaborate with you to design solutions rather than forcing everything into a rigid one-size-fits-all model.
Red Flags To Watch Out For
- Watch out for opaque pricing, hidden fees, or long, inflexible lock-in contracts. Some of the bug name providers are know to apply hidden fees after sign up.
- Always scrutinize review sites. It’s always advisable to filter on the 1 and 2 star reviews on sites like Trust Pilot, to get a glimpse at the issues that occur.
- Be wary of EORs that are vague about their coverage and ownership, or how employment is legally structured.
- Avoid providers that cannot clearly explain legal responsibilities, compliance processes, or how they manage risk.
- Notice responsiveness during the sales process; slow, defensive, or confusing communication often predicts poor support later.
- Always check references, request case studies, and speak to existing customers before committing.
Remember, the right EOR should act as an extension of your team, supporting culture, impact goals, and global hiring strategy. Take the time to find the best fit for you and your organisation.
