Expanding your team globally is an exciting challenge, but it comes with a lot of details to manage like payroll, taxes, and compliance. That’s where an Employer of Record (EOR) comes in. They handle the legal and financial complexities. This way, you can focus on growing your business. However, the confusion arises when you are unsure of how to select an EOR. Start by asking the right questions, such as:
- Where do they operate?
- What services are included?
- How do they stay on top of local laws?
- What’s their pricing?
- What tech do they use?
- How do they protect your data?
Getting clear answers to these questions will guide you to the EOR that’s the best fit for your business.
Essential Questions to Ask Before Selecting an Employer of Record
Before you sign on the dotted line, ask these 12 questions.
1. Where Do They Operate?
This one’s simple. Does the EOR cover the countries where you’re hiring? Some might only operate in certain countries, and that could be a dealbreaker. If they can’t support the countries you need, move on. Don’t waste time with one that can’t do the basics.
2. What’s Included in Their Service?
Some EORs only do payroll, others handle everything like benefits, taxes, compliance, and all that. Make sure you know what’s included. Don’t assume everything’s covered. Ask for a full list of what you’re getting so you’re not shocked with hidden fees later.
3. How Do They Keep Up with Local Laws?
Laws can change over time. How does your EOR stay on top of them? Do they have a system in place, or do they wait until something breaks? You want someone proactive. If they truly cannot keep up with local regulations, then it could be a bigger issue later on.
4. What Are Their Pricing Details?
You’re going to want to know exactly how they charge. Do they have a flat rate or is it per service? Do they charge extra for things like benefits or taxes? Get the full breakdown. No surprises. No hidden fees. Be clear on what you’re paying for before you sign anything.
5. How Flexible Are Their Contracts?
Your business is going to grow. Maybe it shrinks. Things change, right? So, ask about the contract. Can you add or remove employees easily? Can you change things up during the year? Make sure the contract isn’t locked in place if your business needs a little flexibility.
6. What Tech Do They Use?
If their software is clunky or outdated, you’re in for a rough ride. Ask what kind of tools they use to handle payroll, taxes, and compliance. Is it user-friendly? Does it connect well with your existing systems? You don’t want to waste time dealing with bad tech.
7. How Fast Is Their Customer Support?
When things go wrong, you need help. Fast. Ask about their support response time. Can you reach them 24/7? How quickly do they get back to you? You can’t afford to wait around when issues come up.
8. How Do They Handle Onboarding and Offboarding?
Onboarding and offboarding are a pain, especially if you’re dealing with remote employees across borders. How does the EOR handle it? Do they manage the paperwork and benefits? Do they ensure everything’s compliant? A smooth process here makes a huge difference.
9. How Do They Protect Data?
Data security is huge. Ask how they keep your employees’ personal info safe. Are they compliant with things like GDPR? How do they prevent data breaches? This is non-negotiable. If they can’t protect data, they’re not the EOR for you.
10. Do They Have Experience with Businesses Like Yours?
Not all EORs work with businesses like yours. Some specialize in certain industries or business sizes. Ask if they’ve worked with companies of your size or in your field. They’ll be better equipped to understand your needs and challenges.
11. How Do They Handle Employee Benefits?
Employee benefits can be tricky to manage across borders. Ask the EOR how they handle this. Do they offer a variety of benefits options? How do they ensure compliance in different countries? If they’ve got it figured out, it’ll save you a ton of work.
12. What’s Their Experience with Remote Teams?
Remote work is here to stay, so make sure your EOR knows how to manage it. Ask about their experience working with remote teams. Can they handle international remote workers? If they have experience here, they’ll make your life easier.
Conclusion
Choosing the right EOR truly isn’t as tough as it probably sounds to you right now. Ensure you ask about their services, pricing models, technological infrastructure, and how they manage key processes such as onboarding, data security, and remote workforce management. At HR Options, we’re the ones who’ll help you figure out the tough stuff. We’ll guide you through all those questions and make sure your global team isn’t just set up to survive, but to thrive with our EOR services.
