Using an EOR service for fast hiring can be a good step towards scaling a business. But finding the right EOR is not easy.
Low-quality employer of record services can create huge chaos. You may have to face legal penalties, be charged heavy fees, bear hidden expenses, and be unable to get out of the agreement due to long, binding contracts.
I wrote this post to help you pick the right EOR service provider who fulfills your hiring needs and makes the hiring process stress-free.
Below are the fifteen factors that you should look for in an EOR before partnering with the provider.
Author
Co-author
Using an EOR service for fast hiring can be a good step towards scaling a business. But finding the right EOR is not easy.
Low-quality employer of record services can create huge chaos. You may have to face legal penalties, be charged heavy fees, bear hidden expenses, and be unable to get out of the agreement due to long, binding contracts.
I wrote this post to help you pick the right EOR service provider who fulfills your hiring needs and makes the hiring process stress-free.
Below are the fifteen factors that you should look for in an EOR before partnering with the provider.
Author
Co-author
Get in Touch with Us
Leah Maglalang
Business Coordinator UAE
These fifteen qualities define an EOR as a reliable service provider. With each quality, I added a question to evaluate it. This simple technique will help you pick an effective service:
You’re partnering with an EOR because you don’t want to register your own legal entity. Learning local labor laws and complying with them is overwhelming. So, a good EOR not only has its own local entity or local resources but also works with country-specific laws, stays updated, understands regional differences, and handles work permits.
What if a contract does not comply with local laws?
You need to bear legal penalties and heavy charges. The reason is an EOR’s lack of expertise. Always look for an EOR that is an expert in localization, enforceability, clauses, probation terms, and termination rules.
In employment-type hiring, employers need to handle payroll taxes. In EOR use cases, employer of record service provider handles them. Payroll taxes, social security, employee benefits, statutory filings, and deadlines are taken care of by a good EOR.
An expert EOR takes responsibility for penalties, fines, insurance, dispute handling, and indemnity clauses where applicable. These should be in the EOR contract, or the provider should discuss them with you. If an EOR is not taking them seriously or is trying to indulge you with fancy things like beautiful dashboards on their platform, run away.
Local labor laws change continuously, and a good employer of record service provider remains updated with them. They follow new rules, are experts in agile processes like iterations or sprints, legal monitoring, contract updates, and proactive alerts.
The second most important responsibility of an EOR is to handle payroll while helping with HR admin tasks and making the employment journey easy. This concept leads us to the following five good qualities that you should look for in an employer of record service provider:
Salary errors and delays in scheduling payments can create unwanted trouble between you and employees. If payrolls are not following labor laws, it can cause enormous problems with the local government. So, a high-quality EOR service not only takes care of payroll processes but also keeps records of deductions and uses software internally to manage them all.
An expert EOR company is your primary partner for handling employee benefits. These could be statutory benefits, optional perks, health insurance, and retirement plans. Leave management is also in this list.
A reliable employer of record organization handles contracts. Their teams are experts in induction and training. They take care of exit formalities and transfer knowledge to incoming employers or internal teams carefully.
An employer of record service provider acts like an external HR department for your company. You handle HR for internal admin tasks, and the EOR handles queries, conflict resolution, feedback, local HR teams, and communication channels.
If you are planning to work only in one country, that’s fine. But if you want to expand your team in multiple countries, you must look at the quality of multi-country operational scalability for future expansion.
Clients mostly underrate these factors, but they are as important as hiring. If your data is not secure, fees are not transparent, or the company is weak in reporting, then you’re on a ship that can sink your business without a lifeline.
A good and reliable employer of record service provider makes the fee structure clear. They do not impose any hidden charges. They mention even minor details in the contract, follow billing cycles, and provide upfront disclosure.
Experienced EORs have a strong framework for data encryption. They comply with GDPR/local laws regarding data handling and access control. They have firm plans to protect against data breaches and clear privacy policies.
SLAs, KPIs, response times, escalation processes, and quality guarantees are factors that, if an EOR has them, make it worth working with them. These perks create a smooth, balanced workflow with proper monitoring and analysis.
A good EOR may work on a manpower approach or platform dependency, but what if they are too traditional or use excessive automation?
Hence, you should ask what dashboards they use, how they provide real-time reports and analytics, and what they do if integration is needed or automation is required.
Last but not least, an experienced EOR should demonstrate credibility. The EOR should have case studies, testimonials, global clients, success metrics, and references to support this credibility. These are the things that most people look at first, but I put them at the end to emphasize other qualities.
FMC Group is a people-first company that prioritizes long-term, trusted relations with its clients by providing complete transparency and expertise in EOR. Here is how we work:
We have been providing EOR services for over fifteen years. FMC Group has been in the global market for international solutions for more than twenty-five years. We provide our EOR services in more than fifty countries. This is an approachable number supported by profound regional and legal expertise.
We are experts in payroll accuracy, benefit management, onboarding, HR systems, and seamless execution. Our expert team also provides recruitment solutions to our EOR clients.
You can start working with FMC Group at no upfront costs and no hidden fees. We believe in clear workflows, contract clarity, and predictable billing.
Account managers, local HR teams, 24/7 support, communication channels, and escalation ensure that we leave no corner unturned to satisfy our clients.
FMC Group serves twenty-plus sectors. We have built case studies and strong relationships with international clients. Our team has multi-currency experience with successful global operations. We have worldwide references to provide our clients with all hiring solutions in one place.
You need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Turnstile. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou are currently viewing a placeholder content from Vimeo. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.
More InformationYou need to load content from reCAPTCHA to submit the form. Please note that doing so will share data with third-party providers.
More Information