How to compare Employer of Record services

Asia Pacific Americas EMEA Consulting Global Employment and Mobility
Liz Fiumara

By Liz Fiumara
May 17, 2021

July 12, 2022

0 min read

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Employer of Record services can help business outsource their HR tasks

Are you considering an Employer of Record (EOR) service provider to outsource some or all of your Human Resources functions?
For many small to mid-size businesses experiencing growth , outsourcing can help you scale your activities during your business expansion. Especially if you're planning 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 what is 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?

The truth is that much of it will depend upon your unique situation. However, there are some common factors that should be thoroughly researched in order to select a partner that best suits your needs.

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

  • Reputation
  • Geographic experience
  • Employee benefits offering
  • Technology
  • Servicing model

We have summarised some questions to ask in the below infographic. Click on the image to download a pdf version.

Read on to learn more about comparing Employer of Record service providers

choosing an employer of record

1. How reputable is the EOR?

First things first. How well established is the company?

Research their time in business and what their current client base looks like. An EOR assumes responsibilities for various administrative activity in your business operations. These might include local payroll processing, appearing as a legal employer in your host country, sponsorship applications, compliance with international labor laws and managing benefits administration for your international employees.

Therefore, you want to be sure that 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 EOR have global employment experience in your geographic area?

Employee payroll service is an intricate process in which tax withholdings, insurance deductions, wage garnishments as well as sick and leave accrual must be calculated.

Be sure that the EOR you select has a track record of success in the geography in which you are carrying 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, labor laws can vary depending upon location, so you'll want to partner with an EOR who is familiar with international employment laws to ensure regulatory compliance.


3. What employee benefits does the EOR offer? 

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 types of benefits plans typically seen in larger organizations. Thus, you want to ensure that the EOR you choose offers benefits that would otherwise not be available to your workforce.

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

4. What technology do they use?

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

Ideally you want to have use of a system that easily integrates with your organization's software and allows you to seamlessly manage the employee lifecycle. Request a demo so you're able to 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 organization's information remains safe.

Consulting Services-featured-image

5. What is the servicing model?

When assessing which provider might be the best partner for your organization, 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 that you'd 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 - the growth objectives and success of your business!

If you would like further advice on choosing the best approach for your business goals, contact one of our global employment experts.

Find out more about our Global Employment Outsourcing services

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