Going global with your business is an adventure filled with promise, but it takes a lot of work. Dealing with different labor laws, calculating payroll, and sorting out employee benefits in many different countries can be a real source of stress. 

An Employer of Record (EOR) can be a lifesaver. 

However, with so many EORs out there, picking the best one for your company can feel like an added challenge on top of things you already have. 

Don’t worry, we’re here to guide you through the process and help you make a smart choice.

An Employer of Record (EOR) is an external company that acts as the legal employer for another company’s workforce.

The EOR takes on all the administrative and legal responsibilities associated with employment, such as:

• Payroll and tax withholding
• Health insurance
• Employee benefits  
• Compliance with laws and regulations 
• etc.

This lets the client company focus on its main business activities and manage its team/s while the EOR takes care of all the complicated employment stuff, simplifying global expansion.

First things first: Before looking for EOR providers, it’s important to understand your needs and define your specific requirements. 

Figure out the following:

1. In which countries do you plan to operate?
2. Does your industry have specific labor regulations or compliance needs?
3. How many employees will you be hiring or managing?
4. What is your budget for EOR services?
5. Do you need payroll, benefits administration, or HR support?

Key factors to consider when selecting an EOR:

Global Coverage:

• Make sure that the EOR has a presence in the countries where you plan to hire.
• Consider their experience in different regions and their understanding of local labor laws.
  

Compliance Expertise:

• Verify the EOR’s track record in handling complex labor regulations and tax laws.
• Look for providers with in-house legal and compliance teams.
  

Service Offerings:

• Look at the EOR’s range of services, including payroll, benefits administration, HR support, and onboarding.
• Determine if they offer additional services like visa and permit assistance.
  

Technology and Infrastructure:

• Evaluate the EOR’s technology platform for user-friendliness and data security.
• Consider if their systems integrate with your existing HR or payroll software.
  

Customer Support:

• Assess the EOR’s customer support channels and response time.
• Look for providers with dedicated account managers.
  

Pricing and Transparency:

• Understand the EOR’s pricing structure, including fees, taxes, and additional charges.
• Ensure transparency in their billing process.
  

Reputation and References:

• Research the EOR’s reputation in the industry.
• Check client testimonials and reviews.

Once you have a shortlist of potential EOR providers, conduct a thorough due diligence process:

1. Clearly outline your business needs and ask for detailed proposals.
2. Carefully analyze the proposals side-by-side to identify strengths and weaknesses.
3. Look at client reviews and try to reach out to previous clients to get their feedback on the EOR’s performance.
4. Consider starting with a pilot project in one country to assess the EOR’s capabilities.

It’s important to consider several factors when working with an Employer of Record (EOR). 

First, verify that the EOR has strong data protection measures in place to safeguard sensitive information. 

Secondly, carefully review the EOR’s contract terms, paying close attention to termination clauses. 

Lastly, it’s wise to develop an exit strategy outlining potential steps if you need to end your partnership with the EOR.

Selecting the right Employer of Record (EOR) provider is a critical decision that can significantly affect your business’ global expansion. 

Carefully evaluate your needs and conduct thorough research, so you can find a partner that will help you solve the complexities of international employment. 

If you’re looking for options, consider Filta’s Employer of Record solutions. 

Filta can simplify your global operations by handling complex legal, HR, and compliance requirements in over 150 countries. We take care of payroll, benefits, and taxes, allowing you to focus on building and leading your team while achieving your business goals without hassle.

To learn more about our Employer or Record (EOR) solutions and all of our other services, head to www.filtaglobal.com.

Elevate your business to new heights! Partner with a strong EOR— partner with Filta today.