Key Considerations for Selecting the Right Employer of Record

Introduction

When selecting a new Employer of Record (EOR), it's crucial to partner with a provider that ensures your business remains compliant with employment legislation and provides a seamless experience for your employees. Here are eight essential questions to guide you in making an informed decision.

1. Are All Pricing Details Clearly Outlined?

Transparent pricing is vital. Many EOR services don't openly display their pricing and charges, leading to unexpected fees. Request a detailed breakdown of costs, including hidden fees, and clarify what features are not included in the quote. This ensures you won't be surprised by additional costs later on.

2. Do You Own Entities in Other Countries, or Do You Use Third Parties?

Understand whether the EOR handles the employment process internally or relies on third-party companies. EORs with their own entities offer better control and a more predictable employee experience, reducing the risk of data exposure and compliance issues.

3. What Is the Termination Policy?

Different countries have specific laws around terminating a worker. Ensure your EOR has a strong understanding of these laws and clear processes to avoid noncompliance risks. Additionally, inquire about the EOR's termination policy, including any cancellation fees, to be well-prepared if you decide to end the partnership.

4. Can You Explain the Service Contract?

Before signing, thoroughly understand the EOR service contract. Key terms to review include:

- Minimum contract term

- Fees related to payroll, support, transfers, onboarding, or foreign exchange rates

- Responsibilities of the EOR and your company

- Intellectual property (IP) ownership

- Data protection and privacy

- Minimum team numbers required

- Deposit amounts

- The process for adding more workers

- Cancellation fees

- Employee termination process

A demo of the platform can also provide valuable insights into its usability.

5. What Are the Onboarding Times You Can Expect?

Rapid yet compliant onboarding is crucial. Ask the EOR about their onboarding timelines for both your company and new international hires. A detailed roadmap will help you understand the expected timeframes and ensure a smooth onboarding process.

6. Do You Have Any Special Rules or Exceptions?

Inquire about any special rules or exceptions, particularly for the countries where you intend to hire. This question can reveal important localized expertise and potential challenges you might not have considered.

7. Do You Handle IP Transfers and Protection?

Data security and IP protection are critical. Ask how the EOR manages these aspects to safeguard your company’s information and your employees’ personal data. Understanding their crisis management plan and security certifications is essential to ensure comprehensive protection.

8. Do You Have a Centralized Hub for Documents and Information?

Managing global employment details can be challenging. A centralized platform for payroll, benefits, and taxes simplifies this process. Remote’s global employment platform, for example, provides a secure, centralized hub, quick onboarding, and local expertise to ensure compliance with country-specific regulations.

Why You Can Trust Remote

Remote’s EOR service handles every aspect of global employment, from onboarding to payroll and compliance. Ranked #1 in G2's Multi-Country Payroll Spring Report 2023, Remote offers industry-leading support, ease of setup, and high user satisfaction. With Remote, you can focus on finding and retaining the best talent globally while we manage compliance and employment processes on your behalf.

By asking these questions, you can confidently choose an EOR provider that meets your needs and ensures a smooth and compliant experience for your global workforce. Schedule a free demo with Remote today to learn more about our platform and start your global expansion journey.

Want more insights? Download our whitepaper for a detailed guide on selecting the right Employer of Record and ensuring seamless global expansion. Get the information you need today!


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