Choosing the Right Employer of Record Solution
Employer of Record platforms can simplify international hiring, but not all providers offer the same level of coverage, onboarding support, or compliance infrastructure across supported regions.
Before selecting an EOR platform, it’s important to evaluate how well the provider aligns with your hiring locations, onboarding timelines, payroll requirements, and long-term workforce plans.
The factors below can help you compare EOR providers based on practical service capabilities rather than surface-level feature lists.
01. Hiring Locations
Start by reviewing the countries where each provider supports full-time employee hiring. Some EOR platforms offer global coverage across 150+ regions, while others may only operate in select markets through local partners.
If you’re planning to hire across multiple countries, it’s important to choose a provider that can offer consistent onboarding, payroll, and compliance support across all target locations.
02. Pricing Structure
EOR pricing can vary depending on hiring location, employee compensation, benefits requirements, and payroll frequency. Some providers offer fixed monthly pricing per employee, while others use percentage-based service fees tied to gross salary.
Reviewing onboarding charges, recurring payroll costs, and included compliance services can help you estimate long-term hiring expenses more accurately.
03. Compliance Model
Since EOR platforms act as the legal employer on your behalf, they are responsible for managing employment contracts, statutory benefits, tax filings, and regulatory reporting in each hiring location.
Reviewing how providers manage local compliance requirements, including labor law updates and statutory contributions, is critical when hiring across multiple jurisdictions.
04. Contractor vs Employee Support
Some EOR platforms offer support for both full-time employees and independent contractors within the same dashboard, while others may specialize in one hiring model.
If your workforce includes a mix of contractors and full-time employees across different countries, choosing a provider that can manage both employment types can simplify payroll administration.
05. Integration Capabilities
Integration with HRIS, accounting platforms, or payroll software can help streamline employee onboarding and workforce reporting across regions.
Some providers offer built-in integrations with common HR and finance tools, which can reduce manual payroll reconciliation and simplify benefits tracking.
06. Onboarding Timelines
Onboarding timelines may vary depending on hiring location, employment contract requirements, and benefits enrollment.
Reviewing estimated onboarding timeframes for supported countries can help you plan hiring cycles more effectively, especially when expanding into new markets.
Who Should Consider Using an Employer of Record?
Employer of Record platforms are commonly used by companies that want to hire internationally without setting up legal entities in each hiring location. This hiring model can be particularly useful for:
- Startups hiring globally: Early-stage companies expanding into new markets can use EOR platforms to onboard international employees without managing local incorporation requirements.
- Remote-first companies: Organizations building distributed teams across multiple regions may rely on EOR platforms to manage payroll, compliance, and employee benefits across jurisdictions.
- Companies expanding to new markets: Businesses entering new regions for the first time can use EOR providers to hire local employees while assessing long-term expansion plans.
- Project-based hiring abroad: Companies hiring employees for short-term projects in other countries may use EOR platforms to manage employment contracts and payroll administration without opening foreign subsidiaries.
Employer of Record vs Foreign Subsidiary
Hiring international employees through an EOR provider differs significantly from setting up a local legal entity in each country where you plan to hire. Both approaches offer different levels of control, legal responsibility, and administrative complexity.
| Factor | EOR Provider | Foreign Subsidiary |
|---|---|---|
| Setup Time | Typically a few weeks | Several months, depending on jurisdiction |
| Legal Responsibility | Managed by the EOR | Managed internally by your organization |
| Cost Structure | Monthly service fee per employee | Incorporation, legal, and admin overhead |
| Payroll Management | Administered by the provider | Managed in-house or via local vendors |
| Compliance Risk | Handled by EOR in supported countries | Ongoing internal responsibility |
How Hiring Through an EOR Works
Hiring an employee through an Employer of Record typically follows a structured onboarding process once employment terms have been finalized. While timelines may vary depending on the hiring location, most international hires are onboarded across the following stages:
| Hiring Stage | Typical Timeline |
|---|---|
| Employment Contract Drafting | 2–5 business days |
| Payroll Registration | 3–10 business days |
| Statutory Benefits Enrollment | 5–15 business days |
| Employee Onboarding | 1–2 weeks |
During this process, the EOR manages employment documentation, statutory registration, payroll setup, and benefits enrollment in accordance with local labor laws. Once onboarding is completed, the employee is added to the provider’s payroll cycle in the supported hiring location.
Understanding Different EOR Service Models
Not all EOR providers manage employment infrastructure in the same way across supported hiring locations.
Some operate through their own locally incorporated legal entities, while others rely on in-country partners to act as the legal employer on their behalf.
| Model | How It Works | Operational Impact |
|---|---|---|
| Owned Entity Model | The provider incorporates its own subsidiaries and manages employment internally. | Allows more direct oversight of onboarding and compliance. |
| Partner-Based Model | The provider works with local third-party partners to manage employment locally. | May offer broader coverage but introduces an additional service layer. |
Pro Tip:
If you’re hiring senior leadership or revenue-generating roles, confirm whether the provider operates through owned entities in that country. This can influence employment contract enforceability in certain jurisdictions.
EOR Responsibilities vs Your Company
When hiring through an Employer of Record, employment responsibilities are typically shared between your organization and the provider.
| Responsibility | Managed by EOR | Managed by Your Company |
|---|---|---|
| Payroll Processing | ✓ | |
| Statutory Benefits | ✓ | |
| Employment Contracts | ✓ | |
| Tax Filings | ✓ | |
| Work Schedule | ✓ | |
| Performance Management | ✓ | |
| Day-to-Day Supervision | ✓ | |
| Termination Decisions | Shared | Shared |
The EOR manages administrative employment obligations, while your company continues to direct the employee’s daily responsibilities and performance outcomes.
EOR Pricing and Additional Cost Considerations
Beyond onboarding fees and monthly service charges, international hiring costs may include operational or payroll-related fees depending on employment terms.
| Potential Additional Cost | Description |
|---|---|
| Benefits Administration Fees | Charges for managing employee insurance or statutory benefit plans. |
| Out-of-Cycle Payroll | Fees for running payroll outside standard payroll cycles. |
| Expense Processing | Administrative fees for reimbursing employee expenses. |
| Offboarding Support | Costs associated with employee termination or resignation. |
| Contract Amendments | Charges for adjusting employment terms such as salary or benefits. |
| Late Payment Fees | Applied when invoices are not paid within the agreed billing cycle. |
Currency Conversion (FX) Fees
If payroll is processed in a different currency than your service invoice, some EOR providers may apply foreign exchange (FX) markups when converting payroll payments.
Even small FX spreads applied to monthly payroll invoices can increase employment costs over time.
| Payroll Amount | Base FX Rate | Marked-Up FX Rate | Monthly Difference |
|---|---|---|---|
| CAD 10,000 | 0.75 USD | 0.79 USD | $400+ |
Pro Tip:
Always confirm which currency payroll will be executed in and whether FX markups are applied during invoicing.
Permanent Establishment (PE) Considerations
While EOR platforms allow companies to hire internationally without registering a local legal entity, hiring employees in certain roles may still introduce corporate tax considerations depending on country-specific regulations.
Roles that involve:
- signing contracts locally
- negotiating deals
- generating revenue within the country
may create a local operational presence from a tax perspective in some jurisdictions.
Security Deposits and Offboarding
Some EOR providers require a refundable security deposit before onboarding employees to cover potential employment liabilities such as notice payouts or statutory severance requirements.
| Deposit Type | Typical Range |
|---|---|
| Employment Security Deposit | 1–3 months of gross salary |
| Employer Tax Coverage | Varies by country |
Pro Tip:
When offboarding employees, confirm whether your company paid a security deposit during onboarding.
What Happens During Employee Offboarding?
When an international employee leaves your organization, the EOR typically manages the termination process in accordance with country-specific labor regulations.
Offboarding may include:
- final payroll processing
- notice period management
- statutory severance payments
- employment contract termination
- benefits discontinuation
Offboarding timelines and severance obligations may vary depending on local employment laws and the employee’s tenure. In some jurisdictions, notice periods and termination benefits are mandated by statute, which the EOR administers as part of the employment agreement.
Switching EOR Providers
Companies that are already working with an Employer of Record may consider switching providers due to changes in pricing, onboarding timelines, supported hiring locations, or internal service requirements.
As the global EOR market has become more competitive, transitioning from one provider to another is increasingly common, particularly for organizations expanding into new regions or looking to consolidate international payroll under a single platform.
In most cases, switching EOR providers involves transferring employee employment records from the outgoing provider to the incoming one. This process is typically handled using one of the following approaches:
| Transfer Method | Description |
|---|---|
| Resign & Rehire | The employee resigns from the outgoing EOR and signs a new employment contract with the incoming provider. Employment terms may be reissued based on local labor laws. |
| Mutual Transfer Agreement | A tripartite agreement between the employee, outgoing EOR, and incoming EOR that transfers employment terms such as tenure, accrued leave, and benefits without requiring formal resignation. |
Best Employer of Record Platforms by Use Case
Different EOR platforms are designed to support different types of international hiring needs. While some providers are better suited for startups onboarding their first global hires, others are structured to manage enterprise-level compliance across multiple jurisdictions.
Based on our evaluation criteria, below are some of the best Employer of Record platforms for common international hiring use cases.
| Use Case | Recommended EOR Platform | Why It’s Suitable |
|---|---|---|
| Best EOR for Startups | RemoFirst | Offers predictable per-employee pricing and contractor support for early-stage global hiring. |
| Best EOR for Enterprises | G-P | Provides enterprise-focused compliance infrastructure across multiple jurisdictions. |
| Best EOR for Tech Companies | Deel | Supports both contractors and full-time employees within a unified platform. |
| Best EOR for Hiring in Multiple Countries | Remote | Offers global hiring support with consolidated payroll administration. |
| Best EOR for Hiring in APAC | Multiplier | Provides regional coverage across Asia-Pacific markets including India and Singapore. |
| Best EOR for Hiring in Europe | Oyster | Supports localized onboarding and payroll across multiple EU hiring markets. |
| Best EOR for Hiring in Latin America | Papaya Global | Offers regional payroll and employment support across LATAM countries. |
| Best EOR for Contractor Management | Deel | Provides contractor onboarding and global payment support within the same dashboard. |
Pro Tip:
If you’re planning to hire across more than one region, consider shortlisting two providers based on your primary hiring markets before requesting quotes.
