Employer of Record Services: How to Choose the Right EOR Partner for Your Business
When looking for an Employer of Record (EOR) service provider, it’s important to consider a few key factors to make sure that you pick the right one for you.
As the world of work becomes more global, companies are increasingly turning to Employer of Record (EOR) service providers to aid in the expansion of their international people operations.
It’s a crowded field, with lots of different EOR service providers occupying the landscape. If you’re looking for the right EOR services provider for you and your business, here are some of the key things to consider:
Reputation
Before you select an EOR service provider, take the time to research the company and check out reviews from other customers. Look for a provider that has a trusted reputation and a proven track record of success.
Research and analyst firms frequently publish reports on the global EOR service industry and the companies that are leading the way. Atlas was recently named as a Leader in the global EOR industry by both the Everest Group and NelsonHall, while SelectSoftware Reviews recognized Atlas as a top provider in four key categories related to EOR technology solutions.
Direct or Indirect
Don’t forget — there are actually two types of EOR services.
An indirect EOR works with multiple third parties across the countries it operates, in order to provide local entity and payroll services. This complicated middle-man approach can result in slower times to market, higher administration costs, more touch points for every country you expand into, with more time spent on the management of vendors.
Meanwhile, a direct EOR provider like Atlas owns its local entities entirely, avoiding third-party outsourcing of services. Our team is directly tasked with supporting your employees in their country of residence. This means that Atlas can assist you or your employees directly and immediately with local in-house support and expertise.
Experience
It’s important to make sure that the EOR service provider you choose has extensive experience and knowledge of your specific industry. They should also have a deep understanding of the local regulations in the countries that you plan to employ talent in.
Atlas currently has entities set up in more than 160 countries globally, with local HR experts attached to each region. This allows us to serve clients across diverse industries from financial services to NGOs, with full confidence that all local employment laws and regulations are being adhered to.
Support Services
Many EOR service providers offer additional support, including employee onboarding, global payroll management, benefits administration, and in-country compliance. Depending on your specific needs, it is important to select a provider that can serve your needs directly and effectively.
You also want to consider support for the employees you hire through your EOR partner. All Atlas worksite employees get a dedicated HR Employee Relationship Consultant assigned to them who will guide them through their onboarding process and can be contacted for questions throughout their employment.
Speed and Flexibility
One of the biggest overall benefits of working with an EOR partner is that they can offer increased speed and flexibility in entering new markets.
From the contract process to onboarding, an EOR partner can have you set up in a new market within a matter of days. This is significantly quicker (and cheaper) than the months it can take to set up your own local entities in new markets.
Depending on the needs of your business, the EOR service provider should also be able to offer flexible solutions to adjust to your changing business needs. Whether you're hiring one employee or 100, an EOR partner should help you scale your operations up and down as required.
Cost
Finally, your last consideration should be about the fees associated with the EOR services. Although EOR services can appear costly in isolation, they provide significant savings for businesses as opposed to setting up entities in every country that you want to hire talent in.
Partnering with Atlas, for example, can save businesses up to 87.5% of costs as opposed to setting up its own entities. This is because we can remove the high costs associated with navigating local laws in multiple different countries and dealing with the paperwork required to onboard new hires.
To find out how much Atlas can save your business with its EOR services, contact us today.