Checklist – What to Look for in an EOR

By
 
Worca
Worca Resources
 • 
Last Updated: 
December 28, 2022

Engaging an employer of record (EOR) is the most productive and cost-efficient method of managing all the administrative tasks required for employing international remote workers. 

Hiring international employees requires a legal business presence in the country where your employees work. Establishing subsidiaries is expensive, especially for small, independent companies. 

EORs maintain foreign entities and function as legal employers for your international team members. While they process payroll, manage time tracking, enforce worker policies, and ensure labor law and tax compliance, you direct the work that generates revenue.

Here is what to look for in an employer of record (EOR), including a printable checklist at the end.

Service Delivery

How does the EOR provide services, particularly software services?

  • SaaS (cloud-based)
  • On-premise
  • Hybrid 

Can the EOR quickly scale up or down as your workload requires? Does it assist you with time zone management? 

Look for a transparent fee structure with no surprises appearing on the invoice. 

Employee/Employer Tools

Communication is vital for effectively managing remote workers. Make sure your prospective EOR provides accessible communication tools to maintain contact and interact with your international employees. 

For your employees, look for a self-service portal where they can access their records, including time and pay.

For you as the employer, ensure the EOR provides a dashboard, so you can quickly authorize payroll and monitor hiring, onboarding, and terminations.

Automation

An efficient EOR automates human resource processes as much as possible, including:

  • Automated salary conversion and distribution
  • Time tracking
  • Compliance 
  • Benefits 
  • Separation 

HR automation works with your employer dashboard to help you perform tasks with a single click or guide you through multi-step processes so nothing falls through the cracks or opens you up to legal liability. 

Intellectual Property Protection

How will the EOR protect your intellectual property (IP)? Some offer end-to-end security, while others take no responsibility for your organizational IP.  Others secure IP 

  • Contractually at the time or hire
  • Contractually at the time of onboarding
  • Through software security measures
  • With prospective employee vetting

A combination of contractual protection, employee vetting, and software security measures can help you maintain the privacy and security of your intellectual property.

Talent

Not all EORs provide recruiting services. However, if you’re planning on engaging an EOR–or third-party recruiting service– to help fill open positions with global talent, consider asking these questions

  • Will you have access to candidates looking for full-time or contract work?
  • Does the EOR specialize in sourcing talent in a specific  country or region?
  • What talent ranges and levels do they have in their candidate pool?
  • Does the EOR maintain long-term partnerships with schools and organizations to maintain a high-quality talent pipeline?
  • How do they pre-screen candidates prior to sending resumes for you to review
  • How many resumes will you typically review before finding candidates worth interviewing? 
  • What is the retention rate of employees hired through the EOR?
  • Does the EOR ensure English proficiency?
  • Does the EOR help you find workers aligned with Western culture if needed?

EORs may recruit as needed or consistently cultivate a database of high-quality candidates. EORs that continually recruit tend to find the best talent. 

Once you make your offer, the EOR quickly hires and onboards your new employee, so they are available to work within weeks, not months.

Employer Requirements Per Country

Select an EOR with an existing entity and expertise in the countries where you currently or intended to hire. They should thoroughly know local labor and tax laws, including visa and sponsorship regulations.   

Support

What type of support does the prospective EOR provide? If they’re primarily automated and online, can you reach a human if you need something the automated systems won’t handle?

With phone support, must you wander through endless phone tree menus to get your questions answered, or does the EOR have a real person for you to speak with every time you call?

Wrap-up

An employer of record is a cost-effective way to hire international employees but take time to find the best fit your goals. Understand

  • Their service delivery methods
  • The type of employer/employee tools provided
  • If their dashboard helps you automate repetitive HR tasks
  • How they protect  intellectual property
  • Whether or not they maintain a pre-screened candidate database 

Also, learn whether you receive support from a person or if you must rely on automated systems to answer your questions.

You can hire from everywhere and succeed anywhere with Worca’s Core HR Service Bundle localized by country. With your end-to-end employer of record (EOR) solutions, hiring international talent quickly and compliantly is a call or email away. 

Printable Checklist for Choosing an EOR

General

Service Delivery
  • SaaS (cloud-based)
  • On-premise
  • Hybrid
Employer/Employee Tools
  • Employee self-service portal
  • Employee dashboard
Automation
  • Payroll 
  • Taxes 
  • Withholding 
  • Time tracking
  • Compliance 
Intellectual Property Protection
  • None 
  • Contractual at time of hire
  • Contractual at time of onboarding
  • Software security
  • Prospective employee vetting

Talent

Talent ranges
  • Full time
  • Contract 
  • Software development or engineering
  • Project management
  • Human Resources
  • Administration
Talent levels
  • Talent levels
  • Entry level only
  • Mid-level only
  • Senior level only
  • All levels
Long term partnerships
  • Yes 
  • No 
  • Schools - list
  • Organizations - list
Prescreening for:
  • Behavior 
  • Past performance
  • Project experience
  • Skills 
  • English proficiency
Retention rate
  • 50% to 60%
  • 60% to 70%
  • 70% to 80%
  • 80% to 90%
  • > 90%
Country Requirements
  • Local (international) entity
  • Subsidiary 
  • None required
Support
  • Online self-service
  • Phone - automated
  • Phone - personal

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