Choosing the right Employer of Record (EOR) vendor is an important decision for businesses looking to hire talent globally without establishing a local legal entity. With a growing number of providers in the market, it’s essential to focus on the factors that matter most. Look for providers that guarantee full compliance, offer best-in-class support, and deliver on‑time, accurate payroll.
This guide breaks down the evaluation process into three key considerations: the HR platform and its features, payroll management capabilities, and compliance across countries. By understanding these core areas, you can make a confident and informed decision when selecting your EOR partner.
How to select the best EOR vendor
Step 1: Evaluate HR platform features
Feature | Description |
Instant Contract Generation | Look for platforms that let you generate locally compliant employment contracts in minutes to avoid hiring delays and legal issues. |
Onboarding tracker | Choose an EOR with a real-time onboarding tracker to avoid confusion and delays during employee setup. |
Salary/role revisions | Your EOR should allow quick submission and real-time tracking of promotions, salary updates, and effective start dates. |
Team management | A single dashboard to manage international employees and contractors – payroll, invoices, expenses – streamlines operations. |
Expense filing and reimbursement | Ensure the platform supports easy employee expense submissions and fast manager approvals. |
Leaves and time off | The EOR should offer customizable leave policies that align with country-specific labor laws. |
Timesheets | Ensure the platform can log work hours for compliance with local regulations (e.g., overtime rules in the Philippines or Austria). |
Bonuses and variable compensation | Bonuses, commissions, and allowances should be manageable in a few clicks. |
Roles & permissions | Look for built-in access control and global security certifications like SOC, ISO, and GDPR compliance. |
Other valuable services | Value-added offerings such as laptops, insurance, stock options, and background checks can enhance the employee experience. |
Reporting | Ensure the EOR provides detailed reports on payroll, time off, expenses, and more to aid in decision-making and compliance. |
Step 2: Assess payroll management capabilities
Feature | Description |
What are the payroll processing timelines? | Opt for providers with fast processing times (e.g., within 4 days) to accommodate last-minute inputs and avoid delays. |
Flexibility to make off-cycle payments | Ensure your EOR can process off-cycle payments for new joiners or urgent bonuses, without waiting for the next pay cycle. |
Prorated and arrear payroll calculations | The system should calculate mid-month joins, exits, or backdated changes accurately and automatically. |
Breakdown of the gross and net pay before submitting payroll | Your EOR should provide a detailed view of gross and net pay, including tax deductions, before payroll submission. |
Non-resident/Expatriate (expat) payroll | If you hire expatriates, make sure the provider supports multi-country tax handling and accurate expat payroll processing. |
Withholdings and employer taxes | The provider must ensure correct withholdings and timely employer tax payments to avoid penalties. |
Legislative law updates | Choose an EOR that proactively monitors legal changes and keeps your company informed and compliant. |
Automated variance analysis (for input & output) to detect discrepancies | Look for automated tools that detect payroll discrepancies between input and output, ensuring accuracy before approval. |
Three-way reconciliation (reports, statutory filings, and payments) | Ensure the EOR reconciles payroll reports, statutory filings, and payments to prevent compliance issues. |
Step 3: Examine compliance controls throughout the employee lifecycle
Feature | Description |
Mandatory insurance | The EOR should handle country-specific insurance mandates (e.g., health insurance in the USA/UAE) automatically. |
Proactive compliance audits and updates | Choose a provider that conducts regular legal audits and updates policies as regulations change. |
Expanding globally with an EOR? Choose Multiplier
With Multiplier, you get more than just an EOR – you gain a reliable partner equipped with a robust HR platform, an accurate and flexible payroll management system, and deep compliance expertise across 150+ countries. Whether you’re hiring your first international employee or expanding into new markets, Multiplier makes it seamless.
