How to Choose the Right EOR Provider

Thinking about taking your hiring global? You’re in good company.

US employers have added millions of global workers in recent years, and more than 56% of businesses are actively exploring cross-border hiring to access top talent and stay competitive. But even as teams become increasingly international, geopolitical tensions are expected to disrupt global markets, making compliance even more complicated.

An employer of record (EOR) can help you tap into international talent—without the legal headaches of setting up entities in every country. But finding an EOR calls for more than a quick comparison. It’s about choosing a partner that aligns with your goals, now and in the future.

In this article, we’ll go beyond the basics of how to select an EOR to help you uncover potential pitfalls, ask the right questions, and choose a solution that sets you up for long-term success.

What is an EOR?

EORs hire employees on your behalf and handle payroll, benefits, and compliance with local labor laws. Unlike co-employment models—like professional employer organizations (PEOs)—an EOR becomes the sole legal employer. This means they take on the administrative burden and legal risks, allowing you to focus on building your team without getting bogged down in the details.

This distinction becomes especially valuable when hiring in countries where you don’t have a legal entity. With an EOR, you can onboard talent quickly and compliantly, bypassing the need to set up a local presence.

It’s a faster, more efficient way to expand globally while minimizing risk and staying compliant with international labor laws.

Is an EOR right for you? How to know when it’s the best fit

An EOR can be a smart, cost-effective way to grow your team across borders. But it’s not a one-size-fits-all solution. Before committing, it’s important to understand your specific needs and explore whether an EOR aligns with your short- and long-term goals.

An EOR is ideal if:

• You’re hiring in countries where you don’t have a legal entity.
• You need to move quickly.
• You want to avoid the risks of contractor misclassification.

So, do you really need an EOR? Let’s break it down.

Analyze your situation

To determine if an EOR is the right choice, consider a few key questions that can help clarify your hiring and expansion needs.

Ask yourself:

• Are you hiring internationally or entering a new market?
  If you’re expanding into new countries where you don’t yet have a local entity, an EOR can help you navigate local hiring laws, taxes, and compliance requirements quickly and efficiently.
• Do you need to hire quickly or temporarily in countries where you don’t have an entity?
  Setting up a legal entity can take months, depending on the country. If you need to hire fast—especially for short-term roles or testing out a new market—an EOR offers a much quicker solution.

Consider alternatives

While an EOR can be a flexible and efficient solution, it’s not the only path. Exploring other hiring models can help you find the best fit for your business goals.

Setting up a legal entity

Hiring a large team? Want a long-term, permanent presence? If so, setting up a legal entity might be a better choice. It’s more time-consuming and costly up front, but it also gives you full control over your operations, branding, and the employee experience.

Freelancers, contingent workers, and contractors

Hiring contractors can seem like a flexible, low-cost option, but it comes with its own risks. Independent contractors aren’t always protected by local labor laws, and misclassification of workers can result in fines and legal trouble. If you're looking for a long-term solution with full legal protections for workers, an EOR is a safer alternative.

Professional employer organization

A PEO can be an alternative for companies that already have a legal entity in a country but need assistance with specific HR functions. Just keep in mind, if you're just entering a new market and don't have an entity set up, an EOR might still be the better option.

However, if you’re planning long-term growth or already have a legal entity, another route may offer a better fit.

Your EOR due diligence checklist: Key questions to ask in your search

Not all EORs are created equal—and asking the right questions early can save you from surprises down the line. Use these questions to evaluate potential EORs and uncover potential blind spots as you choose an EOR.

Legal & compliance

• How do you ensure compliance with local labor laws in each country?
• What’s your process for staying up to date with regulatory and tax changes?
• Do you provide legal support or guidance during disputes or audits?

Data security & privacy

• What data protection protocols do you have in place?
• Are you certified for GDPR or other relevant compliance standards?
• Where is employee data stored and processed?

Global coverage & availability

• Which countries do you support directly, and which are serviced through local partners?
• Are there any limitations in high-demand or complex markets (e.g. China, Brazil, UAE)?
• Can you onboard employees in remote or low-infrastructure regions?

Platform & technology

• Is your platform self-serve, fully managed, or a hybrid?
• How transparent is your payroll processing and reporting?
• Can employees access their information and pay history?

Scalability & support

• Can you support expansion into several countries within a short period?
• What’s your customer support model (e.g. dedicated rep, 24/7 helpdesk, in-country teams)?
• How do you handle urgent issues or country-specific complications?

Cost transparency

• What exactly is included in your pricing? Are there any hidden fees or currency exchange markups?
• How are benefits, taxes, and bonuses handled in the cost model?
• What are the costs or implications of offboarding an employee?

How to research and compare EOR providers

Now it’s time to dig into your options.

Compile a shortlist

Start by narrowing down your options based on trusted sources.

• Ask peers or industry groups for recommendations.
• Check verified review sites like G2, TrustRadius, or Capterra.
• Look at analyst reports or rankings (e.g. Everest Group, NelsonHall).
• Dig into capabilities, not just marketing claims.
• Watch for red flags (like limited country coverage or lack of transparency).

Request a demo

​​Don’t settle for a quick sales pitch—get a real look under the hood.

• Schedule a live meeting, whether it’s a product demo, webinar, or one-on-one.
• Ask for customer references in your region or industry.
• Learn about onboarding processes—can you test in a sandbox?
• Look for green flags: clear workflows, employee self-service features, and payroll visibility.
• Request examples of how they’ve solved complex global hiring challenges.

Create a comparison matrix

Build a clear structure, focusing on what matters most.

• Compliance expertise in your target countries
• Platform usability (for both admins and employees)
• Local employment knowledge and cultural fluency
• Customer support availability and responsiveness
• Pricing clarity: upfront costs, hidden fees, offboarding charges