Tips on Hiring an EOR Service for Your Organization


There are many benefits of using an EOR (employer of record) service for your organization, but here are some tips on finding the best EOR service for your organization. After all, there are a lot of providers out there, and it can be challenging to isolate the best providers from the not-so-great ones. Here’s what to look for!

Core competency: 

EOR service should be one of the provider’s core service offerings. Avoid engaging a provider that seems to offer EOR as an afterthought. You want a provider that handles employer of record issues daily, not a provider that specializes in something else but says, “Oh and we also provide EOR.”


You should expect pricing for EOR services to be somewhere in the neighborhood of 25%-40% less than the markup collected by a traditional staffing provider. Any more than this and you’ll be paying too much, eroding the efficiency savings you endeavored to gain by using an EOR service in the first place.


The EOR provider you select must have all the proper insurance coverages and be able to present documentation to this point. They should also provide clear contract language protecting you as the customer from workers compensation and un-employment claims. There should also be a focus on the contractor experience and how these workers are onboarded/offboarded to ensure all regulatory guidelines are observed. ACA-compliant health benefits should be available to the contract workforce as well.


With so many EOR services in the market, reputation is one key way to separate the solid offerings from the sketchy ones. A proven-effective outfit should be able to provide multiple references and case studies demonstrating how they successfully managed programs for others. Also, the respectable provider should have experience working with multiple MSP providers and VMS technologies who can vouch for their professionalism and efficacy.


Ideally an EOR service should provide web-based onboarding technology to its contractors to complete onboarding. This system should also be able to provide you with status updates of the onboarding. Not all providers will offer such an amenity and it isn’t a deal breaker if an otherwise strong provider doesn’t offer technology. However, if they do, it is certainly an advantage.


Again, this is an area where an EOR service with a good technology surpasses one without. Yet, even without a software solution, a world-class provider can offer its customers reporting on, at a minimum, spend analysis by location.


High-touch account management and contractor engagement should be a part of basic services that are provided. Avoid EOR services that rely on a call center style customer service delivery model.


Many contingent workforces are designed specifically to address wide swings in demand to accommodate peak seasonality and other dynamics that impact staffing level requirements. As such, be sure the EOR service you select is easily scalable from 20 to 2000 contractor size programs.

With all these boxes checked, you can be sure you’re engaging a top performing EOR service.

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