If you are starting a business and want it to grow successfully, you should get an Employer of Record (EOR). An EOR is your business’ registered employer and acts as Human Resources (HR). They also manage payroll and taxes on your employees’ behalf, ensuring they receive the remuneration they deserve.
While many small businesses only occasionally require an EOR due to their limited number of employees and structure, some owners need one to keep up with their development. It may be just because they want to save and control their finances within the company.
In getting an EOR, a business owner should be meticulous about it because the company is on the line. Therefore, invest your money in a reliable
that can help you earn back more of your business profits. This blog will guide you in choosing the right one that fits your business.
When Do I Need an EOR?
EOR is optional in businesses, but it would be advisable if you have 50 or more employees and workers who are neither full-time, part-time, nor work at multiple locations. Suppose you also want to expand your business even further. In that case, you may need an EOR, especially if you need a local entity for your business or are a small business owner. Through this, an EOR would help your business thrive in the industry’s tough competition.
How to conduct an EOR selection?
These are the things to consider when doing an EOR selection for your business.
- Look at their available services
First, you should look at the services offered by each option. For example, some may provide various services, while others only have one or two options. EOR companies that have many services to offer are the ideal option. You must also consider the benefits provided by each company to discover and compare what is better.
- Check the prices of their fees and services
When partnering with an EOR, pricing is a crucial consideration. Understand the fees, what’s included, and any additional charges for specific actions. Comparing pricing options can help you budget effectively.
- Learn about the company
Discovering everything about the company can give you insight into who you will work with. Looking at the company’s reputation, stability, and how long they have been running the business is necessary. Learn about where their company office resides, their contact information, and if their work values are the same as yours.
- See the reviews from the customers or clients
Finally, the most important thing is whether reviews from satisfied customers are available online, like on their company website or social media accounts. These can help answer questions about quality service from previous clients who have used the same services before hiring their EORs. If such information exists, it should be considered carefully before deciding which company best suits your needs.
- Compare each EOR company and list your options
It’s time to narrow down all your selected EOR companies. It is essential to list and differentiate all your options before deciding. Make sure the EOR selection has the right expertise for your specific needs. For example, if you are an application developer and need someone to help manage your Information Technology (IT) infrastructure and software development lifecycle (SDLC), look at their experience in this area.
You should also consider whether they provide other services that might be useful for your business. For example, some companies offer payroll processing as part of their services, while others don’t. If you are still trying to decide what type of service provider will best meet your needs, consider reaching out to potential EORs. Make a list of choices and directly ask them by phone or email for questions about how they can help you grow as a business owner or an entrepreneur.
Choose the right Employer of Record that can help with your business’s specific needs
Selecting the right EOR is the first step toward having a successful business. As an EOR, they must have the following qualities:
- Providing the services your business needs
If you are an independent contractor and need help with benefits and health insurance, choose something other than an EOR that only offers payroll processing as its main service. Go to the ones that provide a variety of services to choose from.
- Budget friendly
You want to ensure that your EOR will not charge you more than necessary for their services or become too expensive over time. Always ask for transparency in their receipts regarding what you need to pay.
- Be easy to work with—both in person and digitally!
When considering an EOR, make sure to prioritize good customer service. Look for a responsive company that is easy to communicate with, whether through email, phone calls, or social media platforms like Facebook, Twitter, or LinkedIn. Some may even prefer face-to-face interaction. Good customer service is crucial in any business. It can make all the difference in your experience working with an EOR.
If you hire an EOR, it is crucial to understand each offer and how it can help your business grow. Some EORs provide a wide range of services, while others specialize in only one area. Some offer low prices, while others charge more.
Once you have decided on the type of EOR selection that best suits your business needs and budget, compare their offers and make sure it is worth paying for the services offered. Even if an EOR has lower prices than competitors or offers more benefits than other companies, you should still consider whether those benefits are helpful to your business before signing up with them.
Frequently Asked Questions (FAQs)
Q1: When Should I Consider Using an Employer of Record (EOR)?
An EOR is beneficial if you have 50 or more employees, have workers in multiple locations, or are planning to expand your business. It’s especially useful for small business owners looking to establish a local entity or streamline financial control within the company.
Q2: What Factors Should I Consider When Selecting an EOR?
Key factors to consider when choosing an EOR include the range of services offered, pricing and fees, the reputation and stability of the company, customer reviews, and alignment of their services with your business needs. It’s crucial to compare options, ensuring the EOR has the right expertise for your specific requirements.
Q3: What Qualities Should I Look for in an EOR?
Answer: The right EOR should provide the services your business needs, be budget-friendly and transparent with pricing, and offer excellent customer service, whether in-person or digitally. They should align with your business goals and offer a variety of services to choose from based on your requirements.
Q4: How Can an EOR Benefit My Business?
An EOR simplifies payroll, tax management, and benefits administration for your employees, allowing you to focus on core business operations and expansion. It offers compliance assistance and can save time and costs associated with HR tasks.
Q5: Why Should I Choose One CoreDev IT (CORE) as My EOR Partner?
CORE offers years of industry experience, providing flexible and cost-efficient talent solutions, including back-office, project management, and low-code software development. We prioritize customer satisfaction, responsiveness, and offer a wide range of services to support your business needs.
An EOR is valuable for businesses starting or expanding their operations globally. With the right partner, companies can simplify their global expansion process and focus on achieving their goals. When choosing an EOR, it’s essential to consider their services, expertise, and pricing.
Consider choosing One CoreDev IT (CORE) as your EOR partner. With years of experience in the industry, we offer flexible, cost-efficient talent solutions, including back-office, project management, and low-code software development. Contact us today for a consultation!