9 Factors to Consider Before Choosing the Right EOR or PEO Partner

Many growing organizations are interested in expanding their business to new markets due to the potential benefits like increased profit margins, less competition, and access to new talent.  Organizations that are considering global expansion have few strategies to implement when it comes to setting up operations in the new country. One of the primary strategies is to hire a remote team, but this process involves its own set of challenges, such as navigating the local employment laws and regulations. An efficient approach for businesses seeking to expand into a new market is to use an Employer of Record (EOR) or Professional Employer Organization (PEO) service. Both EOR and PEO services provide organizations with a cost-effective way to enter new markets without incurring additional losses. Moreover, these services make sure that companies adhere to the compliance requirements specified by their target country’s employment laws.

What should I consider when selecting an EOR or PEO service?

Before signing with an Employer of Record, or global Professional Employment Organization (PEO) platform, there are certain factors to take into account. These include the ability to provide solutions for your business needs and global expansion requirements. Taking these into consideration will ensure that you make the right decision concerning this important partnership.

See also: What is a PEO Or EOR Service? Why Your Business Should Consider Using this Service?

1. Expertise in a particular country

When looking to employ people in a foreign country, finding an experienced global PEO and EOR can provide invaluable support. An EOR is knowledgeable about the local employment and tax laws of that particular country and can aid you with any necessary compliance, payroll, or taxation matters. To ensure you adhere to all guidelines, it is essential that your EOR partner possesses skilled advisors who are experts in the chosen jurisdiction – as they are the ones responsible for protecting you from potential risks. Not having a physical base in the country could mean not being aware of changing regulations which may directly impact the company, nor will they be knowledgeable about managing disputes and policies regarding overtime, salaries, or benefits. Most importantly they won’t be able to be present and assist with recruiting potential new employees or vetting those who want to work for your company.

2. Experience in assisting similar companies

When looking for a business partner to help your company expand into a new market, it is important to make sure they have both knowledge and experience with similar companies. Having this background will allow them to better understand your business and industry and provide advice tailored to achieving your objectives. It is important to make sure that when you hire an EOR partner, they are knowledgeable of your business and industry in order to help with scalability. Your EOR partner should understand the objectives of your company and why you have decided to expand into another country.

3. Responsiveness of customer support

When employing a worker from overseas, ensuring customer service is essential. Poor responsiveness can create difficulty in setting holidays, calculating taxes and benefits, and handling additional compensation which can all ultimately lead to damaging your organization’s culture and productivity. You need to find an EOR partner who provides 24/7 support—no matter what time zone you and your employees are located in—in order to ensure everyone gets the assistance they need in a timely fashion. Lack of around-the-clock support could have a negative effect on your relationship with employees, resulting in poorer company culture and miscommunication.

4. Customization of employment agreements

When considering a global PEO or EOR partner, it’s important to ask how they can reconcile any potential discrepancies in their respective policies. Will the PEO or EOR be willing to make exceptions, when needed, that enable your company to uphold its own values and regulations? It is a key consideration to choose one EOR partner that will be helpful and understanding while others insist on upholding standard contracts regardless of external factors. It’s important not to be intimidated into accepting the EOR’s stipulations without first taking into account what is suitable for your company. An ideal partner is one that works with you rather than imposing upon you. Flexibility and customization of employee agreement is something that every company looks for.

5. Complementary or additional services to provide

When evaluating an Employer of Record (EOR) or a Professional Employment Organization (PEO) service, make sure to compare the offerings in order to find the right fit for your business. What services are offered and are they comprehensive? Do they cover all aspects of your hiring needs, onboarding process, payroll management, and compliance with regional laws? There are many EORs and PEOs who will provide additional services being part of their unique selling point in the market. Consider and identify such value-added services from your partner to save tons of money on your operations. For example, Global Squirrels being an innovative PEO platform offers co-working spaces in case you need to accommodate your remote teams in fully furnished working spaces. Ultimately, every organization is different so take into consideration the services you require before opting into a particular EOR or PEO service.

6. Global presence

Having a local presence is vital for any business that wants to successfully hire and manage employees in a foreign country. An Employment of Record (EoR) with knowledgeable staff on the ground can ensure compliance with relevant laws, provide expertise on workforce management issues, advise on salary expectations and benefits benchmarks, and help to recruit new hires. Without an in-country partner, companies risk falling out of step with changing regulations and not having access to all necessary insights into local conditions. It is important to understand the global presence of your EOR or PEO partner to measure their potential and scalability of assisting you in your future growth plans.

7. Data security

Data security is of utmost importance when it comes to sensitive information. Companies must make sure they choose a global EOR solution that provides reliable data protection, such as using the HTTPS protocol for web transfers. Not only will robust security measures help protect employees’ data, but they can also safeguard companies from hefty fines if any data breaches occur. It’s essential for businesses to be diligent in selecting a provider who takes data security seriously. The General Data Protection Regulation (GDPR) stipulates a set of strict regulations and protocols aimed at promoting data privacy. It is essential that organizations take adequate steps to protect the confidential information they share with their EOR/PEO and ensure compliance with GDPR.

8. Technology in use

In order to reap the full benefits of partnering with an EOR provider, it is necessary to ensure that the technology being used is compatible and can seamlessly exchange data with your organization. Without proper synchronization of both systems, the accuracy and efficiency in managing remote activities would be negatively impacted, thus preventing organizations from taking full advantage of PEO services. Investing in compatible systems and making sure the exchange of data is efficient and effective can go a long way in ensuring a successful collaboration with an EOR partner. The technology should be easy to use, fast, and highly responsive to your business requests.

9. Plans and pricing

When choosing an EOR or Global PEO provider, it’s important to consider pricing. Most platforms have a set fee structure: some charge a flat fee per employee, while others charge a percentage of each employee’s salary. To ensure that you get the best value out of your partner, it’s critical to understand the exact costs you’ll incur and evaluate if they’re suitable for your organization’s growth stage. Knowing the right plans and cost information can help you decide which EOR partner is best for you. It is not about choosing one platform that costs you the lowest in the market, it is all about partnering with the right partner that is priced effectively for the value of service offerings.


When speaking about an Employer of Record(EOR) or Professional Employer Organization(PEO), do not settle for anything less than the BEST. Carefully review each option and pick the one that best suits your organization’s needs.

With Global Squirrels, you can experience a comprehensive remote payroll management system for global employees, ensuring timely payments and excellent human resource management. Request a demo from Global Squirrels today to learn more about our services and how we can help you have a successful global remote payroll process.

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