Guide overview

Choosing an EOR, at a glance.

Set requirements, collect evidence and compare consistently.

Choose an EOR by testing the same country and hiring brief with each finalist. Identify the local employer, confirm the proposed route can cover the hire, compare complete costs and agreements, and test payroll and support. Use a scorecard to organize the evidence after mandatory requirements are resolved.

Country and role

Define the brief

Ask each provider to meet the same hiring requirements.

Mandatory checks

Resolve gaps first

Identify any unmet legal or operational requirement.

Scoring

Fix the weights

Set weights before reviewing results and keep them consistent.

Evidence

Support every rating

Use written evidence for compliance, cost, coverage, delivery and exit.

Check before acting

A good overall score cannot resolve an unmet mandatory requirement. Clear those requirements before shortlisting.

What to record in the worksheet

Scope

Criterion · Weight (%) · Score (1–5)

Evidence and follow-up

Evidence / contract reference · Gate outcome · Owner · Review date

Use the editable worksheetSee the scoring method

Request the evidence before scoring

Send every finalist the same hire and salary in each country. Ask for the employer’s legal name, an annual cost breakdown and the dates treasury must send funds. Get the country employment documents and controlling service terms, including exclusions, data safeguards and exit arrangements. In the worksheet, name the reviewer, identify the version they saw and leave unanswered questions visible.

Decision gates to clear before scoring

Use these checks to confirm the requirements are met.

Decision gate Evidence to keep If the answer is missing
Decision gate
Is this employment model legal and compliant for the role?
Evidence to keep
Country-specific explanation, legal employer name and any required licence.
If the answer is missing
Resolve before promising a start date.
Decision gate
Who is responsible when something goes wrong?
Evidence to keep
Employment contract, service agreement, liability limits and escalation owner.
If the answer is missing
Request a written responsibility map.
Decision gate
What will this exact hire cost?
Evidence to keep
Country quote showing salary, employer costs, service charges, FX and funding.
If the answer is missing
Compare only after the missing lines are priced.
Decision gate
Can the hire reach the intended first payroll?
Evidence to keep
Document checklist, right-to-work steps and payroll cut-off dates.
If the answer is missing
Record a conditional date, not a sales estimate.
Decision gate
Can you leave without losing employee records?
Evidence to keep
Notice rules, transfer process, data export and deposit settlement terms.
If the answer is missing
Price a realistic exit before signing.
Decision gate
What supports the service claims?
Evidence to keep
Dated sample documents, relevant references and evidence from any actual pilot.
If the answer is missing
Mark unsupported claims as unverified.

Local law and the agreed service scope determine the final responsibilities.

Selection steps
1. Define the hire

Country, role, working pattern and start date.

2. Check legal fit

Confirm that the proposed employment arrangement is available.

3. Get written terms

Obtain the country schedule, service terms and employment documents.

4. Compare full costs

Use the same employee assumptions and funding dates.

5. Resolve gaps before selection

A score does not clear an unresolved legal or contractual issue.

Use our comparison of the best EOR providers to identify candidates, then apply the same checks to each one.

1. Set your requirements before the weights

Set your priorities before you see the providers’ scores. The worksheet’s six weights are a starting point you can change. Keep mandatory requirements on a separate list. If a provider can’t document who will employ the person or how it will meet payday, leave that question open regardless of the points it earns elsewhere.

A strong weighted score cannot resolve a missing employing entity or an unproven payday process.
Put mandatory questions on their own sheet so points elsewhere cannot hide an unanswered condition.
Factor Weight The question it answers
Factor
Compliance & Risk
Weight
25%
The question it answers
Does the proposal document an employment model allowed for the role, local responsibilities and the required rights chain?
Factor
True Cost (Year 1)
Weight
20%
The question it answers
What is the recurring cost, and what cash must you fund or hold as a deposit?
Factor
Country Coverage
Weight
15%
The question it answers
Does it have local depth in your countries, beyond a homepage country count?
Factor
Onboarding Speed
Weight
15%
The question it answers
What are the milestones from signed offer to the first permitted workday and, separately, first payroll?
Factor
Support & Account Management
Weight
15%
The question it answers
Who answers when something breaks, and how fast?
Factor
Switching & Exit Flexibility
Weight
10%
The question it answers
What does leaving cost you in notice, fees, and employee continuity?

Fig. 1 · The six scoring factors and their weights, 25% down to 10%

2. Confirm the employment arrangement and responsibilities

Confirm the proposed employment arrangement before scoring its convenience or price. Classification, licensing, employer contributions and employee rights depend on the country and the actual work. When shortlisting EOR providers in France or EOR providers in Germany, review the specific hire locally; the data-protection review needs its own documented responsibilities. Ask qualified advisers to resolve material gaps for your hire.

Ask for the legal name of the employer that would sign each employee’s contract. Use that name to check the evidence below.

1
The legal entity list. It should show which countries are served by a wholly owned entity and which are routed through partners.
2
Relevant security and privacy assurance. Identify the evidence your data risks and procurement requirements need. Inspect the report or certificate, scope and validity.
3
A sample employment contract for your target country, reviewed by local counsel.
4
In-country counsel access. Who answers a works-council or collective-agreement question, and how fast?
5
The IP and invention-assignment clause, localized per jurisdiction. Check the rights, assignment formalities and employer-to-client transfer route under the applicable law.
6
The indemnification clause in the standard MSA. Check who pays if a hire is found misclassified.

Before giving a provider a high score on compliance, check the proposed employer, any licence it needs and the terms assigning responsibility for the hire. An ownership chart, security certificate or indemnity answers a narrower question. If the supplier won’t name the employer, the hiring decision is still open.

3. Compare complete first-year costs and funding

The starting fees in our EOR cost comparison cover different plans, commitments and countries. For each proposal, add salary, employer costs, currency charges, setup and any extras to the fee. Build a separate schedule for payroll funding and any refundable deposit the plan requires. When must the money arrive, what may the provider deduct and when is the balance due back?

The expense comparison and cash forecast answer separate questions about the same hire.
A refundable reserve still needs a funding date even when it is outside the recurring fee.

Check how the conversion is calculated. Match the currency pair, quote direction, contractual rate source, fixing time and explicit fees before calculating a rate difference. A same-day XE mid-market rate is an indicative benchmark; the gap alone does not prove the provider’s margin. If a disclosed 2% charge applies to a USD 8,000 conversion base, that charge is USD 160 per month or USD 1,920 over 12 identical months.

Ask every finalist to price the same hire in writing, line by line, and collect:

1
The published per-employee monthly fee for each of your countries.
2
The currency-conversion method and fees, backed by a dated quote showing the pair, direction, rate source, fixing time and conversion base.
3
Setup fees and contract minimums, plus a separate cash schedule for deposits and prefunding, including deductions and return conditions.
4
Add-on pricing for benefits administration, equity reporting, and immigration.
5
The all-in cost of one standard hire. Model the same employee (say, €90,000 in Germany) with every vendor in our EOR cost calculator, using each provider’s current country-specific costs.

Deel’s currency terms depend on the currency pair and funding route, so there is no single FX percentage to quote. Our guide to hidden fees in EOR pricing lists seven charges to check.

4. Check delivery in the countries you need

For each country on your hiring plan, ask who will sign the employment contract and who will answer the employee if something goes wrong with pay. A provider may use its own company or a local partner. Check how the proposed employer meets the requirements for that role.

Check these points with each provider:

1
Which countries have wholly owned entities. Identify the named employer, ownership and delivery model in each country you need.
2
Can the local team answer a payroll question? Choose a real issue from the hiring plan, such as 13th-month pay in Brazil, works-council thresholds in Germany or which national rules implement the EU Pay Transparency Directive. Its transposition deadline was 7 June 2026.
3
Specialty structures where you need them, such as China JV arrangements or Saudi sponsorship.
4
Visa and immigration support. Ask which services are available for the proposed country and visa route, who handles them and what the fee and timeline assumptions cover.
5
Localized benefits brokerage in each market, rather than one global plan stretched across jurisdictions.

5. Test onboarding milestones and employee access

Ask for separate dates for contract signature, the first day the employee is permitted to work and the first payday. Then check who must do what to meet them. Once a real hire goes through onboarding, you can compare those dates with what happened.

Then look at the following:

1
The median business days from signed offer to the first day the employee can legally work, and separately to first payday. Claims such as “as fast as 24 hours” describe the best case.
2
The contract generation flow, including batch import, e-signature and country-specific addenda.
3
The manager and employee self-serve experience. Click through the real product instead of the slide deck.
4
The employee’s mobile experience. Your hire will check their first payslip on a phone.

To test onboarding before you commit the rest of the team, run a pilot covering onboarding and a complete payroll cycle for one real hire.

6. Test support and escalation

During the request for proposals, send every provider the same payslip correction and the same termination question that needs in-country counsel. Record when each one responds and when you get an answer you could act on. The first acknowledgement alone tells you little about resolution.

One support test records both acknowledgement and a usable answer to the same payslip correction.
Repeat with a country-specific termination question to see when local expertise becomes available.

Score support on these points, using that log wherever it applies:

1
Observed response and resolution times for your test questions, recorded with the question, date and channel.
2
Escalation paths to legal and in-country experts. Who would handle a Dutch dismissal question?
3
Dedicated CSM availability, and the headcount or spend threshold where you get one.
4
Language coverage on support channels, for your employees as well as your HR team.

7. Agree exit and transfer terms

Read the country schedule alongside the main service agreement while you still have room to negotiate. Ask the provider to put the following exit terms in writing.

A country exit schedule names the notice, charges, deposit settlement and handover responsibilities.
Read the country schedule with the main agreement while the provider can still change the terms.
1
The notice period required to terminate the contract, including how fees and employment costs continue for each service or worker; service notice and the date employment ends under local rules can differ.
2
Exit and offboarding fees, plus the terms for returning your deposit.
3
The proposed local transfer process, including how accrued rights and service will be preserved. A continuity letter records an arrangement; it does not establish that the transfer meets local requirements.
4
Migration support if you switch: data export, contract handover and parallel payroll. Our 90-day migration checklist covers the move itself.

Obtain the agreement for the specific product and employing entity. Confirm service notice, employee exit requirements, offboarding fees and the local transfer process separately.

8. How to score a provider: a hypothetical example

Step 1: score each factor from 1 to 5. Use the evidence lists above (or the 47-question RFP checklist, which maps onto the six factors) and this scale:

1
5: passes every test in the category with written evidence and no open questions.
2
4: passes with one documented gap you can live with.
3
3: passes the core tests, but key items stay undocumented after two requests.
4
2: fails one agreed core requirement outright, such as refusing to disclose currency charges or being unable to document an employment model that local rules allow for the role.
5
1: fails several tests, or refuses the evidence request.

Decimals are fine, but whole and half points are enough for an internal selection.

Step 2: apply the weights. Composite = (compliance × 0.25 + true cost × 0.20 + coverage × 0.15 + onboarding × 0.15 + support × 0.15 + switching × 0.10) × 2. With scores restricted to 1–5, the result ranges from 2.0 to 10.0: all 5s give 10.0 and all 1s give 2.0.

Step 3: read the internal rubric label. 9.0–10 Excellent · 8.0–8.9 Strong · 7.0–7.9 Good · 6.0–6.9 Mixed · below 6.0 Skip.

Example: hypothetical Vendor A

Vendor A is fictional. The six scores below are invented to demonstrate the calculation.

Factor Weight Score (1–5) Weighted points
Factor
Compliance & Risk
Weight
25%
Score (1–5)
4.8
Weighted points
1.200
Factor
True Cost (Year 1)
Weight
20%
Score (1–5)
3.8
Weighted points
0.760
Factor
Country Coverage
Weight
15%
Score (1–5)
4.7
Weighted points
0.705
Factor
Onboarding Speed
Weight
15%
Score (1–5)
4.6
Weighted points
0.690
Factor
Support & Account Management
Weight
15%
Score (1–5)
4.5
Weighted points
0.675
Factor
Switching & Exit Flexibility
Weight
10%
Score (1–5)
3.5
Weighted points
0.350
Factor
Weighted average
Weight
100%
Score (1–5)
Weighted points
4.380
Factor
Composite (× 2)
Weight
Score (1–5)
Weighted points
8.76 → rounds to 8.8 (Strong)

Fig. 2 · Hypothetical Vendor A: six assumed scores produce an 8.8 composite

Score the actual proposals using the documents you have.

Suppose two providers both score 8.4. Look at their two weakest categories. One may have an unclear payroll cutoff in your hiring country, while the other has left an exit charge open. Put those questions back to the suppliers before signing.

Use the score bands for your internal comparison.

Two proposals can have the same score and different risks

Fictional example: Proposal A scores 4/5 for compliance, cost and coverage, 3/5 for onboarding and support, and 4/5 for exit. Proposal B scores 4/5 for compliance, 3/5 for cost, 4/5 for coverage, 5/5 for onboarding, 3/5 for support and 3/5 for exit. Both total 74/100 with the weights above, equivalent to 7.4/10 on this rubric. A offers a clearer cost schedule; B offers a faster documented onboarding plan. If B has not identified the legal employer in a required country, keep that gate open and resolve it before selection.

9. A worksheet to compare EOR providers

Copy the table into a spreadsheet, with one column block per vendor.

Factor Weight Your score (1–5) Weighted points
Factor
Compliance & Risk
Weight
0.25
Your score (1–5)
Weighted points
score × 0.25
Factor
True Cost (Year 1)
Weight
0.20
Your score (1–5)
Weighted points
score × 0.20
Factor
Country Coverage
Weight
0.15
Your score (1–5)
Weighted points
score × 0.15
Factor
Onboarding Speed
Weight
0.15
Your score (1–5)
Weighted points
score × 0.15
Factor
Support & Account Management
Weight
0.15
Your score (1–5)
Weighted points
score × 0.15
Factor
Switching & Exit Flexibility
Weight
0.10
Your score (1–5)
Weighted points
score × 0.10
Factor
Weighted average
Weight
1.00
Your score (1–5)
Weighted points
sum of the six rows above
Factor
Composite (2–10)
Weight
Your score (1–5)
Weighted points
weighted average × 2

Fig. 3 · The blank scoring worksheet, six weighted factors plus composite

If you need providers to assess, our EOR broker service can help you build a shortlist matched to your countries, headcount and budget, which you then score against your own requirements.

Follow these rules when you score:

1
Score only from evidence you hold in writing. Keep demo impressions in a separate notes column.
2
Split the roles. Whoever ran the demos should hand the evidence file to someone else to score.
3
Flag provisional scores. Where evidence is missing, including when a vendor will not provide it, score only what you can verify and write “provisional” next to that factor.

Use pass/fail checks for requirements that cannot be traded off. If you adapt the weights, document why and apply them consistently to every finalist:

  • Q1. Is one requirement non-negotiable (owned entity in China, EEA data residency, union experience)?
  • YES → Make it a pass/fail gate and score only the vendors that pass.
  • NO → continue to Q2
  • Q2. Is your budget capped at a hard number? If so, start with the EORs under USD 400 a month.
  • YES → Drop vendors over the ceiling, then score the rest on all six factors.
  • NO  →   continue to Q3
  • Q3. Do you want to raise a weight because one factor matters more to you?
  • YES → Choose and document the weights before reviewing results. Keep them fixed for every finalist during this selection.
  • NO  →  Run the worksheet as published.

Use the scoring and evidence workbook

Record the evidence beside each score so another reviewer can see why you assigned it. The workbook updates the total as you enter scores. You can change its six weights to reflect your buying priorities. Keep a missing requirement in view even if the total looks good.

The working record Fields to complete
The working record
Scope
Fields to complete
Criterion · Weight (%) · Score (1–5)
The working record
Evidence and follow-up
Fields to complete
Evidence / contract reference · Gate outcome · Owner · Review date
Download the editable worksheet (.xlsx)

10. Frequently asked questions

What should I check before shortlisting an EOR?
Start with the planned country, role, working pattern and start date. Ask each provider to name the legal employer and supply the country employment documents, any required licence and a written division of responsibilities. Confirm first-payroll requirements, complete costs and exit terms. Resolve missing mandatory requirements before choosing a provider, even if it scores well elsewhere.
How should I compare two EOR quotes?
Give both providers the same country, employee, salary and benefit assumptions. Compare salary, employer costs, service fees, currency charges, setup and extras over the same period. Keep a separate schedule for payroll funding and any refundable deposit, including when it is due, what can be deducted and when the balance can be returned.
How can I test EOR payroll and support before moving the whole team?
Agree a pilot covering one real hire and a complete payroll cycle. Record the planned and actual dates for contract signature, the permitted first workday and the first payday. Test the same payslip correction and a country-specific termination question with each finalist, recording when you receive an answer you can act on. Use the results as evidence alongside the written proposal.
Can a high score make up for an unanswered employment or payroll requirement?
No. Treat requirements the hire must meet as separate pass-or-fail checks. The worksheet weights are optional starting points, so set them before reviewing results and use the same weights for every finalist. A strong total cannot settle an unnamed legal employer, an unresolved contractual duty or an unconfirmed payroll deadline.
Which exit terms should I agree before signing with an EOR?
Read the country schedule alongside the main service agreement. Confirm service notice, employee exit requirements, offboarding charges, the local transfer process, employee-record access and deposit settlement. Price a realistic exit and identify who will handle each step before you sign.

11. Sources

The sources behind this guide, grouped by topic. Dates show when we last checked a page. Prices and terms change, so confirm them in your quote.

Employment, data and immigration law

11 sources

  1. International · ILO

    Private Employment Agencies Convention, Articles 1 and 12

    Used in the provider selection checklist. Checked 3 Oct 2026

  2. European Union · EUR-Lex

    Regulation (EU) 2016/679 (GDPR)

    Article 83 fine ceilings.

  3. European Union · EUR-Lex

    Directive (EU) 2023/970 (EU Pay Transparency Directive)

  4. Brazil · Planalto

    Lei 4.090/1962

    The statutory 13th salary.

  5. France · Légifrance

    Code du travail, Titre II: Travail dissimulé

    Articles L8221-1 to L8224-6.

  6. France · Légifrance

    Code de la sécurité sociale, article L244-3

    Five-year contribution look-back for concealed work.

  7. France · URSSAF

    Le travail illégal

    Travail dissimulé penalties and surcharges.

  8. Germany · gesetze-im-internet.de

    Temporary Employment Act (AÜG), section 1

    Used in the provider selection checklist. Checked 3 Oct 2026

  9. Germany · gesetze-im-internet.de

    Social Code Book IV, Section 25

    Back contributions are recoverable for four years, or thirty if intentional.

  10. Germany · gesetze-im-internet.de

    Works Constitution Act (Betriebsverfassungsgesetz)

    Works-council eligibility and election conditions.

  11. Germany · Make it in Germany

    EU Blue Card and German work-visa requirements

    Requirements for non-EU hires, from the Federal Government portal.

Standards, certifications and exchange rates

5 sources

  1. International · ISO

    ISO/IEC 27001, information security management

  2. International · ISO

    ISO/IEC 27701:2025, Privacy information management systems

    Published 14 Oct 2025.

  3. AICPA & CIMA

    System and Organization Controls (SOC) suite

    The framework behind SOC 2 Type II reports.

  4. United States · IRS

    Certified Professional Employer Organization (CPEO) program

  5. XE

    Indicative mid-market exchange-rate reference

    Use the contractual method when checking an invoice.

Provider pricing and terms

3 sources

  1. Deel

    PricingEmployer of Record pageOwned-entities announcement

    $599 per employee per month, no setup fee. Owned entities and payroll engine in 130+ countries (checked Sep 2026); the announcement gave 100+ countries as of Sep 2025.

  2. Oyster

    PricingCustomer terms

    Published starting fee, used as an example; confirm billing and country terms. The customer terms are used in the provider selection checklist, checked 3 Oct 2026.

  3. RemoFirst

    Pricing

    Published starting fee, used as an example. Country pricing and services vary.

Our research

1 source

  1. The Best EOR

    Methodology, audit history, and rubric changelog

If you spot a changed price or a conflicting source, send it through the contact page and we’ll review it.

This guide is for general information only and does not provide legal, tax, accounting, or financial advice. For advice about your business, consult a qualified professional familiar with the rules where you hire. Read our research methodology to learn how we assess sources.