How to compare EOR providers with evidence
A country count and a monthly fee do not tell you whether an EOR can support your roles. Give every provider the same scenario, require written answers, and score the contract and operating workflow together.
Send a defined hiring scenario
For each country, state the work location, role, seniority, compensation structure, target date, work authorization, benefits expectations and likely changes over the next year. Ask the provider to list assumptions and exclusions. A generic proposal cannot be compared reliably.
Use these seven scoring sections
| Section | Evidence to request | Failure signal |
|---|---|---|
| Employing entity | Legal name, ownership model, local registrations, accepted roles and work locations. | The seller cannot identify the employing entity or relies on vague partner language. |
| Employment scope | Contract process, required benefits, leave, changes, investigations, termination and immigration limits. | Responsibility is described as βhandledβ without a workflow or owner. |
| Payroll | Calendar, cutoff, funding, payslip review, corrections, filings and year-end process. | No defined correction path or reconciliation evidence. |
| Pricing | Recurring fee, minimums, deposit, FX method, benefits charges, pass-throughs and event fees. | The quote omits the fee schedule or lets material charges change without a clear rule. |
| Data and security | Data locations, subprocessors, access model, security reports, incident terms, deletion and export. | No usable record export or unclear subprocessor chain. |
| Service | Named owners, escalation path, coverage hours, case reporting and sample implementation plan. | Sales promises are absent from the service description. |
| Exit | Termination support, transfer to another employer, final payroll, record handoff and deposit return. | The contract covers onboarding but not employee or client exit. |
Normalize the commercial comparison
Build a scenario invoice for the same employees and period. Separate employment cost from the provider's charges. Include onboarding, recurring administration, minimums, benefits administration, deposits, FX spread or fee, off-cycle payroll, contract changes and offboarding. Mark every unknown instead of filling it with an estimate.
Then score service and risk separately from price. A lower headline fee can produce a higher total if routine events carry extra charges or require more internal work.
Run a workflow demonstration
Ask finalists to walk through one new hire, one payroll correction, one compensation change and one exit. Include the people who will run HR and finance after purchase. Record which system holds the request, who approves it, which cutoff applies and what evidence comes back.
Complete diligence before selection
- Reconcile the proposal, master agreement, country schedule, service description and data terms.
- Confirm liability, indemnity, insurance, confidentiality and IP allocation with counsel.
- Review security evidence and the data-processing agreement with the responsible team.
- Reference-check the countries and workflows you will actually use.
- Write down implementation dependencies, owners and decision deadlines.
A defensible decision record
Keep the scenario, provider answers, scorecard, commercial model, exceptions and approvers together. Set a review date based on contract renewal, country expansion or a material service issue.