How to Evaluate an EOR Provider — 12 Questions to Ask Before Signing

Why provider selection matters more than price

The wrong EOR provider means compliance risk, payroll errors, unresponsive support, and significant switching costs. Most buyers focus on headline price — but price is rarely where EOR providers differ most. Here are the questions that actually matter.

Coverage and entity model

• Do you own entities in my target countries, or do you use local partners? Owned-entity providers offer higher compliance certainty. Partner-reliant providers are often cheaper but add a layer of risk and slower resolution.
• What percentage of your business comes from the countries most important to me? A provider that does 90% of its volume in the US may not be the right fit for Southeast Asia hiring.
• Can you show me a sample employment contract for my target country before I sign?

Pricing and hidden costs

• Is your fee a flat rate or percentage of salary? Percentage models become expensive as salaries scale.
• Do you charge a markup on FX conversion? A 2% markup on a $5k/month salary adds $1,200/year per employee.
• What are your offboarding fees? Some providers charge $200–$500 per employee to terminate.
• How has your pricing changed year-over-year? Ask for historical rate data.

Compliance and liability

• Who bears liability if an employment claim is filed? The answer should be the EOR — not you.
• How do you handle terminations, and what is your disputed dismissal track record?
• How do you communicate changes in local labor law to clients?

Service and technology

• What is your average onboarding time in my target countries?
• Do I have a dedicated account manager or is support ticket-based?
• What is your notice period if I want to leave? Some providers require 90 days.