How to choose the right EOR partner in 2025? A complete guide

As businesses expand into new international markets, managing employees across borders becomes increasingly complex. Navigating local regulations, compliance, payroll, and tax rules often presents significant challenges, particularly when entering new markets.

India, for instance, has become a key destination for global talent, with Global Capability Centers (GCCs) evolving beyond cost-saving operations to hubs of innovation, particularly in areas like AI. With their skilled workforce and scalability, countries like India are a great choice for companies seeking to expand globally.

However, many HR teams lack the resources or expertise to handle these complexities effectively, leading to delays, compliance risks, and costly mistakes. The consequences of missteps—such as setting up own entities, misclassifying employees, or failing to comply with labor laws—can be severe.

An Employer of Record (EOR) can help businesses navigate these challenges by offering end-to-end management of global hiring, payroll, and compliance. Rivermate, in particular, offers personalized support, expert legal guidance, and a flexible, scalable platform to ensure businesses expand confidently and compliantly.

In this guide, we will explore the critical questions to ask when selecting an EOR, and why Rivermate is the ideal choice for businesses seeking seamless global expansion.

How to know if an EOR is right for you?

For many companies, especially those looking to scale quickly, managing a global workforce without local entity setups may seem like an impossible task. However, an EOR is designed to make this process as simple as possible.

What an EOR provides

An EOR acts as the legal employer for your workforce in foreign countries, taking on the legal, tax, and HR responsibilities. This means that businesses can hire employees anywhere in the world, without the need to establish a local legal entity. The EOR will handle locally compliant employment contracts, payroll, taxes, benefits, and ensure that all labor laws are followed, ensuring full compliance with local regulations.

When to consider an EOR

EOR services are ideal for businesses facing one or more of the following situations:

• Expanding to new markets: When entering a new country, setting up a local entity can take months and significant financial investment. An EOR allows you to begin hiring quickly, ensuring smooth entry into the market.

• Hiring international talent: If you want to hire top talent globally, an EOR makes it easier to legally employ people in foreign markets, even if you're not familiar with local labor laws.

• Scaling quickly: If your company is growing and you need to hire employees in multiple countries, an EOR can streamline the process, reducing the need for multiple legal consultations, contracts, and complex payroll systems.

• Avoiding risks: The complexities of international employment laws can result in heavy fines if mismanaged. An EOR ensures compliance with local regulations, mitigating legal and financial risks.

| *💡 Did you know?

According to McKinsey research, when startups enter a period of significant hiring, particularly in new geographies or markets, founder CEOs and their teams often need to rethink their HR operating model. This includes strategies for attracting, hiring, and onboarding talent at scale. For example, a U.S.-based startup expanding into the European Union identified several new HR capabilities essential for success, such as expertise in managing international compensation and payroll procedures, as well as launching culturally appropriate professional development programs. The team anticipated an influx of foreign talent and, recognizing the difficulty in attracting and retaining top talent, aimed to ensure it could support such an expansion effectively. Partnering with an EOR can simplify these challenges. EOR services provide the expertise needed to manage global payroll, compliance, and cultural integration, allowing businesses to scale efficiently and stay focused on growth, without the complexities of managing these human resources functions in-house.*

With these considerations in mind, it's essential to ask the right questions when choosing an EOR solution.

13 key questions to consider when choosing an EOR partner

Below are 13 key questions that will help you assess whether an EOR can meet your business's unique needs and ensure a seamless global expansion.

1. Does the EOR have expertise in local compliance laws?

Compliance is the foundation of successful global expansion. The EOR should have extensive knowledge of labor laws, tax regulations, and employment guidelines in the countries where you plan to operate. For example, if you’re hiring in the European Union, the EOR must be familiar with GDPR compliance for data protection, as well as region-specific tax laws and labor contracts.

Why it matters: EOR services with local compliance expertise help you avoid costly legal penalties and ensure smooth operations across multiple jurisdictions.

Caption: Qantas airlines was fined $90 million

In a significant case of non-compliance, Qantas was fined $90 million for unlawfully outsourcing ground handling jobs during the COVID pandemic. This is the largest penalty ever imposed by an Australian court for violations of industrial relations laws.

Action tip: Ask for a list of countries the employer of record supports and their specific compliance expertise in each market. Check if they offer legal updates and monitoring to stay ahead of regulatory changes.

2. How quickly can EOR services onboard new employees?

Speed is crucial when scaling your global workforce. Onboarding delays can slow down operations and affect the overall productivity of new employees. A good EOR should have a streamlined process for onboarding new hires quickly, ideally less than three weeks.

Why it matters: Rapid onboarding minimizes disruption, helps get your employees working faster, and improves employee experience. Rivermate, for example, offers rapid global onboarding in 48 hours.

Action tip: Ask the employer of record for a detailed breakdown of their onboarding process, including timelines for contract generation, compliance checks, payroll setup, and employee training.

| 💡 Personalized onboarding for your workforce

One of Rivermate’s standout features is a dedicated onboarding meeting for every employee we hire or transfer on behalf of our clients: something our competitors simply don’t offer.

This human-centered onboarding session goes beyond the usual human resources processes. It provides employees with an in-depth understanding of how the employer of record model works and introduces them to key features of the Rivermate platform. Here’s what the session includes:

• EOR fundamentals: A walkthrough of the employer of record model and the roles each team member plays in the process

• Rivermate dashboard tour: A live, interactive tour of the Rivermate dashboard, showcasing the tools employees will use daily

• Key product features: A demonstration of essential features, such as the reimbursement flow, to ensure employees understand how to navigate the platform

This onboarding experience is available to both existing and new employees hired through Rivermate.

3. Does the employer of record provide transparency in pricing?

Hidden fees are a common pain point with employer of record services. Request detailed pricing models that cover all service aspects, including payroll management, compliance management, benefits administration, and tax filings.

The EOR should provide a clear, predictable pricing structure to help you calculate the cost of employing workers in different countries. Costs typically range from $200 to $500 per employee per month, depending on the country and the complexity of local payroll regulations.

Why it matters: Transparent pricing allows you to accurately forecast global employment costs, avoiding unexpected charges that could derail your financial planning.

4. Is the EOR’s platform easy to use and integrate?

Managing remote teams, for instance, requires a centralized platform that integrates seamlessly with your existing HR systems. A user-friendly, intuitive interface allows HR teams to manage payroll, benefits, and compliance without technical hurdles. Additionally, the EOR platform must integrate with tools like HRIS, accounting software, or project management tools for easier synchronization.

Why it matters: A well-integrated system reduces manual work, minimizes errors, and ensures smooth coordination across HR, finance, and operations departments.

Action tip: Request a platform demo to evaluate its ease of use, integration capabilities, and the level of automation it offers. Check if the platform can be customized to meet your business needs.

💡 Comprehensive HR and payroll support beyond EOR Need tailored benefits, local HR expertise, or a unique employment structure? Rivermate’s got you covered.

5. Can the employer of record scale with your growing business?

As your business grows, so will your global hiring needs. It’s essential that the EOR can scale with you, accommodating new hires in multiple regions and adapting to your business’s changing requirements. You need an EOR that can handle not just your current workforce but can easily manage future growth and complex employee structures.

Why it matters: Scalability ensures that as your business expands, your HR processes remain efficient and compliant without the need to switch providers.

What to ask: Ask about the EOR’s ability to scale with your needs. Do they have the resources and infrastructure to support global hiring as you expand into new markets?

6. How will the EOR handle complex, high-volume hiring?

If your business is hiring large numbers of employees in multiple countries simultaneously, you’ll need an EOR partner that can handle the complexities of high-volume hiring.

Why it matters: Whether it’s expanding into new markets or launching large-scale recruitment campaigns, your EOR must have the capacity to handle bulk hiring while ensuring compliance with all local laws.

What to ask: How does the EOR handle large-scale, complex hiring? Can they provide automated or bulk contract generation, onboarding, and benefits enrollment to manage volume efficiently?

7. What level of support can you expect from the EOR?

Caption: Rivermate offers 24/7/365 human support

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Employer of record partnerships require ongoing support. While automated systems can handle basic tasks, issues often arise that require immediate human intervention.

A good EOR, like Rivermate, will offer a dedicated account manager who can quickly resolve issues. Additionally, check if the EOR offers multi-channel support via Slack, WhatsApp, or direct calls, rather than relying solely on ticketing systems.

Why it matters: Fast, human support minimizes downtime, helps resolve critical issues quickly, and keeps your international workforce working without interruptions.

Action tip: Inquire about the availability and responsiveness of customer support. Make sure they provide access to a real person rather than a bot, especially for urgent compliance or payroll issues.

8. What employment models are used in each country?

Employment models differ by country. Some EORs offer a professional employer organization (PEO) model, where they co-employ your workforce, while others, like Rivermate, provide the Employer of Record (EOR) model, acting as the sole employer.

Why it matters: Understanding the employment model in each country helps you navigate tax implications and manage employer liability more effectively. Both PEO and EOR solutions help manage HR functions, including payroll, taxes, and compliance. With a PEO, you need a local presence, which can limit flexibility, while an EOR allows hiring in new markets without entity setups, ensuring legal compliance.

For contractors, a PEO may be ideal as it helps manage their payroll, but for full-time employees, an EOR provides the flexibility to scale and test new markets with ease, without long-term commitments.

| Rivermate’s Contractor of Record helps you hire and work with independent contractors Source*
💡Alternatively, if you don’t want to go the PEO route, you can avoid the risks of worker misclassification with a Contractor of Record (COR) solution. Rivermate acts as your agent of record, taking on the responsibility for compliance and liability. By handling the paperwork and signing contracts directly with the contractors, we ensure that everything is legally sound and compliant with local regulations. |

Action tip: Schedule a meeting with your EOR provider to dive into the employment models used in your target countries. Ask how each model impacts your business.

9. How does the EOR support you when ending an employment agreement?

Plans can change, and having a clear understanding of the EOR’s termination process is crucial for businesses managing remote teams. Here’s how an EOR can help navigate this sensitive area:

• Notice periods: Local labor laws often mandate minimum notice periods for termination. Your EOR will ensure you understand and comply with these regulations, guiding you through the process to avoid legal missteps.

• Severance packages: Depending on the country and contract specifics, severance packages might be required. The EOR will help determine whether severance is necessary and can even assist in negotiating terms. While this process can be complex and legally nuanced, a knowledgeable EOR can prevent costly mistakes and protect your business from potential pitfalls.

Having a seasoned EOR partner helps minimize the challenges of managing international employee terminations. With their expertise, you can navigate the complexities of global labor laws and ensure the process is smooth and compliant.

10. Are you seeking a long-term global partnership or a short-term solution?

Global hiring isn’t a one-time decision. You need a partner that can evolve with your company as you expand and scale. Understanding your long-term goals is essential when evaluating an EOR partner.

• Why it matters: If your growth plans involve consistent, long-term international hiring and ongoing expansion, you’ll need an EOR that can provide scalable, ongoing support across all markets, with a track record of helping companies like yours succeed. If you’re only hiring temporarily or testing a market, a more flexible, short-term arrangement might be more appropriate.

• What to ask: How does the EOR support long-term partnerships? Do they have a dedicated team to ensure consistent service, even as your business scales and enters new regions?

11. How is payroll data managed, and do you have an overview?

Transparency and accessibility are key. An ideal option is a secure online portal where you can access real-time payroll information for your remote team. With increasing concerns around data breaches and privacy issues, ensure the EOR adheres to stringent data protection standards like GDPR for European operations or CCPA in California.

Why it matters: Having a clear overview of payroll data allows you to monitor costs, ensure accuracy, and comply with tax reporting requirements.

12. What is the EOR’s track record with international clients?

Experience matters when selecting an employer of record. An EOR that has successfully helped companies in similar industries or with comparable global hiring needs can be a great asset.

Why it matters? An EOR with a strong track record in your industry is more likely to understand your unique challenges and provide solutions tailored to your needs.

Action tip: Ask for client success stories or case studies that show how the EOR has successfully helped other businesses in similar situations. Check references to ensure the employer of record has a proven ability to meet your specific needs.

Caption: Boloo case study

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Take for example this case study of Boloo that chose Rivermate as its employer of record (EOR) partner, drawn by Rivermate’s cost-effective, customized solutions and ability to manage cross-border employment complexities.

Caption: Boloo client testimonial

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13. How does the EOR handle local legal compliance for non-standard international workers?

Legal complexity increases when hiring not just full-time employees but also contractors, freelancers, and other non-standard workers. It’s essential to ensure your EOR services have the capacity to manage these diverse types of workers while adhering to local laws.

• Why it matters: As labor laws for contractors and freelancers differ from full-time employees in most countries, it's crucial that your EOR offers the flexibility to classify and manage both employee and contractor relationships without risking misclassification penalties.

• What to ask: How does the EOR differentiate between full-time employees and independent contractors in compliance with local laws? Can they handle complex contractor classifications across multiple regions?

Why Rivermate is the No.1 EOR partner in 2025

Caption: Rivermate’s employer of record solution

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When it comes to scaling your workforce across borders, Rivermate stands out not just as a platform but as a true partner in global expansion. Here’s why Rivermate is uniquely positioned to help businesses grow with confidence and compliance in 2025 and beyond.

1. Human-centered support

Whether it’s your dedicated Global Account Manager, legal experts, or country-specific consultants, Rivermate ensures your team has access to experienced professionals who understand the complexities of global hiring.

When issues arise—whether legal, HR-related, or payroll concerns—you’re never left navigating through a maze of support tickets. You get real-time, hands-on assistance that adapts to your unique challenges and provides quick resolutions.

2. Local expertise in 150+ countries

Rivermate’s local expertise spans over 150 countries, with in-country legal teams that stay updated on labor law changes, tax regulations, and compliance guidelines specific to each country.

Whether you're hiring in emerging markets or highly regulated regions, you can rely on local legal experts to navigate the complexities and ensure full compliance. Rivermate manages everything from contract generation to payroll taxes, leaving you free to focus on growing your business.

3. Transparent, predictable pricing

Unlike many competitors who rely on hidden fees and complex pricing models, Rivermate provides clear, upfront pricing that includes all services—no surprises. Whether you're hiring employees or contractors, Rivermate offers a simple, all-inclusive monthly fee per employee and no entity setup costs.

Caption: Rivermate pricing page

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Budgeting and forecasting are simplified, with no unexpected charges that could impact your bottom line. The predictable cost structure allows for more effective financial planning.

4. Adaptability and flexibility to scale with your needs

Caption: Rivermate offers 100% flexibility
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Rivermate isn’t just a “set-and-forget” platform. It’s a scalable solution designed to evolve with your business. Whether you're expanding into new countries, growing your headcount in existing markets, or managing complex, high-volume hiring, Rivermate’s flexible platform and custom workflows adapt to your changing needs.

5. End-to-end global talent management

Caption: Rivermate’s global visa and immigration services

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Rivermate goes beyond just being a payroll and compliance provider. It offers a comprehensive end-to-end talent management solution, including recruitment, onboarding, visa and immigration support, employee benefits, and contractor management.

Rivermate is your one-stop-shop for everything related to global talent.

6. Seamless transition from contractor to employee status

Rivermate offers an easy transition process for employees who start as contractors and later move into full-time employee roles. This seamless contractor-to-employee conversion ensures compliance and operational continuity, making it easy to adapt to changing workforce needs.

Choosing the right EOR for sustainable global growth

Rivermate’s comprehensive suite of services, combined with its human-centered approach and local expertise, makes it the ideal choice for businesses looking to scale globally with ease and confidence. We are a trusted partner that offers flexibility, transparency, and deep industry expertise, ensuring your global workforce is managed efficiently and compliantly, no matter where they are located.

Ready to scale your global workforce management with confidence?

Book a free 30-minute consultation with us today.

FAQs

1. How extensive are the EOR’s service offerings?
   An EOR typically offers a wide range of services including payroll processing, tax compliance, benefits administration, recruitment, onboarding, visa support, and contractor management. Rivermate, for instance, provides end-to-end global employment solutions tailored to specific business needs.

2. How does the EOR handle compliance across multiple regions?
   The EOR ensures compliance by leveraging local expertise in each country. They continuously monitor regulatory changes, manage statutory benefits, tax filings, and handle legal documentation, ensuring businesses stay compliant with each region’s employment laws.

3. How does Rivermate ensure compliance with international laws?
   Rivermate employs in-country legal experts who stay updated on local laws and regulations. This ensures that every employee hired through Rivermate is fully compliant with the relevant labor laws and tax requirements.