Blog | 12th September 2024
Comparing the cost of EOR providers
Why is it so hard to compare the cost of EOR providers?
In a recent discussion with others in the Employer of Record space, the leader of one firm told me they estimated there are now 800 companies offering this type of service. Others who were party to the conversation, felt there might be significantly more. So how on earth do those looking to choose an EOR partner go about finding the right one?
One factor which inevitably comes up is the cost. As in all purchases, the buyer has their wish list of things they want from the service, and a price they are willing to pay. When budgets are tight, there may be a necessity to compromise on the wish list in order to make the numbers work. However, choosing a low-cost option isn’t always as straightforward as it may seem.
This article looks at why a fee of a few hundred dollars could actually mean a cost of many thousands.
When a potential buyer of Employer of Record services wants to understand the cost involved, it is vital that they look at the total cost to the bottom line of their business. The EOR provider’s fee is only one factor.
Consider the impact these scenarios would have on the total cost to your business;
You lose your carefully selected candidate during onboarding – Your Employer of Record partner will be involved in a crucial step in the employee lifecycle; their onboarding. Employment contracts should be tailored to the role and sent out promptly. Salient points should be highlighted to the candidate and the contract should be dual language when necessary. The employee should be treated like a human and have their concerns addressed. Does your EOR provider treat the candidates you have identified as well as your own HR team would? Just how big would the cost of re-recruiting be, let alone the potential impact if you missed out on the next superstar to join your team?
You want to terminate an employee but your EOR’s process doesn’t allow it – Sometimes a business has to make a difficult but necessary decision to terminate an employee. And if that employee is causing damage to the business, it may be important that their exit is swift. To find that your EOR’s process is a blocker at this point can be very costly. Does your chosen EOR allow you the flexibility to make your own risk-based decisions?
Get in touch
Our team of Employer of Record experts are ready to discuss your global expansion requirements. Fill out your details in the form provided and we will be in touch as soon as possible.
