10 Questions to Ask Your Employer of Record (EOR) Provider
Hiring global talent sounds exciting… Until you hit the wall of legal complexity, compliance risks, and payroll headaches. But that’s why Employer of Record (EOR) exists, offering a fast, compliant way to hire internationally without setting up a local entity.
But not all EORs are created equal. Before you sign on the dotted line, here are 10 must-ask questions to evaluate your EOR partner and make sure they won’t just keep you legal but help you scale smarter, protect your IP, and retain top-tier talent across borders.
How Do You Ensure Compliance With Local Labor Laws?
When you hire talent across borders, you’re instantly exposed to a maze of labor laws, tax codes, and employment regulations that vary from country to country, and they’re constantly changing. One misstep can lead to penalties, lawsuits, or worse, jeopardizing your company’s global growth.
A reliable EOR should act as your legal safety net, ensuring every employment contract, benefits package, and payroll process is fully compliant with local laws.
What to look for:
- Does the EOR have in-country legal teams or trusted legal partners?
- How often do they update their compliance policies?
- Do they provide guidance if local laws change or if you need to terminate employment?
Don’t settle for vague reassurances. Ask for a specific track record of how they’ve handled compliance issues in countries where you plan to hire.
What Countries Do You Operate In Directly vs. Through Partners?
Not every EOR provider has a direct legal presence in every country they advertise. Many rely on third-party partners to deliver services in certain regions, and it’s something they don’t always disclose upfront. While this isn’t necessarily a red flag, it can lead to inconsistent service quality, delayed onboarding, or unclear accountability when issues arise.
Understanding where your EOR has boots on the ground versus where they outsource operations is crucial to managing risk and setting expectations.
What to ask:
- In which countries do you operate as the legal employer directly?
- Where do you rely on local partners, and how are those relationships managed?
- What level of control and visibility do you maintain in partner-operated countries?
The best EORs will be fully transparent about their global infrastructure and won’t hesitate to show you exactly how your employees will be supported in each country.
How Do You Protect Intellectual Property (IP) and Confidential Information?
When you’re working with offshore developers or remote talent, your source code, product ideas, and customer data are your crown jewels. But without the right legal protections in place, you risk losing control of them, or worse, facing a costly breach.
A trustworthy EOR should have rock-solid processes to ensure your intellectual property stays exactly that: yours.
What to look for:
- Do they assign all IP rights to your company by contract?
- Are NDAs, non-compete clauses, and confidentiality agreements part of the standard employment package?
- How do they handle data protection and secure document handling?
Make sure your EOR has country-specific expertise in IP law and provides legal agreements that hold up in local courts. If they hesitate or offer vague answers, consider that a red flag, because in global hiring, protecting your IP is non-negotiable.
What Is Included in Your EOR Service Offering?
Not all EORs provide the same level of support, and assuming they do can lead to major gaps in your hiring strategy. Some act as glorified payroll processors, while others offer full-service solutions that handle everything from compliance to culture.
Before you commit, get crystal clear on what’s included.
What to ask:
- Do you handle employment contracts, payroll, taxes, and benefits?
- Is onboarding and offboarding support part of the package?
- Do you offer ongoing HR support, employee engagement programs, or local benefits management?
A top-tier EOR goes beyond paperwork. They’ll help integrate your remote hires into your team, ensure they feel supported and compliant, and remove administrative headaches so you can focus on building great products, not navigating foreign labor laws. Clarity upfront prevents surprises later.
How Transparent Are Your Fees?
Offshore hiring is supposed to save you money but hidden fees and vague pricing structures can quickly erode your budget and trust. Some EOR providers bundle costs in a way that makes it hard to tell what you’re really paying for and how much is going to the developer versus the middleman.
What to ask:
- Do you provide a clear breakdown of developer salary, taxes, and service fees?
- Are there any onboarding, offboarding, or “surprise” charges?
- Is your pricing based on a flat rate, percentage, or something else?
The best EORs will give you a line-by-line cost structure so you’re never left guessing. At TurnKey, for example, we use a “cost-plus” mode, so you know exactly how much your developers earn and what you’re paying us to manage it. It builds trust, helps retain talent, and keeps your budget predictable.
What Benefits Do You Provide for Talent in Each Region?
Offering competitive, localized benefits is one of the biggest drivers of employee satisfaction and retention. But what works in one country might fall flat in another. A one-size-fits-all approach to perks often leads to disengaged talent and unnecessary churn.
A strong EOR understands that benefits are regional, not universal.
What to ask:
- What standard benefits do you offer in [country]?
- Do you provide health insurance, paid time off, and retirement contributions?
- How do you adapt perks based on local expectations and legal requirements?
The right EOR will tailor benefits to match regional standards and cultural expectations, whether it’s private healthcare in Mexico, 13th-month bonuses in Brazil, or wellness stipends in Eastern Europe. When your offshore talent feels genuinely cared for, they stay longer and perform better.
How Do You Handle Onboarding and Offboarding?
First impressions matter, and so do the last ones. A seamless onboarding process sets your offshore hires up for success, while a messy offboarding can create legal, logistical, and even reputational risks.
Your EOR should make both experiences smooth, compliant, and human-centered.
What to ask:
- How long does onboarding typically take in [target country]?
- Do you manage employment agreements, local documentation, and equipment logistics?
- What’s your process for handling resignations, terminations, and final payments?
A great EOR doesn’t just “start” and “stop” employment, they manage the full lifecycle with care. From day one paperwork to exit interviews, their role is to protect your company, keep the process legally sound, and ensure the employee experience remains positive, whether someone is joining your team or moving on.
Can You Customize Employment Contracts Based on My Requirements?
Every business is different, and so are the roles you’re hiring for. Standardized contracts might check the legal boxes, but they often fall short when it comes to aligning with your company’s unique needs, especially in tech, where IP, equity, or confidentiality clauses can be critical.
A flexible EOR should allow for customization, not force you into a template.
What to ask:
- Can we include specific IP assignment clauses, NDAs, or non-competes?
- Do you support equity agreements or stock option plans?
- How do you ensure that custom clauses remain compliant with local labor laws?
The right EOR will work with you (and their legal team) to create contracts that reflect your business priorities, while still aligning with local legal frameworks. Because when the contract fits everyone, the relationship starts on solid ground.
How Do You Support Employee Engagement and Retention?
Hiring great talent is only half the battle, keeping them engaged and motivated is where the real challenge begins. Offshore developers, in particular, can feel isolated or disconnected if your EOR doesn’t actively support their growth and well-being.
A smart EOR doesn’t just handle payroll, they build loyalty.
What to ask:
- Do you have programs in place to boost employee satisfaction and reduce churn?
- How do you support career growth, recognition, and work-life balance for offshore employees?
- Do you offer any retention metrics or reporting?
Look for EORs with real strategies, not vague promises. At TurnKey, for instance, we’ve developed a proprietary Talent Retention Score Program that reduces churn by up to 50% and extends developer tenure by up to 3 years. Because when developers are happy, companies win.
How Quickly Can You Hire in a New Country?
Speed matters, especially when you’re scaling fast, racing competitors to market, or need to fill a role yesterday. But in global hiring, delays caused by bureaucracy, compliance hurdles, or a lack of local infrastructure can cost you time, money, and momentum.
That’s why your EOR’s speed-to-hire is a critical metric.
What to ask:
- What’s your average time-to-hire in [target country]?
- How long does it take to get a developer legally onboarded and paid?
- Do you already have legal entities and infrastructure in place?
The best EORs are set up to move quickly without cutting corners. At TurnKey, for example, our direct presence in key regions like LATAM and Eastern Europe allows us to get developers up and running in days, not weeks. Because when the right candidate says “yes,” you don’t want legal red tape to slow you down.
Why Is TurnKey’s EOR Better Than Your Average EOR Service Provider?
Not all Employer of Record services are created equal. While most providers promise compliance and payroll, TurnKey goes several steps further, delivering strategic value, unmatched transparency, and elite talent retention that traditional EORs simply can’t match.
Here’s how TurnKey stacks up against your average EOR provider:
| Feature | TurnKey Tech Staffing | Typical EOR Provider |
|---|---|---|
| Custom Hiring | Every developer is custom-recruited to your specs | Often offers pre-vetted bench candidates with generic skills |
| Talent Retention | Proprietary Talent Retention Score Program reduces churn by up to 50% | Minimal involvement in employee engagement or retention |
| Price Transparency | Full visibility into developer salaries and service fees via a cost-plus model | Opaque pricing — bundled rates hide developer compensation |
| Speed to Hire | Developers onboarded in days thanks to local infrastructure in LATAM & Eastern Europe | Slower setup times due to partner dependency or lack of legal presence |
| Contract Flexibility | Fully customizable contracts with IP protection, NDAs, equity, and more | Rigid, template-based contracts with limited flexibility |
| Legal & IP Protection | All IP rights assigned to your company + compliance with local laws | Varies by region; limited legal assurance in some countries |
| Employer Branding | Developers feel like a true part of your team, not just outsourced talent | No effort to integrate developers into your company culture |
| All-In-One Service | Legal, payroll, benefits, compliance, and HR support — all under one roof | May require additional third parties for full coverage |
Hire top offshore talent without the legal or admin hassle — TurnKey’s EOR has you fully covered.
FAQ
A staffing agency finds talent. An EOR legally employs that talent on your behalf, handling payroll, benefits, taxes, and compliance. With TurnKey, you get both world-class recruitment and seamless employment infrastructure.
Yes, but it requires careful planning to avoid disrupting your team. A smooth transition depends on legal entity handoff, new contracts, and jurisdiction-specific rules. TurnKey helps companies transition from outdated providers with minimal friction.
TurnKey Staffing provides information for general guidance only and does not offer legal, tax, or accounting advice. We encourage you to consult with professional advisors before making any decision or taking any action that may affect your business or legal rights.
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