Section 1: Coverage & Geographic Reach

Validate that the vendor operates in every country you need — now and in the foreseeable future. Thin coverage or over-reliance on third-party partners significantly increases compliance risk.

Section 1: Coverage & Geographic Reach

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor has owned legal entities (not just partner networks) in all of our priority countries.

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2

The vendor can compliantly employ workers in all countries on our 12-month expansion roadmap.

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3

The vendor has a demonstrated track record of employment in each of our target markets (minimum 2 years).

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4

The vendor discloses clearly which countries are serviced through owned entities vs. third-party partners.

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5

For partner-network countries, the vendor has documented partner vetting and oversight processes.

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6

The vendor can support employment in emerging or complex markets (e.g., Brazil, China, UAE) if required.

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7

The vendor maintains and actively updates country-specific employment guides and compliance documentation.

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8

The vendor's coverage map is contractually guaranteed — i.e., we will not be stranded if they exit a market.

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Section 2: Compliance & Legal

Legal compliance is the core promise of an EOR. Evaluate the vendor's depth of local legal expertise, their compliance track record, and their ability to protect your organization from employment law liability.

Section 2: Compliance & Legal

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor employs in-house legal counsel with country-specific employment law expertise in our target markets.

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2

Employment contracts are drafted in the local language and comply with all mandatory statutory requirements.

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3

The vendor proactively monitors and implements regulatory changes (e.g., minimum wage increases, benefit law updates).

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4

The vendor has a documented process for managing employment terminations in compliance with local notice and severance laws.

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5

The vendor provides indemnification against employment misclassification liability in all covered jurisdictions.

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6

The vendor has a clear and documented process for managing permanent establishment (PE) risk.

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7

The vendor complies with all applicable immigration and work authorization regulations in employment countries.

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8

IP assignment clauses in all employment contracts are locally enforceable and protect client ownership of work product.

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9

The vendor has no material compliance violations, regulatory sanctions, or employment law litigation in the past three years.

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10

The vendor can demonstrate compliance with local mandatory benefits (pension, social insurance, healthcare, etc.) in all covered markets.

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Section 3: Payroll & Benefits Administration

Accurate, on-time payroll is non-negotiable. Assess the vendor's payroll infrastructure, error rates, multi-currency capabilities, and the quality of benefits they can offer your employees.

Section 3: Payroll & Benefits Administration

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor guarantees a payroll accuracy rate of 99.5% or higher, with documented SLA and remediation terms.

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2

Payroll is processed on time in all covered countries, with country-specific pay date compliance.

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3

The vendor supports multi-currency payroll and can pay employees in their local currency.

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4

The vendor handles all employer-side statutory contributions (social security, pension, payroll tax) in each country.

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5

Year-end tax filings and employee tax documents (e.g., P60, W-2 equivalents) are managed and delivered by the vendor.

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6

The vendor offers access to locally competitive supplemental benefits (health insurance, life insurance, dental, vision).

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7

Benefits are benchmarked against local market standards and updated regularly to remain competitive.

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8

The vendor provides a self-service portal for employees to access payslips, tax documents, and benefits information.

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9

Expense reimbursement processing is handled through the platform with support for multi-currency submissions.

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10

The vendor can accommodate equity compensation (RSUs, options) and variable pay elements in their payroll processing.

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Section 4: Technology Platform & Integrations

The vendor's technology platform is your operational window into your global workforce. Evaluate its usability, reliability, reporting depth, and ability to integrate with your existing systems.

Section 4: Technology Platform & Integrations

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The platform provides a unified dashboard for managing all international employees across countries.

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2

The platform offers real-time payroll visibility, expense tracking, time-off management, and document storage.

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3

The platform has native or API integrations with major HRIS platforms (e.g., Workday, BambooHR, HiBob, Rippling).

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4

The platform integrates with major payroll and finance tools (e.g., Xero, NetSuite, QuickBooks, SAP).

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5

The vendor provides a robust reporting suite including headcount analytics, payroll cost breakdowns, and compliance status.

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6

The platform has a documented uptime SLA of 99.9% or higher.

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7

The employee self-service portal is available in multiple languages relevant to our workforce.

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8

The platform supports configurable role-based access controls to protect sensitive employee data.

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9

The vendor provides a dedicated mobile application for both HR administrators and employees.

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10

New platform features and updates are communicated in advance with documented release notes.

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Section 5: Onboarding & HR Operations

Speed and quality of onboarding directly impacts new hire experience and time-to-productivity. Evaluate the vendor's onboarding process, HR operational support, and the experience they deliver to your employees.

Section 5: Onboarding & HR Operations

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor can complete employee onboarding (contract signed, enrolled in payroll and benefits) within 5 business days in standard markets.

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2

The onboarding process is fully digital with e-signature, document upload, and guided workflows for new hires.

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3

New hires receive a clear, step-by-step onboarding communication plan in their local language.

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4

The vendor collects and verifies all legally required pre-employment documentation in each country.

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5

The vendor has a documented process for handling mid-onboarding issues (e.g., document delays, banking complications).

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6

Offboarding and terminations are managed end-to-end by the vendor in compliance with local notice, severance, and documentation requirements.

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7

The vendor handles ongoing HR administration including employment changes, promotions, pay adjustments, and leave management.

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8

The vendor provides support for visa and work permit processing if required by the client.

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9

The vendor offers HR guidance and advisory support on local employment practices, culture, and norms.

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10

Employee queries (payslips, contracts, benefits) are answered directly by the vendor without routing back to the client.

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Section 6: Data Security & Privacy

International employment involves highly sensitive personal data across multiple jurisdictions. Scrutinize the vendor's security certifications, data handling practices, and their GDPR and cross-border data transfer compliance.

Section 6: Data Security & Privacy

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor holds a current ISO 27001 certification for information security management.

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2

The vendor is SOC 2 Type II certified, with a report available for review under NDA.

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3

The vendor is fully GDPR compliant and has documented Data Processing Agreements (DPAs) available for signature.

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4

The vendor complies with all applicable data residency requirements in countries where employee data is processed.

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5

The vendor has a documented cross-border data transfer mechanism (e.g., Standard Contractual Clauses) for personal data flows.

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6

Employee data is encrypted at rest (AES-256 or equivalent) and in transit (TLS 1.2 or higher).

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7

The vendor conducts annual third-party penetration testing and shares summary results with clients upon request.

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8

The vendor has a documented and tested data breach incident response plan with defined client notification timelines.

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9

Access to employee personal data is governed by role-based controls with multi-factor authentication enforced.

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10

The vendor has a data retention and deletion policy aligned with applicable legal requirements in each country.

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Section 7: Pricing, Commercials & Transparency

EOR pricing models vary significantly. Ensure you have a complete picture of total cost of service — including all fees, surcharges, and currency-related costs — before comparing vendors.

Section 7: Pricing, Commercials & Transparency

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor's pricing model is transparent and clearly distinguishes between platform fees, per-employee fees, and country-specific costs.

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2

There are no hidden onboarding fees, document preparation fees, or country-specific surcharges not disclosed upfront.

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3

The vendor provides a detailed total cost estimate (including employer taxes and statutory costs) for each country before contracting.

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4

The vendor's FX conversion rates and policies are disclosed in writing — clients are not exposed to undisclosed FX markups.

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5

The pricing for benefits administration is clearly itemized and not bundled in ways that obscure cost.

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6

The vendor does not charge excessive termination fees or penalty clauses that create vendor lock-in.

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7

Volume discounts are available and clearly defined for clients scaling to larger employee counts.

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8

Pricing is reviewed and renegotiated at defined intervals (e.g., annually) rather than subject to unilateral mid-contract increases.

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9

Invoice formats are clear, itemized by country and employee, and compatible with standard finance reconciliation processes.

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10

The vendor provides a dedicated finance contact for billing queries and dispute resolution.

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Section 8: Client Service & Support Model

The quality of ongoing support determines your day-to-day experience as a client. Assess the vendor's service model, responsiveness commitments, and the accessibility of human expertise when you need it.

Section 8: Client Service & Support Model

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

Every client is assigned a dedicated account manager as the primary point of contact.

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2

The vendor provides access to in-country HR and legal specialists — not just a centralized global support desk.

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3

Support is available across all time zones relevant to our workforce, with defined response time SLAs.

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4

The vendor offers a standard response time SLA of 4 business hours or faster for urgent issues.

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5

Escalation paths are clearly documented and include executive-level escalation for critical matters.

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6

The vendor provides regular proactive account reviews (at minimum quarterly) to review performance and address issues.

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7

Client-facing support is delivered by humans — not exclusively automated chatbots or ticketing queues.

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8

The vendor has a documented process for handling and resolving client complaints, with root-cause analysis on recurring issues.

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9

Knowledge resources (country guides, FAQ databases, compliance alerts) are maintained and accessible 24/7 via the platform.

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10

The vendor actively communicates upcoming regulatory changes with sufficient lead time for client preparation.

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Section 9: Reputation, Track Record & References

An EOR's reputation is built over years of operational performance. Validate the vendor's stability, client satisfaction track record, and their depth of experience in markets relevant to your expansion.

Section 9: Reputation, Track Record & References

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

The vendor has been operating as an EOR for a minimum of 5 years.

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2

The vendor can provide a minimum of three relevant client references in similar industries or target markets.

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3

The vendor has verifiable client satisfaction scores (e.g., NPS, G2, Capterra) reflecting positive client experience.

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4

The vendor has no material negative press coverage, regulatory action, or high-profile client disputes in the past 24 months.

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5

The vendor is financially stable — audited financials, institutional backing, or evidence of long-term viability is available.

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6

The vendor has demonstrated capability to scale — managing clients with 100+ international employees is a standard use case.

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7

Industry analyst coverage (e.g., Gartner, Everest Group) recognizes the vendor as a credible provider in the EOR space.

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8

The vendor can demonstrate specific experience and successful outcomes in each of our target countries.

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9

Employee satisfaction with the vendor's services has been verified — either through references or published employee reviews.

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10

The vendor has a low client churn rate and can provide evidence of long-term client relationships.

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Section 10: Contract Terms & Exit Provisions

Review contract terms carefully. The ability to exit cleanly — on your timeline, without punitive costs — is a critical but often overlooked evaluation dimension.

Section 10: Contract Terms & Exit Provisions

Notes / Evidence

#

Evaluation Criterion

✓ Yes

~ Partial

✗ No

Notes / Evidence

1

Contract terms are available on a monthly rolling or annual basis, without multi-year lock-in requirements.

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2

Termination notice periods are reasonable and do not exceed 60 days for standard exits.

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3

There are no punitive exit fees, 'break penalties', or retention of employee data beyond what is legally required upon termination.

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4

The vendor commits to a smooth client transition process, including data export and handover support.

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5

Liability caps and indemnification terms are clearly defined, fair, and mutually negotiated.

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6

The vendor's data deletion and return policy upon contract termination is documented and compliant with applicable law.

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7

The client retains full ownership of all employee data, work product, and HR documentation at all times.

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8

SLA breach remedies (e.g., service credits) are defined, meaningful, and do not require litigation to invoke.

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9

The contract does not contain unilateral vendor rights to change pricing or service terms mid-contract.

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10

Dispute resolution mechanisms are fair, practical, and do not require arbitration in an inconvenient jurisdiction.

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SCORING SUMMARY

Complete this summary table after finishing all ten sections. Tally the Yes, Partial, and No responses per section, calculate section scores, and sum to a total score out of 100.