If you’re looking to outsource your back-office operations, like staffing and human resource-related administrative functions, you’ll want to contact your MSP to discuss your options. You want the right partner for your business. So, it is important to ask the right questions during the research process as you source an EOR.
Not all EORs are Created Equal
Extensive research is an important part of this process. There are many different factors to consider when sourcing an EOR and the decisions you make during this process can help you to choose the right EOR company to work with.
Things to Consider Before Speaking to Your MSP
There are some things you’ll want to consider before you even speak with your MSP. You’ll want to think about what services you will need, what your timelines are, and what expertise you need in an EOR. If you plan on growing your company, locally or globally, this is also something you need to consider.
The most important thing to consider before speaking with your MSP though, is what services you want to outsource. Different EOR companies have different services, so it is important to understand what you need before you can begin sourcing an EOR partner.
Commonly outsourced services provided by EOR companies
Personnel functions are the most commonly outsourced back-office operations. This can include:
- Payroll processing. The EOR would manage your payroll processing and funding as well as payroll tax responsibilities, including deposits and filing.
- Onboarding. The EOR company would handle the onboarding of both permanent employees and contingent labor through training, permissions, badging, background checks and drug screenings, and equipment allocation.
- Benefits Administration. Your partner would manage employer-sponsored benefits like healthcare, employee discounts, etc.
- Offboarding. This process is typically for contingent labor but can be handled for permanent employees through resignation, termination, or retirement as well. Your partner would handle responsibilities transfer, account deactivations, equipment turnover, and exit interviews.
- Other personnel functions. The EOR company may also handle worker performance issues, employee classification and compliance, and insurance.
Questions to Ask Your MSP When Choosing an EOR Partner
Once you’ve determined your services, your timelines, and your overall needs, it’s time to contact your MSP. You’ll want to ask your MSP some discovery questions to determine if the EOR provider can meet your needs. Your MSP may have resources for you to look over or may need to reach out to the EOR to get answers to your questions.
Can this provider grow with our organization?
Whether you’re a new business or an established SMB, chances are you will see some growth as you work with the EOR. If you have plans for expansion, whether local or global, it is important that the provider you choose has the capabilities to grow with you. If you expand quickly or hire seasonal employees, you need to know if the provider can handle hiring en masse.
Questions to ask:
- Does the organization have a global presence? Are they set up to help us procure the best talent regardless of location? What countries can they provide services in? And, are those services limited?
- If a remote employee moves to a different location, how is the regulatory compliance handled? Are they prepared to make changes that comply with the laws and legal compliance of that state or country?
- If we need to staff a new facility or hire a large number of seasonal workers, can they handle en masse hiring?
Do they have specific expertise in my industry?
Many industries have specific requirements or certifications that are necessary to work within that industry. You need to know if the EOR is prepared to handle the nuances of your industry. These questions will vary by industry or niche, so ensure you’re aware of what matters.
What about your industry differs from others? Are there specific certifications or special knowledge that is needed in order to successfully—and compliantly—manage administrative functions?
You’ll also need to know if you plan to hire permanent employees, contingent labor, independent contractors, or some combination. Will you be hiring in-house or remotely?
Independent contractors are typically handled by an AOR, or agent of record, which opens up an entirely different line of questioning. While contingent labor and ICs can widen your options and make you a more competitive employer, you’ll need to consider whether or not you plan to hire locally vs globally.
Questions to ask:
- Do they have experience with temporary staffing? Executive placements? And the multiple employment classifications and needs that arise from both situations?
- Have they handled hiring for multiple locations?
- Does this EOR have the training and certifications required to handle a company of my size? In my industry?
How quickly can we get started?
We mentioned the importance of considering timelines before speaking with your MSP. You will need to consider your internal timelines and determine when you’ll be ready to move forward, when you will need to hire and how often. But you will also need to consider the external timelines. How long will it take to get started with the EOR company and how can your MSP help to mitigate issues and potentially reduce time-to-hire.
Questions to ask:
- What is their program implementation process? What is the expected timeline? And, what is their communication strategy during this process?
- What do we need to get started? What is the client onboarding process? What is the handoff process? NOTE: Depending on the size of the company and the complexity of the internal structure, this process can range from 2 weeks to 3+ months.
- Once we’ve established our processes, how quickly can new hires be onboarded?
Choosing the Right EOR Partner
People2.0 has more than a decade of experience as a full-service EOR and AOR provider with the global capabilities to meet the challenges of today’s borderless workforce. If you’re interested in working with People2.0, contact your MSP today!