Key Vendor Selection Criteria for Your EOR RFP

Selecting the right Employer of Record (EOR) partner is a strategic decision that can significantly impact your ability to scale, maintain compliance, and support your workforce. Whether you're issuing a Request for Proposal (RFP) for the first time or refining your vendor roster, having a clear set of evaluation criteria ensures you identify the right partner for your needs.Here are the key vendor selection criteria you should include in your EOR RFP to guide your decision-making process:

1. Compliance

EORs exist to simplify the complexities of employment law, but not all providers are created equal. Your RFP should evaluate how each vendor ensures compliance with:

• Federal, state, and local employment regulations
• Tax withholding and remittance
• Benefits administration
• Worker classification laws (W-2 vs. 1099)
• Industry-specific requirements (e.g., education, healthcare)

Look for partners who proactively monitor regulatory changes and offer indemnification or shared liability models that reduce your exposure to risk.

2. Industry Experience

Every industry brings its own challenges. An EOR vendor with deep domain expertise will already understand the nuances of your workforce needs—from credentialing requirements in healthcare to compliance complexities in education or light industrial work.Ask vendors to provide case studies, client references, or metrics that prove their experience in your sector.

3. Technology Capabilities

An EOR’s technology stack can dramatically impact the efficiency and transparency of your HR operations. Your RFP should assess:

• Onboarding portals for talent
• Payroll processing and automation
• Self-service features for clients and workers
• API integrations with your existing HR tech stack
• Real-time dashboards and alerts

Choose a partner whose technology is modern, secure, and configurable to your specific workflows—not one that requires you to adapt to theirs.

4. Service Model

Consider how hands-on you want your EOR vendor partner to be. Do you need dedicated account management? Access to HR advisors? A fully self-serve model?Ask vendors to clearly outline their service tiers and response times, and clarify who manages talent communications. A mismatched service model can lead to confusion, delays, or a poor worker experience.

5. Pricing

Transparency in pricing is essential. Your RFP should ask for:

• A detailed breakdown of fees (e.g., markup %, per-pay-period charges, onboarding costs)
• Volume-based discounts or growth incentives
• Cost comparisons between domestic and international hires
• Hidden fees (if any) for benefits administration, custom reporting, etc.

Don’t just compare sticker prices—assess total cost of ownership, including downstream savings from tech efficiencies and risk mitigation.

6. Reporting

Modern organizations rely on data to drive decisions. Your EOR vendor should provide robust, on-demand reporting on:

• Worker activity
• Payroll and taxes
• Compliance metrics
• Benefits enrollment
• Spend by geography, department, or client

Make sure the vendor offers customizable and exportable reports that your finance, HR, and operations teams can actually use.

7. Global vs. Domestic Capability

Some EORs specialize in global employment across dozens of countries, while others focus solely on the domestic U.S. market. Your needs may dictate one or the other—or both.In your RFP, ask vendors to detail their operational reach, local expertise, and compliance mechanisms across all geographies of interest. For U.S.-based organizations, a domestic EOR can offer deeper compliance and service specialization, especially in highly regulated states and industries.

8. Focus

Not all EORs serve the same customer base or even the EOR service line. Some focus on startups and contractors, while others cater to mid-sized staffing agencies or Fortune 500 companies. Other EORs offer the service in addition to other services like staffing, consulting, HR software, and more. Their focus on your EOR service line may dictate the type of customer experience you receive. Look for alignment between the vendor’s primary audience and your business.When a vendor is built specifically for your type of organization, their support, tech, and processes will feel seamless—not forced.

9. Experience

Years in business still matter. A seasoned EOR has likely weathered regulatory changes, built refined processes, and can guide your team through complex employment scenarios.Ask how long they’ve operated, how many workers they support, and what lessons they’ve learned from clients similar to you. Experience leads to reliability—and peace of mind.

Final Thoughts

Choosing an EOR is more than just picking a vendor—it's choosing a partner to help you manage your most valuable resource: your people. By incorporating these nine key criteria into your EOR RFP, you’ll ensure a thorough, strategic evaluation that aligns with your goals, your compliance obligations, and your workforce experience.