How to switch EOR providers

If you’re working with an Employer of Record (EOR) solution that no longer meets your needs, it may be time to consider making a switch. Perhaps your current EOR partner can’t keep pace with your global expansion efforts. Maybe they don’t have the right infrastructure for global hiring or the capacity to handle employee onboarding in new regions. Or you might require more comprehensive global payroll support and the ability to pay employees in multiple currencies.

Whatever the reason—whether it’s insufficient local expertise, lackluster responsiveness, or the desire for a more cost-effective model—the decision to find a new EOR solution can open doors to a more efficient, growth-focused future for your international team.

Switching EORs is about aligning your business with a provider that truly understands your company’s global footprint and future ambitions. Moving on from a provider that’s not delivering the service, flexibility, or support you need sets the stage for deeper engagement with your employees, smoother operations worldwide, and ultimately, a more sustainable path to global growth.

What to look for in an EOR

If you’re evaluating a new EOR partner, it pays to know what makes a strong provider stand out. Let’s take a closer look at the factors you should consider when searching for the right fit.

1. Owned entities

When working with a global team, having an EOR service provider that has set up its own legal entities in the countries where you hire can simplify compliance and reduce risk. Providers with established entities in multiple regions don’t have to rely on third-party intermediaries, which means fewer service delays, clearer accountability, and a more straightforward experience for you and your team.

2. Global coverage

If you’re eyeing new markets, you’ll want to find an EOR that can support global employment. Whether you’re adding international employees in well-established jurisdictions or seeking opportunities in frontier markets for your business, a provider with broad coverage ensures you won’t have to repeatedly jump ship to new EORs as you continue to grow.

3. Local expertise

Local expertise is essential. The right EOR will help you localize employment contracts and other essential documents as well as navigate complex local labor laws. They’ll assist with visas, remain vigilant about local employment law changes, and stay on top of legal issues that could affect your workforce. This depth of knowledge protects your company from unnecessary compliance headaches.

4. Good customer support

Good customer support means having a team that’s responsive, knowledgeable, and proactive. Whether you have a quick question or need assistance navigating a tricky legal requirement or opaque local law, a supportive team can keep things moving smoothly.

5. Cost effectiveness

Pricing matters. Look for a cost-effective EOR whose fees align with your budget and growth plans. While you don’t want to sacrifice quality to save a few bucks, you also don’t want to pay premiums for services you don’t need.

Challenges of switching EOR providers

Switching EORs isn’t without its challenges.

Transferring sensitive data between EOR providers demands care and precision, and any lapse in oversight could introduce compliance risks. Moving between providers also requires you to watch for potential compliance gaps that may surface as local regulations shift.

Beyond the legal and data-focused elements, administrative strain on your team during the transition can’t be ignored. Careful planning, communication, and plenty of lead time will help keep the process as smooth as possible.

With these challenges in mind, let’s look at a step-by-step plan to help your organization transition to a new EOR provider with as few hiccups as possible.

How to switch EORs: Step-by-step

A smooth transition starts with a clear plan. Taking the time to map out each step ensures you’ll be able to shift from your current EOR provider to a new partner without unnecessary setbacks or complications.

Step 1: Choose the right EOR for your needs

As you evaluate different solutions, look for a new provider experienced in international hiring and capable of meeting your organization’s unique requirements. Rippling EOR is the easiest way to compliantly hire and pay global employees. 

Step 2: Define stakeholders’ roles and responsibilities

Identify team members across departments who will support the transition and outline their responsibilities during the switch. This will help ensure that your support team moves in lockstep throughout the changeover.

Here’s an example of the teams who might be involved in an EOR transition and their potential roles and responsibilities:

Step 3: Create a transfer strategy

A solid transfer strategy sets you up for success. Begin by identifying what information you need from your current EOR and team to avoid disruptions. Make sure you have a secure, organized system for collecting and managing all relevant data, from employee records to payroll details and benefit terms.

Step 4: Decide on a transfer timeline

Determine the ideal window for switching, and consider any notice periods or termination requirements from your current EOR. Clear deadlines help manage everyone’s expectations and minimize confusion.

Step 5: Plan for and communicate benefit changes

Employee benefits and perks will likely shift when you move employees to the new EOR, which will act as a new legal employer for them. Consider how to handle PTO balances and communicate these changes well in advance to ensure a smooth transition. Keep in mind that your benefits are one of your most valuable tools for attracting and retaining top talent, so offering a comprehensive benefits package—and keeping employees satisfied with their benefits through this change—is paramount.

Step 6: Gather feedback from your team and employees

Keep the lines of communication open. Invite feedback from your employees to maintain a positive employee experience and ensure a seamless transition. Let them know you value their input and adjust the strategy and timeline as needed.

Step 7: Begin the onboarding process

Once everything is in place, start onboarding your new EOR. This also means properly offboarding with your previous EOR so no loose ends remain. Proper onboarding sets the tone for a stable, long-term partnership that fuels your company’s global ambitions.

Switch to Rippling EOR and keep your employer of record for good

If you want an EOR you’ll keep, you want Rippling. Only Rippling gives you ultimate flexibility when managing your global workforce—you can switch seamlessly between PEO, EOR, our all-in-one workforce management platform, and other employment models as your business needs change.

Managing an international workforce goes way beyond just hiring and paying—it’s headcount planning, time and attendance, learning and performance management, device ordering, app provisioning, and more. Other solutions only offer native EOR and HRIS or rely on clunky integrations for these other tools, slowing you down and requiring you to constantly reenter information between systems. Rippling is the only provider that built a whole suite of tools on a unified employee data model so that you can manage your entire global workforce in one system.

Rippling can support international contractors, EOR employees, and HR and payroll for employees on your own entities—so you don’t need to replace your systems as your business scales and your needs evolve. 

Unlike other providers, Rippling can transition workers when you switch employment models while keeping all their data across documents, time tracking, expenses, and more intact.

Frequently asked questions about how to switch EOR providers

How long does it take to switch EOR providers?

The timeline can vary depending on factors like the complexity of your global workforce, your current EOR’s termination requirements, and how quickly you can gather the necessary data. Generally, a well-planned transition can take anywhere from a few weeks to a couple of months. The key is to set clear timelines and communicate them to all stakeholders to prevent delays.

What if the new EOR doesn’t cover all the countries I need?

Before making the switch, be sure to confirm your new EOR’s global coverage. Opting for an EOR with a broad international footprint reduces the risk of having to switch again down the line.

How will switching EORs affect my compliance efforts?

Moving to a new EOR can actually help streamline compliance, provided you choose a partner with strong local expertise and proven global employment credentials. By carefully managing the handover of sensitive data and verifying that the new provider understands relevant labor laws, you can mitigate compliance risks and maintain a solid footing in every market.

Are there any hidden costs to consider when switching EORs?

Beyond the provider’s stated pricing, consider any internal costs such as the time your HR, finance, IT, and legal teams will invest in the transition. Also, make sure to review termination clauses or notice periods with your current EOR to avoid unexpected fees. Having a comprehensive cost overview helps you choose a provider that’s not only effective, but also a good financial fit.

This blog is based on information available to Rippling as of January 9, 2025.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.