A contractor-only platform may suit your current needs. But as you grow, you may find that hiring contractors poses a risk of misclassification in certain countries, which can result in fines or penalties.

If your plans include both contractors and full-time employees, you want a platform that can handle both to help reduce your management overhead.

It’s important to understand the vendor’s employment model and whether they own their own legal entities (the safest bet) or are working with third parties (pretty dodgy).

Many vendors claim to provide employment services in more than 180 countries, but how they provide those services in each country is important. If they rely on third parties in the countries where you are hiring, this can present serious business risks. Only work with a provider that can guarantee owned legal entities in the countries where you want to hire. 

Many global HR and payroll solutions seem like a good value until you get the first bill.

Be sure to ask about minimum costs per country or employee, onboarding and offboarding fees, whether they charge based on a percentage of the employee’s compensation, currency transaction fees, wire fees, and more. You should never be surprised by your bill.

You want to make sure your IP is never handed off or compromised in any way, which could expose your company to big risks. Your provider should offer maximum protection for your IP and have local legal experts whose job it is to stay on top of evolving IP laws.

The last thing you want is a data breach of sensitive employee information. At a minimum, the platform should be GDPR and SOC 2 compliant. If it isn’t, look elsewhere.