The hidden costs of a global EOR: Why North American enterprises need local precision

Introduction: Global reach doesn’t guarantee local compliance

Global Employer of Record (EOR) providers often market their services around scale and simplicity: hire anywhere, pay everywhere, all from one platform. For enterprises expanding across multiple regions, that promise is appealing.

But beneath the surface, a global EOR’s one-size-fits-all model can create hidden costs, misaligned compliance practices, and poor visibility into the very workforce it’s meant to streamline.

In North America, where U.S. state and Canadian provincial employment frameworks differ dramatically, local precision is not optional, it’s the difference between cost efficiency and compliance exposure.

1. The pricing paradox: global flat fees, hidden variables

Many global EORs promote transparent “flat fees” for onboarding and payroll, but these often mask variations in:

• Employer tax rates by province/state
• Workers’ compensation premiums
• Currency conversion and cross-border payment charges
• Unbundled “local partner” costs passed through as service fees

The result? What looks like a predictable cost model can produce month-to-month variance, especially when onboarding volumes shift or classifications change.

Procom’s model prioritizes cost transparency and provides a clear breakdown of statutory contributions, payroll taxes, and service fees across jurisdictions. Our North American cost framework ensures no “conversion surprises” or hidden remittance delays.

2. The compliance illusion: global scale, local gaps

Many global EOR providers rely on third-party intermediaries for local employment, which can dilute accountability. For example, a worker in Ontario may technically be employed by a local partner entity, not the EOR itself.
That creates risk if:

• Misclassification disputes arise
• Government audits target the employer of record
• Local labor laws or collective agreements change

Procom operates directly across Canada and the United States, giving enterprise clients end-to-end compliance control—from onboarding to remittance—under one accountable framework.

3. Currency, conversions, and the cost of complexity

Cross-border payroll can introduce incremental costs: foreign exchange spreads, intermediary bank fees, and time delays in remittance. While global EORs often aggregate these under “processing” or “service” charges, they can account for up to 5–8% of total payrolling costs (SHRM 2024).

Procom’s North American EOR model eliminates these inefficiencies by operating in-region payroll systems, ensuring same-currency payments, faster processing, and transparent employer contributions.

4. Beyond cost: The visibility advantage of local expertise

Procurement and HR teams need real-time workforce insights, not static dashboards.
Procom’s MyProcom portal provides complete visibility into onboarding timelines, contractor spend, and jurisdictional compliance status, helping clients manage programs with confidence.

5. Local precision drives long-term performance

Choosing a North American EOR isn’t just about compliance, it’s about program optimization.
Local precision supports:

• Accurate cost forecasting for Finance and Procurement
• Regulatory assurance for Legal and Compliance
• Faster onboarding for HR and Talent teams
• Unified governance across states and provinces

Procom’s integrated model gives enterprises both visibility and velocity, backed by people who understand the legal, financial, and operational nuances of hiring across North America.

Key Takeaway

Global scale may look efficient on paper, but precision drives performance.
When it comes to North American EOR programs, true value comes from local expertise, transparent pricing, and compliance you can verify AND trust.

Optimize your EOR costs with precision

Learn how Procom delivers cost clarity and compliance confidence across the U.S. and Canada.