Two years on an employer-of-record model: the real costs and when we set up entities

The transfer from provider to own entity is its own project. Did you keep continuous service? We recognised service from the original start date for notice, leave and vesting, and wrote that into the new contracts. Three people still used the change to renegotiate pay.

Yes, continuous service in all three countries, written into the contract. In India we also had to work through the accrued gratuity position with the provider. We transferred 34 people and had no renegotiation, though we timed it a month after the pay review.

I would be slower to open entities than this suggests. An entity is easy to open and painful to close. We set up in two countries on the strength of 9 hires each, the product strategy changed, and winding one of them down took 19 months. The fee starts to look cheap.

The thin benefits point is underrated. We now top up through the provider where they allow it, mainly supplementary medical and pension contributions, at around 6% of salary. Without it our offer acceptance rate in western Europe was under 50%.