1. The Fee Structure: Demand Full Transparency

The most immediate concern for any business is cost. While EOR services provide significant savings compared to local hiring, the fee structure can sometimes be opaque.

What to look for:

• Management Fees: Is it a flat monthly rate or a percentage of the employee's salary? A flat rate, like MixWork’s $240 SGD/month, provides predictable costs as you scale your employee's salary.

  
  

• Onboarding/Setup Fees: Some EORs charge a one-time fee to set up a new employee. MixWork combines this with talent acquisition in a success-based model: a one-time fee equivalent to one month of the candidate's gross salary for sourcing and vetting the perfect hire.

  
  

• Hidden Costs: Ask about potential extra charges. These can include currency conversion fees, off-boarding costs, or fees for special administrative requests.

Your Negotiation Point: Request a complete, itemised breakdown of all potential costs. A reliable partner will have no issue providing this. At MixWork, we believe in straightforward pricing with no surprises.

2. The Scope of Services: Beyond Just Payroll

An EOR's primary function is to be the legal employer, but their value extends far beyond monthly payroll processing. A comprehensive EOR service is your in-country HR extension.

What to look for:

• Compliance Management: Does the service include managing all mandatory contributions? This is non-negotiable. For Indonesia, this must cover PPh 21 (employee income tax) and BPJS (health and social security) administration.

  
  

• HR Support: What level of HR support is included? Will they help with drafting locally compliant employment contracts? Do they provide guidance on local labour laws or assist with employee queries?

  
  

• Benefits Administration: Can they facilitate additional private health insurance or other perks to make your offer more competitive?

Your Negotiation Point: Clearly define the scope of HR support. Understand the process for handling employee issues, performance management, and day-to-day HR queries. This clarity prevents operational friction later on.

3. Contractual Terms & Termination Clauses

This is where you protect your business from future risk. Understanding the terms of engagement and, more importantly, disengagement is critical.

What to look for:

• Notice Periods: What are the required notice periods for terminating the EOR service? What are the statutory notice periods for the employee under Indonesian law?

• Termination Costs: Are there penalties or severance payment obligations you need to be aware of? How does the EOR manage the off-boarding process to ensure it's compliant and smooth?

• Intellectual Property (IP): The agreement should clearly state that all work and intellectual property created by the employee for your company belongs to your company.

Your Negotiation Point: Discuss hypothetical termination scenarios. Whether it's due to performance or a change in business direction, you need to know the exact process, timeline, and associated costs beforehand.

4. Onboarding & Employee Experience

The first few weeks are critical for integrating a new hire. A clunky onboarding process can lead to poor engagement and early turnover. Your EOR is responsible for making this a seamless experience.

What to look for:

• Onboarding Process: Do they have a structured process? This includes contract signing, equipment provisioning (if needed), and orientation on local policies and payroll.

• Integration Support: How do they help the employee feel like part of your company culture, even when they are legally employed by the EOR?

• Physical Infrastructure: For many roles, a professional work environment is key. Does the EOR offer a physical office option? MixWork provides access to a dedicated, secure office and workspace in Jakarta for a fixed monthly fee, including all amenities.

Your Negotiation Point: Ask for a detailed walkthrough of their onboarding plan. A great EOR acts as a partner, ensuring your new hire is set up for success from day one.

5. Added Value & Ancillary Services

Top-tier EOR providers are more than just administrative hubs; they are strategic partners in your growth.

What to look for:

• Talent Sourcing: Can they help you find the talent in the first place? MixWork begins the partnership with a deep-dive consultation and leverages an exclusive network to source and vet the top 5% of Indonesian talent for your specific needs.

  
  

• Technology & Tools: Do they offer any tools to enhance productivity? MixWork provides complementary monthly access to Gemini Pro for your team, fostering an AI-enabled workforce.

  
  

• Local Expertise: Do they offer market insights and salary benchmarking to help you create a competitive offer?

Your Negotiation Point: Inquire about bundling services. Can talent sourcing, EOR, and office space be packaged for better value? A partner invested in your long-term success will be flexible.

Your Path to Seamless Offshore Success

Building an offshore team in Indonesia is a strategic move that can accelerate your growth by 2-3x compared to hiring locally in Singapore. Choosing the right EOR partner is the most critical decision in that journey. By carefully negotiating these five areas, you establish a clear, transparent, and robust foundation for success.

Ready to unlock Indonesia's top talent without the complexity? MixWork is your strategic partner for hiring, managing, and growing your team.

Book a Free Consultation Today to discuss your hiring needs, or use our Cost Calculator to see your potential savings.