What to Do When Oyster Isn't the Right Fit for Your Global Team

Here's What You Need to Know

Teamed pulls your contractor, EOR, and entity setup into one operating picture for mid-market companies at €465/employee/month for EOR and €45/contractor/month. This can save you the €50,000 to €175,000 you're likely spending annually just trying to reconcile data across multiple vendors. Oyster operates as an EOR across 180+ countries at €499 to €699/employee/month, not a PEO. That difference matters: it determines who signs the employment contract, who carries the liability, and whether you need a local entity.

Oyster is not a PEO. It's an Employer of Record. That distinction matters because it determines who holds legal employer responsibilities, whether you need a local entity, and how your multi-year global employment strategy should unfold. Most mid-market companies searching for "Oyster PEO alternatives" actually need strategic guidance on sequencing contractors, EOR, PEO, and owned entities across markets, not just another platform to add to their vendor stack.

What to Look for When You're Comparing EOR and PEO Options

Teamed helps mid-market companies pull together their scattered global employment operations into one coherent view. We've worked with over 1,000 companies on their global employment challenges, from contractor classification to entity setup. That experience taught us what actually matters. We looked at support responsiveness, legal coverage, and transition playbooks, not feature lists. Can they answer hard country-specific questions quickly, in writing, with accountability? That's what counts when you're facing an audit or a works council trigger.

Mid-market companies with 200 to 2,000 employees often run teams across 5 or more countries before they can justify hiring a global mobility lead. They're stuck in the messy middle: two EORs, contractors in another system, one entity they're not sure they needed, and a CFO who wants one view of it all. These companies need advisors who get that reality, not enterprise consultants charging enterprise prices. When contractor rules and local employment law collide, you need answers. UK IR35, GDPR, the EU Platform Work Directive, US state contractor tests, works councils, they all change what model you should use. We looked for providers who can answer those questions quickly with real accountability. We also checked whether they could help you get to one reconciled view of headcount, contracts, payroll, and cost. Because if you can't produce that for your board, nothing else matters.

What Each Model Is Good For (and What It Costs You)

Note: Pricing shown in EUR. US examples converted at current ECB rates. These are ballparks. Country rules vary, so get local advice before acting.

Teamed: When You Need One Accountable Owner for Your Global Employment Mess

Teamed gives you fewer vendors to chase, one accountable owner, and one monthly view of your global workforce across 180+ countries. We coordinate EORs like Oyster, domestic PEOs, and your own entities to help you choose the right setup per country and know when to switch. Our specialists and in-country legal partners can answer complex questions within 24 to 72 hours, especially when contractor rules and local employment law collide. A common moment to revisit EOR happens around 15 to 20 employees in one country. That's when your monthly EOR fees start to look like what you'd spend running payroll and accounting locally. We help you spot these moments and manage the switch, including figuring out when and where Oyster fits into your broader plan. Pricing runs €465/employee/month for EOR services and €45/contractor/month for contractor management.

Best for: If you're the person reconciling three vendors before every board pack, we can help you get to one set of numbers and one clear plan.

Not ideal for: If you just want the cheapest per-employee rate and don't need guidance, or if you're looking for someone to replace your entire HR function, we're probably not the right fit.

Oyster: If You're Looking for a PEO, Here's Why Oyster Is Different

Oyster operates as an Employer of Record across 180+ countries, not a PEO. You won't need a local entity because Oyster becomes the legal employer. They sign the contracts, handle payroll taxes, and carry the employer liability through their entities or local partners. When you move contractors to employment under Oyster's EOR model, it changes the relationship structure, which can reduce misclassification risk (though role facts still matter). Oyster provides educational content on global employment, but they won't tell you when to switch models. You'll need that plan. They're good for getting a hire contracted, onboarded, and paid in a new country within 4 to 8 weeks. Coverage includes 180+ countries with pricing from €499 to €699 per employee per month, depending on the country and what benefits you include.

Best for: When you have an urgent hire in a new country, no entity there yet, and your CFO wants low commitment while you test the market.

Not ideal for: Companies seeking co-employment arrangements or guidance on when to exit EOR to PEO or entity.

US PEOs Only Make Sense Once You Already Have a US Entity

PEOs are domestic co-employment models that require your US entity and make sense as your US presence grows beyond an experimental team of 15 to 20 employees. Unlike EOR, where the provider is the legal employer, PEO arrangements keep your entity as the employer of record while sharing certain employment administration responsibilities. Domestic US PEOs have deep command of state payroll, benefits, and HR administration across multi-state operations, typically onboarding new clients in 2 to 4 weeks. They standardise HR and benefits compliance under your employer record, reducing operational load when managing teams in California, New York, Texas, and other states simultaneously. Pricing typically runs 2% to 12% of total payroll depending on services, company size, and risk profile. For a 20-person US team with average salaries of $80,000 (approximately €74,000 at January 2026 ECB rates), that translates to roughly $32,000 to $192,000 (€30,000 to €178,000) annually.

Best for: European HQ'd mid-market firms with a US entity and growing, multi-state teams needing consistent benefits and HR support.

Not ideal for: Pre-entity scenarios or ad hoc moves from EOR without a transition plan covering novation, benefits migration, and process shifts.

Why Teams End Up Splitting Across Deel, Remote, and Papaya (and Where That Hurts)

You might look beyond Oyster if you need better entity coverage, contractor handling, or pricing in specific countries. Deel operates owned entities in about 20 countries with partners elsewhere, covering 150+ countries total at €400 to €650/employee/month. Remote has owned infrastructure in 25+ key markets with 180+ country coverage at €450 to €700/employee/month. Papaya Global focuses on payroll consolidation across 160+ countries at €500 to €700/employee/month. These differences matter when something goes wrong: who shows up, and what paperwork can you produce quickly? Moving contractors onto employment typically takes 4 to 12 weeks with these providers. The real problem comes when you're using multiple EORs. Nobody owns the answer during an audit, and you're chasing three vendors for one report. When your finance team needs to reconcile headcount and costs across Oyster in Germany, Deel in Singapore, and Remote in Brazil, the coordination can cost you. Based on the hours spent reconciling, the internal roles involved, and the compliance gaps we've seen, this typically runs mid-market companies €50,000 to €175,000 annually.

Best for: Firms fine-tuning EOR selection by region or use case under a single overarching plan.

Not ideal for: Price or UI-led picks across multiple EORs without strategic unification.

When an Entity Starts Making Sense (and When It Doesn't)

Owned Entities: Long-Term Control for Meaningful Country Presence

Forming a local entity is a deliberate, strategic step once a market has meaningful headcount and revenue and you want maximum control over policies, benefits, and data. Teamed connects you with in-country legal and payroll specialists to align corporate, tax, and labour law requirements. Direct control becomes important for regulated sectors, cultural alignment, and due diligence readiness for funding or M&A scenarios. A second common inflection point for considering an owned entity is when a country is forecast to reach roughly 20 to 30 employees within 12 to 18 months. At that scale, policy control, benefits standardisation, and manager-led HR processes typically become operational bottlenecks on EOR. Entity setup costs vary significantly by jurisdiction. UK entities typically require €30,000 to €35,000 for incorporation, banking, and tax registration over 12 to 16 weeks. German entities run €40,000 to €60,000 over 16 to 24 weeks. Ongoing costs including payroll, accounting, HR administration, and compliance typically range from €4,000 to €8,000 monthly depending on headcount and complexity.

Best for: Mid-market firms with sustained presence, in-country leadership, and revenue targets that justify governance overhead.

Not ideal for: Early-stage market tests or reactive entity creation driven by a single high EOR invoice.

Hybrid European Models: Advisory Use of EOR, Local Payroll, and Legal Partners

In Europe, combining EOR, local payroll, and specialist counsel can best address the EU Platform Work Directive, works councils, and GDPR realities that vary significantly across jurisdictions. Prioritise in-country partner track records, especially where collective bargaining or dismissal rules are complex. German works councils become mandatory at 5+ employees if employees request them (subject to local implementation and specific circumstances). French CSE requirements kick in at 11+ employees (thresholds vary by collective agreement). Spanish termination costs run 33 days salary per year of service for objective dismissal under standard contracts (caps and variations apply; consult local counsel). Curated hybrids lower misclassification and data-protection risks while allowing engagement flexibility. Map roles and markets to EOR versus direct employment versus local payroll with legal input for each decision. European regulatory tightening continues. The EU Platform Work Directive is expected to increase scrutiny of platform-like working arrangements and strengthen requirements around determining employment status throughout 2026 and 2027 (implementation timelines vary by member state).

Best for: Companies operating across multiple European countries and expanding into the US, needing joined-up advice across regions.

Not ideal for: DIY hybrids without a central advisor.

How to Choose Based on Headcount, Time, and Risk

Choose an Oyster-style EOR if you need to hire in a new European country in under 4 to 8 weeks, you're shifting from contractors, and you must reduce misclassification risk while validating the market. EOR makes sense when planned headcount is under 15 employees and you don't yet have enough volume to justify entity infrastructure.

Choose a domestic US PEO if you have or will create a US entity and your US team is scaling across states needing consistent benefits and HR. PEO becomes relevant when US headcount exceeds 15 to 20 employees and you want co-employment support without the provider becoming the legal employer.

Choose an owned entity if a country is a core market with sustained headcount and revenue, and you want full control over policies, benefits, and data. Entity economics typically favour setup when you have 20+ employees in a single country with a 3+ year commitment to that market.

Choose Teamed when you're already juggling multiple vendors or know you'll need different models in different countries. If you're paying more than €100,000 annually across vendors and internal time to run international hiring and payroll, centralising ownership typically pays for itself.

Choose contractor engagement only if the work is project-based, the worker controls how and when the work is performed, and the relationship is expected to be time-limited with minimal operational integration. A compliance-driven trigger to move contractors to employment is often when contractors exceed 6 months in a role that follows company-set hours, uses company equipment, and reports into a line manager (rules vary significantly by jurisdiction).

Choose consolidation of vendors if you're using 2+ EOR providers or separate tools for contractors, EOR, and payroll reporting and you cannot produce a single reconciled headcount and cost view within one reporting cycle.

The Questions Your CFO and Legal Team Will Ask

Is Oyster a PEO? What changes if it's an EOR?

Oyster is an Employer of Record operating across 180+ countries. EOR doesn't require your local entity and the provider is the legal employer. PEO requires your entity and is co-employment where you remain the employer of record. If you're searching for "Oyster PEO," you likely need clarity on which model fits your current phase and when to transition.

When should a mid-market company move from EOR to a PEO or its own entity?

When a single country reaches 15 to 20 employees and you have a 3+ year commitment to that market, EOR fees typically outweigh benefits. Teamed defines tipping points based on your specific economics and orchestrates transitions including contract novation, benefits migration, and process shifts over 8 to 12 weeks.

How do regulatory trends in Europe and the US affect my choice between contractors, EOR, PEO, and entities?

UK IR35 requires medium and large organisations to determine contractor employment status. The EU Platform Work Directive will strengthen requirements around determining employment status throughout 2026–2027 (implementation varies by member state). These trends increase the value of EOR and well-advised entity employment over contractor arrangements.

How can I avoid vendor sprawl if I already use Oyster or other EOR platforms?

Start by listing what you're using where: which EORs, which contractors systems, which entities. Then look for an advisor who can pull it all together. With Teamed, we can usually get you to a first reconciled view within two pay periods. Based on the reconciliation hours and compliance gaps we typically see, this can save €50,000 to €175,000 annually in coordination costs.

When You Want One Accountable Owner, Not Another Vendor

Your board doesn't care whether you use Oyster, a PEO, or an entity. They care that you have a plan for the next 2 to 5 years that makes sense as headcount grows and markets prove out.

Teamed helps mid-market companies pull together their scattered global employment operations across 180+ countries. We give you one view of contractors, EOR employees, and entity staff. One team that knows all your markets and models. Clear guidance on when to move from contractor to EOR to entity, and how to make those switches without nasty surprises in an audit or with payroll.

Teamed unifies global employment operations at €465/employee/month for EOR and €45/contractor/month for contractor management, with in-country legal partners providing 24–72 hour response times. Oyster covers 180+ countries at €499–€699/employee/month with 4–8 week deployment. Domestic US PEOs cost 2–12% of payroll once you have a US entity and 15+ employees. Owned entities require €30,000–€60,000 setup and €4,000–€8,000/month ongoing when a market reaches 20–30 employees.

Before you pick Oyster, a PEO, or build an entity, think about where you'll be in 2 to 3 years. What headcount triggers a change? What happens when that urgent hire becomes a team of 20? Having those triggers mapped out saves you from expensive pivots later.

Talk to a named specialist at Teamed to get a country-by-country plan with triggers, timeline, and cost view. Stop making decisions based on sales pitches. Get one accountable advisor and one set of numbers you can trust.