Eleven cost questions decide an EOR request for proposal (RFP), and three of them decide it outright. A vendor who will not state the FX markup as a number, write it into the contract, or show it on every invoice line is out. The rest of the 27 fast questions sort the vendors who pass. This page lists all 27, with what a strong answer looks like for each, what a weak one sounds like, and how the scores add up to a decision you can defend to finance and legal.
The questions come from Teamed's EOR RFP template, a free spreadsheet with a Fast version of 27 questions and a Detailed version of 55. This page covers the Fast version. The wording of each question and each strong answer is the template's own.
Why score cost first? Because there is a Hidden Global Employment Tax on every international hire: everything you pay for that is not the thing you actually wanted. Most RFP templates describe it in a pricing section and move on. This one scores it. The first section of the template is fees, deposit, exit terms and FX together, and it carries 30% of the final score. Inside it, the three FX answers are the sharpest test, because they are the only part a vendor cannot talk around.
Which three answers disqualify a vendor?
A No on any of these three marks the vendor Disqualified on the scoring matrix and sets its final score to 0, whatever else it scored.
- 1.02, the markup as a number. If they will not put a number on it, you cannot budget it and you cannot audit it.
- 1.03, the rate source and maximum markup in the contract. A pricing schedule can change. A contract clause cannot without your signature.
- 1.04, the invoice lines. Without the local amount, the rate applied and the converted amount on each line, finance cannot reconcile the invoice to payroll, and month-end does not close.
What does a strong cost answer look like?
Section 1 of the Fast version has eleven questions. For each, here is the question as the template asks it, what a strong answer looks like, and the weak tell that scores a 1, from the scoring guide where it names one.
1.01 Which reference rate do you convert at, and when is it fixed?
The question. State your FX policy in one paragraph. Which reference rate do you convert local salary and employer costs at (name the source, e.g. ECB, Reuters/Refinitiv mid-market, WM/Reuters 4pm fix), and at what time of day is it fixed?
A strong answer. Named public source, named fixing time, no ambiguity. 'Our internal rate' or 'a competitive rate' is a red flag.
A weak one. 'Our rate' or 'competitive rate'. No source named.
1.02 What markup do you add to that rate, as a number?
The question. State the exact markup or spread you add to that reference rate, expressed as a percentage, per currency pair. If it is zero, say zero in writing.
A strong answer. A single number per pair (e.g. 0.00%, 1.50%). Refusal to state a number, or 'varies by market', scores 1.
A weak one. Refuses a number, or 'varies'. A range or 'up to X%' scores 3. If you want to know what your current provider takes, run its last invoice through the FX Transparency Calculator.
1.03 Will you put the rate source and the markup in the contract?
The question. Will you write the reference rate source and the maximum markup into the MSA as a contractual commitment? Paste the clause you would use. (The MSA is the supplier agreement your legal team signs.)
A strong answer. Yes, with a clause. The strongest answer caps the markup and names the rate source in the contract, not in a pricing schedule that can change.
A weak one. Pricing schedule only, changeable on notice.
1.04 Does every invoice show the local amount, the rate and the converted amount?
The question. Show every invoice as: local-currency gross employer cost, rate applied, invoice-currency amount, service fee. Does each invoice show these as separate lines? Attach a real (redacted) invoice.
A strong answer. Invoice shows local amount, rate and converted amount on each line so finance can reconcile to the payroll register. Bundled 'total cost' lines score low.
A weak one. One bundled line per employee. For what an itemised invoice looks like, see an honest invoice.
1.06 Can you invoice us in the employee's local currency?
The question. Can we be invoiced in the employee's local currency to avoid conversion entirely? List the currencies you can invoice in and any fee for doing so.
A strong answer. Yes, in major currencies, no surcharge.
A weak one. Not answered, refused, or 'on request'.
1.07 Will you complete the cost model for every country in scope?
The question. Complete the Cost Model tab: one worked example per country in scope, showing gross salary, employer costs, rate, markup, service fee and monthly invoice total.
A strong answer. Fully completed, numbers reconcile, no 'TBC'.
A weak one. Not completed or 'TBC'. A model that does not reconcile to the markup stated at 1.02 scores 3.
1.08 Does your quote show the total cost of employment?
The question. Does your quote show total cost of employment: statutory employer contributions, mandatory benefits, 13th/14th month, holiday and severance accruals, and any provider float or buffer?
A strong answer. All-in monthly figure with every component itemised. Accruals disclosed as accruals, not hidden in a percentage.
A weak one. Base salary plus a percentage.
1.09 Do you take a deposit, and when does it come back?
The question. Do you require a security deposit, prepayment or advance funding? State the amount, the basis for calculating it, whether it earns interest, and when it is returned.
A strong answer. No deposit, or a deposit equal to a stated number of months, returned within a stated period after offboarding.
A weak one. Deposit required, terms vague.
1.10 Is the fee a monthly amount per employee, or a share of salary?
The question. Is your service fee a fixed monthly amount per employee, or a percentage of salary? Does it change when the employee's salary changes?
A strong answer. A per-employee monthly amount that does not move with salary. Percentage-of-salary fees penalise pay rises.
A weak one. Not answered, refused, or 'on request'.
1.11 What do you charge that is not in the monthly fee?
The question. List every fee not included in the monthly service fee: onboarding, offboarding, contract amendments, expense processing, off-cycle payroll, benefits administration, background checks, equipment, immigration, and anything else. State the amount and currency of each.
A strong answer. Short list, fixed amounts, clear currency. A long list or 'quoted on request' scores low.
A weak one. 'Quoted on request' or a long list.
1.17 Can you show a month-end pack that ties to the penny?
The question. Provide a sample month-end pack: invoice, payroll register and FX reconciliation, demonstrating that our finance team can tie the invoice to payroll to the penny.
A strong answer. Complete pack supplied. This is the test of whether month-end closes without a blame game.
A weak one. Not supplied.
What do the other sixteen fast questions ask?
Sections 2 to 10 sort the vendors who pass section 1. Together they carry 70% of the score. Where the template's scoring guide names a weak tell, it is given.
2.01 When does payroll run in each country?
The question. Describe payroll frequency, cut-off dates and payment dates by country in scope.
A strong answer. Per-country calendar attached.
2.02 What stops payroll errors, and how accurate were you last year?
The question. What controls prevent payroll errors, and what is your payroll accuracy rate over the last 12 months?
A strong answer. Stated accuracy (e.g. 99.8%), four-eyes review, variance checks.
3.01 Who gives us employment law advice?
The question. Who gives us employment law advice: a named advisor, a ticket queue, or a chatbot? Describe the escalation path to in-country specialists.
A strong answer. Named advisor with direct access to in-market specialists who are employees, not a marketplace.
A weak one. Ticket queue or chatbot.
3.02 Do you recommend, or hand us a menu?
The question. When we ask 'what should we do?', do you give a recommendation based on our circumstances, or a menu of options? Give a redacted example of advice you gave a client on a termination.
A strong answer. A recommendation with reasoning. Menus push liability back onto the client.
A weak one. Generic menu of options.
3.03 Can you walk through a termination in one of our countries?
The question. Walk through a performance-related termination in a country in scope: steps, timeline, documentation, cost, and who leads each step.
A strong answer. Specific, country-accurate, provider leads.
A weak one. Vague or wrong for the country.
3.08 Who carries the liability when compliance fails?
The question. Who carries liability for compliance failures, and what indemnities are offered?
A strong answer. Provider indemnifies for its own errors without cap carve-outs that gut it.
4.01 Who is our contact, and how many clients do they carry?
The question. Describe the account model. Will we have a named account manager, and what is their span (clients per manager)?
A strong answer. Named, single point of contact, stated span.
4.02 How fast do you respond, and what happens if you miss it?
The question. State response and resolution SLAs for client and employee queries, and the service credits if missed.
A strong answer. Hours, not days; credits stated.
5.01 Who is the legal employer in each country?
The question. For each country in scope, is the legal employer your own entity or a third-party partner? Name the employing entity.
A strong answer. Named entity per country, owned where it matters to us.
A weak one. Will not name the entity. The entity question is the start of due diligence, not the end of it: the EOR due diligence checklist covers the other four layers.
6.01 Which security certifications do you hold?
The question. List current security certifications (SOC 2 Type II, ISO 27001) with dates and scope.
A strong answer. Current, in scope, attached.
6.03 How do you comply with data protection law?
The question. How do you comply with GDPR and local data protection law? Provide your standard DPA.
A strong answer. DPA attached.
7.01 What can we do without raising a ticket?
The question. Describe the platform: what can we and our employees do without raising a ticket?
A strong answer. Self-serve for contracts, payslips, leave, expenses, invoices.
8.01 How do you implement, and who do you assign?
The question. Describe implementation approach, timeline per country and the resources you assign.
A strong answer. Named implementation lead, timeline per country.
8.03 How do we leave, and what does it cost?
The question. Describe the exit process: notice, data return, employee transfer to another provider or our own entity, and any exit fees.
A strong answer. No exit fees, structured handover, entity transfer supported.
A weak one. Exit fees, no handover process. If you are moving from one provider to another, switching EOR providers covers what carries over.
9.01 What does the employee see?
The question. Describe the employee onboarding experience and self-service portal.
A strong answer. Contracts, payslips, leave and benefits self-serve.
10.01 Can we speak to three clients, one of whom left you?
The question. Provide three client references in our industry or regions, including one that has left you.
A strong answer. Three, contactable, one former client.
How do the scores combine?
Score every answer from 1 to 5, weight the ten sections, fail anyone who fails a gate, and pick the highest. Within 5 points, the better cost score wins. In detail:
The scale. 5 means fully answered, evidence attached, the best answer you receive. 4 means fully answered, minor gaps. 3 means answered, no evidence. 2 means partial or evasive. 1 means not answered, refused, or 'on request'. Leave a cell blank if the question does not apply; blank cells are excluded from the section average. The score of 1 is the line that makes the template decisive rather than informative: it tells you what to do with a hedge.
The weights. Each question carries a weight of 1 to 3 inside its section. Each section then carries a share of the final score:
- FX rate and cost transparency, 30%
- Employment law compliance and expertise, 15%
- Payroll operations and financial controls, 12%
- Service model and support, 10%
- Entity model and supply chain, 8%
- Data protection and information security, 8%
- Technology and integrations, 5%
- Implementation and transition, 5%
- Employee experience, 4%
- References and assurance, 3%
The weights are editable and must total 100%. A section you have not scored is excluded, so a Fast evaluation never penalises a vendor for questions it was not asked.
The gates. The scoring matrix asks Yes or No on 1.02, 1.03 and 1.04 for each vendor. Any No marks the vendor Disqualified and sets its final score to 0.
The decision rule. Pick the highest final score. If two vendors are within 5 points, the higher FX and cost transparency score wins.
What the cost model adds. The template's Part B example compares three vendors at ten employees, each with 726,000 of annual employer cost, an example input you overwrite. Vendor A charges no markup, 500 a month per employee and no other fees: 60,000 a year. Vendor B charges 1.5%, the same fee and 6,000 of other fees: 76,890. Vendor C charges 3%, the lowest fee at 450, and 9,000 of other fees: 84,780, and it holds 121,000 of your cash as a two-month deposit. The lowest headline fee is the dearest bill. The worked example for one employee, EUR 60,000 of salary converted with a hypothetical 1.5% markup, is on the template page.