convert all 5 of our long-term contractors or just the 2 in europe?
hello founders, we have 5 contractors who've been with us for 2+ years and the call gets harder every time i look at it.
the easy story is convert all of them and sleep at night, except the cost delta between contractor and EOR'd employee in their countries (poland, portugal, brazil, mexico, india) ranges from a 30% bump to almost double depending on benefits stack and country tax weirdness.
For the 2 European ones who are 4 days/week with us, the case is obvious, you'd reclassify them in court right now if anyone asked.
But for the LATAM and india ones who are project-based and renewing contracts on the day, the case is less clear, except for the fact that contractor laws in all 3 of those countries got tighter this year.
what im wrestling with is that converting just the european contractors sends a mixed signal to the others, who will notice we paid for compliance for the europeans and not for them. I've seen at least one founder write about handling this by converting everyone to EOR in the same week, which is honest but also a 6-figure annual cost increase i wasn’t budgeting for.
Our current plan is convert the 2 european contractors this quarter, leave the other 3 on a watching review through end of year, and revisit when one of them crosses the next threshold.
don’t love it as a system but its the version of the answer i can defend at a board meeting if pressed.
Thoughts?