Deel: The 2023 Review
Deel earned an overall score of 4/5 in The Employer of Record's review. Read more below to find out if they're the right EOR for you.
- Why you can trust The Employer of Record
At The Employer of Record, we’re a bunch of London-based entrepreneurial minded payroll people that turned into content creators. Back in 2021, we ourselves faced the challenge of hiring remote employees and quickly realised how daunting it could be to select the perfect EOR/PEO provider from a vast sea of options. This personal experience ignited the spark that led to the creation of The Employer of Record, a platform dedicated to simplifying the process for everyone.
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By Tom
- Updated on April 5, 2023
In the ever-evolving landscape of remote employment, choosing the right Employer of Record (EOR) provider can be a daunting task. Among the numerous options available, San Francisco based technology venture Deel has emerged as a popular choice for many businesses.
In this article, we take an in-depth look at Deel’s offerings, evaluating their costs, operational model, technology, and global coverage. As the owners of a competing EOR platform, our review aims to provide a fair and informative perspective, highlighting Deel’s strengths and weaknesses to help you make an informed decision for your business needs.
Key takeaways
- 4 out of 5 stars in The Employer of Record's review
- Comparably high services fees - customers are paying for the fancy tech
- Limited flexibility due to a minimum contract duration of 6 months
- A combination of owned entities and local partners
Deel is a well-known provider in the EOR space, largely due to their extensive media coverage and position as one of the fastest-growing tech companies globally. They offer a range of services, including HRIS systems and payroll management, in addition to their EOR solutions.
While Deel’s success is undoubtedly impressive, we cannot recommend them as the ideal choice for every country or company seeking EOR services. The reasons for this are further detailed in the Pros & Cons section below.
| The Pros ⬆️ | |
|---|---|
| ✅ | Strong technology |
| ✅ | Global coverage in 100+ countries |
| ✅ | Digital payments options |
| ✅ | Contractor solution |
| The Cons ⬇️ | |
|---|---|
| ❌ | Compliance issues (Business Insider) |
| ❌ | Fees from $599 |
| ❌ | Missing licenses |
| ❌ | Virtual support only |
| ❌ | No local offices |
★★★☆☆
While Deel has gained recognition for its growth and technology, it’s important to carefully consider the costs associated with their services. As with any EOR provider, the fees can vary depending on factors such as the country, size of the company, and specific requirements.
We summarised below the most relevant services fee when engaging Deel as your Employer of Record. Charges are per employee. Worth mentioning are:
- EOR service fee: Comparably high compared to competitors, especially in emerging markets or countries such as Portugal, Spain, Mexico, India, the Philippines.
- Currency conversion fee: We’ve spoken to several clients and found that this is one of Deel’s biggest revenue driver. Other providers are more transparent in this regard.
| Charge | Occurrence | Amount |
|---|---|---|
| Deposit | One-time | One month’s salary |
| Setup fee | One-time | $599 |
| EOR service fee | Monthly | $599 |
| Markup on variables: commissions, bonuses, etc. | Ad-hoc | 6% of transaction |
| Markup on expenses reimbursements | Ad-hoc | 6% of transaction |
| International wiring fees | Ad-hoc | $45 |
| Currency conversion fee | Ad-hoc | 3% |
| Off-cycle fee | Ad-hoc | $150 per off-cycle payment |
★★★★☆
Deel’s operational model relies on a combination of their own entities and local partners. While this allows them to extend their reach and provide services in multiple countries, it may not always result in the optimal solution for clients who value a strong local presence and direct control over the EOR process.
In countries such as China, Italy, or South Korea, Deel is leveraging the infrastructure of a global implementation provider such as GoGlobal. Therefore, you won’t always be ending up with having your staff employed via a Deel entity.
Companies that prioritize working with providers that operate through fully-owned entities should take this factor into account when considering Deel.
Based on this, The Employer of Record gives Deel 4 out of 5 stars!
★★★★☆
Deel provides EOR services across a wide range of markets, with a particular emphasis on Europe and the Americas. While their coverage is extensive, they do not have the strongest presence in Asia and Africa.
Companies looking to expand or operate in these regions should consider this factor when deciding if Deel is the right EOR provider for their needs.
Overall, Deel’s coverage is quite strong. We therefore go with 4 out of 5 stars!
★★★★☆
Deel’s core focus lies in its robust technology stack, offering a powerful and user-friendly platform for managing EOR-related tasks. Their commitment to technology has been a significant factor in their rapid growth and popularity.
However, clients with different priorities, such as local expertise or a people-first approach, may find other providers better suited to their needs.
Hands down, Deel is one of the strongest players in the industry and has a unique technology stack. Reasoning we’d argue that it’s not a 5 out of 5 is that it’s a complex system and built for much more than just employing somebody through an EOR use case. In other words, Deel is a technology company and lacks the people’s side of employing.
The EOR still gives 4 out of 5 stars!
Basic HR Features
Automated onboarding
- Onboarding: Localized onboarding processes based on the employee’s country, including minimum wage and country-specific documentation requirements.
- Documents: Global document management by collecting all necessary paperwork, requesting specific documentation, or uploading documents in bulk, and stored centrally.
- Time Off and Expenses: Tracking of public holidays, time off, and expenses on spreadsheets, as employees can submit requests and get approvals. Time off policies are enforced based on the employee’s location.
- Offboarding: Calculation of final payments for an employee according to their country’s labor laws, time off used, and more.
Security and Compliance
Automated onboarding
- Security Standards: Deel adheres to GDPR, SOC2, and ISO 27001 regulations. Hosted on AWS.
- Approval Processes: Deel allows multiple approvers, and specific users can be authorized to make system modifications depending on their department or role.
- Customized Access: Deel enables users to establish tailored access levels based on their data visibility needs. Role-based app provisioning can be automated for efficient management of permissions.
- Data Tracking: Data logs that document changes, including information on the user responsible for the change and a timestamp for reference.
Other relevant questions about Deel
When selecting the ideal Employer of Record or PEO in Canada, there are several key factors to consider to ensure the best fit for your unique requirements. To guide your decision-making process, we recommend suggest doing a deep dive into the following.
What's the minimum engagement contract duration with Deel?
The minimum engagement contract duration with Deel is six months. While this duration provides a reasonable time frame for businesses to establish their presence in a new market, it may not offer complete flexibility for companies looking to hire on a more short-term basis. Clients who need the ability to hire flexibly in new markets without being tied down to a longer-term contract should consider this factor when evaluating Deel as their EOR provider.
Is Deel ISO certified and GDPR compliant?
Deel is GDPR compliant, ensuring the protection and privacy of personal data for individuals within the European Union. Deel is ISO certified.
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