Every contractor-heavy company eventually converts someone: the six-month “project” that became core infrastructure, the borderline engagement legal flagged, the star contractor a competitor tried to poach with benefits. Conversion sits exactly on the seam between contractor management and EOR — which is why platforms that run both sides turn it into a status change, and split stacks turn it into a migration.
The three conversion triggers
- Risk caught up. The relationship fails the local test — four-fold in the Philippines, subordination in Mexico, pejotização exposure in Brazil — and every additional month adds to the retroactive bill if challenged. Converting stops the clock (it doesn’t erase the past; see our misclassification guide).
- Retention economics. Senior contractors get counter-offered with employment: equity, benefits, stability. Converting first beats converting reactively.
- The work changed. Project work became a core function with direction and integration — the honest read is that it’s a job now.
The cost math nobody shows
The contractor’s rate covered their self-employment costs; employment moves those to you, plus the statutory load. Ballpark employer add-ons over gross salary: Canada ~10–15%, Philippines modest but with 13th month, Switzerland meaningful social contributions on high salaries, Mexico with PTU profit-sharing on top, Brazil the world champion at 60–80% all-in. Our country guides carry the specifics — run the numbers before the offer conversation, and anchor salary at billings ÷ 1.2–1.5, letting benefits close the rest.
Our picks
The mechanics that matter: both tiers on one platform, history preserved, no re-onboarding. Ranked by fit:
| Platform | Score | Why for conversions |
|---|---|---|
| Deel | 8.7 | Contractor → COR → EOR ladder in one system; the reference implementation of “status change, not migration” |
| Remote | 8.4 | Converts onto owned-entity employment — quality landing for the new employee |
| Multiplier | 8.4 | Full both-sides coverage, consistently competitive quotes |
| Rippling | 8.3 | Conversion inside a broader HR/IT system — strongest when US payroll is also in play |
| Oyster | 8.3 | Benefits and employee experience as the selling point to the person converting |
What to check before committing
- What actually carries over: payment history, documents, equipment records, start date for tenure purposes.
- Notice mechanics: ending the contractor agreement and starting employment without a gap (or an accidental overlap).
- The offer package in the target country — statutory minimums vs the market benefits a good convert expects.
- Cost transparency: a per-country employment cost quote before you promise anyone anything.
Related: managing employees and contractors together for the steady state after conversion.