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HiringJul 10, 2026 12 min read

Recruitment agency vs EOR in Nepal — which do you need?

They sound similar, they cost similarly, they are not the same product. A plain-English decision guide with the exact questions to ask each type of vendor.

PJ
Pawan Joshi
Global HR & Operations
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Half the Nepal-hiring questions I get in my inbox aren't really EOR questions — they're recruitment questions in EOR clothing. The two products solve different problems. Confusing them wastes months.

6 sections · tap to expand
Different jobs, different fees, different timing
Recruitment agency
  • Finds and screens candidates for you
  • One-time fee, 12–25% of annual salary
  • Job ends on offer accept (with replacement guarantee)
  • You are the employer
Employer of Record (EOR)
  • Is the legal employer on paper after you've hired
  • Ongoing monthly fee, USD 199–599 per employee
  • Job runs for the life of the employment
  • The EOR is the employer; you are the client

You often need both, in order: recruiter finds the person → EOR employs the person. Skipping either doesn't save money; it just moves the work to you.

  • You already have a Nepali entity or a preferred EOR.
  • You need volume or speed on a specific role and don't have internal sourcing capacity.
  • The role is senior/exec and the market is small enough that a retained search is worth the fee.
  • You already have a candidate — referral, ex-colleague, or someone who applied directly.
  • You're converting a long-term contractor into an employee for retention and IP reasons.
  • You have an internal recruiter or hiring manager doing sourcing.
  • Sends 20 CVs in 24 hours with no screening notes — they're spraying, not searching.
  • Refuses to share candidate current salary or notice period until you interview — hiding failed placements.
  • Charges upfront on a contingency deal — contingency means no fee until offer accept, full stop.
  • Won't name a single client reference from the last 12 months.
  • Pushes the same three candidates to every client — those candidates already have five other processes running.
  • Won't show their OCR company registration or SSF employer ID.
  • Quotes a fee that looks 40% cheaper than everyone else — they're skipping statutory contributions.
  • Wants to classify your full-time hire as a 'contractor' to save you money — that risk sits with you.
  • Asks you to pay them in crypto or into a personal account.
  • Can't produce a Nepali-language employment contract.
  • Decide the role, level and salary band before you talk to any vendor.
  • Pick your EOR first — it's the longer commitment and the harder switch.
  • Then pick a recruiter (or run in-house) — cheaper to switch, easier to run in parallel with two firms for the same role.
  • Never let one vendor sell you the other without independent references.
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