Deel Worker type change - Evolve the product with the customer

Introduction

The way Deel's customers use the product evolves over time. Initially, they come to Deel to hire a contractor, but their requirements often change, leading to a desire to employ that contractor as a full-time employee. Consequently, Deel needs to make the transition as seamless as possible.

The situation now

Currently, there is no easy way to convert an Independent Contractor (IC) contract to an Employer of Record (EOR) contract. The process is cumbersome and it's difficult for customers to understand the implications of this conversion. Since the EOR product generates significantly more revenue than IC, every missed opportunity for an IC to EOR conversion results in lost potential revenue. Furthermore, the friction in this process can lead to customer churn, with clients potentially starting new EOR contracts with different providers. The primary reason for churn at Deel is competition offering lower prices.

In total, customers converted thousands of IC to EOR contracts each month

Important steps

Defining a framework with universal initial steps.

In the contract creation flow we added a specific banner to inform the client that some details were prefilled with the informations coming from the contractor's contract

Personal details

Worker's personal details informations moved from the Contractor to the Employee of record contract.

Job details

Job details such as entity and job description information can also automatically populate the new contract form.

Compensation and rates

For compensation and rates, since we are moving a worker contract from Contractor to Employee of record, there are some adjustment we had to do to accomodate the transition.

This page require the active interaction from the client to define type of employment (part-time - full-time), employment terms, time off, fixed allowance, variable compensation, probation and notice period.

To help with the salary input, we also added a salary insight to ease the decision.

Benefit and extras

This is a section where existing benefits details will shown and more can be added.

Employee of record quote

At this point the EOR contract has been created and in the worker profile two contracts will show up: Contractor (active) and EOR (requested).

The worker at this point will be notified of the new contract and they will have to reject or accept the new scope of work.

Once that is done, the worker will go through the steps for the EOR onboarding.

The final step

Once the onboarding has been completed by the worker, the client will be able to terminate the previous contract and terminate the transition process.

All the Worker type changes made so far

• Individual Contributor to Employee of Record (IC to EOR)

• Individual Contributor to Professional Employer Organisation (IC to PEO)

• Individual Contributor to Direct Employee Payroll (IC to GP)

• Employer of Record to Direct Employer Payroll (EOR to GP)

• Employer of Record to Professional Employer Organisation (EOR to PEO)

• Direct Employee to Individual Contributor (HRIS to IC)

• Direct Employee to Direct Employee Payroll (HRIS to GP)

• Direct Employee to Employer of Record (HRIS to EOR)

Some data to show the output.