Company to Go on A Route of International Expansion
Companies currently favor EOR service because it directly benefits them by reducing money and time, improving regulatory compliance for both national and international scenarios, and lowering risks. The EOR is in charge of the statutory and regulatory duties connected to employment, immigration, and payroll.
Employer of Record services are primarily used by organizations and business owners that wish to grow by expanding internationally or who want to access the global talent market. This means that EOR is just the company’s employed employees’ legal employer.
Key Points:
1. Employer of Record (or “EOR”) service is frequently provided by Global Professional Employer Organizations (or “Global PEOs”) as a means of worldwide expansion.
2. In general, an employer of record is in charge of payroll, making sure that all required withholdings and deductions are made, and adhering to all other workplace compliance requirements.
3. Employer of Record solutions are frequently a more affordable and legally permissible method of expanding internationally than establishing a local branch office or subsidiary.
Global Market Size of EOR Service From 2021 – 2026 (US$ Million)
Change the Face of Your Company Globally with EOR Service
Companies need an employment solution that enables them to outperform the competition as they investigate new markets and seize global possibilities to be nearer to people, resources, and consumers. By delivering the strategy, knowledge, and infrastructure to support your worldwide ambitions, an Employer of Record (EOR) service is the next evolution in HR solutions and can help you rethink your company and workforce.
Although giving businesses this kind of support is vital, using an Employer of Record is a less expensive option than setting up your own local corporation. Without the requirement for a sizable HR team, an EOR service provides all of this and more without sacrificing compliance or the employee experience. Customers of Employer of Record include SMEs and large corporations. In terms of revenue, SMEs will hold a market share of 69.71% in 2021.
Local knowledge that offers a fast and knowledgeable reaction to help local employees is another factor that contributes to success for a Direct EOR service. By taking full ownership of the complete HR experience rather than outsourcing it, the direct approach offers a faster speed to market than an indirect EOR.
The Direct EOR can onboard employees and make payroll more quickly than other models since it employs a hands-on method. The procedure cannot be slowed down or interrupted by outside parties.
The market size for Employer of Record is anticipated to grow from US$ 4399.2 million in 2021 to US$ 6605.5 million by 2028, at a CAGR of 6.9% from 2022 to 2028.
A research model, which accounts for 67.56% of the global market for Employer of Record Services in 2021, is predicted to reach US$ 4616.78 million by 2028 while expanding at a revised 7.32% CAGR in the post-COVID-19 era (2022-2028).
