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Employer of Record Facts in 2024 you may not know about..

Updated: Jan 12

Are you dreaming of expanding your reach beyond borders, but the complexities of international employment hold you back? Look no further than the rising star of HR solutions: the Employer of Record (EOR). EORs offer a game-changing way to access global talent and tap into new markets without the burden of setting up local entities or navigating byzantine compliance regulations.


Intrigued? Here are some hard-hitting facts that might just seal the deal for your EOR journey:

employer of record

General

  1. The global EOR market is projected to reach USD 15.86 billion by 2027, growing at a CAGR of 14.7% from 2022 to 2027. (Source: Grand View Research). This growth is driven by factors like increasing globalization, rising demand for flexible workforce solutions, and complex compliance challenges faced by companies.

  2. Average revenue of B2B EOR clients: USD 10 million to USD 100 million (Source: HRO Today)


Who are the recipients of Employer of Record?

  1. 48% of EOR clients are SMBs with less than 250 employees. (Source: Globalization Partners). SMBs often lack the resources and expertise to handle global expansion and HR complexities, making EORs a valuable solution.

  2. The tech industry accounts for the largest share of the EOR market, at 28%. (Source: NelsonHall). Other high-growth sectors like healthcare, financial services, and professional services are also driving demand for EOR solutions. Manufacturing and healthcare industries are seeing increasing adoption of EORs due to their global supply chains and need for specialized talent.

  3. Professional services: 22% of B2B EOR clients are from professional services firms looking for flexible talent solutions and compliance support.

  4. North America and Europe currently dominate the EOR market, with 56% and 27% share respectively. (Source: Grand View Research). However, emerging markets in Asia Pacific and Latin America are experiencing rapid growth due to increasing globalization and favorable business environments. The average EOR client is typically located in an urban area with access to technology and resources.


What are reasons why people opt for Employer of Record?

  • 72% of companies cite compliance challenges as a major reason for using EORs. (Source: Globalization Partners)

  • 58% of companies report cost reduction as a key benefit of using EORs. (Source: Deel)

  • 46% of companies leverage EORs for faster global expansion. (Source: Papaya Global)

  • 54% of B2B companies use EORs to enter new markets quickly and efficiently. (Source: Papaya Global)

  • 42% of B2B companies leverage EORs to access specialized talent pools in specific regions (Source: Globalization Partners)

  • 42% of EOR recipients appreciate the simplified tax and payroll process. (Source: Papaya Global)

  • 68% of EOR recipients value the ability to work remotely or in different locations. (Source: Deel)


Beyond the Numbers:

  • EORs are not just compliance bots; they're strategic partners. They offer valuable insights into local talent pools, cultural nuances, and market trends, empowering you to make informed decisions and maximize your global operations.

  • A plethora of service models are available, from single-country solutions to fully-fledged global workforce management, ensuring you find the perfect fit for your unique needs and aspirations.


Ready to ditch the border barriers and embrace the boundless potential of global expansion? Partnering with an EOR is no longer a luxury; it's a strategic imperative for businesses of all sizes looking to thrive in today's interconnected world.


Embrace the facts, unlock the opportunity, and pave the way for your global success story. The world awaits!


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