Market Analysis
published on Aug 29, 2022
Report Overview:
NelsonHall’s Global Employer of Record (EOR) services market analysis consists of 81 pages, focusing on strategies for 2022 and beyond.
Who is this Report for:
NelsonHall’s Global Employer of Record Services report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within the managed security outsourcing market
- Vendor marketing, sales, and business managers developing strategies to target HRO service opportunities within Employer of Record Services
- Financial analysts and investors specializing in the HRO services sector, including Employer of Record Services.
Scope of this Report:
The report analyzes the worldwide market for Global Employer of Record Services and addresses the following questions:
- What is the market size and projected growth for the global employer of record services market by geography?
- What is the profile of activity in the global employer of record services market by industry sector?
- What are the top drivers for the adoption of global employer of record services?
- What are the benefits currently achieved by users of global employer of record services?
- What factors are inhibiting user adoption of global employer of record services?
- What pricing mechanisms are typically used within the global employer of services market and how are these models changing?
- Who are the leading global employer of record services’ vendors globally and by geography?
- What combination of services is typically provided within global employer of record services’ contracts and what new services are being added?
- What are the current delivery location patterns used within the global employer of record services market and how are these models changing?
- What are the challenges and success factors within the global employer of record services market?
Key Findings & Highlights:
NelsonHall’s market analysis of the Global Employer of Record Services market consists of 81-pages, focusing on strategies for 2022 and beyond.
Ongoing talent shortages spurred by ‘the great resignation,’ economic uncertainty, and formal adoption of ‘Work from Anywhere’ policies will likely prevail through 2026, requiring organizations to secure required workers and specialized skills from countries where they may not have an established presence. These factors are driving the demand for employer of record services as organizations gain a broader understanding of the benefits associated with this model.
Multi-national firms of all sizes will remain the primary target for EOR services, with the largest concentration of adopters, 93%, operating in the small to mid-market segment (<15k employees). This can be attributed to smaller start-up organizations within emerging sectors and a lack of in-house expertise (i.e., HR, legal, accounting) dedicated to global expansion strategies.
Future of work and corporate social responsibility (CSR) influences have triggered other service offerings from select EOR providers; equity management plans (e.g., ESOP, ESPP, option plans), expanded care & benefits programs, and multi-currency/cryptocurrency payroll payments. Longer-term considerations, including the sansdemic (shrinking working age population) and the baby boom retirement horizon, will support sustained growth within the industry as organizations scramble to fill critical talent and skill gaps.
Enabling technology across the global EOR services market continues to evolve. It serves as a critical differentiator between vendors, with machine learning, artificial intelligence, data analytics, workflow management, integrated expense & payroll processing, and enhanced client and worker experience as top technology roadmap investments.
Vendors have earmarked significant private equity funding awards in 2021 – 2022 to support HR technology advancements and inorganic growth strategies to aid in service expansion via merger & acquisition activity.