As the lines between professional and personal spaces increasingly blur in our digital era, remote work has emerged not just as a trend, but as a transformative movement reshaping how and where we work.
In this evolving landscape, companies are not only embracing the flexibility that remote work offers but are also venturing into global talent pools to harness the best skills from around the world. This globalization of the workforce, however, brings forth a myriad of challenges, particularly in navigating the complex web of international employment laws, taxation, and compliance.
With employees increasingly seeking flexibility and companies embracing global talent pools, the need for efficient and compliant solutions to manage international workforces has skyrocketed. This is where the global Employer of Record (EOR) market comes in, offering a powerful tool for navigating the complexities of remote hiring and employment.
What is a Global EOR?
Imagine an EOR as the pivotal bridge that connects the business with remote employees across the globe. Traditional international hiring often requires businesses to delve into the intricacies of local employment regulations, tax obligations, and compliance mandates themselves—a daunting and resource-intensive task. An EOR simplifies this process, stepping in as the legal employer on record in each country. This arrangement allows businesses to concentrate on their core objectives—innovation, growth, and team building—while the EOR ensures the backend operations run smoothly and legally.
What it does:
- Handles payroll and taxes: EORs meticulously manage payroll, ensuring employees are paid accurately and on time. They navigate through the maze of local tax laws to ensure full compliance, thus safeguarding businesses from potential fines and legal issues.
- Manages employment contracts and onboarding: From drafting employment contracts that comply with local laws to facilitating a smooth onboarding process, EORs ensure that the legalities are covered, allowing companies to welcome new talent with ease.
- Provides benefits and insurance: Many EORs go beyond basic compliance, offering a suite of benefits and insurance options tailored to the local standards of each country, thereby enhancing the value proposition for remote employees.
- Maintains compliance with local laws:he legal landscape is ever-changing. EORs dedicate resources to stay abreast of the latest regulations, ensuring that businesses remain compliant across all jurisdictions they operate in.
What is the market like?
The global EOR market is experiencing a remarkable boom, propelled by the digital revolution and the consequent rise of remote work. As businesses increasingly seek to tap into international talent pools, the demand for EOR services has surged. Recent market analyses forecast the EOR industry to expand significantly, with projections indicating a market valuation of approximately $130 billion by 2028. This growth trajectory underscores the critical role EORs play in the modern, globalized business ecosystem.
Why is it rising?
Several factors are fueling the EOR market’s rapid expansion:
- Remote work revolution: The global pivot towards remote and flexible work arrangements has necessitated innovative employment solutions that can accommodate this shift.
- Global talent pool: Companies are no longer restricted by geographical boundaries in their quest for talent, necessitating a mechanism to employ individuals in a legally compliant manner across different countries.
- Compliance complexities: Managing international regulations can be overwhelming, and EORs offer expertise and peace of mind.
- Reduced administrative burden: By handling the cumbersome aspects of international employment, EORs free companies to dedicate their energies towards growth and development.
Who are the big players?
As we delve into the competitive landscape of the global Employer of Record (EOR) and Global Employment Platforms (GEP), it’s crucial to identify the frontrunners shaping this industry. In an effort to provide a comprehensive overview, we turn to two authoritative sources known for their rigorous evaluation of software and services: G2’s Top 20 Employer of Record (EOR) Software and the Top 13 Global Employment Platforms (GEP). These lists, distinguished by their real-user ratings and feedback, offer a clear snapshot of the market leaders driving innovation and excellence in global employment solutions.
G2’s Top 20 Employer of Record (EOR) Software
G2’s Top 13 Global Employment Platforms (GEP)
G2, a widely respected platform for peer-to-peer reviews, employs a unique algorithm to rank these services, ensuring that businesses seeking EOR and GEP solutions are guided by unbiased, user-driven insights. By examining the highest-rated players on these lists, we gain valuable perspectives on the companies that excel not only in providing comprehensive employment services but also in user satisfaction and global reach.
Give all these in mind, let’s take a closer look and learn more about the big players in the Global EOR market: (The information source: Owler)
- Remote
- Headquarters: USA
- Year Founded: 2019
- Founder: Job van der Voort
- Company Size: 1000-5000
- Funds Raised: $500M
- Services: Simplifies global hiring and payroll, offering EOR solutions, compliance, entity setup, and a talent marketplace for seamless international expansion.
- Pricing Page
- Deel
- Headquarters: USA
- Year Founded: 2018
- Founder: Alex Bouaziz
- Company Size: 1000-5000
- Funds Raised: $700M
- Services: Champions pure-play EOR solutions, taking care of payroll, taxes, compliance, benefits, and contractor management with a global compliance guarantee.
- Pricing Page
- Multiplier
- Headquarters: Singapore
- Year Founded: 2020
- Founder: Sagar Khatri
- Company Size: 100-250
- Funds Raised: $80M
- Services: Empowers global teams with hiring, payroll, compliance, entity setup, benefits, expense management, and talent management tools under one roof.
- Pricing Page
- Rippling
- Headquarters: USA
- Year Founded: 2016
- Founder: Parker Conrad
- Company Size: 1000-5000
- Funds Raised: $1.2 Billion
- Services: Combines payroll, benefits, HR tools, and EOR solutions, including time & attendance tracking, employee self-service, and performance management.
- Pricing Page
- G-P (Globalization Partners)
- Headquarters: USA
- Year Founded: 2012
- Founder: Nicole Sahin
- Company Size: 100-250
- Funds Raised: $350M
- Services: Provides PEO and EOR solutions, covering global HR, payroll, taxes, immigration support, risk management, and cultural training.
- Pricing Page: Not listed on their website.
- Oyster
- Headquarters: USA
- Year Founded: 2019
- Founder: Tony Jamous
- Company Size: 500-1000
- Funds Raised: $230M
- Services: Offers a combined EOR & PEO approach, simplifying payroll, taxes, benefits, HR admin, employee self-service, and performance management.
- Pricing Page
- Horizons
- Headquarters: Germany
- Year Founded: 2018
- Founder: Antoine Boquen
- Company Size: 100-250
- Funds Raised: Information not available
- Services: Guides global teams through hiring, payroll, compliance, entity setup, visa & immigration, tax optimization, and global health insurance.
- Pricing Page
- Safeguard Global
- Headquarters: USA
- Year Founded: 2005
- Founder: Bjorn Reynolds
- Company Size: 1000-5000
- Funds Raised: Information not available
- Services: Offers comprehensive global employment solutions, including EOR, PEO, payroll, taxes, immigration support, risk management, and compliance management.
- Pricing Page: Not listed on their website
- WorkMotion
- Headquarters: Germany
- Year Founded: 2020
- Founder: Carsten Lebtig
- Company Size: 100-250
- Funds Raised: $74M
- Services: Specializes in global mobility & employment solutions, encompassing EOR, visa & immigration support, relocation services, global payroll, and tax management.
- Pricing Page
- Atlas
- Headquarters: USA
- Year Founded: 2015
- Founder: Jim McCoy
- Company Size: 250-500
- Funds Raised: $220M
- Services: Streamlines global hiring, payroll, compliance, entity setup, and visa & immigration with talent management tools and tax optimization features.
- Pricing Page: Not listed on their website
- Remofirst
- Headquarters: USA
- Year Founded: 2021
- Founder: Nurasyl Serik
- Company Size: 50-100
- Funds Raised: $15M
- Services: Assists with global hiring, EOR solutions, compliance, entity setup, visa & immigration, tax optimization, and global benefits for seamless international operations.
- Pricing Page
- Papaya Global
- Headquarters: USA
- Year Founded: 2016
- Founder: Eynat Guez
- Company Size: 250-500
- Funds Raised: $440M
- Services: Leverages automation for payroll & EOR solutions, focusing on Asia & LATAM, with multi-currency payroll, tax compliance, and global benefits.
- Pricing Page
- Velocity Global
- Headquarters: USA
- Year Founded: 2014
- Founder: Frank Calderon
- Company Size: 500-1000
- Funds Raised: $500M
- Services: Prioritizes robust compliance & transparency in EOR services, offering global payroll, tax management, entity setup, and visa & immigration support.
- Pricing Page: Not listed on their website
Let’s also take a look at how fast they are growing. As of February 18th, 2024, here are the open positions listed on their careers pages:
Company Name | Open Roles | 100% Global Remote Roles | Location Restricted Remote Roles | Hybrid or On-site Roles | Careers Page |
Remote | 69 | 69 | 0 | 0 | |
Deel | 204 | 141 | 63 | 0 | |
Multiplier | 57 | 6 | 38 | 13 | |
Rippling | 299 | 0 | 50 | 249 | |
G-P (Globalization Partners) | 20 | 0 | 20 | 0 | |
Oyster | 8 | 8 | 0 | 0 | |
Horizons | 14 | 0 | 6 | 8 | |
Safeguard Global | 51 | 0 | 30 | 21 | |
WorkMotion | 6 | 0 | 6 | 0 | |
Atlas | 58 | 0 | 12 | 46 | |
Remofirst | 19 | 15 | 4 | 0 | |
Papaya Global | 64 | 0 | 4 | 60 | |
Velocity Global | 39 | 17 | 22 | 0 |
What do all the data tell us?
- The significant funds raised by companies like Remote ($500M), Deel ($700M), and Rippling ($1.2B) indicate strong investor confidence in the EOR and GEP sector. This suggests a growing demand for global employment solutions and potential market expansion.
- Most companies listed have a workforce ranging from 100 to 5000 employees, showing a broad spectrum of organizational sizes. Larger companies like Remote, Deel, and Rippling, with thousands of employees, likely have a wider global footprint and possibly a broader range of services.
- The variety in company sizes also reflects the market’s diversity, from startups to well-established entities, indicating room for growth and competition.
- The services provided by these companies are comprehensive, covering not just EOR solutions but also payroll, compliance, benefits administration, and talent management. This wide array of services points to a one-stop-shop approach that these platforms are adopting to cater to all aspects of global employment.
- The high number of open roles and the distribution between 100% global remote, location-restricted remote, and on-site or hybrid work models reveal each company’s approach to remote work. The approach to remote work can be a reflection of the company’s operational flexibility and adaptability to global employment trends.
- Remote and Oyster have all their roles as 100% global remote, highlighting their commitment to a fully remote workforce.
- Deel leads with the highest number of remote roles, with 70% accessible globally, showcasing its broad embrace of remote employment. Velocity Global, in contrast, presents a smaller portion of its roles as globally remote, indicating a more selective approach to international remote hiring.
- Globalization Partners and WorkMotion appear to be embracing remote work culture, though their recruitment efforts are geographically focused, indicating a preference for regional hiring within the context of remote work.
- Conversely, companies like Rippling, Multiplier, Safeguard Global, Atlas, and Papaya Global seem to show a lesser inclination towards a remote work culture, as evidenced by their limited offerings in fully remote positions.
- Despite most companies being headquartered in the USA, their services span globally, underscoring the global nature of the EOR and GEP market. Companies like Multiplier, headquartered in Singapore, and WorkMotion and Horizons in Germany, indicate that significant players in the EOR and GEP space are not limited to the US.
- The presence of pricing pages for most companies, except for a few like G-P and Safeguard Global, suggests transparency and competitiveness in the market. It’s an important factor for clients comparing EOR and GEP providers.
- The careers pages and the number of open roles indicate active growth and the industry’s health. It also shows where the companies are investing in their workforce, whether in global roles or specific locations, reflecting their strategic priorities.
From this analysis, it’s clear that the EOR and GEP market is vibrant, competitive, and rapidly evolving, with significant investments flowing into companies that offer comprehensive global employment solutions. The emphasis on remote work, coupled with expansive service offerings, positions these companies as key enablers of the future of work, catering to a global, distributed workforce.
Who is the best provider?
The primary driver behind the demand for these services is the desire for companies to tap into global talent pools without establishing a physical presence in the countries where they wish to hire, a trend that underscores a broader embrace of remote work culture. Given this context, Remote, Deel, Oyster, Globalization Partners, and WorkMotion emerge as leading providers, offering robust solutions that cater to these needs effectively.
Among these frontrunners, Remote and Oyster distinguish themselves with their commitment to a 100% remote workforce, showcasing an unparalleled dedication to the remote work paradigm. Deel follows closely, with 70% of its roles being globally remote, demonstrating a strong but slightly less comprehensive commitment to remote work compared to the former two.
While Oyster trails slightly behind Deel and Remote in terms of funding, this does not necessarily reflect on the quality or reach of its services. Investment levels are just one factor in the multifaceted equation of service provision.
Remote, in particular, stands out for its transparency and additional offerings, such as a dedicated remote job board, positioning it at the forefront of the sector. This commitment to not just facilitating but actively promoting remote work positions Remote as the industry leader, with Deel and Oyster commendably serving as close contenders.
Therefore, with its comprehensive approach and dedication to supporting a global, remote workforce, Remote secures the top spot, with Deel and Oyster following as strong contenders in the race to enable global employment.
What does the future hold?
The trajectory of the EOR market is overwhelmingly positive, with several trends poised to fuel its growth further:
- Continued rise of remote work: As remote work transitions from a temporary solution to a standard business practice, the reliance on EOR services is expected to escalate.
- Expansion into new regions: EORs are progressively extending their services to include emerging markets, which are becoming hotbeds for tech innovation and skilled talent.
- Technological innovation: The integration of AI, machine learning, and automation in EOR services is set to enhance efficiency, reduce errors, and offer unprecedented flexibility in workforce management.
Understanding the dynamics of the global EOR market and the major players within this space equips businesses to unlock the full potential of a truly global workforce. In doing so, they not only adapt to the future of work but also lead the charge in shaping it.
In light of the transformative trends we’ve outlined—namely, the unstoppable rise of remote work and the critical role of the global Employer of Record (EOR) market—it’s clear that the future of work is not just about where we work, but how we work together across borders. The surge in remote work has not only reshaped our daily routines but has also opened up a world of possibilities for businesses to tap into global talent pools with ease and confidence. The EOR market, set to expand significantly in the coming years, stands at the heart of this evolution, providing the necessary infrastructure for companies to navigate the complexities of international employment law and compliance.
As we move forward, the symbiotic relationship between remote work and global EOR services will only become more integral to our global economy. Businesses that embrace these changes, leveraging EOR solutions to build diverse, dynamic teams, will find themselves at the forefront of innovation and growth. The future beckons with the promise of a more flexible, inclusive, and connected world of work, made possible by the pioneering spirit of the global EOR market.
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