The IEC Group, a leading global business research and advisory firm, recently conducted a study of 800 Employer of Record (EOR) providers and awarded the Top 25 companies in the industry. With the increasing globalization requirements of businesses, the skill shortage, and the need for staffing flexibility, EOR services have become an essential component for companies aiming to achieve international expansion.
Luis Praxmarer, the CEO of The IEC Group, emphasizes the outstanding service quality and high employee retention rate already demonstrated by the nascent and dynamic EOR market, saying “Employer of Record services should be an essential component of every Chief Human Resources Officer’s (CHRO) service portfolio for companies aiming to achieve globalization.”
The pandemic has caused a surge in demand for EOR services, with the global market growing in double digits. North America currently accounts for 36% of the market, with the remaining percentages made up of EMEA (29%), APAC (26%), and LATAM (9%). Ash Pal, IEC Partner & Practitioner, commented that “EMEA EOR suppliers have performed robustly in response to geopolitical instability in Russia and Ukraine and growing demand in the Middle East and Africa”.
The IEC Group’s research report identifies the leading EOR providers, including G-P, Atlas, and CXC Global, and also provides information on emerging startups and companies that are set to make a significant impact in the Employer of Record and Human Resource outsourcing market.
The report found that multi-national firms remain the primary target for EOR services, with small to mid-market enterprises (SMEs) driving the market expansion. Many of these enterprises are seeking assistance in understanding and delivering legal compliance with HR, personal data, and payroll regulations globally. EOR providers are able to provide expertise and tools to help eliminate or reduce the costs, effort, and risks of establishing business entities and operations abroad.
The IEC Group estimates that the global Employer of Record (EOR) services market will reach $9.8 billion USD by 2028. To learn more about the IEC Group’s latest research, The IEC Group is hosting a free Webcast on June 14th at 16:00 GMT. To register for the event, please click on the link provided.
For more information about The IEC Group and its research, please contact their office or send an Email to pm@theIECgroup.com.