What is Global Employer of Record Services Market?
The Global Employer of Record Services Market is a rapidly evolving sector that provides businesses with a unique solution to expand their operations globally without the need to establish a legal entity in the foreign country. This service allows companies to hire employees in different countries while the Employer of Record (EOR) takes care of all legal, HR, and administrative aspects. The EOR becomes the official employer, handling all local employment responsibilities, while the company maintains the day-to-day control of the employee's work activities. This service is particularly beneficial for companies looking to test a new market, save time and resources, or avoid the complexities and risks associated with foreign employment laws and regulations.
Aggregator Model, Wholly Owned Infrastructure Model in the Global Employer of Record Services Market:
The Global Employer of Record Services Market operates primarily through two models: the Aggregator Model and the Wholly Owned Infrastructure Model. The Aggregator Model involves a network of third-party EORs that provide services in different countries. This model offers a wide geographical coverage but may lack consistency in service delivery due to the involvement of multiple providers. On the other hand, the Wholly Owned Infrastructure Model involves a single EOR that has established its own entities in multiple countries. This model ensures consistent service delivery and a single point of contact but may have limited geographical coverage. Both models have their own advantages and are chosen based on the specific needs and expansion goals of the company.
SMEs, Large Enterprises in the Global Employer of Record Services Market:
The Global Employer of Record Services Market is widely used by both SMEs and Large Enterprises. For SMEs, these services provide an affordable and efficient way to expand internationally without the need for significant investment in foreign infrastructure or expertise. They can quickly hire employees in new markets and focus on their core business activities while the EOR handles all employment-related tasks. For Large Enterprises, these services offer a flexible solution to manage their global workforce. They can easily scale up or down their operations in different countries based on market conditions and business needs. The EOR provides a centralized platform to manage all their international employees, ensuring compliance with local laws and regulations.
Global Employer of Record Services Market Outlook:
The Global Employer of Record Services Market has shown significant growth in recent years. In 2023, the market was valued at US$ 128.2 million and is expected to reach US$ 196 million by 2030, growing at a CAGR of 6.8% during the forecast period 2024-2030. Key players in this market, such as Adecco, Randstad, and Aquent, hold around 10% of the market share. North America is the leading region in this market, accounting for approximately 40% of the total market. In terms of service type, the aggregator model dominates the market with a 70% share. When it comes to end users, SMEs are the largest segment, making up about 70% of the market.
| Report Metric | Details |
| Report Name | Employer of Record Services Market |
| Accounted market size in 2023 | US$ 128.2 million |
| Forecasted market size in 2030 | US$ 196 million |
| CAGR | 6.8% |
| Base Year | 2023 |
| Forecasted years | 2024 - 2030 |
| Segment by Type |
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| Segment by Application |
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| By Region |
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| By Company | Adecco, Randstad, Aquent, FoxHire, Infotree Global, Safeguard Global, Velocity Global, Globalization Partners, Shield GEO, Acumen International, Remote Team (Gusto), Deel, Remote Technology, Elements Global Services, Papaya Global, Universal Hires, CIIC, Links International, New Horizons Global Partners, Sky Executive |
| Forecast units | USD million in value |
| Report coverage | Revenue and volume forecast, company share, competitive landscape, growth factors and trends |
