4 Employer of Record Trends Shaping the Future of Work

Businesses are increasingly turning to employer of record (EOR) companies to manage their workforce needs. These companies provide essential solutions for payroll, compliance, and HR services, especially for businesses expanding into multiple countries. As the global workforce evolves, several key trends are shaping the future of work and influencing how EOR companies support businesses. What are the four main trends influencing the future of work, and what do they mean for organisations aiming to compete in this new era?

1. Payroll and Compliance Challenges in Global Expansion

As businesses expand abroad, they encounter increasingly complicated payroll and compliance demands. Each country has its own labour laws, taxes, social security, and benefits rules, making it hard for enterprises to make accounting additions and deductions, and stay on the straight and narrow, lest they face heavy fines. Employer of record companies are making that job a whole lot easier.

Global payroll and compliance involve not only running pay checks for thousands of employees around the world but also dealing with local tax laws, social security contributions, and employment laws. Worker benefits and perks, for example, are an important part of employment packages and vary drastically from one country to another—in some, they are even illegal.

2. On/Offboarding Friction in the Talent War

Competition for talent is as high as ever. Companies are looking to recruit and keep the best of the best, and straightforward on/offboarding can make a huge difference. Incorporating technology elements into the onboarding process – such as digitally signed contracts, automated forms and easy access to resources – can also help the process become more efficient and significantly less time-consuming. This will increase your ability to stand out in the highly competitive talent market. From the beginning of the employment relationship, it will set the tone that new staff will be valued and have the resources they need to thrive in the company.

The more that candidates and employees receive the tailored experience you provide during on/offboarding, the more likely they are to remain engaged with you and even leave on a highly positive note. This increases your chances of turning departing employees into valuable brand advocates willing to recommend you to others or share positive reviews about their experience at your company. As the war for talent continues to become fiercer, partners like employer of record companies will likely continue to prioritise the on/offboarding process as a key differentiator.

Responding to this, EOR firms increasingly emphasise the importance of smooth onboarding. What once required tricky HR handovers, an EOR provider can provide an equally consistent and predictable experience for employees wherever they are located.

3. C-Suite Focus on Contingent Worker Experience

As we transition to a gig economy and as an increasing number of professionals work independently as contractors or freelancers, contingent workers represent a larger portion of the workforce than ever. But they’re no longer flying under the radar of the C-suite. There’s a tremendous opportunity to enhance the contingent worker experience. EOR companies are also moving to the forefront of this change.

When employers offer contingent workers a better experience, they not only retain more of these workers – which is great for business – but also help the market attract higher-quality talent overall. We can expect this trend to continue, supported by EORs offering remote work, payroll, and other complex HR services, making contingent work more appealing to workers and businesses moving forward.

4. Data and Advisory Services in EOR Solutions

Another key trend is the evolution of EOR solutions to incorporate data, intelligence, and advisory services. Organisations increasingly aim to become more data-driven and savvy, and EOR companies have been key providers of insights to help decision-makers make the right call about their workforces.

Workforce data can be analysed to reveal trends in labour productivity, turnover rates, and pay rate benchmarks. Workforce analytics can assist companies in making strategic decisions when hiring employees, retaining employees and structuring pay packages. Some EOR companies have begun providing advisory services, such as advice on industry best practices, regulatory compliance, and designing talent strategies for global workforces.

This data can be used to see how well the business is operating today and to help predict what we might need to do tomorrow. More importantly, it will help anticipate future workforce needs, lower risks, and keep a competitive edge in the global market. We might expect this trend to expand as more businesses recognise the power of data to guide strategic decisions about their workforce.

Going Forward

The future of work clearly indicates that the technologies and solutions needed to shape global employment are increasingly concentrated in the hands of EOR companies. From automating payroll to providing data-driven insights, companies are relying on EOR services more than ever.

If your business is ready to expand globally or streamline its workforce management, consider working with an EOR provider. NES Fircroft is a leading EOR company, providing customised workforce solutions to global businesses. With a presence in more than 80 countries, we offer local support, helping you establish quickly without the need for a registered entity.

To speak to a professional, contact us today, and let’s discuss how we can support your international expansion with our EOR services.