2023全球名义雇主EOR报告+2023+The+Global+Employer+of+Record+Report

20TheGlobalEmployer

23ofRecordReport

HowEmployerofRecordSolutionsareTransforming

theFutureofWork

2

TheGlobalEmployerofRecordReport:2023

AletterfromourFounderandEORVisionaryLeader

Priortothepandemic,thetypicalworkroutineinvolvedastructuredworkweek,withmostindividualscommutingtoanofficeonaregularbasis.However,theemergenceofCOVID-19swiftlyalteredthis.

Thosefortunateenoughtohavetheoptionbeganworkingfromhome,settinguptheirlaptopsinvariouspartsoftheirresidences.Thankstotechnologicaladvancements,weremainedconnectedandproductive.

EvenasCOVID-19transitionsfromapandemictoanendemicandtheworldpresentsnewchallengessuchastheRussia/Ukrainewarandwidespreadeconomicinstability,employersfindthemselvesstrivingtostriketherightbalancefortheirbusinesses.Thisincludesexploringfullyremoteworkarrangementsoradoptingflexiblehybridplans.Theprevailingeconomicuncertaintycompelsemployersofallsizestoreevaluatetheirapproachestoexpandingtheirmarketsandsecuringtalentedindividuals.Theoneswhocanswiftlyadaptandexhibitflexibilitywillbethemostprosperous.

Inordertoremaincompetitive,itisimperativeforallcompaniestodeviseaninternationalexpansionstrategy.Evensmallbusinessesmustdecidewhichmarketstoenterandtheextentoftheirinvolvement.Inthepast,thetalentpoolwaslimitedtoafewhundredindividuals.However,withtheobsolescenceofpre-pandemicnorms,employersnowhavetheopportunitytotapintothevastglobaltalentpoolcomprisingbillionsofpotentialcandidates.Thishasfacilitatedexpansionacrossbordersinwaysthatwerepreviouslyunimaginable.

Effectivelyaccessingthistalentandsuccessfullyventuringintonewmarketsnecessitatesanimbleandadaptablepartnercapableofnavigatinglocallawsandregulations,bothdomesticallyandinternationally.

ThisiswheretheEmployerofRecord(EOR)solutioncomesintoplay.Itoffersbusinessesofallsizestheflexibilitytoexpandintonewmarketsandswiftlyrecruittopglobaltalent.Bysimplifyingthecomplexitiesofglobalexpansion,anEORprovidescomprehensiveHRservicestailoredtomeettherequirementsoflocallaborlawsineachjurisdictionwhereacompanyestablishesitspresence.

WhileEORisstillemergingasaconcept,itisquicklybecomingthego-tosolutionforbusinessesaimingtoredefinethemselvesandthriveinarapidlychangingworld.Inthefollowingreport,wedelveintothetransformationsandobstaclesfacedbyemployerstoday,whilealsoexploringsolutionsforboththepresentandfuture.

RickHammell

FounderandCEOofAtlas

TableofContents

TheCurrentGlobalLandscape

forHRDecisionMakers

4

EmployerofRecord—

AModernSolutionforModernBusiness

7

HRTrendsandtheFutureofWork12

StreamliningCostsThrough

anEORServiceProvider19

HowEORSupportsPayrollFunctions21

EmergingTrends:WhatHRDecision

MakersNeedtoConsiderinthe

Next12Months24

ARegionalLookatWorkTrends

andEORAdoption:28

.

AfricaandMiddleEast29

.

AsiaandPacific30

.

Europe31

.

LatinAmerica32

.

NorthAmerica33

TheGlobalEmployerofRecordReport:2023

3

4

TheGlobalEmployerofRecordReport:2023

01

TheCurrentGlobal

LandscapeforHR

DecisionMakers

Thecurrenteconomiclandscapeisunlikeanythatwe’veexperiencedinrecenthistory.Ahostofcomplexandmulti-facetedissueshavecombinedonaninternationalleveltocreateachallengingenvironmentforbusinessestothrivein.

FromthelongtaileffectsoftheCOVID-19pandemictotheongoingconflictinUkraine,risinginflationandrisinginterestratesmeanthatthenext12monthshaveneverlookedsouncertain.Anduncertaintyisnotgoodforbusiness.

Sincethestartof2023,companiesofallsizeshavesignificantlyreducedtheirheadcountsastheheadydaysofthepandemicrallyfadeintomemory.Accordingto

layoffs.fyi

,therunningtotalforjobcutsinthetechindustryalonefor2023ismorethan212,000attimeofwriting,withthelikesofMicrosoft,Amazon,andMetaalllayingoffthousandsofworkersinrecentmonths.

AccordingtoChrisCavanagh,generalpartneratGuidepostGrowthEquity,theeraof“growthatallcosts”hasended.

Ithinkwewentthroughaperiodoftimewhereitwaskindofgrowthatallcostsandorganizationscouldbegrowing80or100%yearoveryear,butiftheywerelosingsignificantsums,noonereallycared.Nowthereisaverybigfocusaroundthat,socostmanagementandcontainment,Ithinkisacriticalareaoffocusfororganizations.”

ChrisCavanagh,

GuidepostGrowthEquity

Wehavenowenteredanewphasewherethebiggestconcernsforcompaniesareprofitabilitywhilecontainingcostsand,aboveallelse,survival.

Layoffsaren’ttheonlyroutethatcompaniesaretakingtocutbackoncosts.Downsizingrealestate,reducingbusinesstravel,andincreasinguseofvariablestaffingmodelsarealltacticscompaniesareusingtohunkerdownduringthepotentialeconomiccontractionof2023.

TheHRPerspective

Whiletheheadlineformanybusinessesatthemomentisreducingcosts,HRdecisionmakersarefacingmoreuniquechallenges.Artificialintelligence(AI)andautomationtechnologies,forexample,requiretalentwithskillsthatarehardtodefineandconstantlyevolving.

Despitethemediafrenzyovergloballayoffs,almostallindustriesfacerealtalentshortages.

The2023WEFFuture

ofJobsReport

foundthatmorethanhalfofemployersindicateddifficultyinsolvingtheirskillsgapslocally,andthisinabilitytoattracttalentisoneoftheprimarybarrierstotransformingtheirbusinessestoremaincompetitive.

Ifthatwasn’tenough,retainingtoptalentappearstobeevenmoredifficult.Therecentmediahubbubaboutthe“quietquitting”crisisisnotwithoutbasis—arecentGallupsurveyindicatesthatatleasthalfoftheU.S.workforceisperformingatthebareminimumexpectedofthemintheirroles.

Thisdoesnotinferalazyordisinterestedworkforce.Instead,ithighlightstheuniquechallengespresentedbythemodernworkplace—whereremoteorhybridworkhasbecomethenorm,jobuncertaintyisatanall-timehigh,andexpectationsfrommanagementarebecominglessobvious.

5

TheGlobalEmployerofRecordReport:2023

Theoveralldecline[inengagement]wasespeciallyrelatedtoclarityofexpectations,opportunitiestolearnandgrow,feelingcaredabout,andaconnectiontotheorganization’smissionorpurpose—signalingagrowingdisconnectbetweenemployeesandtheiremployers.”

Gallup,‘IsQuietQuittingReal?’

Thenewworldofremoteworkingplaysamajorroleinthis.Theabilitytoworkfromanywhere—oneofthefewbenefitsoftheCOVID-19pandemicformanyworkers—nowappearstobeunderattackincertainindustriesliketechnologyandfinancialservices.

Indeed,whilesomepredictedtheendofthetraditionaloffice,mid-2023sawalarge-scalereturn.Asreportedinthe

Wall

StreetJournal

,officeoccupancyratesinsomepartsofAsiarangedfrom80%to110%byFebruary,meaningmorepeoplewereintheofficethanbeforethepandemic.EMEAandNorthAmericaarenowalsolookingat80%officeoccupancy.

However,workersremainresistant.AccordingtoGallupresearch,sixoutof10U.S.-basedemployeeswithremote-capablejobswantahybridworkrelationship.Ofthosesurveyed,one-thirdpreferfullyremotework,andfewerthan10%wanttoworkon-site.

TopChallengesforHRDecisionMakersin2023:

•TalentShortages

•EmployeeEngagement

•ReducingBudget

Inaddition,50%ofmajorglobalcompaniesexpecttocutofficespaceby10%to20%becauseitremainsempty.Thegloballandscapehasalteredsincethestartofthepandemic,andthegrowingpainsarereal.Thefutureofworkishere.

TheGlobalEmployerofRecordReport:2023

TheFutureofWorkandtheEmployerofRecord

Businessesarefacedwithmanycompetingprioritiesfromthetopdown.Ontheonehand,costcontainmentandafocusonprofitabilityovergrowthisthedrivingforcebehindmostbusinessdecisionsin2023.Ontheotherhand,theinabilitytoaccessandretaintopqualitytalentintherapidlyshiftinggloballabormarketthreatensanorganization’sabilitytoreboundandmakeitsmarkonthenextdecadeofinnovation.

Inthemidstofeverycrisiscomesgreatopportunity.

Inthe2023climateofeconomicuncertainty,thebusinessleaders—includingtheirseniorhumanresourceofficers(SHROs)andotherHRprofessionals—whoadoptnewwaysofworkingandattractthegreatesttalentwillbetheonestoprosperinthecomingdecade.

Modernorganizationscurrentlyface

aheadwindofcontinuedeconomic,

geopolitical,environmental,and

technologicaldisruption.Conversely,the

sametechnologicaldisruptionisexpected

toprovideatailwindofpotential,unlike

anythinghumanityhasexperienced.”

PeteTiliakos,GxTAdvisors

Inparticular,thenascentEmployerofRecord(EOR)industry

anditsincreasingintegrationintowiderHRfunctionsoffers

greatopportunitiesformaximizingbusinesspotential.

6

7

TheGlobalEmployerofRecordReport:2023

02

EmployerofRecord—

AModernSolutionfor

ModernBusiness

Now,morethanever,organizationsofeverysizemustbecomehighlyagile,adaptive,andresilientbydesigntofulfilltheirstrategicambitionsandasameansofcompetitiveadvantageandsurvival.“Pivotorperish”hasneverbeenmoremeaningfulthaninthecurrentandfutureglobalmarketplace.”

PeteTiliakos,GxTAdvisors

Asmodernorganizationslookforwaystobecomemoreresilienttoanever-shiftingbusinessandlaborlandscape,EmployerofRecord(EOR)serviceprovidersaregrowinginpopularity.

WhatisanEmployerofRecord(EOR)Service?

AnEORserviceproviderallowsanorganizationtohireemployeesinacountryorjurisdictionwheretheydon’thaveanexistingentity.TheEORactsasthelegalemployeroftheworkerorworkersinquestion,assumingresponsibilityforonboarding,offboarding,andpayrollontheclient’sbehalf.

Astheemployer,theEORpartnermanagesthelegal,HR,taxandlocalcomplianceneedsfortheworkersasitsownemployees,whiletheclientorganizationmaintainsfullcontroloftheirday-to-daywork.

WhyUseanEORService

Provider?

Withthecompetingprioritiesofreducingcostswhilecontinuingtogrowandaccessthebesttalentglobally,mostEORservicesprovidersofferimmediatebenefitstoanorganization.

AnEORserviceproviderincreasesacompany’soperationalagilitybygivingit:

•theabilitytoquicklyenternewmarketsacrosstheglobebyactingastheemployerandprovidingvisaandglobalmobilitysupporttorelocatemanagersandworkers,

•alowcost,lowcommitmentalternativetoforminglocalbusinessentitiestoimplementglobalexpansionplans,

•theabilitytosecureglobaltalentandimproveemployeeexperiencebyemployingemployeesintheirhomecountries,and

•theabilitytoquicklyhireemployeesinacarve-outdivestitureandsaveanM&Adeal.

EORserviceproviderssupportbusinesseffortsinforeignmarketsbyemployingworkersincompliancewithlocallaw.ManyofferaplatformsolutionthatcentralizesHRandpayroll,andwhichiseasilyaccessedbytheclientbusinessaswellastheemployees.

IndirectEOR

AnindirectEORserviceprovider

doesnothaveanentityinacountry,

eventhoughitoffersEORservices

there.Instead,itreliesonin-country

vendorsofHR,tax,accountingand

legalservicestomanageservicesand

compliance.

HybridEOR

AhybridEORserviceprovideroffers

amixofbothdirectandindirectEOR

servicestoitsclients.

TheGlobalEmployerofRecordReport:2023

DifferentTypesofEORServices

Currently,therearethreedistincttypesofEORserviceproviders:

DirectEOR

AdirectEORserviceproviderhas

abusinessentityestablishedinthe

countrywhereemployeesarehired

andusesnothird-partyvendorsto

assistinprovidingservicestothe

client.

8

9

TheGlobalEmployerofRecordReport:2023

ARapidlyGrowingMarketandIndustry

TheEORmarketisyoungbutgrowingrapidly.

AccordingtoarecentIECreport,theglobalmarketsizeoftheEORindustrysitsatUSD4.8billionin2023.Thisisexpectedtogrowatacompoundannualgrowthrate(CAGR)of16.7%tohitclosetoUSD10billionby2028.

12.000

10.000

8.000

6.000

4.000

2.000

0

EmployerofRecordGlobalMarketSize&GrowthRate

TheEORMarketseesaCAGRof16,7%andwillgrowto9,8BillionUS$bytheyear2028

BillionUS$;9.834

29%

8.940

7.982

23%

24%

6.941

21%5.83319%

4.820

3.887

15%

12%

3.014

2.450

10%

8%

202020212022202320242025202620272028

Source:TheIECGroup

IECEORStudy2023SneakPreview|©TheIECGroup

10

Eitherway,it’sclearthatEORservicesisrecognizedasahighgrowthindustrythatisgainingtractionacrossmanyregionsandusecases.

Historically,thisgrowthhasbeenfueledbycompaniesbasedinNorthAmerica,whichmakeup50%oftheglobalmarket,accordingtoreportsbyboththeIECGroupandNelsonHall.EuropeandtheMiddleEasttogethercompriseabout28%oftheadoptermarket.

WhileEuropeandtheAsiaPacificregionsareexpectedtotakegreatersharesofthemarketduetotheexpansionplansofmultinationalcompanies,LatinAmericanheadquarteredcompanieshavebeenmakingagoodshowingin2023.

Smalltomid-sizebusinessesarethebiggestmarketforEORserviceproviders.

TheGlobalEmployerofRecordReport:2023

EverestGroup,meanwhile,estimatesthatthecurrentEORmarketissmallerataroundUSD1.5to1.6billion,butpredictsrapidgrowthofbetween30%to40%throughoutthisyear.

3,400

1,560-1,650

1,150-1,170

EORprovider’smarketsize

40-50%

3,150-

NetrevenueinUS$million

30-40%

110-120%

160-170%

530

-550

200-220

202020212022E2023E2025E

Source:EverestGroup

ActualgrowthrateExpectedgrowth

GlobalEORServices:AdoptionbyClient

OrganizationSize(#ofEmployees)

7%

26%

67%

Large(>15k)Mid(500-<15k)Small(<500)

BroaderNelsonHallresearchfindssmallermarketbuyers

continuetoseekandadoptglobalcapabilitiesaswellas

maturingtheirHMtechnologyinfrastructureinlinewith

upmarketpeers.Impactsfrom“thegreatresignation”and

post-pandemicformalizationofremoteworkpoliciesand

normsfurtherinfluencetheapplicationofanEORmodel.

Source:NelsonHall,GlobalEmployerofRecord(EOR)ServicesHRTechnologyandServicesProgram,August2022

11

TheGlobalEmployerofRecordReport:2023

UseCasesofEORServices

WhilemostEORsarepredominantlyusedbyorganizationsfortheservicestheyprovide,thefutureofEORliesinitstech-supportedHRcapabilitiesthatcatertoallaspectsofHRcomplianceacrossallcountrieswheretheEORoperates—a“onestopshop,”accordingtoarecentNelsonHallreport.

ThistechcangiveHRteamsinsightintoallaspectsoftheemployeesthattheEORmanagesonitsbehalf,allowingthecustomer-servicerelationshipbetweentheEORandcustomerstofocusonbespoke,high-levelconsultingandmoremeaningfulservice.

EORtechisalsoexpectedtobecomemorecloud-basedandofferpersonalizeddashboardsforclientsandemployees,standardandadhocreporting,dataandpredictiveanalyticstomanagecostsandmonitortrends,APIintegrationwithotherkeybusinesstechnologies,andstrongcybersecuritycredentials.

NelsonHallgivesweighttoclientprioritieswhenitcomestotheglobalcapabilitiesofEORserviceproviders.

But,fornow,let’slookathoworganizationsareusingEORserviceproviderstoovercomethechallengesofthemodernworkplace.

CHROsofanagileorganizationshouldlooktocomplementexistingHCMinvestmentsandresourcestosolvethevolatilityandmarketplacedynamics,driveorganizationalagility,andenablematerialcompetitiveadvantagefortheirbusinesses.TheglobalEORmodelshouldbeago-toleverforenablingtheirtalentdemandsanddrivingimpactfulbusinessoutcomes.”

PeteTiliakos,GxTAdvisors

BuyerswereaskedtosharethekeyoperationalprioritiesassociatedwithglobalEmployerofRecordservicesfortheirbusinessesmovingforward

ImportanceofCharacteristicswithinTransformedEOROperations

‘Agility’ofHRinsupportingfuturemulti-countryexpansioninitiatives

AccesstoaCenterofExpertise(COE)staffedwithskilled,incountrysubjectmatterexperts

Digitalizationofmulti-countryHRandpayrollprocessesthroughcloud,mobileESS/MSs,integrations,etc.

Consolidatedanalyticreportingandinsightsforimproveddecisionmaking

Leveragingofintelligenttechnologyinmulti-countryHRandpayrolldelivery

Digital‘marketplace’ofcertifiedintegrations(API’s)toaddressuniquebusinessrequirements

4.7

4.6

3

2.9

3.6

4.1

2

1

3

4

5

Source:NelsonHall,GlobalEmployerofRecord(EOR)

ServicesHRTechnologyandServicesProgram,August2022

12

TheGlobalEmployerofRecordReport:2023

03

HRTrendsandthe

FutureofWork

AutomationintheworkplaceisnothingnewbutrecentdevelopmentsinAI—namelylargelanguagemodel(LLM)generativeAIsuchasChatGPT—willrevolutionizetechnologyandalterthelaborlandscape.

Jobsbasedonrepetitivetasksappearunderthreat,whilerolesthatleveragethesenewtechnologies,someofwhichdon’tevenexistyet,willfillfuturejobboardsandrecruiteremailinboxes.Employersarelookingatskillsgapsandtalentshortagesin2023,butthecompetitionfortalentislikelytobecomefiercerinthecomingyearsasthepossibilitiesofthesegenerativeAItoolsunfold.

TheWorldEconomicForumpredictsinits

2023FutureofJobsreport

thatmanyindustriesexpectahighlevelofjobchurnoverthenextfiveyears,withsomerolesdisappearingcompletelyandnewroleswithnewskillrequirementsemerging.Basedonthereport’sdata,wemaysee“structuraljobgrowthof69millionjobsandadeclineof83millionjobs.”

Also,accordingtothereport,by2027,automationwillresultin26millionfewerjobsinrecordkeepingandadministrativeroles.Theaccuracyofthispredictionremainstobeseen,butcompaniesclearlyanticipatereplacingsomeofthemoremanualtaskswithtechnologyasquicklyastheycan.

Skillsthatareparticularlysusceptibletoautomationoverthenext3years:

•DataEntryManual

•AnalyticalThinking

•HRIS

•BusinessAnalyticsAnalysis

•HumanResources

•Administrative

•DataAnalytics

•Technical

•CustomerService

•Finance

•Accounting

•LandAdministration

•MarketResearch

•Coaching

Source:MercerFutureSkillsSurveyReport

However,mostexpertsagreethatAIdoesn’tposearisktohighlyskilledjobsjustyet.Infact,thedawnofAImightincreasethedemandfortoptalentthatcanuseandenhanceproductivitythroughnewAItools.

Technologyshouldaugment,guide,andpredicttoelevateandempowerhumantalentandcreativity.Thegoalshouldbeasymbioticrelationshipbetweentechnologyandhumanthataugmentsandamplifiestherich,unmatchedhumanskillandemotionalintelligenceofanorganization’speople,armingthemwiththenudges,cues,andinsightstodriveimprovedbusinessoutcomesfortheiremployers.”

PeteTiliakos,GxTAdvisors

13

Confidence

TheGlobalEmployerofRecordReport:2023

DemandforHighlySkilledWorkers

Despitesomeglobalchoppinessoverthecourseofthepandemic—whensomeindustriesthrivedandexpandedwhileothersexperiencedmasslayoffsandfurloughs—theglobaldemandforhighly-skilledtalentgrows.

GapAnalysisMatrix-confidenceinbeingabletomeetneedsbytheend

of2024foreachskill

Persuasio

negotiation

Salesskills

Internalpoinfluence/ne

Self-management

Businessacumen

Analyticproble

Productinnoandadapti

althinking/

msolving

onal

ence

Digitaldextefluency

vation

on

Collaboration

Grow

Resilience

flexibility

Developingpe

Creativity,originalityandinitiative

rity/

thmindset

and

ople

nand

skills

Emoti

intellig

Marketsensing/empathy

liticaltworking

Transdisciplinarythinking

Underperforming

Overperforming

Skill

Developingpeople

Score

-0.0

Score

0.7

1.0

1.1

1.2

1.2

Skill

Marketsensing/empathy

Persuasion&negotiationskills

Self-management.

Internalpoliticalinfluence/networking

Salesskills

Source:MercerFutureSkillsSurveyReport

InarecentsurveyofHRdecisionmakersacrosstheUK,UAE,Singapore,Australia,andtheUSA,Atlasfoundthat8in10(82%)ofcompaniesagreethatrecentgloballayoffshavemadethemconsiderexpandingintonewmarketsfortherighttalent.ThisisespeciallythecaseforcompaniesinSingapore(90%)andUAE(83%).

Thisisbackedupbyaseparatesurveyonborderlesshiringtrends,conductedinconjunctionwithAtlas,wherePeopleMattersfoundthat64%ofthecompaniessurveyednotedthattheywereexpandingtheirbusinessoperationsglobally.

Furthermore,nearly86%oftherespondentssaidthattheywerelookingformiddle-leveltalentglobally,indicatingthehighcompetitionforexperiencedandskilledworkers.

TheGlobalEmployerofRecordReport:2023

Withtheworldofworkgoingborderlesspost-

pandemic,howmanycountrieshasyour

organisationexpandeditsbusinessoperationsto?

13%

36%

32%

14%

NoneOnecountry

2-5countries6-10countriesMorethan10

Source:‘BorderlessHiring:TrendsReshapingtheWorldofWork’,PeopleMatters

5%

Whichlevelofemployeesareyoulookingtohire?

SeniorManagement45%

MiddleManagement86%

Entry-level59%

Source:‘BorderlessHiring:TrendsReshapingtheWorld

ofWork’,PeopleMatters

14

15

ThisisoneofthemainreasonswhymanyorganizationsareturningtoEORservicesasanagilesolutiontoaccesstheglobalworkforce.Overhalf(52%)ofcompaniessurveyedbyAtlassaidthattheystrugglewithfindingtherighttalentwhenenteringandhiringinanewgeographicmarket.

Accordingt