Employer of Record Platform Market Size, Share, Growth, and Industry Growth By Type (Aggregator Model and Wholly Owned Infrastructure Model) By Application (SMEs and Large Enterprises), Regional Forecast to 2033

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EMPLOYER OF RECORD PLATFORM MARKET OVERVIEW

The global employer of record platform market was valued at USD 5.23 billion in 2024 and is expected to grow to USD 5.59 billion in 2025, reaching USD 9.17 billion by 2033, with a projected CAGR of 6.8% during the forecast period.

An employer of record  is a third-party organization. The software applications take accountability for all formal occupation tasks on behalf of any other company. It allows companies to efficiently and legally engage with overseas workers in a new state or country. The software offers to manage the hiring time and ensure an effective hiring process.

The market growth is anticipated to expand due to the lack of an international market and ease of business. The absence of additional payroll tax requirements is expected to boost the product adoption. Increased need for payroll processing and the presence of several payroll solutions is anticipated to accelerate market growth. The service offers ease of business and immigration compliance is predicted to fuel market progress. Huge technological development and rise in software adoption in multiple businesses and enterprises. EORs helps in saving money before hiring a new employee. Increased employee rate and growing need for payroll processing for international staff. The software manages bank fees, payment options, and currency conversion. Rapid development in small and medium businesses is expected to drive market growth. Adopting EOR can help businesses reduce compliance infractions and risks of penalties. EORs have several benefits, such as ensuring the workplace is proper and safe, and the increased need for a highly productive workforce is anticipated to drive market growth in the upcoming years. On the contrary, the higher cost of the service is anticipated to hamper market progress.

EMPLOYER OF RECORD PLATFORM MARKET KEY FINDINGS

COVID-19 IMPACT

 Uncertain Scenario and Lower Production Activities to Minimize Market Growth

The spread of COVID-19 pandemic affected several businesses. Closing of multiple business and enterprises due to lockdown restrictions reduced market progress. Further, uncertain scenario and lower production activities to minimize market growth. Also, supply and chains disruptions and travel ban across the globe hinder market development.

LATEST TRENDS

Rise in Need for Effective Business Methods to Stimulate Market Progress

The growing awareness about effective business strategies. The huge adoption of modern technology to perform business responsibilities is anticipated to fuel market growth. The rise in demand for service in small and large businesses and the growing need to speed up business growth is predicted to fuel market progress. EORs have several benefits, such as ensuring the workplace is proper and safe, and an increased need for a highly productive workforce is anticipated to drive market growth in the upcoming years.

• Rise of posted workers : According to the European Commission’s POSTING.STAT project, in 2020–2021, over 205,700 workers engaged in digital platform work as their main activity—comprising 2.3 percent of the employed population in EU countries participating in the survey

• Temporary contracts scope : In 2023, 23.1 million EU residents (aged 15–64)—or 11.6 percent of employed persons—held fixed‑term contracts; within younger workers (15–29), this share rose to 32.1 percent

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EMPLOYER OF RECORD PLATFORM MARKET SEGMENTATION

By Type

Based on type, the market is divided into the aggregator model and wholly owned infrastructure model.

By Application

Based on the application, the market is divided into SMEs and large enterprises.

Large enterprises are expected to be the top part of application segmentation.

DRIVING FACTORS

Increased Adoption of Service in Large Enterprises to Fuel Market Growth

Growing adoption of the service in large enterprises and lack of international market and ease with business. Absence of additional payroll tax requirements is expected to boost the product adoption. Increased need for payroll processing and the presence of several payroll solutions is anticipated to accelerate market growth. The service offers ease of business, and immigration compliance is predicted to fuel market progress. Huge technological development and rise in software adoption in multiple businesses and enterprises. EORs helps in saving money before hiring a new employee. Increased employee rate and growing need for payroll processing for international staff. The software manages bank fees, payment options, and currency conversion, which is predicted to drive market progress.

• Digital platform prevalence : According to the ILO, digital labour platforms—including gig platforms—became central to employment during the COVID era, fundamentally shifting work structures globally

• EOR as global enabler : The World Economic Forum highlights that EOR services allow companies without legal entities in a market to employ staff abroad—helping SMEs compete with larger firms in cross-border hiring

Additional Benefits of Hiring an EORs to Foster Market Progress

The adoption of EORs offers an easy hiring procedure by ensuring the workplace is proper and safe. The software manages bank fees, payment options, and currency conversion. Rapid development in small and medium businesses is expected to drive market growth. EORs handle payroll taxes, returns, and deductions. The software is capable of selecting from a variety of payroll solutions and delivering pay stubs. It helps to reduce the expenses of local incorporation, which is predicted to drive market growth.

RESTRAINING FACTORS

High Cost of Employer of Record Platform to Hinder Market Growth

The higher cost of the service is anticipated to hamper market progress in the forthcoming years.

• Cross-border regulation complexity : According to KPMG’s Posting of Workers guide, posted workers in the EU must register residence if their posting exceeds 3 months, and require certification like the A1 for social security—even if coming from another EU country

• Informal economy prevalence : Per ILO estimates, more than 60 percent of the global workforce is employed informally—a figure that rises to around 25 percent in parts of Europe—posing classification and compliance risks for EOR providers

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EMPLOYER OF RECORD PLATFORM MARKET REGIONAL INSIGHTS

Growing Need for a Highly Productive Workforce in North America to Drive Market Share

North America is expected to be the most profitable region for an employer of record platform market share owing to an increased need for a highly productive workforce. Rapid research and development activities are predicted to fuel market growth. The service offers human resources competence and acts as a business server with several benefits. Increased need for payroll processing and the presence of several payroll solutions is anticipated to accelerate market growth. The service offers ease of business, and immigration compliance is predicted to fuel market progress. Huge technological development and rise in software adoption in multiple businesses and enterprises. EORs helps in saving money before hiring new employee. Increased employee rate and growing need for payroll processing for international staff. The software manages bank fees, payment options, and currency conversion. Rapid development in small businesses and medium business is expected to drive market growth.

KEY INDUSTRY PLAYERS

Leading Players Adopt New Strategies to Stay Competitive

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

• Adecco: Operates EOR/posted‑worker services across 60 countries

• Randstad: Functions in 39 countries via postings and EOR services

List of Top Employer of Record Platform Companies

• Adecco (Switzerland)
• Randstad (Netherlands)
• Aquent (U.S.)
• FoxHire (U.S.)
• Infotree Global (India)
• Safeguard Global (U.S.)
• Velocity Global (U.S.)
• Globalization Partners (U.S.)
• Shield GEO (U.K.)
• Acumen International (U.K.)
• Remote Team (Gusto) (U.S.)
• Deel (U.S.)
• Remote Technology (U.S.)
• Elements Global Services (Spain)
• Papaya Global (U.S.)
• Universal Hires (Germany)
• CIIC (Japan)
• Links International (China)
• New Horizons Global Partners (Singapore)
• Sky Executive (China)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.