Employer of Record Services Market Size, Share, Growth, And Industry Analysis By Type (Aggregator Model, Wholly Owned Infrastructure Model) By Application (SMEs, Large Enterprises), Regional Insights, and Forecast To 2032

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Employer of Record Services Market Report Overview

Global Employer of Record Services Market size was USD 0.14 Billion in 2023 and market is projected to touch 0.25 Billion by 2032, exhibiting a CAGR of 6.8% during the forecast period.

The COVID-19 pandemic has been unprecedented and staggering, with the Employer of Record Services Market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

A third-party organization known as an Employer of Record (EOR) oversees all formal employment-related procedures on behalf of another company. By using the EOR, firms may operate successfully and lawfully with international employees in a new country or state without having to create a local corporation or taking the chance of violating local labor laws. The client company has the choice to employ an EOR in order to manage their time more effectively and efficiently. During the recruiting process, employment screening services are used to look into candidates' credit, criminal, driving, educational, and other background information. Additional services include behavior assessments, personal and professional reference checks, location records, career histories, drug tests, residence confirmation, and bankruptcy checks. These services are frequently utilized by companies across the world to evaluate applicants' qualifications for the position and to expedite and enhance the efficacy of the recruiting process since they are affordable and rapid.

The widespread use of cloud-based technologies, the practical accessibility of high-bandwidth internet infrastructure, and the growth of social networking are the primary market drivers. Additionally, it is anticipated that market expansion would be aided by the increasing use of mobile-based recruiting solutions, which is supported by a rise in smartphone demand.

COVID-19 Impact: Covid-19 pandemic had a detrimental effect on the market

The Covid-19 pandemic had a detrimental effect on the market for job screening services during the early stages of the outbreak. The recruiting process has been restricted in a number of business areas, including manufacturing, transportation, IT, and telecommunications, which has reduced the demand for employment screening services. During the pandemic, a sizable number of people worked in the healthcare and retail industries. Background checks and personnel health checks are become more important in these sectors. In addition, the growth of online learning and work-from-home options has contributed to the IT sector's explosive growth. Because of this, the necessity for a new recruiting procedure has grown in the IT industry, advancing employment screening. Businesses were compelled to adjust as the COVID-19 pandemic's effects expanded over the world. To protect their workers, they started working from a distance. The worldwide health issue has more than a temporary fix in telecommuting. This is a brand-new way of living. The acceptance of the telecommuting policy has been rising over the previous five years, even if COVID-19 may have hastened implementation. The benefits of telecommuting have been established, including happier and more productive workers as well as the capacity to have a more positive impact on the environment. According to the survey, workers who have more flexible schedules are more engaged and excited about their work.

Latest Trends

"Rising demand employment screening services in healthcare organizations leading market expansion"

Many businesses provide specialized solutions to help medical facilities and hospitals find and keep productive staff. This is causing demand for employment screening services in healthcare organizations all around the world, along with the increasing volume of medical data and the associated need for additional personnel.

Employer of Record Services Market Segmentation

• By Type Analysis

According to type, the market can be segmented into Aggregator Model, Wholly Owned Infrastructure Model. Aggregator Model is anticipated to be the dominating segment.

• By Application Analysis

Based on application, the market can be divided into SMEs, Large Enterprises. SMEs will be the leading segment.

Driving Factors

"Growing levels of immigration for jobs and globalization fuel the market growth"

As a result of globalization, there has been a tremendous migration of people seeking better living circumstances and career possibilities, mostly to the most developed nations in the globe. Both low- and high-skilled positions are being filled by more immigrants in Canada, the United States, the United Kingdom, and Germany. The increased number of job immigrants and mobile workforce due to globalization, as well as the growing need to reduce fraudulent activities by applicants, are two factors fueling the demand for background check screening by various organizations and boosting the growth of the employment screening services market.

"Efficacy and efficiency compared to conventional approaches leading market expansion"

It might take a lot of time and effort to acquire new staff using conventional background screening procedures. Therefore, to increase the speed and efficacy of their recruiting procedures, more firms are using employment screening services. These services guarantee that the data on a resume is accurate and current. They assist in preventing careless hiring, establishing the veracity of a candidate, and reducing the possibility of theft, abuse, and violence in the workplace. Teleconferencing tools like Zoom and Google Meets pave the path for businesses to thrive in a distant setting through technical advancement and the improvement of the value of a more comprehensive work environment. Corporate culture will also be more crucial than ever. Companies will need to take initiative to foster connections and trust among staff members at all levels as there will be less physical interaction. Beyond the weekly team meal, this will call for dedication and communication. Implementing strategies to connect employees, keep them informed, and encourage inclusiveness must be the management's main priority. Companies must also provide staff members access to the data they require to operate well.

Restraining Factors

"Rising Online Fraudulent Application Rates to Stagnate Growth"

Consistencies in the workflow that appear during the review process may be the main obstacle to the global market for employment screening services. Due to the high volume of online job applications and the accessibility of the internet, hiring managers and businesses find it challenging to select the best prospects while eliminating the unqualified ones. It is challenging to ascertain what works and how to optimize adverts because not all online recruiting technology businesses provide a complete examination of reports. To reduce the number of applications they receive, employers should be careful when describing their job openings and be as specific as they can be about the roles and abilities they are looking for.

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Employer of Record Services Market Regional Insights

"North America region will lead the during forecast period "

North America, which accounted for a sizeable market share of USD 4.05 billion in online recruiting technology in 2022, is expected to continue to dominate the sector going forward. This is a result of SMEs and major businesses using online recruiting technology solutions. The online recruitment market has seen various changes in recent years, from the adoption of social media recruiting to the introduction of mobile recruiting platforms, all with the goal of enhancing the recruitment procedures for both companies and employees. Employers and recruiters in the area would be able to extend further recruiting-related administrative tasks, such as fielding questions, setting up interviews, and even doing preliminary applicant screenings, thanks to recruitment marketing technology and AI. This may boost output by more than 50%, giving recruiters more time to concentrate on technical responsibilities. Additionally, recruiters in the area use software and evaluation tools to confirm the qualifications of the candidates.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

LIST OF TOP EMPLOYER OF RECORD SERVICES COMPANIES

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

Report Coverage

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