The employer of record (EOR) outsourcing market is increasingly popular. Predictions show the market will reach $6,794.5 million by 2028. This market growth is driven partly by the increased efficiencies that EORs offer companies struggling to keep up with the increasing regulatory complexities and heavy workloads associated with hiring and maintaining staff. EORs help companies streamline HR operations and help eliminate the risk associated with hiring staff. No wonder they’re becoming so popular.
What Trends Make EORs so Popular?
Several things are contributing to the increasing importance of EOR services:
• First, the outsourcing market to third-party vendors is a normal part of generally accepted best business practices. Everyone outsources; it makes sense in so many ways today.
• Second, the increasing complexities of registering to do business across state lines. Establishing a legal entity is complex enough, but when you add in hiring and payroll, it’s almost insurmountable for small businesses. An EOR takes on HR across state lines so you don’t have to worry about compliance rules.
• Third, there’s been a shift in how companies outsource IT. Instead of bringing in one or two developers to handle their technology needs, the trend is to bring in entire IT departments and teams.
EORs offer companies several benefits over traditional employment arrangements that also increase their popularity.
What Are the Benefits of EORs?
EORs like FoxHire are incredibly popular because these companies offer several benefits for employers. For example, EORs:
• Reduce compliance risk. With the ever-changing regulatory compliance rules around labor and employment, companies that hire EORs outsource the risk.
• Cut costs, especially when trying to scale the hiring process. EORs have the technology and the resources to handle hiring, onboarding, payroll, and more. This can cut your operational costs and free your teams to work on core business functions.
• Improve relationships with contractors by paying on time and efficiently handling these complex arrangements. For example, FoxHire offers a state-of-the-art technology portal where contractors can log in, record time, request time off, or ask questions. Contractor onboarding is simpler and they’re always paid on time. Our software tools create efficiencies in our contractor relationships that take better care of this important part of your workforce.
Hiring can be a hassle, but an EOR can free up your time and lessen the risk of being penalized for making a compliance mistake around labor or taxes. For most companies that partner with us, these are two of the biggest reasons working with an EOR is a no-brainer.
Why Should You Consider FoxHire
If you’re considering outsourcing your hiring functions, FoxHire is a leading provider of services that streamline this portion of your business. The engine that drives us is our simple-to-use but highly intuitive software that makes it easy for employees and companies to manage their relationships and the work at hand. Contact our firm to find out how we can help your business.
