Organizations worldwide are building teams that span borders and time zones—and it's changing how we think about workforce strategy. Traditionally, companies set up entities in each country where they wanted to hire. But that model is under pressure. With rising costs, increasing compliance risk, and the need for speed and flexibility, many HR leaders are asking: is there a better way?
Drawing on data from The Global Atlas: Challenges, Strategies, and Solutions for HR Leaders in 2025, the findings are clear. More companies are rethinking owned entities and exploring flexible workforce management models – like Employer of Record (EOR)– that help them move faster, reduce risk, and scale with confidence.
The rise of flexible alternatives in global hiring
More companies are looking beyond borders to find the best talent — whether to find specialized skills, cost advantages, or global growth. While 80% of organizations with international teams still use owned entities, many are finding the operational burden harder to justify.
In fact, 31% of companies with cross-border teams say they plan to explore alternative models over the next 12-18 months.
That openness is telling. No respondents ruled out using new workforce models—a sign that global hiring is entering a more flexible era.
Some of the alternatives gaining traction include hiring independent contractors (used by 56% of respondents), forming joint ventures, or working with local partners. But the fastest growing option? EOR providers.
In the UK and across Europe, nearly half of businesses (46%) already partner with EORs, and this number is expected to climb. Why? Because EORs help organizations navigate complex local employment laws, reduce costs, and stay compliant, while also offering companies the agility to adjust as needs evolve.
How regional differences are shaping EOR adoption
Adoption of EOR services varies by region and reflects different approaches to risk management and strategic priorities.
North American organizations still rely heavily on fully owned entities — 82% use them — while only 27% currently partner with EORs. Independent contractors play a role too, being used by 45% of companies.
In contrast, UK and European companies are moving faster toward flexibility. While 81% maintain owned entities, 63% use independent contractors, and nearly half (46%) have adopted EOR solutions.
As economic uncertainty grows and compliance gets more complex, we expect these gaps to close. Companies across all regions are increasingly turning to EOR providers to support international growth while controlling risks and costs. Atlas data shows 56% of North American companies and 42% of British ones plan to consolidate their owned entities in the next 12-18 months, in favor of models that are better suited to the realities of global business today.
Choosing the Right Workforce Management Model
There's no one-size-fits-all solution. Owned entities give you control, but they also come with significant legal, financial, and operational overhead. Independent contractors can be fast and flexible, but they carry risks—especially around local contractor misclassification laws.
That's why many HR leaders are choosing EOR providers like Atlas.
With coverage in over 160 countries, Atlas helps businesses hire quickly and compliantly—without the worries of setting up an entity. That means you can enter or exit markets faster, onboard new employees with ease, and stay focused on what matters for your company: growth.
Partnering with Atlas means reducing overhead costs, simplifying payroll, and staying ahead of regulatory changes. The platform takes care of tax collection, work permits, and local labor laws—and with experts there to guide every step of the way.
A Smarter Path to Global Growth
The way we hire globally is evolving. And for HR leaders navigating these changes, the goal is clear: find a model that balances speed, compliance, and cost—without sacrificing control.
That's exactly what EOR makes possible.
At Atlas we understand the pressures and opportunities global organizations face. That's why we created the Global Atlas Report 2025—to bring you real insights of 138 senior HR professionals across North America, the UK, Ireland, the Netherlands, and rest of Europe.
Whether you're just starting to expand internationally, or already managing a global workforce, Atlas will help you scale smarter.
Download the report for strategies, challenges, and solutions shaping global hire in 2025.