The Future of Work: Embracing Remote and Hybrid Work Models with an EOR
As the nature of work changes, employers must do their best to adapt to how business is done, and more specifically, where business is done.
The rise of remote and hybrid work models has made it necessary for companies to design a ‘Future of Work’ strategy that lays out how they will manage a borderless, globalized workforce. For many employers, partnering with an Employer of Record (EOR) is the easiest way to adapt to a workplace that is growing outside of the office, and in many cases, across international borders.
Here’s how EOR providers are supporting the future of work.
Why is the Employer of Record (EOR) market growing so rapidly?
If you aren’t currently working with an EOR, you may be curious how (and why) the EOR market is growing so rapidly — and why should you care?
Well, in a recent survey of HR decision-makers across the UK, UAE, Singapore, Australia, and the USA, Atlas found that 8 in 10 (82%) of companies agree that recent global layoffs have made them consider expanding into new markets for the right talent. This is especially the case for companies in Singapore (90%) and UAE (83%).
This is backed up by a separate survey on borderless hiring trends conducted by People Matters, in conjunction with Atlas, where it was found that 64% of the companies surveyed noted that they were expanding their business operations globally.
Furthermore, nearly 86% of the respondents said that they were looking for middle-level talent globally, indicating the high competition for experienced and skilled workers.
Interestingly, the respondents to the same survey identified in-country compliance as the biggest challenge to these global ambitions, with almost half of those surveyed citing it as a major roadblock to their global expansion plans.
This is one of the main reasons why many organizations are turning to EOR services as an agile solution to access the global workforce. Over half (52%) of companies surveyed by Atlas said that they struggle with finding the right talent when entering and hiring in a new geographic market.
Meanwhile, according to People Matters, a majority of employers are looking for a service provider or partner to engage and hire the best talent, while only 35% of the companies said they would invest their own capital and time in hiring borderless talent.
The Role of an Employer of Record (EOR) in Global Workspaces
According to the 2023 Mercer Global Talent Trends report, 96% of organizations expect to redesign their HR functions, and 54% expect to do so by using agile HR resources to meet evolving HR project/enterprise needs. This will require stepping outside their comfort zones, driving impactful change, and reaching beyond borders to engage the right mix of the best skills and talent available.
Further, leveraging independent contractors and workers that do a job that lasts a specified period of time will be a favored approach to speeding up agile talent strategies moving ahead. 60% of executives expect gig workers to replace traditional full-time workers substantially.
Given these dynamics, it’s no surprise that the global EOR solution has seen unprecedented adoption over the past five years, with a massive opportunity ahead of it to help every HR organization facilitate the strategic direction of their businesses.
How EORs Support Remote Work and the Changing Business Landscape
The sudden shift to remote and hybrid work is still causing great pains for employers who don’t have the headcount or budget to manage a global workforce. Here’s why it makes sense to partner with an EOR and streamline your business operations:
You Need to Retain Talent
The cost of hiring a new employee is many times higher than the cost of keeping one. However, in the current global climate, where there is a distinct shortage of skilled workers across many key sectors and geographies, we can assume that the cost of losing an employee has become much greater.
The resulting landscape has changed HR professional priorities when it comes to keeping skilled talent. As always, compensation remains the number one factor in retaining the best workers, but HR professionals also need to focus on tactics that enact a flexible future of work strategy, including:
Remote, hybrid, and flexible working policies,
Internal learning and development training for upskilling, and
Commitment to DEI (Diversity, Equity, and Inclusion) initiatives
Partnering with an EOR makes it easy to facilitate all of the above strategies, as well as accommodate workers’ needs and enhance their experience by managing the entire employee lifecycle from end to end.
You’re Trying to Support Digital Nomads
Attracting and keeping talent might mean employing a worker who is a digital nomad. Digital nomads take remote work and global mobility to the next level, traveling and working around the world by taking advantage of digital nomad visas in places like Portugal, Greece, and Dubai. Many are freelancers, but demand is growing from employees that want this lifestyle while working for one employer.
Companies focused on employee experience and building a robust ‘Future of Work’ strategy can offer visa support and clear policies to employees who want to become digital nomads. An EOR service provider can guide on visa support for these traveling remote workers, and, if a digital nomad decides to settle somewhere, the EOR service can simplify that decision for everyone by taking on the role of local employer.
You’re Struggling to Hire and Manage a Remote or Hybrid Workforce
With a potential split emerging between employees and employers on where the future of work will take place, it would serve all organizations well to have HR strategies in place for facilitating in-office, remote, and hybrid working arrangements.
Make no mistake — while employees might return to the office in some regions and industries, the future of work embraces flexibility, especially around remote work and building a global remote workforce.
Emerging EOR Trends: What HR Decision Makers Need to Consider in the Next 12 Months
So, what does the future of EOR service adoption look like?
High growth is predicted for the EOR services industry in the coming years, but what will it take to create that market? NelsonHall reports that the key criteria for customers looking to partner with an EOR are:
In-country coverage and support
A strong international HR and pay
The expected demand for EOR services reflects a desire for international expansion. While the growth mindset has abated in 2023, other factors such as tight labor markets and talent shortages may make up the difference. Despite ongoing economic uncertainty, however, using an EOR remains a cost-effective hiring solution.
[H2] Prepare for the Future of Work with an Employer of Record
The inevitable shift towards more flexible work models can seem like a logistical nightmare at first glance — but it doesn’t need to be.
By partnering with an Employer of Record, you can accommodate international employees, adapt to changing working conditions, and pursue global expansion without putting pressure on your HR department.
Want to prepare for the future of work?
Find out more about how Employer of Record services are transforming the future of work by downloading Atlas' Global Employer of Record Report: 2023.
In this, you'll learn about:
The Changing Dynamics of the Global Talent Landscape: Understand the forces driving change and how businesses can adapt.
The Rise of Remote and Hybrid Work Models: Discover the benefits and challenges of these models and how to manage them effectively.
The Role of Employer of Record (EOR) Services: Learn how EOR services can streamline your business operations and ensure compliance.
What’s Coming Next: Forecasting the major trends and technologies that will define the next 12 months.
Download the report, for free, by filling out the form below.