markets. Businesses that had succeeded at home would employ EORs as a low-risk way to hire a country manager or sales lead abroad, without setting up a local entity. Back then, clients’ expectations were modest: ensure employees were paid, keep tax authorities satisfied, and prevent
compliance issues. Many were happy to pay a premium simply to avoid the headache of local administration. Fast forward to today, and the environment looks very different. Competition in the EOR space has intensified, and the sector’s value has grown significantly. If a provider does no more
than process payroll, clients quickly look elsewhere. The industry has been forced to mature: trusted advisory support has become a differentiator. There are strong commercial reasons for this evolution. When providers take time to understand a client’s recruitment strategy,
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ISSUE 16 GLOBAL PAYROLL MAGAZINE
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