Our thanks to the contributing partners sponsoring this article G-P, Papaya Global, Velocity Global, and Safeguard Global.
Companies today are facing critical challenges: a potential looming recession, global market volatility and labor shortages. But new technology and a growing acceptance of remote work is breaking down geographic barriers to global business. The result is labor without borders – a model that offers both employers and employees the opportunity to ride economic storms, unlock opportunities and even find new revenue streams in other markets: the Employer of Record (EOR) category.
Industry Outlook
As the world embraces remote work, the limiting concept of hiring by geography has forever changed, and firms across several verticals are seeing first-hand the benefits of compliantly hiring talented workers anywhere in the world. These advantages include flexibility in hiring, access to skilled talent that might not be available in local markets, opportunity to build a diverse company culture, and new revenue opportunities.
Forecasts of the growth of global remote work are remarkable. Industries supporting remote workers are expected to grow at a searing pace—CAGR of 34%—between 2021 and 2026 according to research firm NelsonHall. Looking at the big picture and the total addressable market (TAM), the sector sits at the nexus of huge opportunity—one that McKinsey approximates to have the potential for over $100 billion globally. This puts the industry in a unique position to address the current global challenges by meeting the demands of the modern employee ahead of the Fourth Industrial Revolution.
Despite groundbreaking developments in technology and service and searing growth predictions, the world of global employment support remains an emerging sector. International expansion comes with a plethora of requirements and to understand each step—and how to do it compliantly—is essential to an organization’s success. From compliance to culture, employee expectations to tax requirements, one misstep can have a cascade of consequences.
So, what does the industry need to boost customer adoption and demonstrate the proven value of work without borders?
Industry Collaboration
EOR Industry leaders including G-P, Papaya Global, Velocity Global, and Safeguard Global have partnered with Gesmer Updegrove LLP and Virtual Inc to create the Global Employment Innovation Organization, or “GEIO”. GEIO is a first-of-its-kind, international nonprofit consortium that aims to mature, elevate, and expand the ecosystem of global employment service providers.
The consortium is set to bring together companies of every size and every sector involved in global employment—vendors, customers, platforms, consultancy firms, global law firms, payroll companies and immigration consultancy services—to provide leadership and structure within the industry through standardization, advocacy, education, and joint research. Each of these initiatives is aimed at helping the whole industry better serve its customers.
Consortiums are not new and have been instrumental in helping other industries form. Think of automotive and technology standardization around such basics as seat belt shapes and the USB port. For global employment, GEIO will help establish an economy of scale to make the marketplace more competitive, increase customer adoption and category expansion, and secure long-term sustainability. Critical aspects will be standardized including data privacy and risk management.
GEIO will also drive awareness of issues among governments and regulatory bodies to shape policies with a vendor-neutral voice through an established government affairs committee.
Remote work is driving the growing global employment industry and as we move forward, employers and the employees everywhere need to have full confidence that their rights and obligations are fully protected. The consortium will welcome membership from the provider side, but also among the growing ranks of global remote workers. Participating companies and individual members will have a role in shaping the standards and government relations initiatives while contributing an important voice to the industry.
This is an exciting and critical moment in global employment. Borderless business is the future of work, and companies offering technology and services in the sector need to work together to chart a sustainable go forward plan.
For more information about GEIO, please contact us on LinkedIn or info@geioglobal.org.