By Joseph O’Shea 

An Employer of Record (EOR) is a helpful tool when it comes to managing your temporary or indirect workers. But right now, that’s all it is – a tool. 

As trends shift and demands increase, many companies are looking for more than that. They want their EOR to do more for them, or want to find a different workforce solution that better meets their needs.  

That’s where the new EOR comes in. An evolved, future-focused EOR will offer the same benefits as the current model, but will go above and beyond, serving as more of a partner than just a service. In this blog, we’ll take a closer look at the future of EOR and what companies can expect. 

The Current State of EOR 

Before we consider how EORs will evolve in the coming months and years, we should first look at how they currently operate. 

EORs are third-party organizations that act as the official employer of temporary, part-time, or any other indirect workers. Unlike staffing solutions that focus on sourcing and hiring, an EOR provider typically focuses on what happens after you’ve identified the candidate you want. 

An EOR provider will make contact with the workers you need, then take on the time-consuming and complex administrative tasks that often overwhelm internal HR teams. Most EORs handle: 

• Background Checks 
• Onboarding 
• Contract Management 
• Payroll 
• Benefits Administration 
• Employee Satisfaction Checks 

In addition to saving time and money by outsourcing those tasks, many companies use EORs to reduce potential legal risks. Providers are much more well-versed in the different laws and regulations that need to be followed in different regions and will ensure compliance. As the statutory employer, they also assume liability for any employment issues. 

While this current EOR model is still effective when it comes to relieving the burden put on internal teams, many companies are now finding they need more from their EORs. This means EOR providers will need to adapt so they can continue to meet the needs of the organizations they’re working with. 

The Evolved EOR 

As companies continue to face external challenges and internal pressure to keep up with increasing demand, they’ll be looking for more support from their talent solutions. For EORs, that means stepping up and becoming a partner to the companies they work with. 

Moving forward, evolved EORs will act as more of an integrated talent supply channel, not just a passive payroll processor. They will empower companies to work smarter with the tools, resources, and people they already have at their disposal.  

This shift doesn’t mean EORs won’t provide the same baseline services that help save time and money. It means they’ll continue to provide those services, but also go above and beyond to help companies think more strategically.  

Let’s take a closer look at the benefits of this strategic approach. 

Better Decision Making 

As a collaborative partner, EOR providers will foster more strategic conversations about workforce logistics. This will help the organizations they work with get a better understanding of their workforce and their needs, and give them the knowledge they need to make the right decisions that will help them reach their goals. 

Improved Cost Savings 

The EOR will also build on its existing benefits as it evolves, providing more time and cost savings. Having a better, more in-depth understanding of a company’s workforce needs will allow an EOR partner to identify known talent who are already aware of the company’s goals and procedures. These workers can be redeployed much faster and at a lower cost.  

Faster Deployment 

While strategy is the main focus of this evolved workforce solution, upgraded technology and analytics will also play a role, helping to better track shifts in the workforce and talent market. Forecasting these trends and having better insights will give companies the power to adapt more quickly and update their strategies to overcome challenges. 

Is Your EOR Ready for the Future?  

Companies will continue to face challenges and workforce shifts moving forward, and it’s time for EORs to evolve into more of a strategic partner. If you’re currently working with an EOR that isn’t positioned for the future, now is the time to re-evaluate and find the right partner who will help you work smarter and make better decisions.  

At Broadleaf, we’re already building on our existing EOR services to determine what more we can do for the companies we work with. Our team is well-versed in workforce shifts and prepared to serve as a partner that will help empower you to better understand your needs so you can reach your goals. 

If you’re ready to work with a future-focused EOR that’s prepared to adapt, contact us to see what we can do for you.