Deel and ADP continue to capitalize on EOR growth

Home » News » Deel and ADP continue to capitalize on EOR growth

Table of Contents

close

Week of Jan 23,2023 – Latest happenings in EOR PEO

Deel dominated the newswires this week for the right reasons but got flagged for a not-so-right reason. ADP released its quarterly numbers and continues to grow in high single digits.

Deel turns profitable to hit $ 12 billion valuation but gets flagged

Kenrick Rai, a journalist at Forbes, writes about Deel’s scorching growth in 2022. Deel hit $295 million in annual recurring revenue (ARR) by the end of 2022. Wait till you read further. Deel was at $4 million ARR in January 2021. ARR jumped 70 times.

Deel also confirmed that they raised money from Emerson Collective at a $12 billion valuation. In addition to Emerson Collective, Deel also has Andreessen Horowitz and Spark Capital on its cap table.

Deel’s performance is stunning. It operates in the employer-of-record EOR/PEO market which already has prominent entrenched players such as ADP, Papaya Global, and Rippling, to name a few. To generate such growth in a mature market when the economy is soft is nothing but commendable. Investors seem confident paying for a demanding valuation.

Here is the news we picked up about Deel.

In the same week, however, Deel got flagged by a lawyer in Florida. According to the online newspaper, Florida Politics, David Weintraub filed a complaint with the Department of Business and Professional Regulation (DBPR) about professional employer organizations (PEOs) and alleging improper operating practices by Deel. Here is the newspaper along with a copy of the complaint.

We will continue to track the above complaint.

ADP reports stellar quarter numbers

In keeping with the industry trend of growth in the HR, payroll, EOR, and PEO space, Automatic Data Processing i.e. ADP grew almost at the rate of 10% year over year. All service lines including PEO services grew at the same rate.

The outlook continues to be strong and ADP seems confident to repeat its feat.

Here is the news we picked up about ADP’s results.

Forbes talks about EOR benefits and Lexology points to risks 

  • Forbes through this article rightly points out the trend of hybrid staffing at the workplace. It leans on why a single vendor is best positioned to deliver better value to companies. The article refers to the need for EORs when taking this approach.
  • Lexology through this article hits upon regulatory aspects to consider when engaging an employer of record (EOR). The post aptly states that the legal landscape surrounding EORs is complex. EORs’ methods might on more occasions than one, go beyond compliance with local employment law.

Do not miss the revealing blog on PEO vs ASO vs HRO.

Table of Contents

Recent Blog Post

blog read more

In the ever-evolving landscape of Human Resources (HR), finding innovative solutions to streamline operations and maximize efficiency is a constant

editor

Editor

blog read more

Introduction In today’s fast-paced business world, Human Resource professionals face a multitude of challenges. From managing payroll and benefits administration

editor

Editor

blog read more

Introduction The Human Resources Outsourcing (HRO) industry has been experiencing significant growth in recent years, driven by various factors. Among

editor

Editor