Week of Feb 13, 2023 – Latest happenings in EOR PEO
In times of a downturn, it is incredible how the sentiment in the EOR PEO market continues to be strong.
Everyone is becoming an EOR
EOR’s rising trend is unmistakable.
It isn’t just new companies such as Agility PEO and Listo, but even entrenched HR (human resourcing) companies that are making inroads into the EOR PEO space. From a demand side, it seems that these companies are riding the wave. From a supply-side perspective, there are many reasons.
Increasing shareholder value
by demerging EOR activities into a new business. Aadmi did just that. It is a leading enterprise technology provider. Aadmi announced a spin-off of their Employer of Record (EOR) services into a new entity called Engage Anywhere.
Extending existing services
You can now hire full-time workers through the gig worker platform Upwork Inc. Upwork is very popular among startups and small companies to hire gig workers who can help out with small tasks as well as larger projects. Upwork is now going one step further by enabling full-time hiring for companies. One of the plausible reasons is that companies that hire gig workers tend to hire them full-time, eventually. So, it is logical for Upwork to go forward with that. Does Upwork also serve as an Employer of Record (EOR) in offering this? If you know the answer, do enlighten us.
Diversification
1st commercial credit is a supply chain financing company with a focus on SMBs. It is now entering the Employment of Record (EOR) business. It is to help some of its existing customers that are less than 2 years in business and thus do not qualify for support from most EOR service providers. It is an opportunistic move by 1st commercial credit.
An African EOR
This news piece came in through a PR network. But, we found it interesting since it talked about a long-time two-decade-old EOR player from Africa – Workforce Africa.
Here is the news we picked up.
The PR news plug talks about how Nigeria-focused EOR PEO is expanding to other African countries to consolidate its credibility.
Save tax with an Arlington PEO?
This interesting news piece isn’t getting the internet chatter, we would have liked. After all, who doesn’t want to save taxes? Especially, if you are an early-stage company that would prefer using dollars for investments than taxes.
Here is the news we picked up.
Arlington Economic Development (AED) wasn’t able to help a local tech business take advantage of its “high technology business corridor” tax concessions. The reason – the tech company was using a Professional Employer Organization (PEO). Thus, the tax assessor’s office wasn’t able to confirm if the tech company fulfilled the criteria for the tax concessions.
The county board is supposed to consider revisiting the criteria based on the request from AED and the Commissioner of Revenue. A positive development will add another benefit to the list of PEO Advantages. Nevertheless, it will also increase the pressure to conform to peo risk management. Because tax matters are an unnecessary distraction from usual business.
Atlas EOR launches in Brazil
Forbes is increasing its coverage of EOR PEO developments. In addition to thought-leadership articles, it is also covering the latest news on EOR PEO.
HRtech Atlas raised a $200 million Series B round in September 2022. According to the Forbes article, Atlas is investing in its global workforce management platform and parallelly opening offices across the world.
Here is the news we picked up.
Go ahead and read about the potential of the Latin American labor market to enable a global workforce. The news article also carries an interesting story of how the Atlas head stumbled on the EOR PEO opportunity.