EoR solutions are in a hurry to build and buy their way to “all-in-one” HR platform status. One provider is consciously taking a different path. Will it work?
In the grand scheme of things work-wise, payroll is like your local power utility. Pretty dependable, a bit boring, and any disruption is an absolute nightmare for the customer.
“When payroll fails, it’s not a support ticket. It’s someone’s rent. It’s someone’s hospital bill. It’s someone’s school fees.” Monish Munshi, CMO & Head of Operations, Multiplier
This was how Monish Munshi, CMO at Multiplier, kicked off their Beyond Borders analyst day earlier this summer. And I’m pretty sure he’s right. I am hard-pressed to name another people process in a modern organization that operates under the same kind of regulatory and operational pressure as payroll. Of course, the pressure and complexity of payroll only multiplies (see what I did there?) when executing on a global scale.
This is exactly why EOR solution providers like Multiplier have grown so quickly in recent years.
What is EOR again?
An Employer of Record (EOR) is a new-ish category in HR tech that enables a company to hire, pay, and stay compliant with employees and contractors in countries where it has no legal entity.
Essentially, if a company is based in country A, it might work with an EOR to hire and pay talent in country B. The EOR is the official employer in country B and is legally responsible for ensuring that all hiring, payroll, benefits, etc. are administered in accordance with the laws of country B.
This combination of technology and local compliance expertise is proving transformative for employers and talent alike because it is reducing the friction traditionally associated with finding and hiring talent across borders.
Competitive Landscape
While this is by no means an exhaustive market review, here are a few of the names you’re likely to come across in the EOR space.
Multiplier
- EOR coverage in 150+ countries with 120+ owned local entities
- Also offers: contractor management, Contractor of Record, global payroll, immigration/visa support, expense management, PTO tracking, ESOP administration, and US PEO
Deel
- EOR coverage in 150+ countries with owned legal entities across 100+ of those countries
- Also offers: Deel HR (its own HRIS), Global Payroll, US PEO, contractor management, immigration/visa support, IT/equipment provisioning, and AI-powered HR agents
Remote
- EOR coverage in 85+ countries with 100% owned local entities and no partner intermediaries
- Also offers: global payroll, contractor management, benefits administration, a built-in HRIS module, equity/stock-option management, and IP-assignment tooling
Rippling
- EOR coverage in 80 countries through a mix of owned and licensed entities
- Also offers: full HRIS, native domestic payroll (US/UK/Canada/Australia), a built-in ATS (Rippling Recruiting), IT device management/MDM, and spend management with corporate cards
Papaya Global
- EOR coverage in 160+ countries through vetted in-country partner entities (no owned entities by design)
- Also offers: global payroll consolidation with BI/analytics reporting, proprietary payments infrastructure (Tier-1 banking, multi-currency wallets, crypto payroll), and contractor management
Oyster HR
- EOR coverage in 180+ countries through a mix of owned and partner entities (no public breakdown on the split)
- Also offers: a separate Global Payroll product for companies with their own entities, contractor management, compensation benchmarking, leave management, and Oyster Academy for employee upskilling
A Clash of Strategic Visions?
Many EOR solution providers are working to broaden themselves into platforms that can “do it all.” It’s not a bad strategy per se, and it is music to the ears of investors eager to own a piece of the next Workday, SAP, or Oracle.
And yet, Multiplier is rejecting the platform play in favor of a different vision.
“Every asset class has an exchange — currency, stocks, commodities. But have you ever heard of a work exchange? That’s what we want to build: the global exchange for work.” — Sagar Khatri, Co-Founder & CEO of Multiplier
Rather than building a platform to replace or host all other work tech in a company, Multiplier wants to build the infrastructure that companies everywhere rely on to access talent across the globe with flawless regulatory compliance.
In other words, they want to be the Stripe of global work rather than the next Workday of HR.
EOR: The Next Big Platform Play or Next Big Financial Infrastructure Race?
It’s always hard to predict the future.
Is Multiplier marking the right play? Or are Deel and their increasingly crowded field of competitors closer to the right track?
I suspect there’s merit to both ideas, but success or failure may very well come down to the fundamentals – execution/delivery, customer experience, iterative improvement, and strategic partnership.
Keep watching this space to learn more.
Written by: Alan Mellish
Alan Mellish is a seasoned HR industry analyst, researcher, and strategic content leader with more than 15 years of experience helping organizations understand the changing world of work. Combining deep expertise in HR technology, market trends, and buyer behavior with a talent for transforming complex ideas into clear, compelling narratives, Alan helps leaders make informed decisions while creating content that educates, inspires, and drives meaningful business impact.
George Rogers is the Chief Strategy Officer at Lighthouse Research & Advisory. He is an author, coach, and globally renowned keynote speaker acclaimed for delivering compelling insights on cultivating purpose-driven, profitable businesses. As a leader developing inclusive and motivating workplace environments, he consistently provides transformative perspectives and guidance to organizations worldwide. Over the past two decades, he has dedicated himself to inspiring leaders and transforming workplace cultures.
In his book Champion Your Purpose, we learn that finding purpose in life looks different for everyone, and very few will find the exact common purpose that aligns the exact same. He provides a step-by-step approach to help readers identify their purpose and align it with their personal and professional goals.
His research focuses on leadership and its impact on performance, engagement, culture, mental health, inclusion, and belonging. If you ask him what led him to the HR space, he will remind you that his passion and purpose are championing people.
With over 25 years of leadership and keynote speaking experience, he has inspired, empowered, and challenged every audience —virtually and in person —to discover their purpose in the workforce, learn how to Champion Your Purpose individually, and lead the life they love.
