The human resources (HR) technology industry is growing rapidly. The market, valued at $23.32 billion in 2021, is projected to reach $38.36 billion by 2030. The digital revolution is driving tech for global hiring, as there is increasing demand for automation, integration, and end-to-end solutions to keep up with societal, economic, and business changes.
However, according to a Gartner survey, 56% of HR leaders said HR technology solutions and strategy do not meet their current and future business needs. Many HR leaders also expect more from Employer of Record services, especially with respect to new technologies. Tech advancements in EOR services, including machine learning, AI automation, and predictive analytics, are transforming their capabilities, as well as what companies expect from their EOR.
Let’s examine tech innovations in global HR and EOR tech solutions, and what they mean for the customer and employee experience.
Tech Advancements in EOR Services
An Employer of Record (EOR) acts as the legal employer of a new hire, taking care of administrative tasks such as payroll and taxes. At the same time, your company retains day-to-day supervisory control. Administrative tasks include (but are not limited to) compliance with local employment laws, payroll processing, tax filing, benefits administration, visa processing and even managing employment contracts.
Tech-enabled global HR services make it possible for companies to be more efficient across all human resource management functions. Technology can also augment EOR services. EOR tech solutions are automating traditionally human-powered tasks. Recruitment, payroll, benefits administration, and other HR tasks are being seamlessly integrated across platforms. HR professionals are able to access, manage, and analyze employee data to make data-informed decisions.
Employer of Record Technology Trends
The following tech trends are driving higher expectations of EOR service providers:
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Global expansion support: Some Employer of Record providers offer AI-powered tech for global hiring to support customers’ global expansion efforts. They can assess labor markets in different countries, streamline processes for establishing and managing global teams, and provide compliance with international employment laws and regulations.
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Streamlined onboarding: AI-powered EOR solutions automate the employee onboarding process. New hires can be integrated more efficiently and effectively via automated document processing and employee verification. AI chatbots are also available to automate HR support and answer frequently asked questions.
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Advanced predictive analytics: Machine learning and predictive analytics are improving forecasting and planning. Technology can make more accurate predictions on workforce demands, uncover insights on talent acquisition and retention, and forecast labor costs and budget requirements.
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Data-driven decision making: Predictive analytics and AI enable EOR providers to provide data-supported analysis on workforce performance, HR optimization strategies, and other employee performance matters.
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Payroll automation: AI-powered payroll software reduces global payroll processing times and improves issue resolution. It ensures more accurate payroll calculations and tax withholdings by automating the detection and prevention of payroll errors.
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Automated compliance management: This ensures adherence to changing regulations and reduces the probability of human error. An innovative EOR can provide real-time information on changing labor laws to ensure compliance with hiring practices, payroll, and benefits administration and prevent non-compliance penalties.
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Customization of employee experience: AI and machine learning can customize each employee’s experience. Employees’ preferences and data analysis support personalization of benefits packages, training programs, and long-term development.
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Risk management: AI-powered predictive analytics identifies and prevents compliance issues, labor disputes, and other employer risks. EOR tech solutions enable employers to conduct comprehensive risk assessments and suggest proactive measures to lower these risks.
Borderless AI enables businesses to compliantly hire, manage, and pay talent worldwide without establishing a foreign entity. We alleviate the complexities and risks associated with hiring global employees with zero deposits, dedicated in-house support, and AI-powered global employment law resources.
Implications for Customers and Employees
Integrating AI and automation in Employer of Record Services has numerous implications for both customers and employees.
Implications for Customers
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AI-powered technologies support self-service and automated responses to questions, meaning more efficient service, reduced wait times, and on-call access to support
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AI analysis of data enables customers to easily and efficiently get information without additional overhead costs and excessive use of time
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Customers have access to in-house teams who can provide more in-depth support when needed
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AI-powered systems ensure customers receive more consistent service across all steps in the process
Implications for Employees
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AI-powered technology will handle repetitive and manual tasks, enabling employees to focus on solving complex problems, providing support, and engaging in more high-value tasks
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Since repetitive tasks are automated, employees will spend less time on these types of duties, which will improve job satisfaction and retention
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Employees will develop new skills (e.g., data analysis, AI management, problem solving) that enable them to work more effectively with AI systems
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Employees will have more immediate access to solutions, data-informed insights, and customer information, which will make them more efficient
Conclusion
Companies should expect more from their partnership with an Employer of Record. Tech advancements in EOR services, including machine learning, AI automation, and predictive analytics, are improving the efficiency and effectiveness of the employee management experience. An innovative Employer of Record can provide more data-driven, personalized services, as well as more strategic value, to become their customers’ partners in workforce management.
Borderless AI is a global payroll solution that leverages the power of generative AI to automate and speed up the process of onboarding, managing, and paying international team members. Book a demo today.
