History of the EoR model
From US PEOs to global EoR platforms — four decades of triangular employment.
US origins (1980s-1990s)
The EoR concept emerged in the United States in the 1980s-1990s from Professional Employer Organization (PEO) structures, designed to mutualise HR obligations across multiple small businesses. The PEO became the legal employer for payroll, benefits and compliance purposes, while the client company retained operational direction.
Globalisation (2010s)
The 2010s saw the model extend to cross-border contexts. Globalization Partners (founded 2012) pioneered a global EoR offering, soon followed by Remote, Deel, OysterHR, Papaya Global, WorkMotion, Multiplier and Velocity Global. The platform-driven approach made it possible to hire in dozens of countries without local entities.
COVID-19 acceleration
The COVID-19 pandemic (2020-2022) drove a structural shift to remote work. Companies that had been hiring in their home country suddenly found their talent pool was global. The global EoR market grew from USD 4.4bn in 2023 to USD 5.5bn in 2025 [1].
Today's market
More than 150 EoR providers operate globally. The market is structured between large generalist platforms and country specialists. Luxembourg, a small but high-value market, is primarily served by local specialists familiar with cross-border rules and collective agreements.
Structural drivers
- Generalisation of distributed teams
- Search for compliance in cross-border employment
- Speed of market entry without setting up subsidiaries
- Fractional executives and senior contracting
- Talent scarcity pushing companies to hire wherever the talent lives
Voir aussi
Références
- ↑ [1]FMC Group, EoR market sizing 2023-2025.