Investors are pouring cash into startups at the intersection of payroll and HR to help businesses hire remote teams internationally. We explore how remote hiring works and potential new disruptors.
The rise of remote work is upending the process of recruiting and hiring new employees.
When businesses want to add employees and contractors in new countries, hiring is typically done through a third party called an Employer of Record (EOR).
Technically, EORs become the legal employer for tax purposes, sparing the need for local incorporation and minimizing compliance risks. Often these EOR entities handle the administration of payroll and benefits, which vary country by country.
With Covid-19 accerating the rise of distributed work, new startups are emerging to provide EOR services. Venture-backed companies like Deel, Remote, and Panther are helping companies hire international employees and contractors. All three startups raised the bulk of their funding in 2020.
We explore this trend below.