EOR in APAC: 2024 Outlook

The Asia-Pacific region boasts numerous talented workers and innovative companies. As the demand for remote work increases, more businesses seek to hire employees in this region. However, the complexity arises from varying laws and paperwork rules across Asia-Pacific countries.

To address this challenge, Employers of Record services assist companies in hiring staff more seamlessly by managing the legal and administrative processes on their behalf. This streamlined approach enables businesses to access skilled workers in the region with reduced difficulty while expediting the onboarding process .

Let's Dive Into the Top Trends and Predictions Shaping the EOR Landscape in APAC in 2024

Hyper-Specialisation

In the past, Employer of Record services were very general - they used a broad, one-size-fits-all approach across Asia-Pacific. But companies today demand more specialised help that understands their specific needs in certain APAC countries and industries.

For example, a manufacturing plant expanding into Vietnam requires an EOR that knows the laws, taxes, payroll rules etc for the manufacturing sector there or a tech company setting up in Singapore needs an EOR specialised in the IT industry and policies in that country. Similarly, a retail unit in Indonesia would look for expertise in Indonesia's rules for the B2C vertical.

The trend is towards niche, tailored EOR services with deep knowledge of the labour landscape not only in popular APAC countries but also specialised expertise in particular industries and labour laws within those countries. This means companies get more relevant help to navigate the local environment rather than a generic, one-size-fits-all service. The rise of targeted, specialist EORs makes it easier for businesses to expand in the Asia pacific region.

Use of AI in Recruitment

The integration of Artificial Intelligence (AI) in recruitment processes can significantly expedite and enhance the hiring process. AI algorithms can swiftly sift through vast pools of resumes, identifying qualified candidates based on predetermined criteria, thereby reducing the time spent on manual screening. This efficiency allows organisation to focus on strategic decision-making and candidate engagement, leading to faster expansion. Ultimately, the synergy between AI recruitment and EOR services enhances workforce agility and supports companies in navigating the complexities of global talent acquisition and management.

Rise of Compliance-as-a-Service

Employer of Record (EOR) services are expanding beyond just handling payroll for companies. Today, businesses need more comprehensive compliance assistance when setting up operations across Asia-Pacific. For international talent, EORs are offering immigration services like work visas, residence permits and relocation support. This ensures foreign employees are legally approved to work in the local country. An experienced EOR provider will also provide consultancy service on labour contract dos and don'ts, onboarding and offboarding process as well as other common industry norms to help business retain its employees. 

As data privacy regulations tighten in APAC, EORs also provide guidance on collecting, storing and securing employee data appropriately based on each country's norms. Additionally, with labour laws varying widely across APAC, EORs offer consulting on local regulations around leaves, overtime, terminations, employee benefits and more to ensure full legal compliance.

In essence, the scope of EOR services is expanding from simple payroll functions to complete compliance management and labour contract advisory. Companies are realising legal and regulatory complexity is increasing across the diverse APAC region. By partnering deeply with specialist EORs, businesses can forego the need to build large local legal/HR teams in every APAC country. Instead they benefit from the EOR's existing on-ground expertise to steer clear of compliance violations. This gives companies greater peace of mind and ability to focus on core operations when expanding across the high-growth APAC region.

Emphasis on Employee Experience

With companies competing fiercely for skilled talent in Asia-Pacific countries, Employer of Record (EOR) services need to provide more than just legal compliance assistance. Top employees today expect good benefits, development opportunities and strong company culture alongside their pay. EORs should ideally work with client companies to provide:

• Localised employee benefits tailored to worker preferences in each APAC country. This includes things like healthcare plans, retirement savings, commute allowances and more.
• Strong engagement initiatives, clear company values and robust grievance mechanisms for workers despite having distributed, multi-country teams. This builds brand affinity and community feeling that attracts talent.
• On-call support services in native languages for queries about payroll, technical issues, HR compliance etc. This reassures workers handling tasks themselves in new systems.

Essentially, beyond keeping companies legally compliant, EORs now need to help them build an attractive employer brand through localised, relevant benefits and good employee experiences. This is crucial for talent retention and avoiding direct competition from big tech giants expanding in APAC. Partnering with forward-thinking EORs can be a competitive advantage for companies in managing payroll, tax compliance etc. efficiently in Asia Pacific countries.

Handling multi-currency for business in a seamless manner

Multi-currency payments involve the handling of transactions in various currencies. Engaging an Employer of Record (EOR) provider facilitates business owners in disbursing payments to their staff in their respective domestic currencies. EOR provider will consolidate payments based on the major currency chosen by the business owner. 

Numerous factors influence currency exchange rates, including economic stability, supply and demand dynamics, and trade conditions, leading to potential complications such as high transaction fees and tax considerations.

EOR providers specialising in multi-currency payments offer businesses a means to mitigate the impact of these volatile factors, enabling them to execute international payments to their foreign employees in a more efficient and cost-effective manner.

Predictions for 2024 and Beyond

• The APAC EOR market will experience double-digit growth due to rapid regional economic expansion and increased adoption of flexible work models.
• Consolidation is on the horizon, with larger players acquiring niche EORs to broaden their geographic reach and service offerings.
• Technology will disrupt the industry, introducing innovative platforms connecting companies with the right EOR partners and automating complex compliance tasks.

Conclusion

Explore endless possibilities with Innovare Group as your trusted APAC EOR partner with their two decades of experience. Elevate your global expansion and workforce optimisation journey by choosing a partner that aligns with your needs, embraces cutting-edge technology with AI based recruitment, and prioritises compliance and employee experience.

Ready to thrive in the fast-paced world of APAC EOR? Unlock your potential with Innovare Group – where agility and adaptability pave the way for success.Take the first step towards a seamless global workforce experience. Connect with Innovare Group today.