When Software Can’t Replace Judgment: The Future of Employer of Record

Managing a global workforce requires technological precision—but with a human touch.

Everest Group study, future of employer of record

For years, the global employment industry has operated on a powerful promise: that technology alone could simplify the complexity of hiring across borders. But as the global race for digital and AI talent intensifies, regulations tighten, geopolitical risk increases, and employee expectations rise, that promise is being tested.

Today, we’re proud to share new research from Everest Group that validates what many HR and People leaders already know: automation is essential, but it’s not enough.

Our new white paper, Evolving Employer of Record (EOR): From Tactical Enabler to Strategic Workforce Partner,” explores how the EOR market is maturing—and why the next generation of global employment requires more than software.

The Automation Reckoning

“The global employment industry has spent the past five years selling a myth: that you can automate away the complexity of hiring across borders,” said Tony Jamous, Executive Chairman of Oyster. “The reality is that when labor laws change across multiple jurisdictions, when employees face sensitive HR situations requiring cultural context, when companies need strategic guidance on where to expand—these moments demand judgment, not just algorithms.”

Everest Group’s research confirms this shift.

Organizations today are navigating AI-driven skill shortages, regulatory tightening, and rising geopolitical volatility. In this environment, EOR is no longer just about enabling remote work. It’s about building resilient, borderless teams with confidence and care.

Everest Group identifies three levels of EOR maturity in the market:

  • Transactional providers focused on basic compliance
  • Operational enablers driving efficiency and scale
  • Strategic partners integrating advisory expertise, analytics, and governance into workforce strategy

“As the EOR market matures, organizations are increasingly moving beyond transactional use cases toward more strategic workforce models,” said Priyanka Mitra, Vice President at Everest Group. “Everest Group’s research highlights how organizations, particularly small and mid-sized organizations, are leveraging EOR to build resilience, manage regulatory complexity, and access global talent while building enterprise-grade workforce capability.”

The message is clear: technology alone doesn’t create resilience. Integrated human expertise does.

What Strategic EOR Looks Like

According to the research, strategic partners differentiate themselves in three critical ways:

Compliance becomes a competitive advantage
Not just monitoring labor laws, but proactively managing contract compliance and owning employment risk so organizations can expand without exposure.

Employee experience drives performance
Providing localized HR support, mobility guidance, and equitable benefits access so distributed teams receive consistent care regardless of geography.

Advisory informs business decisions
Offering expert consultation on market entry, workforce cost optimization, and organizational design so expansion decisions are data-informed and future-proof.

Josh Bersin, Global Industry Analyst and CEO of The Josh Bersin Company, recently sat down with Tony Jamous on his podcast to discuss the white paper’s findings, the evolution of global employment, and the future of EOR as a strategic capability.

“Building and managing a global workforce is essential to companies of all sizes, and this is a complex challenge. Oyster has pioneered the use of advanced technology coupled with global in-country HR and leadership support to redefine the value of an EOR, helping companies grow and scale, not only meet compliance needs.”

In his analysis of the Everest research, Bersin reinforces a key theme: the future of EOR is not transactional. It’s strategic.

From Research to Practice: Introducing People Partner Services

Research matters most when it leads to action.

That’s why we’re launching People Partner Services—a flexible, project-based advisory offering that extends Oyster’s HR expertise beyond EOR operations to your entire global workforce.

Our customers told us they needed more than operational support. They needed access to senior HR expertise for moments that require judgment, context, and care:

  • Conducting HR investigations
  • Designing global benefits strategies
  • Developing employment policies across multiple countries
  • Analyzing workforce data for expansion planning
  • Navigating complex employee relations matters

People Partner Services gives you direct access to Oyster’s senior HR professionals—whether you use Oyster for EOR in every country or operate a mix of EOR and owned entities.

As Tony Jamous shared:

“We’re not just building a better EOR platform, we’re helping define what the industry should become. That requires thought leadership, research partnerships like this one with Everest Group, and the willingness to have honest conversations about where technology helps and where human expertise is essential.”

Global Hiring, Human First

At Oyster, we believe hiring across borders is not just a workflow. It’s a human responsibility.

The next generation of EOR isn’t just a platform. It’s a strategic capability—one that combines scalable technology with the guidance of experts who understand the nuances of employment law, talent markets, and human experience.

If you’re building a global team, the question isn’t whether you need automation.

It’s whether you have the expertise to make the right decisions when it matters most.

Download the full white paper to explore Everest Group’s findings and what they mean for the future of global employment.

More on the future of EOR:

FAQ’s

How can EOR support long-term workforce strategy

Strategic EOR helps you make data-informed decisions about where to expand, how to manage regulatory complexity across jurisdictions, and how to build resilient global teams—combining scalable technology with human expertise for the moments automation can't handle.

What's the difference between a transactional and a strategic EOR?

Transactional providers focus on compliance and payroll execution. Strategic partners go further—proactively managing employment risk, delivering localized employee experiences, and offering advisory on market entry, workforce cost optimization, and organizational design.

Is this report relevant if we already use an EOR?

Yes. Everest Group's maturity framework helps you assess whether your current EOR model is built for long-term resilience, or whether you're leaving strategic value on the table.

Oyster Team

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce.

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About Oyster

Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.

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