Remote, an international payroll startup, has just raised a further $300m from VCs, confirming that the market for global employment is red hot right now.
The two leaders in the space – Remote, and Deel – have collectively raised $1.12bn, and they were only launched in 2019. Meanwhile, Ominpresent (2019) has raised $138m, and the new kid, Oyster, has raised a (relatively) meager $74m in its short 2-year life.
That’s $1.34bn invested in four companies that are working to make global employment easy and accessible to all.
‘Global employment’ was once a kooky concept, but it is now quickly becoming mainstream.
These companies were effectively catalyzed by the COVID new-normal. Remote digital-enabled work, staff shortages, soaring salaries and the Great Resginaiton etc.
Going global with employment can take the heat off the current staff shortages -and save you a lot of money along the way.
What do they do? They facilitate global employment. Put more simply, they manage a global team’s employment, compliance, and payroll. (They are also known as EOR (employer of record) or PEO (professional employer organization), and earlier versions have been around for many decades.)
While these companies play a valuable role in promoting global employment, they miss out on some of the more critical aspects of building a successful team.They lack a local presence in each country and have little insight into the ways of working with different countries and cultures. Nor do they help with the actual operations, office space, hardware, or any of the mechanics of actually running a team.
If you look carefully, you will see enormous growing momentum in global employment
The question for your business
Are you underestimating the pace at which other companies – your competitors – are going global with their workforce? What happens when your competitors pay 70% less for their staff costs?