Future of Work Study 2025

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The scope and subject of this study were chosen to investigate the rise of important services linked with the future of work. This study therefore looks at the rise of HR outsourcing in terms of its evolution and the role that technology and increased digitalisation play in this process. It also treats the growth of third-parties offering Employer of Record (EOR) services to companies. 

The study then covers the laws and regulations that EORs must comply with in Europe. 

This report also covers policy recommendations. We propose that not respecting labour law and flouting sanctions should be punished; the EU Platform Work Directive should cover HR outsourcing;  a Code of Conduct should be established for the HR outsourcing sector; companies and organisations need to take responsibility for the EORs that they use for HR services; and a robust EOR screening process is needed.

The global EOR market size was USD 4.9 Billion in 2023 and this market is projected to touch USD 8.59 Billion by 2032, highlighting growth of 6.8% during this period. This development builds on the needs and desires of corporations, organisations and global talent for more flexible, streamlined and tailored HR solutions facilitated by technology. Yet the genuine benefits of this emerging sector may be undermined.

It is vital that industry and policymakers take steps to control HR outsourcing, since the majority of companies in the sector are offering crucial services to small and medium-sized enterprises (SMEs) and large organisations alike. 

This report compiles publicly available views, opinions, and data as of the time of writing. It presents perspectives and allegations for discussion but does not endorse them as verified facts. This report is a snapshot in time, not an exhaustive analysis, as the landscape continues to evolve and new information may emerge. No claims, conclusions, or statements herein should be interpreted as definitive findings or accusations against any individual or entity. 

Freelance Movement is the largest stakeholder initiative in Europe focused on the future of work, with 49 members from across the continent. The group understands the role that digitalisation is playing in the future of work and how it is creating opportunities, facilitating growth and driving the economy.

Their role is to:

• Educate on, explain and quantify freelancing and the future of work.
• Identify challenges and barriers, then with decision-makers and other stakeholders work towards creating policy and regulatory solutions.
• Provide exposure and business opportunities within the future of work ecosystem - as well act as a platform - for members and partners.

Find out more at: www.freelance-movement.org 

Free Trade Europa is an independent think tank promoting the social, economic and political benefits of openness, liberalisation and free trade for governments, companies and citizens. Free Trade Europa has written extensively about the platform, gig and sharing economy and published the following studies: “Nordic Disruption: Analysing the Platform Economy in Sweden”, “A New Hope: the role of the Platform Economy in facilitating migrants into the Swedish Labour market” and “A Fair Gig: addressing the working conditions of platform workers and the policy approach to the Platform Economy in Europe”. Find out more at: www.freetradeeuropa.eu