Unlocking Workforce Savings in 2025
For businesses relying on contingent labor, Employer of Record (EOR) services can unlock significant cost savings—both in the hard dollars of program management and the soft savings that come from streamlined operations and improved service delivery.
As 2025 kicks off, many HR and procurement leaders are evaluating budgets for savings. Often, this means compromise, but there’s good news for organizations examining an Employer of Record (EOR) program - whether they’re new or already established. EOR programs in general can offer significant savings that will cascade throughout an organization, and the right EOR implementation can save even more.
What does it take for an EOR program to deliver maximum cost benefit? It comes down to who is implementing the EOR program and how it’s designed and delivered. The results can range from reductions in mark up to downstream savings like reduced employee turnover and increased internal productivity.
As my team works with EOR clients and prospects on planning for 2025, here are some of the main ways we’ve delivered value and ensured an organization’s talent needs are fully met.
Competitive Markups
Many companies assume all EOR providers are created equal with similar pricing models. But markups for EOR can vary widely depending on who’s delivering the service. For example, some programs run through staffing-only agencies which generally need to charge higher markups to support their entire business model. Traditional staffing agencies have higher overhead costs—paying recruiters, job boards, and other placement-related expenses. As a result, their payroll markups can be significantly higher than a dedicated EOR provider, even when they’re simply managing pre-identified talent.
Dedicated teams and technology also drive efficiency and further reduce costs. For example, Eastridge EOR has an entire team working solely with EOR clients through its own tech, Talient VMS.
This dedicated EOR model saves clients money simply by operating more efficiently. We specialize in payrolling pre-identified workers, operating as an extension of your talent acquisition team. With no need to fund recruiting activities, we keep our markups low while maintaining a dedicated focus on workforce care. For companies already working with staffing agencies, this approach complements rather than disrupts their recruiting partnerships while delivering significant cost reductions.
The savings from this model are significant. Many companies are surprised to learn that they can implement programs that are 10 to 15 percentage points lower than staffing agency models.
In many cases, a transition to a dedicated EOR has translated into tens, and occasionally hundreds, of thousands of dollars which can be used to reduce the bottom line or reinvest. One of our clients, for example, leveraged their savings into sign-on bonuses and supplemental benefits for their workers. These changes transformed the company into a more attractive employer, improving their ability to acquire top talent and further strengthening their workforce strategy. Savings on EOR services became a foundation for growth, not just a line item reduction.
Transition Discounts: Lowering the Cost of Change
Switching EOR providers can seem daunting and cost savings can, in and of themselves, come at a price.They may arrive in the form of disruptions to regular business or hidden costs. But this cost of change can be cushioned by the provider. For example, the Eastridge model is specifically designed to minimize disruption and costs. When transitioning existing payroll workers, we have the ability tooffer discounted markups. This approach softens the impact of change while ensuring clients benefit from our improved service and technology from day one. As always, there are no hidden fees like minimum spend, onboarding, or conversion fees with our service.
To give you an idea of how this works, I’ll use the example of one client, whose payroll workforce included about 30 employees. Their implementation project plan included waived benefits waiting periods to prevent any lapse for employees and mass gata gathering to streamline the onboarding process. This reduced the administrative burden for their internal teams and ensured a smooth, painless transition for workers. Consolidating their workforce with one provider also eliminated the inefficiencies of juggling legacy and new systems, creating both hard-dollar savings and operational improvements.
Soft Savings: Time, Compliance, and Experience
Beyond direct financial savings, EOR services deliver “soft” cost reductions that improve overall operations. For example, many of our clients come to us frustrated with outdated processes like spreadsheets for timekeeping and email chains for approvals. With our integrated technology, including timekeeping tools that streamline management and approvals, we return hours of time to HR teams each week.
Additionally, our dedicated focus on compliance ensures clients avoid costly legal missteps. For example, when transitioning workers in multiple states or countries, our legal and compliance teams navigate labor laws seamlessly, saving clients the cost and risk of managing compliance in-house.
By ensuring a smooth employee experience during transitions, we also reduce turnover risks, further protecting productivity and program stability.
Planning for the Year Ahead
Predicting economic conditions is always difficult. But saving time and money is always a good thing. For companies looking for ways to reduce costs to meet budget or reinvest in their business, EOR services provide solutions for both immediate savings through competitive markups and long-term operational benefits.
From reducing markups and transition costs to addressing the inefficiencies of staffing-agency models, the right EOR programs can help meet your financial objectives while building stronger workforce programs. With the right planning and partnership, the cost savings of EOR can be realized both in the short and long term.