Efficiently managing payroll, employment, benefits, and engagement is essential for supporting remote work. Hence online tools that support remote work infrastructure have emerged and are more readily available now, improving the adoption and functionality of distributed teams. Over the past decades, online infrastructure has been transformed by cloud computing and faster networks. Laptops are exponentially more powerful, portable, and affordable, while the internet is more widely accessible. Digital payroll platforms like Gusto and Deel ensure that employees receive accurate and timely payments while handling tax compliance and reporting. Employer of record (EOR) services simplify international hiring by assuming legal employment responsibilities in different countries, while benefits platforms like Benepass and Cobee streamline the administration of employee perks such as health insurance, mental wellness, and retirement plans. These tools help reduce the administrative burden on companies, allowing them to focus on their primary business functions. 

Moreover, the availability of digital engagement platforms enables seamless communication and collaboration, ensuring remote employees stay connected while performance management systems provide tools for tracking employee progress and offering timely feedback. Intranet platforms like Zoom and Staffbase facilitate enterprise-wide communication through a centralized hub for employees. By using these engagement tools, companies can foster a motivated and cohesive remote workforce. More recently, AI and generative AI (GenAI) have enhanced digital payroll and engagement platforms by automating tasks, increasing accuracy, and delivering personalized insights. Notably, in the EOR space, Borderless AI has developed an AI agent that streamlines and accelerates the employee hiring and management process.

Subscription plans are considered the most attractive for businesses looking for scalability, as employees can be added to a plan at no additional cost (compared to fixed percentage fees) within the plan threshold. These are common mainly for analytics tools and intranet platforms. Freemium versions usually precede subscriptions as a popular method for marketing product features and capabilities with low barriers to entry. EoR/PEOs and payroll tools commonly offer free trials through either a subscription or a fixed percentage fee model. Freemium versions for these products are less viable due to the administrative burden and the switching costs involved in payroll processing.

Incumbents like SAP, ADP, and Paychex are leading in the Remote Work Infrastructure space by offering comprehensive solutions for payroll, HR management, and employee engagement. They provide robust platforms that support remote workforces with tools for seamless communication, accurate payroll processing, and effective performance management.

The market is fragmented with a plethora of disruptors that specialize in different aspects of employee management and engagement. The industry saw some consolidation in 2023 and 1H 2024. Among the disruptors, EoR/PEO players have acquired companies to increase the breadth of their offerings. For instance, Deel acquired 1) Payspace, a payroll platform to expand global operations (May 2024), and 2) Zavvy, a startup focused on AI-driven personalized career development (February 2024). Meanwhile, talent management software company ClearCompany acquired Brainier to provide cloud-based learning for talent management.