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How to Fast Track Your European Expansion: Hiring Local Workers in Europe

The increasing compliance and relocation challenges that are a part of global mobility and international business, are forcing companies to look at alternatives when it comes to staffing foreign operations.  This is especially true when it comes to startup companies that want to explore new markets or take production and manufacturing offshore, without making a large financial commitment.

The traditional approach of sending employees from home on an international assignment, carries cost and complexity that may be a barrier for startups.  The other approach of shorter trips using business visas may be inadequate to create a business presence or consistent activity in a foreign country.

The remaining alternative is to hire local citizens with the qualifications and background for the needed positions, either as employees or independent contractors.  The choice of what type of worker to hire locally should be carefully considered as outlined in this guide.

Startup expansion via hiring local workers in Europe a viable option given its large population of educated professionals with excellent skills.  Because of the EU’s ease of travel rules, a startup can recruit in multiple countries for various work roles.

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Why Hire Local Workers in Europe?

There are some real advantages to using local hires as part of your expansion plans, and these workers can either be hired as interim staff or long term employees.  Independent contractors can also be hired for shorter term or finite project work, and there are pros and cons for both employee and IC local hires.

Benefits of Hiring Local Workers in Europe

No visa required:  Because the worker is a resident, there is no need for visas or work permits.  Most residents will already have tax identification numbers and requisite IDs.  Within Europe, the EU makes it easy for workers to enter and be employed in another country if necessary.

No language or cultural barrier:  In countries that sometimes use non-English languages for business, this can be a real asset, and regardless, the ability to communicate in the native language is an advantage.  The worker will also know local business customs and cultural norms, which is sometimes an impediment for expat workers in the same position.

May have an existing business network:  Experienced hires may have a local network to call upon for consultation, referrals, projects or assistance, and this can even be a source for recruiting other employees.

­­Quick start: Unless they have a current position,  the local can often start work right away, as long as there is an entity such as a GEO to set up a compliant payroll.  If a worker is to be in a remote role, then as soon as the local employer of record registers the employee they can begin.

No relocation costs, logistics or delays:  This saves on the significant relocation costs for assignees from the home country, and at the most the local hire may have to move to a new city or region inside the country.

Disadvantages of Hiring Local Workers in Europe

Administration and management:  If hiring locals as employees, a startup still must have a system of administration and management.  If this is done remotely, then high tech communication tools and online platforms can be used to monitor worker progress and performance even across time zones.

Another aspect of admin challenge is the running of a local payroll, banking, contracts and taxation.  For these tasks, a GEO solution is the best way to make sure that local hires are administered and paid as is customary in the country.

Local compliance with employment and labor laws:  A related challenge is that of legal compliance, since most countries require foreign companies to set up a local corporation in order to employ workers.  Once again, the Shield GEO local employer of record is the ideal method of employing local hires quickly, as the GEO is already in place and ready to comply with all local laws.

Remote hiring may require long probation period:  In any case, hiring remote local workers without in-country supervision may require a longer probation period that would allow for easy termination in case it does not work out.  Some countries have limits on probation periods, and Shield GEO can let you know the host country rules to avoid illegal termination and/or severance pay.

Shield GEO: Your Partner for European Expansion

Shield GEO is already well positioned to employ local workers in Europe, often within a matter of weeks.  What this means is that as soon as you locate and recruit one or more local workers for your company, we can immediately begin the process of onboarding.  Essentially, the GEO solution gives you instant access to a global recruitment pool, to fill positions in new markets or simply employ skilled remote workers.

Although there are no immigration barriers for local hires, in some ways it is more important for residents of a country to be payrolled and hired in complete compliance with host country laws.  The local hire is already familiar with business methods, taxes, withholding and banking laws, and any deviation from those will be noticed.

For this reason, the Shield GEO employment solution is far preferable to the DIY approach to hiring local residents, to ensure that your employees are administered by our expert local partners.  We make international employment simple for your startup company.

Considering Expanding in Europe? Get in touch to find out how we can help make International Employment Simple

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