Hire talent anywhere in Europe with WorkMotion’s EU Employer solution - Fast, easy and legally compliant! *Release Update*

Author

Felix Schreiter

Estimated reading time

10 min.

Publish date

Jun 8, 2021

Tags

NEWS
Table of Contents:


It’s no secret that tech-talent is hard to find. 

According to an article by the International Monetary Fund “by 2030, there will be a global shortage of more than 85 million tech workers, representing 8.5 trillion in lost annual revenue”. 

In Germany alone, 124 thousand IT-expert roles were vacant in September 2019, according to research conducted by Bitkom Research. A 51% increase from the year before (see graph below).

*Title: For the first time, more than 100,000 vacancies for IT experts (in Germany) Subtitle: Number of IT positions to be filled in the economy as a whole

Interestingly, estimates by stateofeuropeantech.com show that the majority of European tech-workers still look for jobs in their home countries, and are not considering relocation. 


So, how can companies from other countries compete for European tech-talent that is looking for jobs in their home countries? 

WorkMotion’s EU Employer product is the answer

Our EU Employer product is the simple solution to hire talent in other European countries as well as the UK - with local work contracts adapted to your specifications and without founding a legal entity! 

The EU Employer process

  1. WorkMotion registers your HQ entity as an employer in the European country of your choice
  2. You receive a tax number to pay social security contributions and income tax
  3. Employees are hired in accordance with local labour laws, on your own local employment contracts, and taxed locally 
  4. WorkMotion performs the monthly payroll, provides compliant work contracts and continuous HR support

It’s a fast and effective way to access talent pools in countries that previously would have been time and resource intensive to hire in. Your company can reach a greater number of quality candidates, and, depending on the sector, significant savings in total cost of employment are possible. 


Onboard European employees in record time

Hiring talent in European countries other than your company’s headquarter used to be difficult:

  • Founding a legal entity took time and created cost
  • Market entries and exits were resource & time intensive
  • Local labor, tax and insurance laws were complicated to navigate

All in all, it could take several months of frustration to finally get started. 

With WorkMotion’s EU Employer you save yourself the struggle:

We take care of the intricacies of registering your HQ entity as an employer in another European country. As a result you can onboard your first employee within as little as 4-6 weeks, depending on the country and how fast we receive your documentation.

Our state-of-the-art software manages your employees’ payroll, assists in creating country-specific work contracts, and provides salary suggestions based on market data.

EU Employer use cases

The EU Employer product enables companies to compliantly hire talent in any European country without having to found a local entity. 

  • Need to hire 5 IT specialists in Poland? EU Employer allows you to onboard employees in Poland within 4-6 weeks.

  • Interviewing a talented developer from Spain that would be a crucial addition to your team, but he/she doesn’t want to relocate? Again, our EU Employer product got you covered.


EU Employer versus Employer of Record (EOR)

You might be familiar with our core product, the Employer of Record, and wonder how exactly it differs from the EU Employer.


The EU Employer is perfect if…

… you only plan to hire a limited number of employees in the near future.

… you prefer a direct relationship with your employees.

...  you’d like to provide employees with company stock/share option 

plans. 

… your employees perform no commercial activity in that country (i.e. a 

sales rep signing a contract).

... 4-6 weeks is an acceptable time frame until you need to 

onboard employees.


The Employer of Record is more suitable if…

… you want to expand in many countries world-wide. With the EOR 

your employees get hired through our highly qualified and experienced 

partners, while your company remains the directive force of the working 

Relationships. EOR covers 150+ countries currently.

… speed of employment is your primary concern. With EOR you can hire 

employees internationally within as little as 4 days.


Would you like to learn more about features and pricing? Check out our pricing page.


Next steps

If you'd like to learn more about the EU Employer model or have specific questions about your company's case simply book a free product demo with one of our specialists.

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Who is the employer - WorkMotion or are we the employer?

Employing talent abroad is linked to several compliance risks: on the corporate level (Permanent Establishment), and related to the employee directly (employment taxes, social security, labour law). WorkMotion’s clients do not want to take on those responsibilities. WorkMotion can provide access to a global network of WorkMotion’s legal entities in over 140 countries. Those legal entities will then hire your talent, i.e. your employees will receive an employment contract by the local company. The local company takes on all of the responsibilities of an employer: issuing the employment contract setting up payroll local registrations of the employee with authorities calculating monthly payroll payments to the employee (=salary), tax-authorities, social security, etc. ensuring compliance with local labour regulations etc.

Can existing contractors be brought into WorkMotion? Would they remain as contractors or become employees?

We currently do not offer management (e.g. payments, time-tracking, contracts) of contractors. In the case you want to convert contractors to become employees, this is obviously not a problem for us.

Who bears any legal risks, costs or claims?

WorkMotion (in most cases). ‍WorkMotion is your compliance partner for employment abroad. We assume most risks associated with the employment of your talent. When it comes to termination of employment, however, the “financial consequences” (e.g. severance payments, etc.) are borne by you. (please refer to our guidance on terminations as well).

Are there any differences/benefits/increased risks in employing people in the EU versus anywhere else?

No. ‍WorkMotion covers 140+ countries and we treat all engagements the same, independently from the country. Countries, of course, vary sometime in terms of labour regulations (e.g. France vs. USA) or benefits that are statutory.