American Companies Hiring in Europe: A Guide for Expanding Businesses

Last updated: 21 September 2023

Recent research shows that over 62% of companies are planning to hire internationally, and 38% indicated that they are going to establish global teams in the next six to twelve months.

Apart from finding the right people for the right position, European employees are bringing different skills and a fresh perspective to the company. And this is a huge advantage for businesses in a rapidly changing labor world.

So, what were the first steps? If you see the benefits of hiring employees internationally, read everything North American companies need to know about hiring in Europe. 


Where to Start When Considering Hiring in Europe?


When North American companies consider hiring in Europe, they run into their first challenge – how even to start their international recruitment endeavor?

In Europe, hiring differs from hiring in the USA, and companies need to adjust. But before the hiring process, you have to determine what skills you are lacking in your workplace and where you might be able to find them.

So, the first step would be to detect that there is a growth opportunity for your business. Then, you can dig deeper into the research. 


Motivations for North American Companies Hiring in Europe 


Europe offers unique and significant opportunities for companies with an international ambition and mindset. It is a very large and sophisticated market, with a pool of talented specialists in various industries and professionals with international experience. This creates many opportunities for North American companies to select the best candidates for their roles when hiring in Europe.


Employer of Record – Hiring in Europe Put into Practice


When you know what the benefits of hiring in Europe are, you need to figure out how to do it in a compliant manner. For North American companies, entering the European labor market is challenging because every country has its own labor laws, cultural expectations, and hiring processes.

Being home to many countries, you will for sure need some help when you decide to expand in Europe, especially if your plan involves hiring in various countries, for which you will need to have a permanent establishment in each of them.

But, instead of setting up an entity in every European country, you can find an HR outsourcing partner who will act as an Employer of Record (EOR). In this case, you can hire employees anywhere throughout Europe without creating a permanent establishment. This is especially beneficial for companies with an emphasis on risk minimization.

Bonus read: Europe Employer of Record: HR Outsourcing for Global Expansion


Benefits of EOR services for North American Companies


With EOR services, you will be compliant with the law of every country. Hiring locally via a boutique EOR provider will add value to your business because you will have a European HR extension to your team that will communicate with your employees, take care of your payroll in time, and make sure that cultural expectations are met.

There are different EOR service providers, some of them are online platforms for hiring, and some are offering a boutique service where you are dealing with real people. Both are beneficial depending on your company’s needs.


North American Companies' Access to the Unlimited Talent Pool


Probably the main reason why North American companies decide to start hiring elsewhere is getting access to the much wider talent pool. When hiring in Europe, you get access to local market knowledge and skills that might not be available in your country. Many companies nowadays are searching for a multicultural workforce because that brings another perspective and value to the business.

Having an EOR partner will unlock access to all European countries. Since there are many labor markets in Europe, you will be able to find the right workforce with ease, just to determine what country is for you.

For example, there are over 1.7 million science and technology professionals in Europe, France is known as a tech hub, and over 40% of international students with diverse PhDs are living in Europe. Hiring in Europe will bring you highly educated talent that speaks many languages. On top of that, employment can be cheaper in Europe compared to the USA.

North American companies in Europe hiring


North American Companies Hiring in Europe with EuroDev


Many companies, when they want to explore new markets, start by hiring in a foreign country. If your North American company is considering hiring in Europe, it can be your first step toward a new market, and it will allow you to have more time to research whether there's a fit for your business or not.

Finding the right talent in Europe can be the first step for your business expansion plans. Additionally, finding an EOR partner who will take care of your HR activities will allow you to invest more time into your business development.

With the EuroDev HR Outsourcing solutions, you can hire abroad fast without worrying about setting up an entity and the related tax implications. You will stay compliant in every European country of your choice, and you will have an excellent team experience to offer the necessary HR support.

Let’s chat about the next steps for your hiring in Europe.


Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR consultants to ensure that the data presented here is current and accurate.


Source: Eures

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