In a recent survey, 75% of hiring managers globally reported difficulty filling roles. This figure, while down two percentage points from 2023, remains significantly higher than the 36% reported in 2014. This shortage of talent is a pressing issue for many European countries and beyond.
To address talent shortages, especially in Europe, businesses need to think beyond local hiring. Embracing a global approach allows access to a broader range of skilled workers, both within and outside the continent.
"75% of hiring managers globally reported difficulty filling roles."
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Complex employment laws: Examples from Ireland, the Netherlands, and the US
Understanding and complying with local employment laws can be particularly challenging, as demonstrated by recent cases in countries like Ireland, the Netherlands, and the US.
Ireland: In Ireland, the classification of workers as either employees or independent contractors can be intricate. Misclassification can lead to fines and back payments of taxes and benefits. The legal distinctions have various factors, including control over work and mutuality of obligation, which are often subject to interpretation.
The Netherlands: Dutch labour laws are known for their rigidity, particularly concerning termination procedures and worker protections. Employers must navigate a complex system of collective labour agreements and statutory requirements, making compliance both crucial and challenging. For example, redundancy procedures require extensive documentation and approval from the Dutch Employee Insurance Agency (UWV) or a subdistrict court.
The United States: The classification of workers has been a contentious issue, highlighted by high-profile cases such as the ongoing disputes involving gig economy giants like Uber and Lyft. In California, Assembly Bill 5 (AB5) introduced stringent criteria for classifying workers as independent contractors, leading to widespread confusion and legal battles. Employers must carefully assess their relationships with workers to avoid misclassification penalties.
Charles Daw from Giant Group: "You know legislation changes all the time around the world, and it is a complex job to keep up to date with everything that goes on that is why we have developed our trusted partner network of lawyers and accountants around the world who feed into our internal team to make sure we stay up to date with the changes that are happening. Right now in Denmark there is new legislation that requires every employee permanent or contract to submit the hours they work. It might not sound like much but these little changes and variations by country are important to be aware of and to stay on top of if you want to avoid getting into problems later on."
How Employer of Record (EoR) helps
When hiring remote workers from different countries, setting up legal entities can be costly, time-consuming, and fraught with risk. Both workers and hirers face significant risks and fines for not understanding or complying with local laws, which can be confusing and complex. This is why companies often outsource the payroll and employment of their global contractors to a provider who will act as the employer of record (EoR). An EoR steps in to handle these tasks for you. They act as the legal employer for your international team, managing all the paperwork and compliance issues.
Here are the benefits:
- Cost-effective hiring: Hiring talent from abroad usually means setting up costly legal entities. EoRs skip this by managing payroll and benefits, saving you money.
- Improved employee experience: Remote workers can feel disconnected due to process differences. EoRs provide seamless onboarding and HR support in their language and time zone, boosting morale and productivity.
- Reduced administrative burden: EoRs handle employee management tasks, freeing your team from paperwork to focus on business strategy.
- On-time, accurate payroll: EoRs manage payroll complexities like international transfers and currency conversions, ensuring employees are paid correctly and promptly.
- Compliance assurance: EoRs ensure all employment regulations are met, preventing legal issues and financial penalties, which strengthens your reputation as a compliant employer.
Embracing a global talent strategy
In today’s business world, adopting a global talent strategy means thinking beyond traditional boundaries. It involves:
Remote work: Embracing remote work allows companies to tap into talent worldwide, promoting flexibility and efficiency.
Promoting diversity: Diversity brings innovation and better decision-making. Companies benefit by actively seeking diverse talent.
Integration: Using technology and adaptive management practices to seamlessly integrate a diverse workforce.
Giant Group can help
Partnering with Giant Group simplifies global hiring and management. Our EoR services enable businesses to tap into a diverse talent pool worldwide, supporting growth and innovation. By using our expertise, companies can expand internationally with confidence, focusing on what they do best while leaving legal and administrative complexities to professionals. Contact us today to discuss more at hello@giantgroup.com
