Europe is home to many of the world’s largest economies. The open market and diversity of talent across industries make it a number one choice for global expansion. Entering a new European market requires expertise and compliance on your part. Most European Union (EU) countries have strict laws around labor and employment. Failure to adhere to European market regulations will result in fees and fines for your company.
Partnering with a global employer of record service allows you to enter international markets quickly and without worrying about compliance issues. This article explains what an employer of record (EOR) is and the benefits for international businesses in their target market.
We also list the European countries supported by INS Global’s EOR services. This way you can have the full range of options in deciding which market to expand to.
What is an Employer of Record?
An employer of record is a professional third-party employment outsourcing services provider. It operates as an organization that can legally hire employees, handle payroll, and takes care of HR services in not just one but multiple countries across the world.
While an EOR assumes the employee’s legal obligations, the employee continues to work as usual for your company. As the employer, you retain full rights and control over which employees to hire, the work they do, and the trajectory of their legal employment.
An EOR eliminates the need to set up a separate legal entity in a new market. It cuts down on company incorporation costs and lets you start operations quickly and efficiently in any new location from your home country. With an EOR, you can also search the local talent pool, then recruit, hire, and onboard new talent in the local market much faster than traditional recruitment methods.
How Does an EOR Work in Europe?
When expanding to Europe, you may benefit from the united currency of the euro if you are planning to enter an EU market. However, even within EU countries, there are still many local differences between labor laws and market requirements.
Europe also has a broad range of languages and cultures. Local counselors who can advise on best business practices and local labor laws is essential for making valuable connections in a new market.
European Countries Supported by INS Global
INS offers top-quality professional global EOR services in a variety of key European countries.
Here, we include each country and a short overview of important information like the effect of the pandemic on annual growth rates. This way you can determine which new market is the most suitable for your company.
While Austria’s GDP has fallen slightly in the third quarter of 2022, the country remains on a solid level of growth overall. Generally, the market’s economic strength and reliable infrastructure make it a stable market to expand into.
Belgium’s economy has recovered well from the pandemic. Still, the current conflict in Ukraine is causing inflation and supply shortages. The GDP has dropped 0.1% in the third quarter of 2022 and is predicted to decrease by 0.4% in the fourth quarter.
Cyprus’ GDP has grown 5.5% in the third quarter, and its tourism numbers have seen a positive increase lately showing the economy’s resilience in recovery from the pandemic.
The country’s GDP fell 0.4% in the third quarter, and there are concerns about a recession due to market repercussions from the conflict in Ukraine. However, the government is introducing supportive policies that reduce inflation percentages and assist both companies and households.
The Estonian economy has been on the rise this year. At the same time, results in the third quarter have slowed due to the impact of the Ukraine conflict. In general, the market in Estonia benefits from reliable institutions, a robust financial sector, and political stability.
Finland’s GDP increased by 2.3% in the first half of 2022, marking a buoyant recovery from the pandemic. Like in many other European countries, Ukraine’s conflict continues to impact the economy negatively, but the market remains stable.
In the third quarter of 2022, France’s GDP rose 0.2%. While tourism has slowed and household consumption is down, the country’s economy still demonstrates growth and resilience.
Germany’s GDP climbed 0.3% in the third quarter. The country is known for being one of the largest online shopping and e-commerce markets in the world, and its strategic location in Europe makes it a popular destination for expanding companies.
Despite the obstacles of a global pandemic and conflict in Ukraine, Greece’s economy continues to show positive results in 2022.
2022 has seen positive growth in the market and industries in Hungary, with their GDP rising by 4% in the third quarter. Hungary has untapped potential in an e-commerce market where companies can benefit from low competition and a wide range of opportunities.
Ireland’s economy has enjoyed a strong year, with the GDP increasing by 10.8% in the first quarter. Household spending and investments are on the rise. The country’s key geographical location and competitive tax system make it a viable option for companies looking to expand to Europe.
Italy’s economy has continued to grow in the third quarter of 2022, rising 0.5% in GDP. The country is known for being one of Europe’s largest consumer goods manufacturers and a profitable market for small to medium-sized businesses.
Luxembourg is ranked as one of the highest GDP per capita in the world. However, the country’s economy has felt the impact of the conflict in Ukraine this year, and rising energy prices have caused a decrease in growth.
Despite a strong start at the beginning of the year, the Dutch GDP dropped in the third quarter of 2022. Many sectors have stagnated, such as retail and construction, while the lack of building permits has caused a housing crisis.
Poland’s third-quarter results continue to show steady growth in GDP. More so, the country’s central location in Europe and its well-educated, talented workforce can be a powerful asset to any company looking to expand globally.
While there are concerns over Portugal’s housing prices and national debt this year, the country remains relatively stable in a post-pandemic Europe. Because of this, Portugal is an ideal market for foreign investors. There are no additional restrictions on foreign investments, and the country is a key trading partner with many EU states.
Slovakia’s GDP has grown every quarter so far in 2022. Domestic demand and motor industries have shown statistical strength. Accordingly, the country has an open market economy and investor-friendly policies.
Spain is one of the largest potential economies in Europe. It boasts a wide range of profitable including tourism, manufacturing, and automobiles. Furthermore, 2022 has seen positive GDP growth, although the Ukraine conflict continues to exacerbate inflation.
Sweden’s GDP rose 0.7% in the third quarter, maintaining the country’s stability in 2022. However, it has one of the highest employment rates in the world and a wealth of natural resources and export industries, making it a difficult but valuable market.
Turkey’s prime geographical location makes it the perfect market to expand to for reaching Europe, Asia, and the Middle East. As a result, the country’s GDP has been showing solid percentages this year, but there are concerns about high inflation.
The UK’s GDP decreased by 0.7% in the third quarter, marking yet another setback for an economy that has struggled in 2022. Analysts have voiced fears that the country will be in a recession for some time.
How Can INS Global Help You in the EU?
Whether or not you are entering the EU market for the first time, INS Global has the tools you need to follow a successful global expansion strategy.
Contact our global mobility experts today to find out more about the benefits of global expansion assistance. Furthermore, see how we can help you with employment outsourcing, compliance assurance, payroll, tax and benefit management, and more.