Due to the COVID-19 pandemic, many countries across Europe have implemented job retention schemes and changes to labor laws and employee benefits. One significant result of this is that EU unemployment rates have gone down in recent years. In fact, in January 2022, the unemployment rate in the EU dropped to an unprecedented low of 6.2%.
While this may seem like a positive sign, low unemployment rates can also cause other issues such as a shortage of workers or hiring difficulties.
Here, we explore some of the repercussions of the low unemployment rate in the EU. Also, we discuss how you can hire to fill any currently unoccupied position in your company. This can be achieved via a global EOR (Employer of Record services).
Low Unemployment in the EU: What Does This Mean for International Workers?
Labor shortages across Europe have been a concern to some companies as the unemployment rate plummets. A survey carried out by the European Commission in April 2022 revealed a record high percentage (27.8%) of companies reporting labor shortages.
Analysts have also warned that the low unemployment rate can also cause wage inflation. This is already developing in France and other countries as food and energy prices rise and unions demand higher wages.
However, this can be an opportunity for international and overseas workers to find better employment in Europe or for companies to seek new and exciting staffing options.
Hiring Overseas Workers: What to Remember
Before you can add overseas workers to your workforce, you need to create an appealing offer that will encourage them to apply for jobs in your company.
An attractive offer for international employees should include:
· Relocation Support
Moving to a new country or continent is usually a lengthy and complicated process. Offering your prospective employees assistance with getting set up in your country shows your commitment. Helping them with housing, transportation, and a generous relocation allowance, should foster the same attitude towards you and your company. Alternately, recent work trends may mean it would be better to consider advertising for remote positions.
· Cultural Understanding
Diversity and cultural sensitivities are essential if you have a varied workforce. Find ways to make your potential workers feel welcome and safe in a discrimination-free work environment.
· Administrative Assistance
The paperwork required for international employees can be challenging to handle. Furthermore, mistakes could lead to fines and fees. Reducing the red tape and hassle as much as possible is essential to make your new workers feel legally secure.
Once you’re ready to begin looking in the global talent pool for workers, be sure to keep in mind:
What Kind of Workers Are You Looking For?
Knowing the difference between full-time, part-time, and independent contractors is vital. Each country’s labor laws regarding the worker class and visa categories available are not the same. Having a clear vision of what work your company needs to perform will streamline your recruitment and screening process.
What Kind of Work Are You Looking For?
The rise in remote work has increased the global talent pool but presents its own set of particular challenges. Understanding exactly how you want your new workers to operate, will help you formulate the right employment contract and avoid any problems in the future.
What kind of day to day tasks your prospective hires will perform will affect the kind of human resources you will need to provide. To fulfill your responsibilities as a legal employer, you will need to be able to understand what makes contracts compliant with local entity regulatory requirements.
What Kind of Company Are You?
You want to find workers who are not only talented but who will also fit in with your company’s culture and goals. Think about what makes your company successful and your workforce effective. Then, apply those points when interviewing prospective candidates.
Work Visas and Permits for International Workers
If you hire EU citizens to work in EU countries, they do not need to apply for work permits. However, non-EU nationals may face significant challenges and need to apply for a work permit.
Depending on the duration of work and the target country, employers should make sure that their new workers have the correct work permit and paperwork necessary. If you are employing workers through your own legal entity in the EU, you will also have to ensure that you are fully compliant and able to hire workers correctly.
For example, for non-EU nationals that want to work in France for less than 90 days, employers can apply for a temporary work visa on the worker’s behalf. These challenges significantly increase in cases of long-term arrangements.
INS Global’s Role in Recruitment
Finding, hiring, onboarding, and establishing payroll processes for overseas workers can be tricky to navigate on your own. Every country has a different set of labor laws you have to consider. There may also be additional obstacles such as language barriers or differences in work culture.
INS Global is a professional employment organization with a multilingual, international team for locating the best talent around the world. Our PEO (Professional Employer Organization) and global Employer of Record (EOR) services acts as global employment outsourcing solution in over 80 countries worldwide.
We also offer global talent acquisition services to attract and retain international employees and counselors. We offer support and advice to guide you through every step of the hiring process.
INS Global can also help you with long-term services such as payroll taxes outsourcing and HR services so your company can succeed during the global uncertainties of 2022.
Contact us here and see what we can do for you today.