Hiring Overseas? 5 Things to Consider.

September 2016
Emma Pina

overseasEU – Labor law regulation factors to consider when opening a hub, hire the tech talent and supports

Growth comes with international expansion. When companies think about going overseas, it is important to get a great understanding of the external environment and understand the foreign context in order to be successful, as there are factors that create both opportunities and threat. Some of those factors include labor laws, talent acquisition, language proficiency, business climate, intellectual property, access, and costs.

It is crucial to consider the business climate and, most particularly, obtain accurate information for labor law and regulation since those can greatly differ from the US and have a significant impact in business success.

We analyzed nine of the major countries in EU for talent acquisition: Austria, France, Germany, Italy, Ireland, Netherlands, Spain, Switzerland, and the UK; we then ranked them based on five categories:

  • hiring
  • working hours
  • redundancy rules
  • redundancy costs
  • job quality

These are the areas that we recommend focusing on when looking to hire overseas.

scorecard

It is very important to review few of the differences with the US particularly for trial period, severance pay, maximum cumulated fixed term and other factors.

laborlaws

Based on this study, we have come to the following conclusions for companies looking to expand in these overseas markets:

  • Foreign labor laws provide much more protection for workers than labor laws in the United States.
  • Foreign labor laws are often much more protective of employees in terms of the number of hours they can work and the kinds of breaks that companies are required to provide
  • UK has the most flexible labor law regulations. Germany and France have the least flexible of the countries we studies.
  • Be cautious with the length of trial periods with employees overseas. It is extremely difficult to lay off an employee.
  • Paid vacations (averaging 20 days a year) are the norms in the EU

About T3 Advisors

T3 Advisors is the trusted real estate and workplace advisory firm to the world’s most innovative companies. Working as an extension of the team, T3 develops and implements a wide variety of corporate real estate solutions for organizations ranging from startups to multinational corporations. By only representing tenants, T3 offers a transparent, conflict-free look into real estate strategy.

T3’s real estate services include tailored brokerage, location advisory, portfolio planning, consultative insights, project management, and ongoing workplace strategy. Placed at the center of innovation ecosystems with offices in San Francisco, Palo Alto, NYC, and Boston, T3 has advised thousands of companies globally, including LinkedIn, HubSpot, ASICS, AutoDesk, WorkDay, and Battery Ventures.