For British businesses looking to recruit the best talent, Europe is still an attractive hunting ground. There are skilled developers in Poland. Germany has many experienced engineers and plenty of other talent across the continent. The problem is that finding the right person is often easier than working out how to employ them.
Businesses wanting a permanent team in another country have traditionally considered opening a local subsidiary. That’s a big commitment when the entire overseas workforce might initially consist of one or two people.
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Alternative employment arrangements are giving UK companies more ways to recruit across Europe without setting up a separate business in every country. This is a response to huge changes over the last few years.
A different approach to European recruitment
Remote working has changed the geography of recruitment. A company based in Manchester can work closely with an employee in Madrid without either party needing to relocate.
The employment arrangements are not necessarily as straightforward as the video calls.
Each European country has its own requirements around employment contracts, paid leave, social contributions and dismissal procedures. A British employment contract can’t simply be copied and handed to somebody working permanently in France or somewhere else in Europe.
Managing these differences can become a major headache. It’s one reason businesses are exploring alternatives to traditional overseas subsidiaries. Companies such as GoGlobal provide international employment and expansion services that support this approach and give valuable advice.
Hiring through an Employer of Record
One increasingly familiar option is an Employer of Record. This is often shortened to EOR.
This arrangement means a specialist provider becomes the legal employer of the overseas worker. It handles local contracts and employment administration, while the British company still manages the employee’s everyday work.
A London technology company wanting to recruit a software developer in Portugal could potentially employ that person through an EOR rather than opening a Portuguese subsidiary.
It’s particularly useful when a company wants to test an overseas market or recruit a handful of specialists before deciding whether a permanent local business presence makes financial sense.
Other ways to access European talent
An EOR isn’t the only option to build remote teams.
Some UK businesses work with genuinely independent European contractors. This is popular for projects with a defined scope or limited duration. Calling somebody a freelancer doesn’t automatically make them one. The actual working relationship matters – misclassification can create problems.
Another possibility is non-resident payroll. This allows foreign companies to employ people directly in certain countries without establishing a local subsidiary. Availability and requirements vary. It certainly isn’t a universal solution.
Establishing an overseas entity may eventually become more practical than relying on third-party employment arrangements.
A more flexible future for UK employers
European recruitment no longer has to begin with finding office space and registering a new company. Businesses can build relationships with overseas workers and develop international teams without immediately committing to permanent infrastructure.
