Labour laws
In the US, employment generally takes place on an at-will basis. The employer can or employee can terminate their relationship at any time. As long as the reasons aren’t illegal, the employee can resign when they want, and the employer can make an employee redundant for several reasons. The notice period is also generally short: typically around 2 weeks.
In Europe, employees have much better protection. An employer needs to have well-documented proof and reasons to terminate an employee. The process of dismissing an employee takes longer and requires warnings, consultations and discussions. An employer that fails to follow the proper procedures and does not afford an employee due process is open to a wrongful termination suit. Likewise, employees must serve specifically longer notice periods when they resign.
Hiring process
Hiring timelines are considerably shorter in the US as compared to Europe. In the US, hiring is typically fast-paced with shorter, more focused interviews and they often make decisions quickly.
In Europe, there may be more stages and be more formalised with multiple interviews and even assessment centres and tests. It can take up to 3 or even 6 months to get a new hire on board for senior positions in Europe. Fierce competition for senior roles can sometimes make the hiring timings longer, especially in areas such as Medical, Regulatory Affairs, Quality and Compliance and Market Access.
In the US, a typical interview process lasts 23.8 days on average. In Europe, interview processes are longer. Here are a few examples based on a study conducted by Glassdoor:
France – 38.9 days
Switzerland – 37.6 days
Italy – 36 days
Belgium – 36 days
Germany – 28.5 days
Cultural differences can influence hiring as well. In the US, there is generally a stronger emphasis on individual achievements, rapid career progression and entrepreneurial spirit, and it can be a very competitive hiring environment. In Europe, there may be more emphasis on work-life balance, collaboration, job security, and in some sectors adherence to procedures. Trade unions and collective bargaining are far more common.
Salary
Salaries are vastly different in the US and Europe. They are often higher in the US for similar positions in Europe. This is partly because the cost of living in the U.S. is usually higher than in Europe. This means that workers need to make more money to keep their standard of living the same.
Compensation packages in the US often include a base salary, and some additional benefits such as health insurance, retirement plans (e.g., 401(k)), and paid time off (which is often low or limited compared to European standards).
In Europe, compensation packages differ by country but are generally more extensive than in the US. They often include better social benefits and stronger worker protections. This means more paid vacation, maternity and paternity leave, healthcare coverage, and pensions.
In the US, it’s common for candidates to negotiate their pay, and there’s more flexibility to do so. In the UK, negotiation is less common, especially for entry-level jobs, as salaries are usually based on set pay scales.
Benefits
In the US, sick pay and paid maternity leave aren’t mandatory, but some employers offer them. In Europe, these benefits are required, although the specifics vary by country. Some European countries like Sweden, France, Spain, and the UK also offer paternity leave.
Public benefits in Europe, like universal health coverage, are typically more generous than those in the US. Additionally, some European countries have laws that make employers provide extra benefits on top of what the government offers. For instance, in the UK, employers must contribute to their employees’ pensions, adding a minimum percentage of each employee’s salary. It’s essential to follow the laws applicable to each country to ensure compliance.
Vacation expectations
It’s widely known that Europeans take more vacation days compared to Americans. In the US, employees usually have about 10 paid holidays, but there’s no law requiring additional annual leave (vacation). Still, it’s customary for Americans to take around two weeks off, and senior employees often get a bit more vacation time. In Europe, people generally expect and receive more paid leave.
According to data from the Organization for Economic Cooperation and Development (OECD), European countries are at the top when it comes to legally mandated minimum annual paid leave. Meanwhile, the US is at the bottom of the list.
In some countries, like France, there are strict rules about the maximum number of hours employees can work in a week. These rules usually apply to workers who don’t control their own schedules, so office workers may work longer hours. However, in some cases, employees who exceed these limits are compensated with extra days off.
Recruitment and advertising
Recruitment and job advertising in the US and Europe are quite similar, although there are some legal differences to note.
In the US, popular platforms for advertising jobs include Indeed, LinkedIn, Glassdoor, and Monster. Companies also use industry-specific websites and social media like Facebook, Twitter, and Instagram to reach specific groups. Many organisations find their company career pages and professional networks, especially LinkedIn, to be crucial.
In Europe, the recruitment landscape resembles that of the US, but there are more country-specific job boards. When you reach out to someone in the US about a job, they are usually more open to talking and tend to trust recruiters right away. However, in the UK, people can be cautious about your intentions, and it might take a few conversations before they feel comfortable.
In Germany, headhunting was not very common until recently, and people there are often hesitant to respond to unfamiliar approaches. Interestingly, in Germany, Xing is often preferred over LinkedIn.
