CarbonFreed at a glance
CarbonFeed is a German company founded in 2020 with a mission to drive forward the decarbonization of the Earth's atmosphere and accelerate the energy transition.
They develop innovative solutions like gridcert, an AI-powered software that streamlines the grid connection process for large solar systems. CarbonFreed values a modern and flexible work environment, embracing principles like 100% remote work, individual development, and self-responsible working methods.
They develop innovative solutions like gridcert, an AI-powered software that streamlines the grid connection process for large solar systems. CarbonFreed values a modern and flexible work environment, embracing principles like 100% remote work, individual development, and self-responsible working methods.
The challenge: Retaining talent moving to Sweden
As a rapidly growing company, CarbonFreed faced challenges in finding and retaining skilled employees, particularly electrical engineers. When one of their valued working students, Kai Ohlsen, wanted to relocate to Sweden, they needed a solution that would allow them to keep him on their team without establishing a legal entity in Sweden.
When they learned about an EOR, they realised retaining an employee could be easier than building an IKEA shelf.
When they learned about an EOR, they realised retaining an employee could be easier than building an IKEA shelf.
Why German workers are moving to Nordic countries
Germany is experiencing a notable talent outflow, particularly towards Nordic countries, a trend accelerated since the Covid-19 pandemic. Specifically, the German Federal Statistical Office reported a rise in German citizens emigrating within Europe, with a noticeable uptick in those aged 25-45, the prime working demographic. A 2023 study by the Nordic Council of Ministers highlighted a growing interest among European professionals in Nordic work-life balance, with Sweden, Denmark, and Norway consistently ranking high in global quality of life indices.
This shift is driven by factors like remote work flexibility, a desire for better work-life integration, and the allure of Nordic social benefits, such as generous parental leave and robust social safety nets.
This shift is driven by factors like remote work flexibility, a desire for better work-life integration, and the allure of Nordic social benefits, such as generous parental leave and robust social safety nets.
Germany vs. Sweden: Labour law differences & entity costs
While both countries prioritize worker rights, Sweden's model emphasizes collective agreements and strong trade unions, with approximately 70% of Swedish employees covered by such agreements, compared to Germany's co-determination system, where works councils are prevalent but collective bargaining coverage is lower. Regarding entity setup, the cost of opening a legal entity in Sweden, specifically a "Aktiebolag" (AB), typically ranges from 50,000 SEK (approximately 4,300 EUR) for the minimum share capital, plus registration fees of around 2,200 SEK (approximately 190 EUR). According to the Swedish Companies Registration Office (Bolagsverket), the average processing time for registration is 1-2 weeks.
So from an effort or cost perspective, it didn’t make sense for CarbonFreed to set up an entity for employee retention.
So from an effort or cost perspective, it didn’t make sense for CarbonFreed to set up an entity for employee retention.
The hiring landscape in Sweden
Sweden boasts a highly skilled workforce, with a 99% internet penetration rate and a strong emphasis on English proficiency, making it exceptionally attractive for international companies. With an EOR, companies can bypass the complexities of establishing a Swedish legal entity altogether. It eliminates the need for businesses to navigate intricate legal and administrative procedures, allowing them to rapidly onboard top Swedish talent.
Saving time and money with an EOR solution
CarbonFreed turned to WorkMotion's Employer of Record (EOR) solution to seamlessly onboard and manage Kai's employment in Sweden. WorkMotion handled all HR-related and administrative tasks, ensuring full compliance with local labour laws and regulations.
“One of our challenges was finding suitable electrical engineers. Kai was already a valuable employee and we did not want to lose him only because he was moving to Sweden. WorkMotion offered us the perfect solution to retain Kai in our company.”
Federica Pasin
Financial Analyst at CarbonFreed
Streamlined hiring, global expansion, and employee satisfaction
Seamless international hiring:: WorkMotion enabled CarbonFreed to retain a valuable employee and expand their team globally without the complexities of setting up a foreign entity.
Reduced administrative burden: By taking over HR and administrative tasks, WorkMotion freed up CarbonFreed's time to focus on their core mission and operations.
Enhanced employee satisfaction: Kai Ohlsen was able to relocate to Sweden while continuing his career with CarbonFreed, demonstrating the company's commitment to employee flexibility and development.
Increased confidence in global expansion: WorkMotion's robust compliance measures gave CarbonFreed the confidence to hire internationally without legal or operational risks.
“WorkMotion gave us the confidence to expand our reach globally without being constrained by administrative or legal hurdles. The streamlined onboarding process also helped us to save time and focus more on core operations.”
Federica Pasin
Financial Analyst at CarbonFreed
CarbonFreed's future ambitions
CarbonFreed plans to continue its global expansion with WorkMotion, leveraging the platform's streamlined processes, compliance expertise, and cost-effective solutions to hire top talent internationally.
“Security and compliance are paramount for us. Ensuring our employees are hired in full legal compliance with local regulations is non-negotiable. WorkMotion’s robust compliance measures gave us confidence that both the company and our employees were fully protected, avoiding any legal or operational risks,” Federica said.
“Security and compliance are paramount for us. Ensuring our employees are hired in full legal compliance with local regulations is non-negotiable. WorkMotion’s robust compliance measures gave us confidence that both the company and our employees were fully protected, avoiding any legal or operational risks,” Federica said.
Upgrade your global hiring experience with WorkMotion
Would you also like to retain top employees like CarbonFreed? Learn more about our solution and how it can help your business expand its global reach while retaining top talent.We’re always here to talk.
