There’s no doubt that remote work has come to stay, despite the push by company leaders for employees to return to the office. Many employees prefer to work remotely because it provides a better work-life balance.
Remote work helps companies too. A recent survey showed that it can improve a company’s profits. In the survey, 64% of respondents report being more productive when working remotely.
There’s also a growing workforce that is more than willing to work remotely. According to Eurofound’s Quality of Life in the EU 2024 factsheet, the desire to work from home has grown. It increased from 13% in 2020 to 24% in 2024. The factsheet noted that around 50% of respondents want to work from home several times a week. This is true even with fewer remote job listings.
Remote work helps companies too. A recent survey showed that it can improve a company’s profits. In the survey, 64% of respondents report being more productive when working remotely.
There’s also a growing workforce that is more than willing to work remotely. According to Eurofound’s Quality of Life in the EU 2024 factsheet, the desire to work from home has grown. It increased from 13% in 2020 to 24% in 2024. The factsheet noted that around 50% of respondents want to work from home several times a week. This is true even with fewer remote job listings.
Why should you hire remotely in Europe?
US companies looking to hire workers remotely should consider Europe, because of several important factors. These include:
Highly skilled workforce
The Eurostat labour force survey shows that about 80 million skilled workers were employed in the EU in 2022. This makes up 44.2% of all employed people aged 25 to 64. Companies seeking talent in Europe can easily find highly skilled individuals for remote positions.
The Eurostat labour force survey shows that about 80 million skilled workers were employed in the EU in 2022. This makes up 44.2% of all employed people aged 25 to 64. Companies seeking talent in Europe can easily find highly skilled individuals for remote positions.
English proficiency
According to a Eurobarometer survey, almost half of the European population (47%) can converse in English. This number goes up to 70% among young people ages 14-25. The ease of communication helps to align business practices between the US and Europe.
According to a Eurobarometer survey, almost half of the European population (47%) can converse in English. This number goes up to 70% among young people ages 14-25. The ease of communication helps to align business practices between the US and Europe.
Cost efficiency
US employers are likely to find that hiring in Europe is more cost-effective than hiring in major U.S. cities such as New York and San Francisco. The high salary demands of these cities are usually due to the high costs of living. The total cost of employment, which includes salaries and benefits such as healthcare costs, is lower in European countries, especially those with strong healthcare systems.
US employers are likely to find that hiring in Europe is more cost-effective than hiring in major U.S. cities such as New York and San Francisco. The high salary demands of these cities are usually due to the high costs of living. The total cost of employment, which includes salaries and benefits such as healthcare costs, is lower in European countries, especially those with strong healthcare systems.
Access to specialised talent
The growth of tech education in European Universities and vocational schools and thriving tech hubs in cities such as London, Berlin and Amsterdam have increased expertise in software development, AI, fintech and cybersecurity. Companies can therefore access specialized talent, especially in tech.
The growth of tech education in European Universities and vocational schools and thriving tech hubs in cities such as London, Berlin and Amsterdam have increased expertise in software development, AI, fintech and cybersecurity. Companies can therefore access specialized talent, especially in tech.
Infrastructure and stable business environment
Most European countries provide businesses with a stable environment to grow and thrive. There’s also a robust infrastructure that supports and facilitates economic growth. Infrastructure and factors that create a conducive environment for remote work to thrive include coworking spaces, affordable housing and e-residency programs.
Most European countries provide businesses with a stable environment to grow and thrive. There’s also a robust infrastructure that supports and facilitates economic growth. Infrastructure and factors that create a conducive environment for remote work to thrive include coworking spaces, affordable housing and e-residency programs.
Five European Countries to Consider for Hiring Remote Workers
Spain
Like most European countries, Spain has a highly skilled workforce, with many willing to work remotely. These skills come from a qualitative education system including universities and colleges where science, technology and engineering skills are developed. The Government invests in digital skills and about 66.2% of the Spanish population has digital skills. This is significantly more than the European average of 55.6%.
Apart from skills developed locally, Spain has been able to attract talent from other parts of the world with favourable digital nomad work visas, affordable housing and favorable weather.
Spain also has clearly stated laws regarding remote employment which help to protect both the employer and employee. All these advantages create a pool of tech talent from which employers can source suitable candidates in Spain.
Apart from skills developed locally, Spain has been able to attract talent from other parts of the world with favourable digital nomad work visas, affordable housing and favorable weather.
Spain also has clearly stated laws regarding remote employment which help to protect both the employer and employee. All these advantages create a pool of tech talent from which employers can source suitable candidates in Spain.
| English proficiency | 22% |
| Average Salaries for Tech Roles Software engineer Front-end developer C Programmer | $5,376 $3,905 $4,892 |
| Remote work infrastructure Internet penetration | 90% |
Germany
Germany is one of the most industrialised countries in Europe. It boasts of a top-notch higher education system which attracts thousands of students from around the world, because of free and affordable tuition. There is therefore a highly-skilled talent pool available in Germany from which companies can access potential workers.
There are also thriving tech hubs in Germany in cities like Berlin, Munich and Hamburg, all of which support many start-ups, tech companies and research institutions. These tech hubs serve as great incubators from where tech talent can be hired.
Germany has excellent infrastructure that supports internet connectivity and a well-developed digital landscape required for remote work. Germans are also known for their great work ethic, which translates to high productivity and dedication.
There are also thriving tech hubs in Germany in cities like Berlin, Munich and Hamburg, all of which support many start-ups, tech companies and research institutions. These tech hubs serve as great incubators from where tech talent can be hired.
Germany has excellent infrastructure that supports internet connectivity and a well-developed digital landscape required for remote work. Germans are also known for their great work ethic, which translates to high productivity and dedication.
| English proficiency | 56% |
| Average Salaries for Tech Roles Data Analyst Data Scientist IT Security Specialist | $4,608 $9,649 $8,196 |
| Remote work infrastructure Internet penetration | 92.5% |
The United Kingdom
The United Kingdom shares a lot of history with the US which has created similarities in language, business practices, legal principles and banking systems. These similarities make it easy to hire talent in the United Kingdom.
Hiring in the UK is also cost-effective when compared to hiring employees in the US, because the cost of living and average salaries are usually lower in the UK, which means less operational costs. Furthermore, the UK’s highly skilled workforce is “remote work ready” and used to working in distributed teams, which helps new employees ease into their roles.
Hiring in the UK is also cost-effective when compared to hiring employees in the US, because the cost of living and average salaries are usually lower in the UK, which means less operational costs. Furthermore, the UK’s highly skilled workforce is “remote work ready” and used to working in distributed teams, which helps new employees ease into their roles.
| English proficiency | 91.1% |
| Average Salaries for Tech Roles Cloud Engineer FirstLine Cloud Support Security Network Engineer | $6,303 $2,801 $5,645 |
| Remote work infrastructure Internet penetration | 97.8% |
The Netherlands
The Netherlands has a culture of remote work. Statistics from 2023 show that the country has more than 5 million workers who work remotely fully and some of the time. The country also boasts of high digital skills; a recent survey showed that about 82.7% of Dutch people possess at least basic digital skills, exceeding the EU average. These skills include cloud computing, data science and cybersecurity skills, especially in major tech hubs like Amsterdam and Rotterdam.
There’s also a high level of English proficiency, a skilled talent pool and a developed infrastructure that supports remote work, such as co-working spaces and stable internet connectivity. The Netherlands also has a multicultural population where diverse talent can be sourced.
There’s also a high level of English proficiency, a skilled talent pool and a developed infrastructure that supports remote work, such as co-working spaces and stable internet connectivity. The Netherlands also has a multicultural population where diverse talent can be sourced.
| English proficiency | 90% |
| Average Salaries for Tech Roles Principal DevOps Engineer Principal Software Engineer Software Architect | $13,773 $9,269 $6,064 |
| Remote work infrastructure Internet penetration | 99% |
Portugal
When considering where to hire remote workers in Europe, Portugal offers many benefits. Hiring in Portugal is highly cost-effective due to the lower cost of living when compared to other European countries, which allows employers to offer competitive salaries. Portugal also has a dedicated visa program for remote workers which opens the door for skilled talent from other countries to legally live and work in Portugal. Furthermore, the time difference can be an advantage for collaboration.
| English proficiency | 56% |
| Average Salaries for Tech Roles Data Analyst Software Developer Full stack developer | $2,858 $3,655 $4,200 |
| Remote work infrastructure Internet penetration | 85.8% |
How an Employer of Record makes remote hiring easy
While there are a lot of benefits to hiring remote employees in Europe, there are also challenges that need to be addressed. These include:
Varying labor laws: Each country has its employment laws, which affect contracts, remuneration, taxes and termination. Employers who are not familiar with local labor laws might find them difficult to navigate.
Payroll and compliance challenges: These issues arise when companies are required to register in the country where they hire employees.
Tax and Social Security challenges: Employers must understand and comply with tax regulations which increases the administrative work required to manage employees.
Permanent establishment risk: The company will have to pay taxes in the countries where it hires employees, creating unwanted tax obligations.
This is where an Employer of Record (EOR) comes in.
An EOR like WorkMotion legally hires workers on behalf of another company and handles all employee-related processes such as payroll, benefits, taxes and compliance.
An Employer of Record can help to:
1. Hire talent in European countries without establishing a legal entity.
2. Ensure that there’s full legal compliance with the local employment laws of each country.
3. Manage payroll and taxes to ensure that employees get paid accurately and on time and all tax obligations are met.
4. liminate permanent establishment risk.
5. Scale hiring and employee management processes, where talent can be hired in various European countries without increased administrative burden on the company.
2. Ensure that there’s full legal compliance with the local employment laws of each country.
3. Manage payroll and taxes to ensure that employees get paid accurately and on time and all tax obligations are met.
4. liminate permanent establishment risk.
5. Scale hiring and employee management processes, where talent can be hired in various European countries without increased administrative burden on the company.
Conclusion
Europe has great potential to provide remote employees for US-based companies looking to hire. Many highly skilled and highly educated talents are available to fill remote roles for tech companies and other companies. There’s also the required infrastructure and favorable policies that ease hiring. However, challenges such as labor and tax laws which vary among the countries can make hiring and managing employees cumbersome and time-consuming.
By working with an Employer of Record such as WorkMotion, US companies can hire seamlessly across Europe. This will help to ensure compliance with employment laws and eliminate bias in hiring while the business focuses on growth.
WorkMotion’s EOR is the best in Europe because it is built in Europe. Want to know how it works? Let’s talk.
Author bio
Adejoke Adeboyejo an experienced HR professional who writes about HR and the role of technology in human resources.
