Growing a business across continents is not an easy matter. Find out how you can expand without issue in our guide to moving into the European market and hire in European countries.
At a certain stage in your company’s lifecycle, you might want to think about expanding. There are a number of ways to do this, from opening a branch in another state to simply hiring more staff at your current location.
However, one option that is becoming more attractive for US companies looking to expand internationally is Europe.
Investment in the European market has skyrocketed in recent years. From 2010 to 2020 it rose from $11 billion to $49 billion, before more than doubling to $103 billion in 2021. Businesses are scaling into Europe faster than ever, all while expanding into more countries sooner. It’s clearly a good time to think about trying to expand across the Atlantic.
It’s easy to see why; Europe has a range of countries familiar with American businesses and with markets eager for American products. What’s more, the European workforce is talented, flexible and excellent value for money with the right recruitment strategy.
Read on to find out more about expanding your business into Europe.
The Benefits Of Expanding Into Europe
So why expand into Europe in the first place? First of all, there’s the simple fact that it’s a large economy with significant purchasing power. The GDP of Europe is approximately $26.9 trillion; comparable with the US at $27.9 trillion. However, its citizens have slightly more available income, with Europe accounting for 20.7 percent of the world’s purchasing power compared to the USA’s 15.2 percent.
The market is also extremely diverse, with 44 countries speaking as many as 200 different languages. This diversity enables a wide range of business opportunities; however, there is a shared culture across Europe that means tactics for entering one part of the market can apply to others. This makes continued expansion easier than it might appear at first.
Europe’s workforce is another major benefit. Approximately 44 percent of workers in the EU are classed as “highly skilled”, which encompasses managers, professionals, technicians and associate professionals.
While recruitment across borders can be an issue, countries that are part of the EU have a much easier time hiring staff from other EU nations. With 92 percent of the population having access to the internet, remote work is also easy to set up and implement.
The Challenges Of European Expansion For US Companies
As with any business move, entering Europe comes with its own share of challenges. US companies looking to expand internationally need to carefully consider these factors if they want to join the European market without issue.
One major issue is the large legal and regulatory differences between Europe and the US. Each country will have its own laws and regulations on employment and business, and while the EU has enabled a certain amount of standardisation there are still some significant differences.
Any US company looking to hire staff in Europe will need to check they can meet the requirements for things like minimum wage, employee benefits, tax contributions and more. Careful navigation of this system can still be more cost-effective than hiring US workers, but it would be a mistake to assume things worked the same way as they do in America.
There are also cultural differences to take into account. Your product or service might be perfect for the American market, but depending on where you go in Europe it might need some tweaks. Even small things such as what hours people expect to work and the expected etiquette for business meetings can have a big impact on your success.
Conducting Thorough Market Research
In order to avoid falling into the above traps, it is necessary to conduct thorough market research. Here are some of the things you should consider when expanding into Europe:
- Business regulations
What will be expected of your business when you move into a new country? Will you need to match employee pension contributions, provide a certain amount of maternity leave or meet environmental standards? You should be fully informed of the regulatory situation before you make the move. - Audience sensibilities
What does your target market expect from a business? Are they looking for a high-quality product, or do they prefer value for money? What services are in demand? Check to see what changes you need to make to your offering to meet European needs. - Marketing expectations
How will you market yourself to a European audience? This covers everything from overall strategy to smaller things like the language you use for your offering. Check that there are no issues, such as product names that have a different meaning in the local language. - Talent pools
Your business in Europe will need to be staffed, and the availability of talent could play a major role in where you expand. You will need to assess the talent pools in your potential locations to see if you will be able to take on the skilled and experienced employees your business needs.
How To Hire In Europe
As an international recruitment agency, we’ve put our expertise to good use and our country directors have produced specialist guides for hiring in European countries. Learn everything you need to know about hiring in France, Poland, UK, Ireland, Sweden, Spain, and recruiting in the Netherlands.
Hiring In Spain
Liam Cox (Country Director in Spain): “Hiring in Spain offers a unique blend of opportunities for companies but there also some bureaucratic challenges to consider. The country’s labour market has undergone significant transformations in recent years, rebounding from the 2008 economic crisis. Spain stands out for its strong framework to safeguard the rights of employees, which can be challenging for businesses to navigate and follow.
Some measures aim to promote gender equality in the workplace and tackle the gender pay gap. Despite having one of the highest unemployment rates in the European Union, Spain remains an appealing destination for businesses looking to expand internationally due to its lower cost of living and the government support for businesses.”
For more information about hiring in Spain, explore our comprehensive Hiring In Spain Guide or get in touch with our specialist Spain recruitment agency, specialising in helping US companies expand into Europe.
Hiring In France
Olga Iwanicka (Country Director in France):“The country’s robust economy and skilled workforce make it an attractive destination for businesses. However, navigating the French employment system can be challenging and it requires understanding of the comprehensive legal framework governed by the French Labor Code, hence the need for international recruitment specialists.
Despite administrative challenges, France remains highly competitive due to its favourable labour market conditions and high degree of flexibility, which enables employers to easily adjust to changing economic conditions.”
For more information about expanding your company to France, explore our comprehensive Hiring in France Guide or contact our specialist France recruitment agency, which focuses on assisting US companies with their European expansion.
Hiring In The Netherlands
Wiktoria Michalowska (Country Director in the Netherlands): “The country’s low unemployment rate and high demand for skilled workers, particularly in technology, healthcare, and logistics sectors, create a wealth of job opportunities. The Netherlands stands out for its high rate of temporary work and the prevalence of flexible working arrangements, thanks to the rise of self-employed contractors and remote work.
Despite having one of the highest labour costs in the European Union, the Netherlands remains an appealing destination for businesses looking to hire abroad.”
If you want to learn more about hiring in The Netherlands, check out our detailed Hiring In The Netherlands recruitment guide or speak to one of the team at the Netherlands recruitment office.
Expanding To The UK
Breean Weldrick (Country Director in the UK): “Understanding the UK’s employment laws and regulations – especially post-Brexit – can be difficult for businesses. But the country’s thriving tech, finance, and green manufacturing and energy industries make it a hotbed for talent opportunities.
The potential rewards of hiring in the UK are significant, making it an attractive destination for businesses seeking growth.”
If you’re a US based company interested in hiring in UK, then be sure to read our guide to hiring in the UK or speak to one of the Allen Recruitment UK Recruitment Agency team.
Hiring In Sweden
Borja Santorio (Country Director in Sweden): “Sweden is often referred to as the Silicon Valley of Europe, being the birthplace of many successful start-ups and home to top IT professionals. What sets Sweden apart is its strong commitment to work-life balance and a highly educated workforce. The country also has a strong background of worker participation in decision-making, with many companies having employee representatives on their boards of directors.
The potential downside may lie in the relatively high wages, but the Swedish government has focused on promoting entrepreneurship and innovation, making it easier for companies to start and grow.”
Looking to hire in Sweden? Check out our Sweden recruitment guide or chat to one of the Sweden Specialist Recruitment Agency at Allen Recruitment.
Expanding To Ireland From US
Louise Allen (Country Director in Ireland): “Ireland stands out for its business-friendly tax environment and its unique position as an English-speaking EU member (Eurozone participant).
Despite the high labour costs, intense competition for talent and the high costs of living (issues that are often addressed by offering remote/hybrid work) the highly educated and young English workforce coupled with the flexible labour regulations, and the strong government support for training and innovation, make it a very attractive destination.”
If you’re company is interested in hiring in Ireland, be sure to read the Ireland recruitment guide or get in touch with the Allen Recruitment Dublin-based agency.
Hiring In Poland
Elżbieta Rzepa (Country Director in Poland): “Poland’s low labour costs, and highly skilled workforce have made it an attractive destination for international companies seeking to expand in Europe. Yet, some challenges are the complexities of the Polish employment legal framework. Despite this, the potential rewards of hiring in Poland are substantial, and an appealing destination for businesses.”
For more information about hiring in Poland, explore our comprehensive Hiring in Poland Guide or contact our specialist Poland recruitment agency, which focuses on assisting US companies with their European expansion.
Expanding In Belgium
Wiktoria Michalowska (Country Director in Belgium): “The country’s strong economy and low unemployment rate have made it an attractive destination for international companies. What sets Belgium apart is its multilingual workforce and central location in Europe, making it a strategic hub for businesses.
One of the challenges lies in the complex employment laws and high labour costs, but the potential benefits of recruiting in Belgium are significant and makes it an appealing destination for companies.”
Successful US Company That Expanded To Europe
When done well, a move to Europe can be extremely beneficial. One business that expanded successfully across the Atlantic is Etsy, which originated in New York in 2005.
In 2012, when the company was still relatively small, the e-commerce business decided to open an office in Dublin in order to move into Europe.
One of the strategies for Etsy’s expansion was to partner with local bloggers and other influencers in order to test the waters and build anticipation among its target markets. Following this, the company focused on bringing sellers on board and ensuring the website was optimised to succeed amongst local audiences.
The main challenge for the company was translating their site – and many product descriptions – into local languages. Again, partnering with local talent was the answer. One key component of this was making sure cultural nuances weren’t missed; for example, stating that the site accepted Discover cards would have marked them out clearly as American and potentially put off European customers.
Expanding into Europe is no easy task. However, with the right strategy – and potentially the right partnerships with local companies – it can prove to be an extremely successful business move.
Why not go beyond? You can also access our free e-book, complete with extensive information to help you navigate this process with confidence – click here to fill out the form and we’ll send you a copy.
About Allen Recruitment
Allen Recruitment is an international recruitment consultancy with offices in Ireland, the UK, the Netherlands, Spain, France, Sweden, Belgium and Poland, providing recruitment solutions and job opportunities all over Europe and more. Our country directors are specialists at working with US companies looking to hire in Europe.
A full-service recruitment consultancy offering temporary, permanent, contract and contingency roles in a variety of industries such as IT, Tech, Finance, Telecom, E-commerce, Engineering and more.
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