The 5 Most Common HR Mistakes When Expanding To Europe

    Last updated: 17 September 2024

     

    As organizations expand internationally, the potential for HR managers to make mistakes increases. This is due to the added complexity of foreign labour laws, cultural differences, and cross-border communication. These factors create more opportunities for errors. If you're planning to enter new markets and are concerned about HR risks, it's crucial to be aware of these common mistakes.

     

     

    Assuming Europe has the same labour laws

     

    One of the most common mistakes is assuming that all European countries have the same labour laws. This can be true in some cases but in almost all countries, there are differences that you need to take note of before hiring or expanding in those countries.

    For instance, when you think of the EU Pay Transparency Directives, in France, the gender quality index requires all companies with more than 50 employees to report on the five key indicators relating to their gender pay gap and any companies with more than 75% should take actions to improve pay transparency. This differs from other European countries. 

     

    Overlooking recruitment differences in USA-Europe

     

    It is better to assume that the recruitment process might be very similar across borders but there are so many differences between the USA and Europe that most recruiters do not consider when employing in Europe. It is very common to rely on networking and personal connections in recruitment within the USA. Platforms like LinkedIn and Glassdoor as key to connecting with potential employers. In Europe, CVs are important in the recruitment stages. 

     

    Bonus Read: Top 5 differences between USA and EU Business Culture

     

    Non-compliance with international data privacy regulations

     

    Many countries are enforcing stringent regulations to protect employee data privacy, like the General Data Privacy Regulation (GDPR) in the European Union. HR teams responsible for collecting, using, sharing, and storing sensitive data about their international workforce need to prioritize data protection, especially for highly sensitive payroll data. Non-compliance can result in severe legal penalties and damage employee trust. For example, in Ireland, failing to obtain explicit consent for data collection can lead to significant fines and legal complications. 

     

    hr mistakes in eu

     

    Underestimating the value of customized compensation in Europe

     

    What sets employers apart in Europe is the type of package and compensation offered to their employees. Employees in the USA often attach a good package to involve a good bonus system, stocks, and commissions on sales while in most European countries, packages are based on flexibility, number of vacation days, healthcare plans, travel reimbursements, and many others. Understanding the need to provide customized compensation is key to winning your HR journey on the European market. 

    To ensure you offer the most competitive packages in the market, carry out extensive research or make use of a European HR consultant who can develop customized packages for every role or country you are employing in. 

     

    Overlooking European talent pools when hiring

     

    Most HR professionals, tend to rely on the recruitment channels they are more familiar with to attract top candidates. While this can work sometimes, it tends to limit your talent pool as many qualified candidates prefer local or regional job search resources. All European countries have job boards that are familiar to the citizens, for instance, Pole Emploi and Apec are more common in France than LinkedIn.

     

    HR partner for your European expansion

     

    Choose the best HR partner for your European expansion to avoid these mistakes. It is important to outsource your activities to a partner with a deep understanding of the local EU regulations, aware of the cultural differences, and recruitment landscapes in your target region. Having a partner like EuroDev can ensure you navigate the legal complexities of the market and help you tailor your HR strategies and retain talent effectively. 

    By selecting a knowledgeable partner you can mitigate any HR risks, optimize operational efficiency, and position your expansion for long-term success in new markets.

    To learn more about international hiring and recruitment, visit our HR outsourcing page or book a free consultation with our country-specific consultants.

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