Outsourcing to Eastern Europe can lead to cost savings of 40-70% compared to other major outsourcing markets. But to experience those cost savings, you need to know you’re getting quality workers, dealing with a streamlined process for hiring, and not going to need to turn around and hire again in a short time.
Here’s a look at why outsourcing to Eastern Europe is a smart move for your business.
Why Outsourcing to Eastern Europe Can Save Your Business 40-70%
If you’ve been outsourcing to Western European or North American markets, the cost of hiring workers from Eastern Europe will astound you. Review these reasons why outsourcing to Eastern Europe is a smart choice.
Expedited Hiring Timeline
Sourcing a new employee can cost as much as 40% of the employee’s base salary. And on average, the hiring process costs an employer €4,700, regardless of the position and requires 41 days from start to finish. One major reason for this cost is the staffing needed to recruit, interview and complete all necessary hiring paperwork.
Training and onboarding can cost another €1,000 or more to prepare them to start contributing to the organization. The training process also reduces the productivity for the employee providing the training.
Outsourcing workers using an agency speeds up this timeline, making it possible to hire in as little as a few days. Many come pre-trained, meaning you can get started quickly.
Wage Agreements
Workers from Eastern Europe can afford to work for lower wages than those from other countries due to the lower cost of living in this area. Eastern Europe boasts lower housing costs, fuel, healthcare and food. With lower everyday costs in a variety of large categories, these workers can afford to accept lower-paying jobs while enjoying financial stability.
The cost of living in some areas is half the cost of living in Western Europe. And job opportunities near their home country might be harder to come by, making your offer attractive to foreign workers.
Pre-checked Visas
Hiring from outside the country where your business operates can be complex due to the lengthy process of helping the employee get a work visa. However, when you work with an outsourcing firm, they handle the visa-checking process. That means that all potential candidates the outsourcing firm presents to you will be ready to get started right away because they don’t require work visa sponsorship, which can take several months.
When you outsource with a recruiting agency located in the area where you want to hire workers from, the process is swift.
Negotiated Transportation
Even once you hire from abroad, you can face complexities in getting the worker to the work site. If you aren’t careful, travel expenses can reduce the amount you save in hiring abroad.
Many outsourcing agencies that are members of the Association of Recruitment Agencies offer negotiated travel to ensure your worker arrives on time and at a reasonable cost.
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Worker Volume
Many companies looking to outsource don’t just need one or two employees. They’re looking for dozens or even hundreds. Saving 40-70% on one employee won’t have a large impact on the bottom line. But multiply that times many employees, and now you have an attractive business proposition.
Outsourcing to Eastern Europe can help you work with one entity to source many workers since they have limited opportunities in their home country. They are excited at the opportunity to work with your business, giving you economies of scale.
Employer of Record and Taxes
Managing payroll for temporary workers can reduce the cost-savings you experience from hiring abroad due to the administrative staff it requires. Many of the best outsourcing firms in Eastern Europe will serve as the employer of record. This allows you to reduce payroll staff tasked with managing complex pay situations while still reaping the benefits foreign workers offer.
And if you hire skilled workers from Moldova, your outsourcing agency can act as the employer of record for remote workers. That means that the agency will pay the worker’s salary and benefits. As the employer, you pay a set fee per month and minimal taxes compared to setting up operations in the country and paying triple the taxes.
Cultural and Communication Fit
Another reason why hiring from Eastern Europe can offer cost savings is because you won’t have to worry about hiring translators or putting employees through extensive training to understand your company culture. Many are already familiar with the area, speak the language and are ready to get started.
Time Zone Compatibility
If you plan to hire remote workers, Eastern Europe offers financial and strategic advantages due to similar time zones. You won’t have to pay your domestic staff overtime to handle calls with remote workers after hours due to cross-over in working hours among all workers.
The Most Effective Way to Hire from Eastern Europe
Companies looking to take advantage of outsourcing’s strategic benefits should look no further than the Association of Recruitment Agencies. As a centralized source for collaborating with Moldovan recruitment agencies, we help companies throughout the European Union source quality workers.
We help you find an outsourcing partner with employees ready to take your business to the next level while saving you money.
We’re confident we can help because we regularly recruit more than 1,800 candidates monthly. With more than 43 recruitment offices throughout the nation and a large recruiting staff, you’ll be impressed with our capabilities.
Personnel Recruitment Services
We’ll help you recruit the workers you need to staff your company economically. Then we help arrange transport, ensure legal compliance and step in throughout the employment contract to support your organization when needed.
Personnel Outsourcing Services
Allow our team to build a service or process alongside the necessary staffing to deliver it. You can pay for this service by volume, rate, weight or other measure. It’s an effective way to reduce overhead costs while accessing a team with the necessary expertise.
Staff Leasing Services
You set the requirements for the worker, and we’ll employ the worker, transport them, and handle the legalities. We’ll be the employer of record for any leased employees even when they work at your location and complete tasks for your business. You will provide all management and oversight of the employee for their daily tasks and assignments, while we pay the employee and handle the legal compliance of the arrangement.
Recruiting and Employment Help from Start To Finish
ARA doesn’t just recruit great candidates. Our team and partner agencies also complete legal document preparation, ensure residency or right to work, handle all the administration of hiring, training the employee, manage the worker, oversee transportation and more. Remove the headaches of worrying about taxes, health insurance and more when you partner with ARA and its member agencies to build cost-effective outsourcing agreements with Eastern European workers. Get started now.
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