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Talent acquisition is a global struggle, but Europe faces a particularly acute challenge. Surveys reveal a striking disparity: EU-based companies are reporting labor shortages as a challenge at a rate almost 30% higher than their counterparts in North America and Asia. Furthermore, around 33% of survey respondents view the EU unfavorably when it comes to talent availability.
What's driving this? Well, it's a combination of factors. We've got aging populations, declining birth rates, and a tech landscape that's evolving at breakneck speed. Eurostat data clearly shows the impact, with consistently high job vacancy rates, particularly in sectors like manufacturing, construction, and those all-important ICT roles.
Take Germany, for example. Projections are pretty stark – they're looking at a potential shortage of millions of skilled workers. Germany’s economic future is facing a looming crisis: a staggering shortage of 7 million skilled workers by 2035. As Economy Minister Robert Habeck pointed out last year, this workforce deficit will severely constrain growth in Europe's largest economy. The evidence is stark: 700,000 skilled positions remain unfilled, the baby boomer generation is rapidly approaching retirement, and the projected economic growth for 2025 is at a mere 0.3%. Adding to the challenge, 2.6 million young adults lack the professional qualifications needed to fill these crucial roles. This skills gap presents a significant threat to Germany's economic stability and competitiveness.
So, what does this mean for businesses? It means we need to rethink talent acquisition. We need to be proactive, strategic, and yes, a little bit creative. It's about more than just filling positions; it's about building a sustainable and thriving workforce for the future.
Why do you need a better hiring strategy?
To beat labour shortage
There’s an undeniable skills shortage in Europe. In Germany alone, 50% of companies are struggling to fill vacancies. By looking beyond local borders, companies can find highly skilled individuals to fill critical roles.
To expand your business
Hiring a geographically diverse team allows you to better understand and cater to international markets. This can open doors to new customers and revenue streams. For example, hiring regional sales and customer success professionals.
To hire people with specific skill sets
People from different countries bring unique experiences and skill sets to the table. This diversity of thought can lead to innovation. Eg. Ireland has the highest ratio of artificial intelligence (AI) talent in the European Union, according to a new study from LinkedIn.
To save on employment costs
When we think about hiring abroad, we of course look at bridging the gap between finding skilled talent and supplying remote employment to skilled workers. But we also need to acknowledge the clear cost advantage it provides to businesses because of low regional salaries.
How does an EOR help you fill open roles faster?
An Employer of Record (EOR) allows companies to hire employees in new countries without setting up a local legal entity. This makes it possible to act fast when the right candidate shows up, regardless of where they live. Here are some important questions to ask before choosing an EOR partner.
Using an EOR offers numerous benefits, including:
● Reduced costs and time: Save on legal fees, administrative burdens, and the time required to set up your own subsidiary.
● Compliance expertise: Mitigate the risk of non-compliance with local laws and regulations.
● Faster hiring: Get your international talent on board quickly and efficiently. ● Scalability: Easily expand your global workforce without the complexities of managing local entities.
● Focus on your core business: Free up time and resources to focus on your core business activities.
“The biggest advantage an EOR gave us was that we were able to hire quickly. Relocating employees can take time, especially when it comes to visa and paperwork. With WorkMotion, we were able to hire employees abroad and bridge the gap between employment and relocation.” — Jitske Lambrechts, International Payroll Management Specialist at IU Internationale Hochschule
How relocation helps close critical roles
Relocation is a powerful way for companies to tap into global talent pools and bring top professionals into their physical workplaces. Rather than being limited by geography, employers can source expertise from anywhere—and bring it where it’s needed most.
More and more businesses are relocating high-demand specialists, especially in fields like IT, engineering, healthcare, and finance. In countries like Germany, Spain, and Estonia, relocation has become key to solving local talent shortages and keeping growth on track.
Why relocation makes sense:
● Hire for skills, not borders: Access the right expertise, regardless of where it lives.
● Solve hard-to-fill vacancies: Especially in sectors with limited local talent, relocation opens up new possibilities.
● Spark innovation through movement: Relocating employees between regions fosters collaboration, knowledge sharing, and long-term capability building.
● Boost loyalty and growth: Offering relocation shows serious commitment to employee development and retention.
How EOR and relocation work hand-in-hand
In markets facing talent shortages, combining Employer of Record (EOR) services with relocation support offers a flexible, two-pronged approach:
1. Hire instantly with EOR
When your ideal candidate is based abroad, an EOR such as WorkMotion lets you onboard them quickly without waiting for entity setup or visa processing. They can start contributing immediately, working remotely in full legal and regulatory compliance.
2. Relocate at the right time
While employment is handled through the EOR, your global mobility partner coordinates the relocation behind the scenes taking care of visas, accommodation, local registration, and more. Once everything’s in place, the employee makes a seamless move to your local office.
Conclusion
Hiring international talent doesn’t have to be slow or complicated. With the right mix of EOR and relocation, companies can hire quickly and still plan for long-term success.
An EOR makes it easy to get people on board, fast. Companies can bring in skilled professionals from abroad without setting up a local entity, keeping things moving while other processes, like visas, are still in progress. At the same time, relocation support helps employers bring those hires into your local teams when the time is right, giving them access to the skills their business needs, wherever they’re based.
By using both approaches together, companies stay flexible, fill roles faster, and build a stronger international workforce. Look for partners with solid experience in remote employment and mobility, and a setup that’s transparent and easy to work with. That way, instead of just filling roles, you're building a team that’s ready to grow with you.
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