When considering hiring a new employee, it is not only about the associated direct and indirect costs.
The legal part is also a big deal.
US companies typically have more flexibility when it comes to labor regulations. Vacation required by law is 14 days a year; it is relatively easy to fire personnel; compensation has limited regulations. Businesses can more freely decide to try new products and services and have more flexibility in hiring and firing staff if things do not turn out as expected.
In Europe, on the other hand, labor regulations are friendly towards employees but not so much towards the entrepreneurial spirit, innovations, and business development. There are long notice periods to get the desired talent (one to six months, depending on the country), regulated conditions to fire staff, and long termination notice periods. Long vacations. Sick leaves. Social taxes. Social benefits. As a result, European companies make prudent decisions before starting new activities requiring additional staff. Besides, there are a number of regulations and requirements related to health checks, ergonomics at work, and health and safety.
All this has leads to the willingness of businesses to buy services rather than engage in employment relations.
There are various platforms offering freelancers for different tasks. Just find one, buy a service, get the job done, but… It is not so straightforward. We all want quality, engagement, loyalty, and the best possible result while ensuring compliance with applicable regulations.
Therefore, it is crucial to think of service providers who take care of the correct structure of the contract, including copyright clauses, non-disclosure, rights and obligations, and penalties. Flexibility comes with its own risks, so it is essential to invest time in choosing the right partner, platform, and service provider, and take care of the legal and compliance aspects.
ServAgora Team
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