Finland is a highly industrialized country, combining a largely free-market economy with a strong Nordic welfare state model. The country of approximately 5.4 million people is highly integrated into the global economy, with international trade accounting for about a third of the total GDP. Historically, Finland is competitive on the world stage in manufacturing, electronics, telecommunications and engineering. Along with a strong digital ecosystem, Finland also excels in the export of technology and is well known for its promotion of startups, cleantech, biotechnology and gaming.
- Finland offers a high-quality business environment marked by uniquely strong levels of stability, continuity and market predictability. The country has been consistently ranked as the most stable in the world, according to the Fund For Peace Fragile States Index 2021.
- Innovation thrives in Finland, with the Global Innovation Index 2021 ranking the country in the top ten in the world for innovation (#7) and also naming it the world’s top business environment.
- The World Economic Forum’s Global Competitiveness Index gives Finland high marks for its labor market conditions, innovation capabilities, corporate governance, business dynamism and trade openness.
- Finland has long been a leader in remote work, both before and during the COVID-19 pandemic. Due to this deep footprint in remote work, the workforce in Finland embraces a global mindset and is ready to work in today’s digital economy.
What do companies need to keep in mind when hiring in Finland for the first time?
Finland, just like its Nordic counterparts, offers an advanced social welfare system. Through well-funded and mandated welfare schemes, the Finnish government facilitates an exceptionally high standard of living for its residents. As a result, Finland ranks highly for quality of life, job satisfaction and overall happiness.
Trade unions and collective bargaining agreements (CBAs) maintain a strong presence in Finland, with over 70% of the workforce belonging to a union. They set the industry minimums and have bargained for specific benefits within various sectors. The strength of unions and the prevalence of CBAs ensure a high standard of employee treatment across all industries of Finland’s economy. But this also means employers need to comply with a long list of statutory benefits and operational requirements, including generous paid time off, bonuses termination requirements and administrative responsibilities.
Beyond primary healthcare and statutory pension plans, supplemental benefits have a broad scope and play a key role in helping employers gain a competitive advantage in Finland’s job market. When engaging workers in Finland, some other supplementary benefits to consider include additional leave allowances, unlimited paid time off, health and wellness stipends, flexible working hours, meal vouchers, company car, additional bonuses and profit sharing.
Why is demand growing in Finland for Employer of Record (EOR) services?
Finland’s business climate is international and highly attractive to foreign investment, with the country beating out its fellow Nordic neighbors in recent years when it comes to foreign direct investment projects. The economy offers robust growth potential and a wealth of business opportunities across different industries, including health and wellness, smart technologies, sustainability, information and communications technology (ICT) and digitalization, as well as travel and tourism. For some companies, Finland’s Nordic location and EU-member status also make the country an attractive destination for foreign investment.
Talent is a major draw in Finland. Multinational companies (MNCs) are increasingly interested in tapping into Finland’s highly-educated, digital-ready and globally-minded workforce. Many professionals in Finland want to work remotely and they have the infrastructure and skills to do so. Long before the pandemic, Finland had been making inroads in the world of remote work. Even pre-pandemic, 10% of its workforce worked from home at least part of the time compared to the 4% average among EU member states. Amid the COVID-19 pandemic, Finland has naturally emerged as a leader in remote work, tracking ahead of other EU countries.
For these reasons, Finland is fast becoming a top choice for global companies that wish to engage workers through an employer of record (EOR) partner.
How can GoGlobal help MNCs grow their team in Finland?
Hiring new employees in Finland and maintaining a workforce in-country requires fees, resources and processes that contribute to the total overhead cost. As attractive as Finland’s workforce is, these costs and provisions can make hiring a tricky and expensive endeavor. This is especially true for low headcounts. However, our local team has deep experience in successfully hiring and managing workforces in Finland.
When an MNC works with GoGlobal, we assume all the legal risks and take on the burdensome tasks of administering payroll and managing a workforce. For example, terminating an employee in Finland may require meetings to be scheduled between labor representatives and the employee. In cases where a termination must forward, GoGlobal will handle this process on behalf of our client and work with the union and labor authorities to ensure end-to-end compliance.
At GoGlobal, we embrace a global mindset but we also maintain a dedicated team of local experts on the ground in each of the markets we serve. Our team in Finland deeply understands the regulatory environment as well as the cultural customs, ensuring a positive and customized hiring experience for both clients and client-employees. Notably, GoGlobal’s EOR solution has a proven track record of success in building fully compliant workforces in EU markets, with our team being fully informed on complex regulatory compliance frameworks such as the General Data Protection Regulation (GDPR).
If you have an enjoyable employee experience in your home country, we will help you localize it and bring it to Finland. Before we onboard the new worker, GoGlobal’s team in Finland will work hands-on with them to outline the specifics of how the EOR arrangement will operate. Even after onboarding, that same dedicated term serves as the point of contact for both the client and client-employee. We are always ready and available to answer questions that come up about payroll, taxation or benefits.
In our service to clients and client-employees, we strive to deliver agility, efficiency and peace of mind. By using our tested and proven EOR solution, MNCs free their internal HR teams from having to navigate Finland’s complex labor landscape as it evolves with new regulations from local authorities or the EU. It’s our job is to handle all payroll functions and requirements, including contributions to statutory benefits, taxation and benefits. This way, our clients can focus on core business-growth activities while they scale new opportunities.