In today’s globalized business landscape, expanding your company’s operations to foreign markets offers exciting opportunities for growth and diversification. The possibility for startups and global companies alike to build #remoteteams across the world is real, and can provide incredible financial efficiencies for your business operations and its employment costs.

Serbia, with its strategic location in south eastern Europe and a developing, has become an attractive destination for international businesses seeking to tap into its highly skilled workforce and market potential. However, navigating the complexities of recruitment and local employment can be challenging. This article explores how to effectively hire locally in Serbia by utilizing an Employer of Record (EOR) service.

How is Serbia’s Employment Landscape

Before delving into the benefits of using an EOR, it’s crucial to understand Serbia’s employment landscape. Serbia boasts a highly educated workforce, particularly in IT, engineering, and the service sector. Many of the companies already hiring in Serbia will know that Serbian skilled workers usually study while working to get more (and better) qualifications. Serbian workers are also hard and realiable workers, focused on performance and it’s not rare that they combine several activities on top of their daily job. Recruiting in Serbia is facilitated by the high level of English spoken in the country and the relatively short notices (up to 30 days).

However, the country’s labor laws, tax regulations, and administrative procedures can be intricate for foreign businesses to navigate independently.

What is an EoR?

An Employer of Record (EOR) is a professional services company that specializes in managing payroll, HR compliance, and employment-related tasks on behalf of their clients. Nomad Global Hire, for example, specialises in supporting Startups willing to give a local employment contract to employees in locations across Europe, Africa, LATAM and the middle East (65 countries in total).

When expanding into a new country like Serbia, partnering with an EOR can streamline the hiring process, ensuring compliance with local laws and regulations while minimizing administrative burdens for your company.

Benefits of Using an EoR in Serbia

1. Legal Compliance: Serbia’s labor laws can be complex, and compliance is essential to avoid legal issues. An EOR ensures that your employment contracts, payroll, and benefits are in line with local regulations.
2. Time and Cost Efficiency: Establishing an in-house HR and payroll department in Serbia can be time-consuming and costly. EORs have the infrastructure and expertise to handle these functions efficiently. You can hire someone in Serbia locally in 5 days while setting up an entity int he country can take 5 months easily!
3. Risk Mitigation: EORs assume certain employment-related risks, such as tax and legal liabilities, leaving your company free to focus on core business operations.
4. Local Expertise: EORs have a deep understanding of the local business environment, making it easier to navigate cultural nuances and market dynamics.

Steps to Hiring Locally via an EOR in Serbia

1. Selecting an EOR: Research and choose an EOR with experience in Serbia and a strong track record of compliance and service quality. Most companies offering this service are similar though, so this is not easy task. We recommend choosing one that can help you get a financially attractive proposal (monthly fees go from 300 to 800 USD depending on the EoR for roughly the same services…) and with people who have strong HR and international expansion experience.
2. Defining Job Roles: Clearly define the roles you need to fill and draft job descriptions tailored to the Serbian market.
3. Recruitment: The EoR (Employer of Record) doesn’t do recruitment, so you need to either do it yourself or engage with a local recrutiment agency. Once identified and offered, the candidate is hired by the local EoR and gets a local contract with the local company (the EoR). Collaborate with your chosen EOR to identify suitable candidates. Leverage local job boards, recruitment agencies, and networks to find the best talent.
4. Onboarding: Your EOR will manage the onboarding process, including contract signing, tax documentation, and setting up payroll.
5. Ongoing HR Support: Utilize your EOR’s expertise for ongoing HR support, including benefits administration, performance management, and compliance.
6. Adaptation to Serbian Culture: Encourage cultural integration within your team by understanding and respecting Serbian customs and work culture.

Conclusion

Expanding your business to Serbia can be a rewarding venture, provided you navigate the complexities of recruitment and local employment effectively. Leveraging the services of an Employer of Record (EOR) streamlines the process, ensures compliance with local regulations, and frees your company to focus on its core objectives.

By following these steps and partnering with a reputable EOR such as Nomad Global Hire, you can successfully hire and manage local talent in Serbia, unlocking the country’s growth potential for your business.