- 15 September 2023
- Posted by: WhiteFin Solutions
- Categories: EOR, Recruitment
The quest for top-tier talent knows no borders in today’s globalised business landscape. One country that has become an increasingly attractive destination for companies seeking skilled and innovative employees is Finland.
It is known for its world-class education system, thriving tech industry, and work culture emphasising productivity and work-life balance. However, tapping into this talent pool requires understanding the local labour market, legal regulations, and cultural nuances.
This article aims to guide you through the essentials of hiring in Finland, from the benefits of setting up shop in the Nordic country to the laws you’ll need to comply with and how services like WhiteFin contracting can simplify the process.
Why Hire in Finland?
Finland is a nation rich with educated and hard-working people. Finland offers a unique blend of advantages for employers. Here are some of the best reasons to seek quality employees in Finland.
Booming Tech Industry
Finland is increasingly becoming a hotspot for technology-driven companies. With a tech industry that has roots dating back to the era of Nokia, Finland has reinvented itself as a hub for innovative startups and tech giants.
The country has a particular strength in areas such as software development, telecommunications, and gaming. Companies like Supercell and Rovio, creators of global phenomena like Clash of Clans and Angry Birds, are Finnish exports that showcase the talent available in this sector. The technology ecosystem is also supported by the government through innovation-friendly policies and grants, making it an attractive destination for companies looking for highly skilled tech talent.
High-Quality Education System
Finland’s education system is globally renowned for its quality and inclusiveness. The country’s focus on education not only ensures a highly skilled workforce but also cultivates talents in specialised fields like STEM (Science, Technology, Engineering, and Math). Finnish workers are often multilingual, with strong skills in English and other European languages, giving businesses an edge in global communication.
The education system’s emphasis on problem-solving and critical thinking skills ensures that Finnish employees can adapt to various work environments and challenges, making them invaluable assets to any team.
Innovation-Friendly Environment
Finland consistently ranks high in global innovation indices, offering a climate that fosters creativity and the implementation of new ideas. The government actively supports research and development through grants and subsidies.
Businesses can collaborate with institutions like VTT Technical Research Centre of Finland and Aalto University to drive research in sectors ranging from cleantech to digitalisation. This combination of public and private sector synergy makes Finland a hotbed for cutting-edge ideas and practices.
Cultural Considerations and Work Environment
If one is hiring from elsewhere in the world, a person may be surprised to find what the work life is like for people in Finland. Knowing these cultural differences is going to be vital to success.
Work-Life Balance
Finns take work-life balance seriously, and it’s an ingrained part of the culture. The government and organisations alike put policies in place to ensure a balanced lifestyle. Flexibility in working hours and the opportunity for remote work are often standard perks, not exceptions.
This culture not only attracts high-quality talent but also increases employee retention rates. A focus on work-life balance contributes to higher levels of employee satisfaction and mental well-being, which in turn boosts productivity and innovation.
Flat Hierarchies
The Finnish work culture tends to emphasise flat organisational structures, where titles are less important than contributions. This democratic approach encourages open dialogue and collaboration across different levels of the organisation.
Employees are generally empowered to take initiative and are given substantial responsibilities, irrespective of their job titles. This level of trust can significantly boost employee morale and job satisfaction, leading to increased productivity and better results.
Punctuality and Directness
Punctuality is more than just a courtesy in Finland; it’s a show of professionalism and respect. Whether it’s a meeting, a project deadline, or a social event, being on time is expected. Similarly, directness and straightforward communication are appreciated in the workplace.
Finns value clear, concise information and discussions, and beating around the bush is generally frowned upon. Understanding these cultural traits can help overseas employers foster a positive, respectful relationship with their Finnish counterparts, making collaboration smoother and more effective.
What Laws Do I Need to Know to Hire in Finland?
Navigating employment laws is a crucial aspect of hiring in any country, and Finland is no exception. This should give you a thorough overview of the laws and regulations you’ll need to understand when hiring in Finland.
It’s advisable to consult legal and HR professionals to ensure full compliance. Here’s an in-depth look at some of the key regulations and legal obligations employers should be aware of:
Employment Contracts Act
Finnish employment laws mandate that a written contract must be provided to the employee when they start work. This contract should outline key details like job responsibilities, salary, work hours, and the terms of the employment relationship.
Working Hours Act
The standard working week in Finland is 40 hours, usually spread over five days. The Working Hours Act dictates the maximum number of hours an employee can work, and under what conditions overtime is to be paid. Employers need to be well-versed in these rules to ensure compliance.
Annual Holidays Act
In Finland, employees are entitled to a minimum of 24–30 days of paid leave, depending on the length of their employment. This act governs how holiday pay is calculated, and when and how employees can take their annual leave.
Collective Agreements
Many industries in Finland have collective agreements that set specific terms of employment, including wages, working hours, and other conditions. While these agreements are generally negotiated between employers and trade unions, they can be legally binding, even for employers who are not union members, if the agreement is generally applicable in the industry.
Occupational Safety and Health Act
Employers have a legal obligation to ensure a safe and healthy working environment. This includes proper training, equipment, and procedures to reduce work-related risks.
Equality Act and Non-Discrimination Act
These acts prohibit discrimination based on gender, age, nationality, language, religion, belief, opinion, health, disability, sexual orientation, or other personal characteristics. Employers must also actively promote equality.
Parental Leave Policies
Finland has generous parental leave policies that both mothers and fathers can avail. Employers need to be aware of these rules, as they’ll need to plan for potential long-term absences and possibly temporary replacements.
Social Security and Taxes
Employers are required to make social security contributions, which include pension insurance, unemployment insurance, and other social benefits. This is a crucial element of payroll and requires accurate calculation and timely payments.
Employee Termination Laws
Finland has stringent regulations around the termination of employment. Employers must have a valid reason for termination and follow proper procedures, including notifying labour authorities in case of mass layoffs.
Registration Requirements
Employers must register their employees with the Finnish Tax Administration and the relevant social security agencies. This is necessary for tax withholding and for contributing to social security schemes like pension funds and healthcare.
What Job Boards Can I Use to Find Workers in Finland?
Here are just a few job boards where a company can start to recruit workers.
Monster.fi
Monster Finland is an excellent general job board.
Duunitori
This is a localised job board popular among Finns.
LinkedIn is increasingly popular for professional jobs, especially in the tech sector. It’s easy to use and accessible in the world.
What’s the Process for Hiring Workers in Finland?
If one is looking to hire in Finland, here is the process the company must abide by.
Recruiting and Interviewing
Start by posting a job advertisement, shortlisting candidates, and conducting interviews. Remote interviews are increasingly common.
Contracting
Once a candidate is selected, an employment contract compliant with Finnish law should be drafted and signed by both parties.
Onboarding
Orientation and training, if applicable, should follow. Ensure that all required documents are submitted for taxation and social security.
Trial Period
Typically, there is a trial period during which either party can terminate the employment with less notice. This is often four months but can be negotiated.
Final Thoughts
Hiring talent in Finland offers numerous advantages, from a highly educated workforce to a culture that prioritises innovation and work-life balance. However, navigating the Finnish employment landscape comes with its own set of complexities, including stringent labour laws, collective agreements, and social security obligations.
It’s crucial for businesses to thoroughly understand these regulations to ensure a smooth hiring process and ongoing compliance. For those looking to simplify these complexities, WhiteFin offers a streamlined approach to hiring and payroll management, ensuring that your business remains compliant while benefiting from Finland’s vibrant talent pool.