• Employers

In Europe remote working increased from 5-12% during the pandemic in 2020 (zipdo.co). 

As of February 2023, 25% of all workers in Germany are working remotely. Of these remote workers, 73.4% work in tech industry (ifo.de).

According to the Global Remote Working Index (Nordlayer), Germany was voted the top country for fully remote working in March 2023, followed by Denmark and the U.S. Surprisingly, the UK came in 17th place, behind countries such as Slovakia (16th), Belgium (14th), France (10th) and Netherlands (6th). 

As the debate between remote, hybrid and in-office workforces continues, there’s another growing concern in the tech industry: the global layoffs. Could these seemingly separate issues become the solution that the tech industry needs? Could remote hiring reduce labour and office costs enough to end the mass-redundancy trend? Our Senior Germany & EU Consultant, Liam Jopling, discusses the pros and cons…

Global Layoffs 

In recent months, we have seen mass layoffs in the tech industry. Companies such as Shopify, PayPal, Microsoft, eBay, Wayfair and many more have announced cuts to their workforce. Throughout 2023, there were over 260,000 layoffs across the industry (Techcrunch.com). 

Despite the mass-redundancies, many companies are looking for ways to maintain productivity with a more streamlined workforce. This has caused an increase of investment in outsourcing development projects. The process of which can be painstaking due to the different legal ramifications. However, many businesses have instead opted for a new solution to reduce labour costs while maintaining productivity; remote working. Which has subsequently seen the emergence of global payroll companies such as Deel, Remote and Papaya Global (to name a few). 

Global payroll companies are specialists in remote hiring and global payments for international teams. Since 2018, Deel have processed $5.5 billion in payments with over 150,000 workers hired.

So, what do I think? I recommend it. It’s a great asset for any company looking to widen their talent pool. I can say through first-hand experience with Deel in particular, that the hiring process is seamless and stress-free. 

Why Should You Open Your Search? 

To hire Berlin based talent, the average salary for a Senior Developer, ranges from €75,000-€130,000 per year (depending on Tech stack) and the talent pool is very limited as to who you can approach/ attract. 

However, by using the international market, you can open your search to any English-speaking candidate. Including those who don’t like to stay in one place for very long!

The Benefits 

There are many benefits to outsourcing your development, including: 

  • Cheaper labour costs – In general regions such as Eastern Europe, Asia, Africa and South America host many skilled developers with lower hourly rates/ salary expectations. 
  • You can lower your overhead costs by downsizing your physical office or removing added benefit costs that are attributed to onsite talent. 
  • There is a larger talent pool for you to choose from, this will reduce your search time dramatically. 
  • You may be able to hire specialists in different fields that are not as commonly available locally. 

The only argument against remote working from different continents, is the time difference. However, many seasoned remote workers are experienced with workarounds for this blocker, whether that’s adjusting their working hours to ensure a crossover with core business hours or flexibility with meetings outside the typical working patterns. 

Should you wish to explore the possibility of hiring remotely or would like to hear more about the arguments for and against using a more international talent pool, please get in touch! 

030 1663 4989 | liamjopling@formularecruitment.co.uk



Written by Liam Jopling, Senior Technology Consultant

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