Denmark, like its Scandinavian neighbours, is regarded as one of the world’s happiest countries. It is also a great site for multinational businesses to expand, ranking fourth in the world on the ease of doing business scale, ahead of every other European country and the United States.
What to Know Before Hiring in Denmark
Before you start hiring new employees in Denmark, you should be aware of certain key facts about the country’s culture, labour market, and legal framework.
- Collaborative Bargaining Agreements (CBAs);
- The Workweek and Vacation Days;
- Social Security and Taxes;
- Employment Agreements.
The Employment Contract
The following details must be included in the employment contract:
- Employer and employee names and addresses;
- Job title or description first day on the job;
- Nonpermanent roles;
- Holiday policies and pay;
- Employee and employer notice periods;
- Payroll frequency, salary, and any other wages;
- Working hours;
- Information on any applicable collective bargaining agreements.
Denmark’s Hiring Costs
Recruiting internationally can be more expensive than hiring locally. You should set aside money for:
- Establishment of a business;
- Agency or committee in charge of hiring;
- Advertisements for jobs;
- Checks on the law;
What Does a Company Require to Hire a Worker in Denmark?
To hire employees in Denmark, you must first obtain legal standing as a business and an employer. This implies you will have to go through a few processes.
You will need the following aspects:
- Organizational structure;
- Registration as a DBA;
- Registration with the IRS;
- Bank account and share capital;
- Space for work;
- Insurance for work-related injuries.
Rather than establishing yourself as the employer, you can circumvent all these procedures by partnering with a Professional Employment Organization (PEO), also known as an Employer of Record (EOR).
How to Hire a Worker in Denmark
Hiring methods in Denmark will most likely appear very similar to those in your home country, but there will be some important country-specific nuances to be aware of.
Let’s have a look at how to hire a worker in Denmark.
1. Post Job Openings on the Internet
Begin by developing job advertisements that include information about your organization as well as the responsibilities and qualifications for each position. These advertisements should be posted on internet job boards where Danish job seekers are likely to see them. Jobnet, Ofir, Jobzonen, Jobindex.dk, and Stepstone are some of the most prominent job boards in Denmark.
You might also look for job boards that are unique to your field. If you want applicants to submit their materials in English, make sure to include this information in the advertisement.
2. Examine the Applications
If you do not have time to examine applications by hand, you may wish to hire an agency or use software to assist you. Danish CVs will resemble other European CVs, which are often longer than the short resumes found in North America. Create a shortlist of top candidates by looking for applications who meet or exceed your criteria.
3. Arrange for Interviews
If you are hiring remote workers in Denmark, you have the option of conducting in-person interviews or scheduling a phone call or virtual video interview. Keep in mind the time difference between your home and Central European Time while scheduling virtual interviews.
4. Submit Contracts and Offers
Once you have found the best applicants, contact them to make an official job offer. You should also use this time to draft a written contract that your new hire can read and sign so that they are completely aware of the work and the terms of employment.
5. Orientation of New Employees
You can now begin working with your new hires on the onboarding process. Ascertain that they complete any required documents.
Even though Denmark is a business-friendly country, establishing a corporation and negotiating the associated laws and requirements can be costly and time-consuming. As mentioned above, an Employer of Record is the best easy way to hire a worker in Denmark.
For more information, contact Swapp Agency.