The global recruitment landscape continues to evolve and the Balkans are becoming increasingly attractive to organisations looking to expand their pool of skilled candidates.

Countries like Serbia, Croatia, Bosnia and Herzegovina, North Macedonia, and Albania are emerging hotspots for outsourcing and remote employment with a mix of highly qualified workers, multilingual skills, and cost savings.

From IT startups to Fortune 500 firms, corporations are looking to the Balkans more and more to cover jobs in software development, customer service, digital marketing, and more.

This article will look into the factors behind this booming trend, and highlight how an EOR can help businesses deal with the hiring challenges in the region.

Why is the Balkans becoming a hot favorite ?

Quality Talent with Low cost 

The cost advantage is one of the main attractions for multinationals. Salaries in the Balkans are often 30-50 lower than in Western Europe or North America, for the same work.

Strong technical education institutions and an expanding IT outsourcing environment help to ensure that the quality of staff remains high even with lower wages.

Highly Educated Workforce

For companies expanding in the Balkans, the availability of well-trained employees is a major advantage. Countries such as Romania, Bulgaria and Serbia have made a name for themselves as digital centres and have a wealth of expertise in STEM disciplines, particularly in the fields of IT, engineering and medicine.

In Romania, for example, the IT industry has grown by 12% in 2023, and has become a hotspot for software development and cybersecurity. Bulgaria is another major player, and is becoming a popular destination for IT outsourcing as it offers a large pool of low-cost yet highly skilled engineers and developers. With its developing IT industry in Belgrade and Novi Sad, Serbia offers competitive expertise in both automotive engineering and software development.

Business Friendly Government Policies

Many Balkan countries have introduced attractive tax policies and business-friendly changes to attract foreign investment and boost economic development. Reduced corporate tax rates, special economic zones and simplified bureaucratic procedures that significantly reduce the barriers to entry for foreign companies are among these frequently offered incentives.

These policies are enabling a business environment where international companies have access to an educated, competitive labour force while operating with lower overheads. The Balkans has emerged as a compelling substitute for more expensive Central European locations by combining these tax advantages with the region's developing infrastructure and the opportunities of EU membership.

Strategic Location & EU Access

Strategically located at the junction of Europe, Asia, and the Middle East, the Balkans is a top commercial and logistical centre. Situated along important transportation hubs as the Adriatic-Ionian Highway and Pan-European Corridors, the area provides easy access to the EU, Turkey, and the Levant among other important markets. Global shipping passes via ports like Piraeus (Greece) and Bar (Montenegro), while interior cities like Belgrade provide vital rail and road links. 

Hiring Challenges in the Balkans and how can an EOR help ?

Although there is no lack of talent in the Balkans, entering the region is fraught with difficulties. From complicated labour regulations to payroll obstacles, companies must have sound knowledge of the labor laws and unique ideas to recruit effectively.

Below, we will outline the key recruitment challenges businesses might face in the balkans and how an Employer of Record (EOR) can streamline the process.

Complicated Labor laws and compliance

Each country in the Balkans has its own tax systems, labour laws and contractual requirements. There is a risk of penalties or legal action if mistakes are made.

The EOR can help by ensuring full compliance with local labour laws. They can help manage the entire payroll process and create legally compliant contracts according to regional criteria.

Talent Retention

With the Balkans teeming with global companies, there are more opportunities available for the talent and therefore it is important to make competitive offers.

By comparing wages, an EOR can help ensure that competitive offers are made. They have the ability to manage all associated benefits such as health insurance, bonuses and equity and provide access to local perks.

Cross Border Payroll & Tax Management

In order to manage payroll in numerous Balkan countries, you need to familiarise yourself with the different tax rates, currencies and reporting requirements of the individual countries.

An EOR can help you do this by managing payroll in a single dashboard. An EOR can also manage all currency conversions and tax declarations. This way you never miss a deadline and can avoid fines.

Onboarding & Offboarding

As local labour laws, documentation requirements and compliance issues vary across the Balkans, onboarding and offboarding can be a challenge.

By managing all legal, administrative and logistical elements, an Employer of Record (EOR) effectively manages this process, ensuring seamless transitions for companies and employees.

No Legal Entity

Setting up a legal company can take months and requires local knowledge. There are also extra costs associated with setting up legal entity such as registeration fee, office rents etc.

When you work with an EOR, you don't need to set up a legal entity and you can immediately hire talent from the Balkans and automate payroll and HR administration such as benefits, holidays, etc.

Final Thoughts

The Balkans offer an attractive environment to companies that want to grow effectively, find skilled expertise and save on operating costs. Companies can make the most of the region by utilising EoR services such as Swapp Agency , as it will help them understand the local recruitment scene and ensure compliance, giving them the space and time to focus on other important aspects of business growth.