Hiring Abroad: Expansion Opportunities for SMEs
Internationalization is an important goal for many SMEs – a decisive step toward growing and competing in broader markets. But opening a branch and recruiting abroad does not mean simply replicating the Italian model. One of the most complex challenges is to build a local team capable of understanding the new market and integrating with the home company culture.
For companies with limited resources and little international experience, this process can prove to be a real challenge. In this article we explore the challenges and opportunities associated with hiring staff in foreign branches.
Every Country has its Own Rules
Each country has its own rules on contracts, working hours, taxation, vacations, benefits and layoffs. Ignoring them can generate costly mistakes or put the branch’s operations in trouble. For example, in Germany the notice period for layoffs is significantly longer than in Italy and increases with the employee’s seniority, reaching up to seven months for those with many years of seniority. One aspect that can have a major impact on organizational flexibility.
Significant differences also apply to weekly hours. Although the standard contract calls for 40 hours, in practice it is common for employees to work 37 or 37.5 hours, often concentrating the week and shortening Fridays. In addition, many companies adopt forms of flexible hours (Gleitzeit), with entries as early as 7:30 a.m.
These elements, while not always written down, are part of the local work culture. Knowing them in advance – as well as complying with the law – is essential to avoid misunderstandings, ensure a positive atmosphere, and reduce the risk of litigation.
Corporate Culture Changes with Context
Every country has its own work style, influenced by local culture: from communication to leadership to time management. What may seem normal in Italy may be inadequate or ineffective elsewhere.
Taking Germany as an example, here communication is very direct, clear and free of subtext (in fact, we refer to it as low-context communication), while in Italy a more implicit style prevails, in which tone, context and nonverbal language take on greater weight (high-context communication). Ignoring these differences can generate misunderstandings, especially when the local team interfaces with Italian managers.
Significant differences also emerge in time management: in Germany there is a tendency to strictly adhere to schedules and a high importance placed on punctuality, even in small daily activities. Meetings start at the scheduled time, with no delays or unscheduled extensions, whereas in Italy, punctuality is appreciated but a certain flexibility is more common, with a greater tolerance for last-minute postponements or schedule changes.
Understanding and respecting these cultural elements is essential to creating a harmonious and productive work environment, especially with mixed teams or facilities managed by offices in different countries.
First Recruitments: Key Roles
The first individuals who are hired make a difference, both in terms of skills and the atmosphere they create. So which are the most strategic people to hire right away and on whom to put the most effort in the selection process?
In our experience they are as follows:
- Country manager or branch manager, for operational guidance
- Sales Manager, for local development
- Accountant or clerk with local legal regulatory skills, for legal compliance
- Back office specialist or customer service specialist in local language, for customer support
Practical and flexible people capable of covering multiple functions are needed in the early stages. Especially in SMEs, the first 5-10 employees are crucial.
In Conclusion
Opening a branch office abroad is a big step. To really make it work, you need the right people and a full understanding of the cultural, regulatory and operational differences in the destination country. Taking the time to understand how to hire abroad properly is not a waste of time, but an investment to succeed in the internationalization project.
Roncucci&Partners accompanies companies along this complex path, offering strategic and operational support: from the analysis of target markets to the definition of the local organizational model, to the selection of the most suitable profiles and the management of legal and cultural aspects related to hiring. We do this with a practical approach, tailored to the needs of SMEs, to build together solid and efficient international structures.
Would you like to explore this topic with one of our consultants or are you interested in finding out more about the local unique features of a specific country? Send us an email to info@roncucciandpartners.com
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