Guide to Hiring Employees in Finland

Finland, known for its high-quality education system, advanced technology, and picturesque landscapes, is also recognized for its efficient and well-regulated labor market. If you’re a business owner planning to expand your operations or establish a presence in Finland, understanding the country’s employment laws and regulations is paramount. Hiring employees in Finland entails navigating through various legal requirements, cultural nuances, and administrative processes. This guide aims to provide you with essential information to streamline the hiring process and ensure compliance with Finnish labor laws.

Understanding Finnish Labor Laws

Understanding Finnish labor laws is essential before engaging in the hiring process to ensure compliance and protect the rights of both employers and employees. Finland has a comprehensive legal framework governing employment relationships, encompassing various aspects such as contracts, working hours, wages, holidays, and termination procedures. Here are some key points to consider:

Employment Contracts: In Finland, employment contracts can be either fixed-term or indefinite. It’s crucial to outline terms and conditions clearly in the contract, including job duties, working hours, salary, benefits, and termination procedures.
Working Hours: The standard working hours in Finland are 8 hours per day and 40 hours per week. Overtime work is compensated at a higher rate, and strict regulations govern maximum working hours, breaks, and rest periods.
Minimum Wage: While Finland doesn’t have a statutory minimum wage, industry-specific collective agreements often set minimum wage levels. Employers must ensure that wages meet or exceed these agreements.
Annual Holidays: Finnish employees are entitled to a minimum of 24 paid vacation days per year. Additionally, public holidays are observed, and employees may receive additional compensation or time off for working on these days.
Parental Leave: Finland offers generous parental leave benefits, including maternity, paternity, and parental leave. Both mothers and fathers have the right to take parental leave, and the system is designed to promote gender equality in caregiving responsibilities.
Termination Procedures: Termination of employment must adhere to strict legal procedures. Grounds for termination may include redundancy, poor performance, or disciplinary reasons. Employers must provide notice or pay in lieu of notice, depending on the circumstances.
Employee Rights and Protections: Finnish labor laws prioritize the rights and protections of employees. These include provisions for workplace safety, anti-discrimination measures, and the right to collective bargaining.
Collective Bargaining Agreements: Many industries in Finland operate under collective bargaining agreements negotiated between employers’ associations and trade unions. These agreements set standards for wages, working conditions, and other employment terms.
Employee Benefits: In addition to vacation days, Finnish employees may be entitled to other benefits such as sick leave, health insurance, pension contributions, and various allowances.
Legal Compliance: Ignorance of labor laws is not an excuse for non-compliance. Employers must stay informed about legal requirements and seek legal advice if necessary to ensure compliance with Finnish labor legislation.

Recommended Employer of Record Services in Finland:

How to Hire Employees in Finland?

The hiring process in Finland typically follows a structured and transparent approach, reflecting the country’s strong emphasis on equality, fairness, and efficiency in employment practices. Here’s an overview of the typical hiring process in Finland:

1. Job Application:

Job seekers usually apply for positions by submitting their resumes (CVs) and cover letters. These documents should be tailored to the specific job and highlight relevant skills, qualifications, and experiences.

2. Job Advertisement:

Job openings are often advertised on various platforms, including online job boards, company websites, and professional networks. The advertisements typically include essential details such as job responsibilities, qualifications required, and application instructions.

3. Screening and Shortlisting:

After receiving applications, employers screen them to identify candidates who meet the basic requirements of the job. Shortlisted candidates are then invited for further assessment, such as interviews or tests.

4. Interviews:

Interviews are a standard part of the hiring process in Finland. They can be conducted in-person, over the phone, or via video conferencing, depending on the preferences of the employer. Interviews assess candidates’ qualifications, skills, experiences, and fit for the role and the company culture.

5. Assessment Tests:

Some employers may administer assessment tests as part of the hiring process. These tests could include aptitude tests, personality assessments, language proficiency tests, or job-related skills assessments.

6. Reference Checks:

Employers often conduct reference checks to verify candidates’ qualifications, experiences, and suitability for the job. References may be contacted either before or after the interviews.

7. Job Offer:

Once the interviews and assessments are completed, the employer selects the most suitable candidate for the position and extends a job offer. The offer typically includes details such as salary, benefits, working hours, and other terms and conditions of employment.

8. Contract Signing:

Upon accepting the job offer, the candidate and the employer sign an employment contract outlining the rights and obligations of both parties. The contract may be permanent or temporary, depending on the nature of the job.

9. Probation Period:

Many employment contracts in Finland include a probationary period, during which the employer and the employee can assess mutual suitability. This period usually lasts between 1 to 6 months, during which either party can terminate the employment with a shorter notice period.

10. Onboarding:

After signing the contract, the new employee undergoes an onboarding process, where they receive necessary training, orientation, and access to company resources to help them integrate into their new role and the organization.

The Interviewing Process in Finland

The interviewing process in Finland shares similarities with processes in many other countries but also has some unique characteristics. Here’s an overview of what you can expect in Finland:

1. Application: The process usually begins with submitting a written application, including a CV and a cover letter. Make sure your documents are tailored to the job and reflect your skills and experiences relevant to the position.

2. Initial Screening: After receiving applications, companies typically conduct an initial screening to shortlist candidates. This may involve reviewing CVs and cover letters to assess qualifications and suitability for the role.

3. Interview Invitations: Shortlisted candidates are invited for interviews. In some cases, there may be multiple rounds of interviews, especially for more competitive positions or senior roles.

4. Types of Interviews: Interviews in Finland can take various forms, including:

Face-to-Face Interviews: Traditional in-person interviews where you meet with one or more interviewers.
Phone Interviews: Initial screening interviews may be conducted over the phone.
Video Interviews: Increasingly common, especially if you’re applying from abroad or for remote positions.
Panel Interviews: Where multiple interviewers from different departments or levels within the company participate.
Competency-based Interviews: Focused on assessing specific skills and experiences relevant to the job.

5. Interview Structure: Interviews typically cover a range of topics, including your background, education, work experience, skills, and competencies. Employers may also assess your cultural fit within the organization and your alignment with its values.

6. Language: While English is widely spoken in Finnish workplaces, especially in multinational companies or industries like IT and finance, knowing Finnish or Swedish (the other official language) can be advantageous, particularly for roles that involve interaction with Finnish-speaking clients or colleagues.

7. Behavioral Questions: Expect to answer behavioral questions that assess how you’ve handled situations in the past. Employers are interested in your problem-solving abilities, teamwork skills, adaptability, and leadership potential.

8. Company Culture and Values: It’s essential to research the company’s culture and values beforehand to demonstrate your understanding and alignment during the interview.

9. Follow-Up: After the interview, it’s common courtesy to send a thank-you email to the interviewers, expressing your appreciation for the opportunity and reiterating your interest in the position.

10. Offer and Negotiation: If successful, you may receive a job offer. Be prepared to negotiate terms such as salary, benefits, and start date if necessary.

Onboarding Process in Finland

Onboarding is a crucial process for integrating new employees into a company’s culture, providing them with necessary information, resources, and support to perform their roles effectively. In Finland, known for its progressive work culture and emphasis on employee well-being, the onboarding process reflects these values, focusing on comprehensive orientation, social integration, and continuous support.

Preparation and Welcome: Prior to the start date, Finnish companies typically send comprehensive welcome packages to new hires. These packages often include information about the company’s history, values, organizational structure, and an overview of the role the new employee will undertake. Additionally, some companies may assign a mentor or buddy to help the new employee navigate their initial days.
Orientation and Training: Upon arrival, new employees participate in structured orientation and training programs. These sessions familiarize them with the company’s policies, procedures, and tools necessary for their job. Finnish companies often emphasize hands-on learning and interactive training sessions to facilitate faster integration and skill development.
Integration into Company Culture: Integration into the company culture is a significant aspect of the onboarding process in Finland. Beyond the formal orientation, new employees are encouraged to participate in social activities, team-building exercises, and company events. This fosters a sense of belonging and camaraderie, essential for long-term employee engagement.
Continuous Support and Feedback: The onboarding process in Finland extends beyond the initial weeks. Companies prioritize continuous support for new employees through regular check-ins, feedback sessions, and opportunities for professional development. Managers play a crucial role in providing guidance and constructive feedback to ensure that new hires feel valued and supported in their roles.
Emphasis on Work-Life Balance: Finland is renowned for its emphasis on work-life balance and employee well-being. As such, the onboarding process often includes information about flexible work arrangements, wellness initiatives, and benefits available to employees. This helps new hires feel supported not only professionally but also in maintaining a healthy work-life balance.

What is the Workplace Culture in Finland?

Workplace culture in Finland is characterized by several key aspects that contribute to a unique and conducive environment for both employees and employers. Here are some defining features:

Equality and Flat Hierarchy: Finnish workplaces typically have a flat organizational structure with minimal hierarchy. There’s a strong emphasis on equality, where employees are encouraged to voice their opinions and contribute to decision-making processes regardless of their position within the company.
Work-Life Balance: Finland is renowned for its commitment to work-life balance. Employees generally enjoy flexible working hours, generous vacation time, and parental leave policies that support a healthy balance between work and personal life. This emphasis on balance fosters employee well-being and productivity.
Trust and Autonomy: Trust is fundamental in Finnish workplace culture. Employers trust their employees to perform their tasks efficiently without constant supervision. This autonomy fosters a sense of responsibility and empowerment among workers, leading to higher job satisfaction and motivation.
Open Communication: Finnish workplaces value open and transparent communication. Employees are encouraged to express their ideas, concerns, and feedback openly, contributing to a culture of collaboration and innovation. Constructive feedback is also valued as a means of continuous improvement.
Focus on Quality and Innovation: Finnish companies prioritize quality and innovation in their products and services. There’s a culture of continuous improvement, where employees are encouraged to think creatively and find innovative solutions to challenges. This mindset drives competitiveness and success in both domestic and international markets.
Emphasis on Well-being: Finnish companies prioritize employee well-being, recognizing its importance for overall productivity and job satisfaction. Many workplaces offer wellness programs, health benefits, and initiatives to promote physical and mental health among employees.
Inclusive and Diverse: Diversity and inclusion are increasingly important aspects of Finnish workplace culture. Companies strive to create inclusive environments where employees from diverse backgrounds feel respected, valued, and able to contribute their unique perspectives.
Social Responsibility: Finnish companies often integrate social responsibility into their business practices. They prioritize sustainability, environmental stewardship, and ethical business conduct, reflecting Finland’s commitment to social and environmental values.

What is The Employment Policy in Finland?

Finland has a comprehensive and multifaceted employment policy aimed at promoting employment, supporting workers, and fostering a conducive environment for businesses. Some key elements of Finland’s employment policy include:

Active Labor Market Policies (ALMPs): Finland emphasizes active measures to address unemployment, including training, job placement services, and various forms of support for job seekers. These programs aim to enhance skills, match individuals with suitable employment opportunities, and facilitate transitions in the labor market.
Education and Skills Development: Finland places a strong emphasis on education and skills development to equip its workforce with the competencies needed for the modern economy. The country’s education system is highly regarded internationally, with a focus on providing high-quality education from early childhood through to vocational and higher education levels.
Social Dialogue and Cooperation: Finland promotes collaboration between employers, trade unions, and government agencies to address labor market challenges and develop effective policies. Social dialogue plays a crucial role in shaping employment policies, labor market regulations, and working conditions.
Labor Market Flexibility: Finland seeks to maintain a balance between labor market flexibility and worker protection. While providing flexibility for businesses to adapt to changing economic conditions, Finland also upholds robust labor laws that safeguard workers’ rights, ensure fair wages, and promote work-life balance.
Active Aging and Inclusive Employment: Finland promotes active aging policies to support older workers in remaining active in the labor market for longer. Additionally, efforts are made to promote inclusive employment practices to ensure that individuals from diverse backgrounds, including immigrants and people with disabilities, have equal access to employment opportunities.
Entrepreneurship and Innovation: Finland encourages entrepreneurship and innovation as drivers of economic growth and job creation. Supportive measures such as funding for startups, business incubators, and innovation hubs are available to facilitate the establishment and growth of new businesses.
Unemployment Benefits and Social Security: Finland provides unemployment benefits and social security to individuals who are unemployed or unable to work due to various reasons. These benefits aim to provide financial support and ensure social protection for those in need while they search for employment or undergo retraining.

Types of Employment Contracts in Finland

In Finland, the employment landscape is characterized by a variety of contract types tailored to meet the needs of both employers and employees. These contracts differ in terms of duration, flexibility, and the rights and responsibilities they entail. Understanding these various types is crucial for both employers and employees to navigate the Finnish labor market effectively.

1. Permanent Employment Contracts:

Permanent employment contracts, known as “toistaiseksi voimassa oleva työsopimus” in Finnish, are the most common type of employment agreement in Finland. These contracts have no predetermined end date and provide employees with a high level of job security. They typically require employers to provide reasonable notice periods and adhere to strict dismissal regulations outlined in Finnish labor laws. Permanent contracts offer stability and often include benefits such as paid vacation and sick leave.

2. Fixed-Term Employment Contracts:

Fixed-term employment contracts, or “määräaikainen työsopimus,” have a specified duration agreed upon by both parties. These contracts are commonly used for temporary or project-based work where the need for employment is not permanent. Finnish law regulates the use of fixed-term contracts to prevent their misuse and ensure that employees are not unfairly disadvantaged. Employers must have a valid reason, such as seasonal fluctuations or specific project requirements, for using fixed-term contracts.

3. Part-Time Employment Contracts:

Part-time employment contracts, or “osa-aikainen työsopimus,” involve working fewer hours than a standard full-time position. Part-time arrangements provide flexibility for both employers and employees, allowing individuals to balance work with other responsibilities or pursuits. Part-time employees are entitled to proportional benefits and rights compared to their full-time counterparts, including vacation days, sick leave, and pension contributions, as stipulated by Finnish labor regulations.

4. Trial Period Contracts:

Trial period contracts, or “koeaikasopimus,” allow employers to assess an employee’s suitability for a position before offering permanent employment. During the trial period, which typically ranges from 1 to 6 months, either party can terminate the contract with short notice. However, termination during the trial period must not be based on discriminatory reasons or violate the terms of the employment contract. Trial period contracts provide employers with flexibility in hiring decisions while offering employees an opportunity to demonstrate their capabilities.

5. Zero-Hour Contracts:

Zero-hour contracts, referred to as “nollatuntisopimus,” are agreements where the employer is not obligated to provide a minimum number of working hours, and employees are not obliged to accept any work offered. These contracts offer maximum flexibility for both parties, but they also present challenges, such as income uncertainty for employees and potential staffing issues for employers. Finnish law imposes regulations to ensure that zero-hour contracts are not used to exploit workers and that employees receive fair compensation for the hours worked.

Types of Work Permits and Visas in Finland

In Finland, there are several types of work permits and visas available for individuals wishing to work in the country. These permits and visas vary depending on factors such as the duration of stay, type of employment, and the individual’s country of origin. Here are some of the common types:

1. EU/EEA/Swiss Citizens: Citizens of the European Union (EU), European Economic Area (EEA), and Switzerland do not need a work permit to work in Finland. They have the right to live and work in Finland without restrictions.

2. Residence Permit for Work: Non-EU/EEA/Swiss citizens typically require a residence permit for work in Finland. The residence permit is usually tied to a specific job or employer and requires a job offer before applying. There are different types of residence permits for work, including:

Fixed-Term Employment: For individuals with a job offer for a fixed-term position in Finland.
Continuous Employment: For individuals with a permanent job offer or who plan to work in Finland continuously for over a year.
Seasonal Work: For individuals with a temporary job offer related to seasonal work, such as agriculture or tourism.

3. Startup Permit: Finland offers a special permit for entrepreneurs planning to establish a startup in the country. The startup permit allows entrepreneurs to develop their business idea in Finland for up to two years.

4. Special Expert Permit: This permit is designed for highly skilled professionals who have been offered a specific job in Finland. It is aimed at attracting individuals with expertise in fields where there is a shortage of skilled workers.

5. Internship Visa: Individuals participating in internships or practical training programs in Finland may require an internship visa. This visa allows individuals to gain work experience in their field of study or profession.

6. Working Holiday Visa: Some countries have agreements with Finland that allow young people (usually aged 18-30 or 18-35) to obtain a working holiday visa. This visa permits individuals to work and travel in Finland for a limited period, typically up to one year.

7. Intra-Corporate Transfer (ICT) Permit: Employees of multinational companies who are being transferred to a branch, subsidiary, or affiliate company in Finland may require an ICT permit.

Payroll and Taxes in Finland

In Finland, payroll and taxes are governed by a comprehensive set of laws and regulations designed to ensure fairness, transparency, and compliance with the country’s tax system. Here’s an overview of how payroll and taxes work in Finland:

Payroll Process:

Employee Registration: When an employee is hired, they need to be registered with the Finnish tax authorities. This includes obtaining a personal identity code (henkilötunnus) for the employee.
Salary Determination: Finnish employment contracts often include details about the salary, including any additional benefits or bonuses.
Withholding Taxes: Employers are responsible for withholding taxes from their employees’ salaries. These taxes include income tax, social security contributions, and sometimes municipal taxes. The withholding tax rates vary based on the employee’s income level and other factors.
Social Security Contributions: Both employers and employees contribute to Finland’s social security system. These contributions fund various benefits, including healthcare, unemployment insurance, and pensions.
Reporting Requirements: Employers must report their employees’ earnings and taxes withheld to the Finnish tax authorities regularly. This typically involves submitting reports electronically.
Payment of Salaries and Taxes: Employers are responsible for paying their employees’ salaries and remitting the withheld taxes to the tax authorities on time. Failure to do so can result in penalties.

Taxation System:

Progressive Income Tax: Finland has a progressive tax system, meaning that higher incomes are taxed at higher rates. The income tax rates range from around 6.5% to 31.25% as of 2022, with additional municipal taxes that vary by municipality.

Social Security Contributions: Employees and employers both contribute to Finland’s social security system. The rates vary depending on the type of social security benefit and the income level of the employee.
Value Added Tax (VAT): Finland imposes VAT on the sale of goods and services. The standard VAT rate is 24%, with reduced rates of 14% and 10% for certain goods and services.
Capital Gains Tax: Profits from the sale of assets such as stocks, real estate, and other investments are subject to capital gains tax in Finland. The tax rates depend on the type of asset and the holding period.
Tax Deductions and Credits: Finnish taxpayers may be eligible for various deductions and credits, such as deductions for certain expenses (e.g., mortgage interest) and tax credits for items like household expenses and donations to charity.
Tax Returns: Individuals in Finland typically need to file an annual tax return. This allows taxpayers to report any additional income, claim deductions, and reconcile their tax liabilities for the year.

Employee Benefits in Finland

Employee benefits in Finland are governed by the Finnish Employment Contracts Act (Työsopimuslaki) and various collective agreements negotiated between trade unions and employers’ organizations. Here are some key employee benefits commonly provided in Finland:

Paid Annual Leave: Finnish employees are entitled to paid annual leave, typically ranging from 24 to 30 days per year, depending on factors such as length of service and collective agreements.
Public Holidays: In addition to annual leave, employees are entitled to public holiday pay for days such as Christmas, New Year’s Day, and Midsummer Day.
Sickness Benefits: Finnish employees are entitled to sick leave benefits in case of illness or injury. The employer generally pays salary for the first sick day, after which the Finnish Social Insurance Institution (Kela) provides sickness allowance.
Parental Leave: Parental leave benefits are provided to new parents, including maternity, paternity, and parental leave. The benefit amount and duration vary depending on factors such as the parent’s employment status and collective agreements.
Healthcare Coverage: Finland has a comprehensive public healthcare system, providing universal healthcare coverage to all residents. Employers may also offer supplementary health insurance coverage as part of their benefits package.
Pension Plans: Finnish employees are typically enrolled in a statutory earnings-related pension scheme, which is funded jointly by employers and employees. Supplementary pension plans may also be offered by some employers.
Unemployment Benefits: In case of involuntary unemployment, Finnish employees are entitled to unemployment benefits provided by Kela. These benefits are typically based on previous earnings and are subject to certain eligibility criteria.
Training and Development Opportunities: Many Finnish employers offer training and development programs to help employees enhance their skills and advance in their careers. These may include in-house training, tuition reimbursement, and professional development workshops.
Flexible Working Arrangements: Flexible working hours, telecommuting, and part-time work arrangements are becoming increasingly common in Finland, offering employees greater flexibility in managing their work-life balance.
Employee Assistance Programs (EAP): Some employers provide EAPs to support employees’ mental health and well-being, offering counseling services, resources for managing stress, and referrals to external support networks.

Types of Holidays and Leave Policies in Finland

Finland’s holiday and leave policies prioritize employee well-being, work-life balance, and support for various life circumstances such as illness, parenthood, and personal development. These policies contribute to Finland’s reputation as a country with high standards of living and strong social welfare systems.

1. Annual Leave (Loma)

In Finland, annual leave, or “loma,” is a crucial aspect of the work-life balance. The annual leave entitlement is typically determined by the length of employment and the collective agreement governing the sector. Full-time employees are entitled to at least 24 working days of annual leave per year. However, this can vary depending on the collective agreement or individual employment contract. Employees also have the right to accumulate vacation days over time, allowing for longer periods of leave for extended holidays or personal reasons.

2. Public Holidays (Juhlapäivät)

Finland celebrates several public holidays, known as “juhlapäivät,” throughout the year. These holidays include New Year’s Day (Uudenvuodenpäivä), Easter (Pääsiäinen), May Day (Vappu), Midsummer (Juhannus), Christmas (Joulu), and others. Public holidays are generally non-working days, and employees are entitled to their regular pay for these days. If an employee is required to work on a public holiday due to the nature of their job, they are often entitled to additional compensation or a day off in lieu.

3. Sick Leave (Sairausloma)

In Finland, employees are entitled to sick leave, or “sairausloma,” in the event of illness or injury. During sick leave, employees receive compensation from the Social Insurance Institution of Finland (Kela). The duration of sick leave and the amount of compensation depend on various factors, including the severity of the illness or injury and the length of employment. Employers are required to pay a portion of the employee’s salary during the initial days of sick leave before Kela benefits kick in.

4. Parental Leave (Vanhempainvapaa)

Finland is known for its generous parental leave policies, which aim to support parents in balancing work and family life. Parental leave, or “vanhempainvapaa,” is available to both mothers and fathers, including adoptive parents. The total parental leave allowance can span up to 14 months, during which parents receive parental allowance from Kela. Additionally, parents have the option to extend their leave further with unpaid leave, allowing for greater flexibility in childcare arrangements.

5. Study Leave (Opintovapaa)

Employees in Finland also have the right to study leave, or “opintovapaa,” to pursue educational opportunities that contribute to their professional development. Study leave is typically unpaid, but employers may offer support through training allowances or other benefits. Employees must notify their employer well in advance and provide documentation of their educational pursuits. Study leave can range from a few days to several months, depending on the nature of the course or program.

Termination of Employment Procedure in Finland

Termination of employment in Finland follows specific procedures and regulations aimed at ensuring fairness and protection for both employers and employees. The process typically involves several steps and considerations to adhere to Finnish labor laws and collective agreements. Here’s an outline of the termination procedure in Finland:

Valid Reason for Termination: Finnish law mandates that termination of employment must be based on valid grounds. Valid reasons include redundancy, employee misconduct, or incapacity to perform the job due to health reasons.
Notice Period: Both employers and employees are required to adhere to notice periods specified in the employment contract, applicable collective agreements, or Finnish labor legislation. The length of the notice period typically depends on the length of employment, with longer periods required for employees with more years of service.
Consultation and Negotiation: In cases of collective dismissals or terminations due to business-related reasons, employers are obliged to engage in consultations with employee representatives or trade unions. Negotiations may focus on alternatives to termination, such as redeployment or retraining.
Severance Pay: Depending on the circumstances of termination, the employee may be entitled to severance pay. This may be stipulated in the employment contract, collective agreements, or determined by Finnish labor law.
Termination Meeting: Employers should conduct termination meetings in a respectful and professional manner, clearly outlining the reasons for termination and providing relevant documentation. It’s crucial to ensure that the termination process adheres to anti-discrimination laws and does not violate the employee’s rights.
Notification to Authorities: Employers may be required to notify relevant authorities, such as the Finnish Centre for Pensions (ETK), when terminating an employee’s contract, particularly in cases involving unemployment benefits or pensions.
Employee Rights and Benefits: Terminated employees are entitled to certain rights and benefits, including accrued but unused vacation days, any outstanding payments such as salary or bonuses, and access to unemployment benefits, provided they meet eligibility criteria.
Appeals and Dispute Resolution: Employees have the right to appeal their termination if they believe it was unjust or unlawful. This may involve internal grievance procedures within the company or external mediation services. In some cases, disputes may be resolved through the Finnish labor court system.
Documentation and Record-Keeping: Employers should maintain accurate records of the termination process, including correspondence, meeting minutes, and relevant documentation, to demonstrate compliance with legal requirements and mitigate the risk of legal challenges.
Post-Termination Support: Employers may offer support to terminated employees, such as career counseling, job search assistance, or references, to facilitate their transition to new employment.

What Jobs Are in Demand in Finland?

Finland, like many other countries, experiences shifts in its labor market demand influenced by various factors such as technological advancements, demographic changes, economic trends, and government policies. While the specific demands may have evolved since then, here are some general areas that have traditionally shown demand in Finland:

Information Technology (IT) Professionals: With Finland being known for its strong tech sector and home to companies like Nokia, Rovio (creators of Angry Birds), and Supercell, there’s a consistent demand for IT specialists, including software developers, data scientists, cybersecurity experts, and IT project managers.
Healthcare Professionals: As in many developed countries, healthcare remains a field with consistent demand. Nurses, doctors, healthcare assistants, and specialists in areas such as gerontology and mental health often find opportunities in Finland’s healthcare system.
Engineering: Finland has a strong engineering tradition, especially in sectors like telecommunications, energy, and manufacturing. Demand exists for various engineering roles including mechanical, electrical, and civil engineers.
Education Professionals: Teachers, especially those with expertise in STEM subjects (science, technology, engineering, and mathematics), are often in demand. Additionally, there’s a growing interest in bilingual education, so teachers proficient in both Finnish and English may find opportunities.
Construction and Building Trades: Finland’s construction industry continues to be active, with demand for skilled workers such as carpenters, electricians, plumbers, and construction managers.
Renewable Energy Specialists: Finland has been making strides towards increasing its use of renewable energy sources. Therefore, there’s a demand for professionals with expertise in renewable energy technologies, environmental engineering, and sustainable development.
Sales and Marketing Professionals: Companies across various sectors require skilled individuals to drive sales, develop marketing strategies, and manage customer relationships. Proficiency in digital marketing and e-commerce can be particularly advantageous.
Hospitality and Tourism: Finland’s natural beauty, including its lakes, forests, and the Northern Lights, attracts tourists year-round. Thus, there’s a demand for hospitality professionals, tour guides, hotel managers, and those with expertise in ecotourism.
Language Specialists: Given Finland’s proximity to Russia and its involvement in international business, there’s often a demand for individuals fluent in languages such as Russian, English, Swedish, and Chinese.
Financial Services: Professionals with backgrounds in finance, accounting, and banking are sought after to support Finland’s growing financial sector and businesses in managing their finances effectively.

Why Hiring Talents in Finland?

Hiring talents in Finland offers a multitude of benefits for companies looking to build dynamic, innovative, and sustainable teams. Finland, known for its high-quality education system, advanced technology sector, and strong emphasis on work-life balance, provides an excellent environment for attracting and retaining top talent. Here are several reasons why hiring talents in Finland can be advantageous:

Highly Skilled Workforce: Finland boasts a well-educated and highly skilled workforce. The country consistently ranks among the top performers in global education assessments and has a strong tradition of investing in education and vocational training. This ensures that Finnish talent possesses the expertise and capabilities needed to excel in a wide range of industries, from technology and engineering to design and healthcare.
Innovation and Technology Hub: Finland is renowned for its vibrant tech startup ecosystem and culture of innovation. The country is home to leading companies in sectors such as telecommunications (e.g., Nokia), gaming (e.g., Supercell), and clean technology (e.g., Neste). By hiring talents in Finland, companies can tap into this culture of innovation and benefit from the fresh ideas, creativity, and entrepreneurial spirit that permeate the Finnish workforce.
English Proficiency: English proficiency is widespread in Finland, with the majority of the population being fluent in the language. This makes communication seamless for international companies operating in Finland and facilitates collaboration with teams from around the world. Additionally, many Finns are multilingual, further enhancing their ability to work in diverse, global environments.
Strong Work Ethic and Professionalism: Finns are known for their strong work ethic, punctuality, and commitment to professionalism. Employers can rely on Finnish talent to be diligent, reliable, and focused on achieving results. Moreover, Finland’s egalitarian society fosters a collaborative and inclusive work culture, where teamwork and mutual respect are highly valued.
Quality of Life: Finland consistently ranks among the top countries in global quality of life indexes. With its pristine natural environment, efficient public services, and emphasis on work-life balance, Finland offers an attractive lifestyle for both domestic and international talent. Employees enjoy benefits such as generous parental leave, healthcare coverage, and access to recreational activities, contributing to their overall well-being and job satisfaction.
Supportive Business Environment: Finland offers a supportive business environment with transparent regulations, low corruption levels, and strong intellectual property protections. The Finnish government actively promotes entrepreneurship and innovation through various initiatives, grants, and funding programs, making it easier for companies to establish and grow their operations in the country.

The Costs of Hiring Employees in Finland

Hiring employees in Finland involves various costs for employers, including both direct expenses and indirect contributions. Here are some key components contributing to the overall cost of hiring employees in Finland:

Salary and Wages: The primary cost for employers is the salary or wages paid to employees. Finnish labor laws mandate minimum wage requirements, which vary depending on the industry, occupation, and collective bargaining agreements.
Social Security Contributions: Both employers and employees are required to make contributions to social security programs, which cover health insurance, pension schemes, unemployment benefits, and other social benefits. These contributions are calculated based on the employee’s gross salary and are shared between the employer and the employee.
Holiday Pay and Vacation Allowance: Finnish law grants employees annual paid vacation leave, typically ranging from 24 to 30 days depending on the length of employment and collective agreements. Employers are required to pay holiday bonuses or vacation allowances on top of regular salary during vacation periods.
Employment Insurance Contributions: Employers are obligated to contribute to the Finnish employment insurance system, which provides income security in case of unemployment. The contribution rates are determined based on the total payroll expenses.
Occupational Health Care: Finnish law mandates that employers provide employees with access to occupational health services. Employers either arrange for these services directly or contribute to a jointly funded health care scheme.
Employee Benefits: Employers may offer additional benefits such as meal vouchers, transportation subsidies, or private health insurance to attract and retain talent. While these benefits are not mandatory, they add to the overall cost of employment.
Recruitment and Training Costs: Recruiting new employees involves expenses related to advertising job vacancies, conducting interviews, and administering assessments. Additionally, employers may incur costs for training new hires to perform their duties effectively.
Severance Pay and Termination Costs: Finnish employment laws provide protection to employees in case of termination. Depending on the circumstances of termination, employers may be required to provide severance pay or compensation packages, adding to the overall cost of employment.
Administrative Expenses: There are administrative costs associated with managing payroll, complying with tax regulations, and maintaining personnel records. Employers may choose to handle these tasks in-house or outsource them to payroll service providers.
Workplace Safety and Insurance: Employers are responsible for ensuring a safe working environment for employees and must provide insurance coverage for workplace accidents and occupational illnesses.

How to Use an Employer of Record (EOR) in Finland?

Using an Employer of Record (EOR) in Finland can streamline the process of hiring and managing employees in the country, particularly for companies operating internationally or those without a physical presence in Finland. To utilize an EOR effectively, companies should first identify their staffing needs and assess whether hiring through an EOR aligns with their business objectives and compliance requirements. Once decided, engaging an EOR involves signing a service agreement detailing the scope of services, including employment contracts, payroll management, tax compliance, and HR administration.

After selecting an EOR, companies can begin the process of onboarding employees in Finland. This typically involves providing necessary documentation such as employee information, job descriptions, and relevant legal paperwork to the EOR. The EOR then handles the employment setup process, ensuring compliance with Finnish labor laws and regulations. This includes registering the employee for social security and other mandatory insurances, as well as managing any required work permits or visas for foreign workers.

Throughout the employment relationship, the EOR takes responsibility for payroll processing, tax withholding, and compliance with Finnish employment regulations. This includes calculating and disbursing salaries, managing employee benefits, and ensuring timely submission of tax filings and contributions to relevant authorities. By outsourcing these administrative tasks to the EOR, companies can focus on their core business activities while mitigating the risks associated with non-compliance.

Additionally, leveraging an EOR can facilitate smooth offboarding processes when necessary, such as when contracts end or employees resign. The EOR manages the necessary paperwork and legal requirements associated with termination, including final pay calculations, issuing relevant documentation, and handling any severance or notice period obligations in accordance with Finnish labor laws.

In conclusion, utilizing an Employer of Record in Finland offers companies a convenient and compliant solution for hiring and managing employees in the country. By partnering with an EOR, businesses can navigate the complexities of Finnish employment regulations with ease, ensuring smooth operations and peace of mind while focusing on their strategic objectives.

Read More Hiring Guides: