Hiring and payroll in Romania

Introduction

Romania is located at the intersection of Southeastern and Central Europe. It is the twelfth largest country in Europe, with a population of over 19 million. Romania ranks 53rd in Human Development Index (HDI) and is the world’s 47th biggest economy.

As one of the fastest-growing tech markets in the world, Romania has made tremendous growth resulting in the tech sector being the most dynamic industry in the Romanian economy.

A combination of favorable government policies, a business-friendly environment and a vast pool of highly skilled professionals make Romania an attractive destination to hire a remote team.

This article highlights how organizations planning to hire a remote team in Romania can manage HR administrations and payroll in Romania.

Hiring employees in Romania

There are over 100,000 tech professionals in Romania. The country’s educated tech workforce is why Romania is fondly called a world-class tech hub. Annually, Romania’s talent pool increases and a testament to the country’s tech growth is evident in global tech organizations establishing offices in Romania.

Organizations planning to hire a remote team in Romania will have a vast pool of top tech talent to recruit.

How to hire employees in Romania

Organizations generally place job ads for available positions on BestJobs, ejobs, hipo.ro, Myjob and infomunca.ro. Popular platforms such as LinkedIn is an invaluable resources for job placement.

Hiring with an Employer of Record in Romania

An Employer of Record is a third-party platform that enables companies to hire employees, onboard talent, manage payroll and ensure compliance with country-specific employment laws and tax regulations.

The Employer of Record in Romania helps organizations carry out employment-related activities in compliance with Romania’s employment laws. The EOR in Romania enables organizations to hire a remote team, onboard, pay employees and stay fully compliant without setting up a subsidiary or a local entity.

Payroll in Romania

Organizations planning to manage payroll in Romania must comply with Romania’s employment and payroll laws.

Ensuring compliance with the payroll laws in Romania is crucial. Therefore, managing a team in Romania requires choosing the best means to handle payroll in Romania. Two ways to manage payroll in Romania are

Paying employees via subsidiaries

It is common practice to establish subsidiaries or partner with the local entity when planning to conduct business operations in a new country. e. Establishing subsidiaries ensures organizations have the legal rights to hire and pay Romanian employees. Managing payroll in Romania is possible by establishing subsidiaries.

Managing Payroll in New Zealand with an Employer of Record platform

Setting up a subsidiary in Romania is challenging, time-consuming, and resource-intensive. However, a local entity or a subsidiary is crucial for organizations to manage their payroll in Romania effectively.

But with an Employer of Record platform, global organizations can pay their employees seamlessly without setting up a subsidiary in Romania. This becomes possible because the Employer of Record platform acts as the legal employer for the organization, handling all the requirements to manage payroll in Romania.

The Cost of Hiring an Employee in Romania

Organizations planning to hire a remote team in Romania must take note of the cost and resources it will require. Like every business pursuit, understanding the financial requirements is key to managing growth expectations and helps in efficient planning and structure of the organization.

Therefore, the cost required to hire an employee in Romania involves the following.

• The subsidiary establishment expenses and cost of running the business
• Acquisition of a legal team
• The employment and payroll platform costs
• Job boards ad placement costs
• Interviews and background checks expenses

Organizations planning to hire a remote team in Romania can do so at a cost-effective price by partnering with an Employer of Record platform like Skuad. Skuad is a global employment and payroll platform that handles the entire employment lifecycle of organizations in Romania by managing all employment-related activities and ensuring compliance with Romania’s employment laws.

Conclusion

An Employer of Record offers the best solution for organizations planning to hire a remote team or manage payroll in Romania. While expanding into a new country is challenging, an Employer of Record platform enables organizations to hire contractors and full-time employees, onboard talent, manage payroll, and ensure all employment-related activities comply with Romanian employment laws.

Employer of Record platforms like Skuad ensures that organizations can build globally distributed teams quickly and without hassles. To know more about Skuad, book a demo today.