The Ultimate Guide to Hiring Software Engineers in Europe

When we envision Europe, all that comes to mind is the breathtaking scenery, stunning landscapes, rich history, and exquisite cuisines. 

We often overlook that over the past two decades, Europe has become home to some of the world’s largest startups, all fueled by the region’s top engineering talent. 

London, Berlin, and Paris have become thriving hubs for leading startups like Monzo, Wise (formerly TransferWise), and BlaBlaCar. It’s no surprise companies globally are on the edge of their seats in anticipation of forming their teams using highly skilled engineering talent from Europe. 

By understanding the European market and the challenges of hiring software engineers there, adjusting your recruitment and sourcing strategies accordingly, applying European-centric tips and insights, and analyzing real-world success stories, tech recruiters can stay competitive, build world-class tech teams, and tackle the ongoing tech talent shortage head-on. 

Understanding the European Job Market

Economic uncertainties periodically impact the global tech industry, and Europe is no exception to these fluctuations. 

The State of European Tech revealed that European-based companies comprised about 10% of global layoffs. This figure is noteworthy, considering the EU tech industry is much smaller than the US.

Similarly, Layoffs.fyi shows that most European tech companies cut 15% to 30% of their workforce. Major companies like Ericsson, SAP, Philips, and Booking.com were among the most affected.

Thankfully, it’s not all gloom and doom. 

Layoffs in Europe have stabilized since early 2023. Additionally, tech startups are stepping up, creating almost double the number of jobs compared to their growth-stage counterparts.

Europe is also becoming a magnet for global talent. More and more tech professionals are migrating to Europe than other regions, including the US.

These software engineering hiring trends indicate that Europe’s tech industry is bouncing back. In fact, Europe continues to lead the US in producing new tech founders annually, a trend that has remained consistent for the past five years. 

This makes Europe a hot spot for tech innovation and elite talent, which brings us to the next point. 

What makes Europe the epicenter for Software Engineers? 

First off, European countries are known for their focus on science, technology, and engineering. 

Eastern Europe itself has over 200 tech universities and colleges, which produce 60,000 IT specialists annually, such as Ukraine’s National Technical University “KPI,” Poland’s AGH University of Science and Technology, and Romania’s University POLITEHNICA. 

Alongside these three are a wide range of other, less-known universities that provide the same level of software engineering education.

Europe prides itself on producing countless, highly-skilled software engineers every year. For instance, over 17,500 software engineers in Ukraine are churned out into the labor force annually, and this number is only increasing. 

Not only this, 87% of freshly qualified professionals claim they have learned a programming language by themselves, which proves that a vast majority of European software engineers are passionate about their work. 

Alongside solid tech education and abundant software engineers, Europe can proudly claim some of the highest English literacy rates in the world. According to the EF English Proficiency Index, Hungary, Poland, Czech Republic, Romania, Belarus, and Ukraine are among the 45 countries excelling in English skills.

And as a cherry on top, the growing interest in software engineering is further bolstered by the government’s massive investment in the sector and its favorable policies. 

European governments are offering incentives to tech startups to attract top-level tech executives to their countries. 

For instance, Ukraine has established a dynamic environment to lure in software engineers and businesses, and Poland is marketing tax breaks to entice software firms to relocate there. 

As a result of these deliberate policies, global tech giants like Google, Oracle, IBM, and Deloitte have chosen Europe as their primary destination for hiring software engineers.

This further demonstrates that the European market is becoming increasingly appealing for hiring qualified software engineers.

Why is Europe Attractive for Tech Recruiters?

Europe has emerged as a highly sought-after destination for software engineers. With a rich talent pool, competitive pricing, and a growing reputation for high-quality services, both startups and large businesses increasingly turn to Europe for their software engineering needs. 

The popularity of the European tech market is increasing for several reasons, some of which are mentioned below. 

Cost-effectiveness

One of the primary advantages of hiring software engineers in Eastern Europe is cost-effectiveness. 

European software engineers offer lower hourly rates, making it an attractive option for businesses looking to optimize their budgets and scale their teams at the same time. 

In fact, the average hourly rates and salaries for software engineering in Eastern Europe are significantly lower than those in Western Europe and North America because of lower cost of living and reduced tax burdens. 

High-Quality Talent Pool and Coding Expertise

Europe boasts a rich talent pool of highly skilled software engineers with strong technical expertise. 

Countries like Ukraine, Bulgaria, Romania, Poland, and the Czech Republic are known for their exceptional software engineering capabilities. In fact, Ukraine is now known as the “Silicon Valley of Eastern Europe" because of its thriving tech industry. 

These countries consistently produce top-tier software engineers because of their commitment to technology education and advanced training programs. 

Programmers in Eastern Europe rely on programs, such as Lviv IT School and tech hubs to upgrade their skills after earning a university degree. As a result, coders from Ukraine, Poland, Romania, and Moldova frequently outperform others and have excellent rankings in global programming competitions and coding challenges. Additionally, Eastern European programmers have the highest web development and custom software development ranking on platforms like Hackerrank and TopCoder.

Europe’s IT service and software research and development market is also growing faster than the global average. Eastern Europe alone has around 6.1 million skilled engineers. This shows you the extent of readily available specialists with diverse qualifications.

And, it doesn’t end there.

The number of skilled software developers in Europe is constantly expanding. By hiring software engineers in Europe, tech recruiters can access top-tier talent pools and collaborative teams who have mastered multiple computer languages.

Tech recruiters can now effortlessly assemble a team skilled in the latest technologies, like Big Data, artificial intelligence, machine learning, IoT, and cloud-based applications. 

Cultural Compatibility

Another benefit of hiring software engineers in Europe is their cultural compatibility with Western values and work ethics. 

European software engineers are known for being diligent, disciplined, and dedicated to delivering high-quality work. They show strong professionalism and have a solid understanding of Western business practices. 

This cultural alignment enables smooth collaboration and effective communication between employers and software engineering teams. 

Because of the long-standing Western influence, European business etiquette closely resembles that of North America. These cultural similarities make it easier for employers and tech recruiters to engage software engineers in Europe and work more seamlessly, making company operations more efficient and successful. 

Lastly, European software engineers are often familiar with Western legislation and regulations. As a result, there are fewer compliance errors and oversights.

Timezone Proximity

Lastly, Europe offers a major edge in terms of timezone proximity compared to other locations. 

Coordinating time zones is crucial when it comes to distributed teams. However, it becomes all the more difficult to maintain workflow when the time zones are too far apart. 

Businesses in North America benefit from the little difference in time zones, allowing for more convenient, agile, and real-time communication between employers and their software engineering teams. It also keeps their software engineers more productive and happy. 

Things Tech Recruiters Should Consider When Hiring Software Engineers in Europe

While it’s evident Europe is a rich source of tech talent, locating qualified software engineers can be challenging. To take charge and source software engineers in Europe, tech recruiters should be aware of the hurdles that might lie ahead. 

If you’re a tech recruiter looking to hire software engineers in Europe, it's essential to consider several factors that can impact the success of your project. 

This section will explore key considerations and challenges tech recruiters may face to help them make informed decisions and maximize the benefits of working with European software engineers.

Decide the technical expertise and skills needed for your project

Before hiring software engineers in Europe, tech recruiters should decide on the technology stack required for their project. 

Software engineers across Europe have distinct technical strengths that vary with every country; for instance, according to HackerRank, Ukrainian software engineers rank first in security and fifth in mathematics and distributed systems. Whereas Polish software engineers rank first in Java, and among their top five skills are algorithms, tutorials, Python, and Shell.

Similarly, countries like Ukraine, Hungary, Poland, and Moldova have renowned software engineering companies with experienced software engineers in industries including fintech, healthcare, and IoT.

Therefore, tech recruiters must carefully choose the appropriate tech stack to ensure they source software engineers from the right European country and secure the necessary skills for the projects.

Determine your budget

Determining the budget for your project is crucial when hiring software engineers in Europe.

While Eastern Europe offers more cost benefits compared to Western Europe, you need to take project complexity and the required skill sets into account as it will influence which region you will hire from, thereby impacting your overall budget. 

Additionally, it's crucial to consider the project timeframe and deadlines, as these elements may affect the budget.

Examine the various software engineering rates by region and select the one that falls within your budget, particularly regarding skill requirements and within the context of a fully scaled team. 

Choose the right partner

Perhaps, this is the most important thing for tech recruiters to consider when hiring software engineers in Europe. 

Thoroughly vetting recruitment service providers is vital to ensuring successful hiring. Finding a partner that aligns with your budget, talent requirements, corporate culture, and working style requires time, due diligence, and strategic thinking.

Fortunately, you won’t have to search any further. 

Workfully, a digital recruitment platform, connects clients with tech recruiters that are well-versed in the intricacies of hiring software engineers across Europe. 

With Workfully, you can scale a team of highly-skilled software engineers for your project and receive ongoing support from HR, administrative, and legal departments. 

If you need to assemble a dedicated cross-functional team in Europe, share your requirements with us; our tech recruiters will assemble a team of vetted front-end and back-end software engineers, UI/UX designers, big data specialists, and QA engineers that best suit your project's needs. 

Address legal considerations

Before hiring software engineers in Europe, it’s essential to address legal matters by hiring a lawyer to draft a software engineering agreement that complies with international law. 

This agreement protects your interests, project scope, intellectual property rights, and confidentiality.  

Alternatively, if you work with Worfully, we provide a standardized service agreement that safeguards the interests of clients hiring through our platform.

Tackle international payment procedures and tax compliance 

Working directly with European software engineers entails dealing with foreign exchange rates and fees. It's critical for tech recruiters to navigate these challenges effectively to ensure smooth financial transactions. 

Additionally, if you are in the United States, tax compliance requires filing a W8 BEN-E form annually with the IRS. 

Step-by-Step Guide to Hiring Software Engineers in Europe

If tech recruiters want to attract high-end software engineering talent, they need to know exactly what they’re looking for. 

Start by identifying customer concerns and feedback and exploring strategies to enhance the overall customer experience with your product. This allows you to see the real scope of your work and helps you break down tasks into smaller milestones, bringing clarity to your team and key stakeholders.

Recognizing your objectives and mission leads you to the next stage of the development process: translating your vision into a detailed action plan. 

Step 1: Define your requirements 

Clearly defining your project requirements and the technical skill set is crucial to ensuring a successful hiring process. To get insights, you should know the answers to the following questions: 

• What kind of software engineers do you need for the project? 

• What technology stacks are crucial to achieving consistent project success? 

• What level of experience do you need? 

• What infrastructure does the project require? 

• What is the expected product time-to-market? 

• What is the budget for the project?

This questionnaire can act as a guideline for tech recruiters when they kickstart the talent-sourcing phase. 

Identifying the specific programming languages, frameworks, and technologies required for your project will clarify and narrow down your search for suitable candidates.

Step 2: Research and identify the European countries you want to hire from

Europe is home to several countries renowned for their software engineering talent, such as Ukraine, Poland, Romania, Bulgaria, and Belarus. 

Explore the strengths and specialties of each country, including their expertise in JavaScript, Python, web development, and more to choose the country best suited to your project needs. 

Step 3: Source candidates through service providers and other recruitment channels

If you need top-tier software engineers instantly at a lower cost and who can work remotely, outsourcing is the way to go. Outsourcing offers cost-effectiveness, scalability, and access to a diverse talent pool. 

With a multitude of software engineers and outsourcing companies available in Europe, it’s essential to conduct thorough research into their reputation, expertise and industry-specific knowledge, success stories, and quality of talent. 

Most companies offer a demo and a trial period for tech recruiters to determine where their strengths lie and what resources they can bring to the table before you commit to them long-term.

Other than partnering with a recruitment service provider, tech recruiters can source European candidates through freelancer sites and job boards. 

Many software engineers are on freelance platforms like Upwork, Toptal, and Arc.Dev. The downside is that some of the engineers on these platforms prefer short-term or part-time work, which is challenging if you are trying to build a fully dedicated team.

Similarly, there are multiple job-based platforms where tech recruiters can hire remote software engineers to lead your projects, such as RemoteOK, We Work Remotely, Remote.co, Working Nomads, and Jobspresso. 

Step 4: Evaluate and interview potential candidates. 

Compelling interviews and thorough technical assessments are crucial for identifying the right software engineers and ensuring they meet your project requirements. 

However, it is also just as crucial not to overdo it. Outdated technical testing and interview processes plague the industry, requiring tech recruiters to invest a significant amount of time. 

According to a Glassdoor study, it takes approximately 40 days for software engineers to go through the interview process - 17 days longer than the other industries surveyed. 

Tech recruiters now realize the importance of thought-provoking and well-crafted engineering interview questions and assessments. 

They help tech recruiters identify the gap that needs to be filled, the specific skills and experience required, and the type of character traits needed for the role. Moreover, the right interview questions also help tech recruiters assess cultural fit and alignment with the company’s morals and values. 

Here are some sample interview questions tech recruiters should ask software engineers to secure one who is solution-oriented, innovative, a long-term thinker, and has the right technical proficiency and cultural fit. 

• What programming languages do you know, and how do you keep your skills sharp and up-to-date? 

• What was the most challenging engineering project you’ve worked on, and how did you drive the project toward success?

• How would you explain engineering concepts to a non-technical audience during a presentation or an important meeting?

• Tell me about a time you were asked to work within a tight budget and how you handled cost reductions.

• Tell me about a time you’ve dealt with a difficult client, supervisor, or stakeholder on an engineering project. 

• What processes and safeguards are used to detect and prevent mistakes in your work? 

• What do you think is the most important engineering issue our industry faces today?

Step 5: Onboarding

Once you have selected suitable candidates, it's essential to have a smooth onboarding process, especially when you hire remote workers. 

Tech recruiters must effectively communicate project goals, objectives, and expectations. Companies must provide the necessary communication technology and resources to help overseas software engineers integrate into their teams seamlessly.

Key Insights for Attracting Top-tier Software Engineers in Europe

Having covered the hiring process, the next focus should be on the strategies your company can implement to refine its sourcing strategy and attract top-notch software engineers from across Europe. 

This section covers what software engineers value most when working with companies and the key factors impacting their choices and driving their satisfaction.

Promote work flexibility

Europe does have favorable time zones compared to other regions; however, it doesn't negate the fact that time zone differences can be challenging for remote workers. 

European software engineers face significant difficulties with time zone differences. These findings highlight a conflict between the desire to work remotely and the reality of time zone hurdles. 

Therefore, businesses aiming to engage software engineers in Europe must focus on offering flexible work arrangements and active engagement and development opportunities.

Most European software engineers prioritize work flexibility as compared to software engineers in the US and Canada. Similarly, they express a need for more flexible meeting schedules, highlighting the fact that flexible hours are highly valued in Europe. 

Key Insights: 

• Acknowledge and address time zone challenges. Then, proceed to offer practical solutions and regularly take feedback to improve remote work experiences.

• Promote flexibility. Offering flexible work arrangements can lessen the impact of time zone differences and attract top talent. This includes flexible meeting timings to accommodate the diverse needs of your global software engineering team. 

• Understand regional preferences. When you cross borders to hire tech talent, you must factor in the difference in work culture and ethics. In this case, flexible hours are more valued in Europe and you can tailor company policies accordingly to stay competitive.

Have the proper communication tools and resources for remote work

Hiring remotely is no longer a trend in Europe, it’s the standard. 

Remote work is the preferred option among software engineers worldwide, with 86% working entirely remotely. Since the pandemic, the number of remote software engineer job roles has soared, and at least two-thirds of software engineers want it to continue that way.  

Key Insights: 

• Rethink office requirements. Consider making office attendance optional rather than mandatory to align with the preferences of software engineers. 

• Support remote teams. Invest in tools and processes that support effective communication to maintain productivity and team cohesion. 

• Adapt to market demands. Altering or creating new company policies promoting remote work will give you a competitive edge in the fierce, tech job market. 

Shorten the interview process and allow flexibility in coding assessments. 

European software engineers are increasingly agitated with lengthy and tedious recruitment processes. 

According to a PWC survey, almost half of candidates say they’ve rejected a job offer (and more than half discouraged others from applying to a company) because of a bad experience during the hiring process. 

This inefficiency doesn’t just waste time and money, it actively drives talent away. 

The problem isn’t just the number of interviews. Software engineers in Europe feel that their interviews are one-size-fits-all and not tailored to their unique skills and experiences. This generic approach leaves candidates feeling like just another number, not a valued potential hire.

Additionally, there’s a clear preference for take-home coding challenges over live coding exercises. This preference only highlights the growing demand for flexibility and remote work options, trends that show no sign of slowing down.

Key Insights:

• Streamline your recruitment process. Reduce interview rounds to keep candidates engaged and interested and improve the candidate experience.

• Personalize the interviews. Customizing interviews to recognize candidates; skills and experiences makes them feel valued and respected.

• Offer flexibility in completing coding assessments. Provide take-home coding challenges instead of live exercises, which can make software engineers uncomfortable. This aligns with the rising demand for flexible, remote-friendly work environments.

Job security is a top priority for software engineers in Europe

While contract work is rapidly gaining popularity, job security remains a top priority for European software engineers, especially because of the employee benefits that full-time employment provides. This shows a strong inclination towards job security and stability,

One of the main drawbacks of contract work is constantly self-marketing and finding new clients. This ongoing hustle can be exhausting and uncertain, making full-time roles more appealing.

Key Insights:

• Emphasize stability. Highlight the job security offered by full-time positions at your company to attract and retain top-level software engineers in Europe.
• Promote employee benefits. Ensure that software engineers receive comprehensive benefits packages as part of your job offer to gain a competitive edge in the market and attract high-quality talent. 

Salary is the deciding factor for European software engineers when accepting a job offer

While software engineers in Europe feel good about their pay, there’s a strong push for more salary transparency, especially among engineers outside the US. This need for openness is essential for understanding and navigating the job market effectively.

Most engineers outside the US believe that salary transparency would help them better understand the job market. Additionally, software engineers want all job listings to include salary ranges, underscoring the importance of clear and upfront communication about compensation.

Key Insights:

• Ensure transparency. Include salary ranges in job postings to help software engineers better understand the dynamic market and make informed decisions.
• Align salary with expectations. Tailor compensation packages to meet the expectations of software engineers, especially those outside the US.

Software engineers in Europe are open to contract work

Contract work is gaining traction among European software engineers, and many are drawn to the gig economy’s greater flexibility and project diversity. 

The desire for greater freedom and variety indicates that a blend of contract and full-time employees may offer a strategic advantage.

These results, while in sharp contrast to the importance of job stability, show that skilled software engineers are willing to do contract work if the right opportunity comes.

Key Insights:

• Embrace flexibility and promote project diversity. Offer contract work opportunities to attract software engineers in Europe who prioritize freedom and diversity in their professional lives.
• Balance your team. A mix of contract and full-time employees can help meet the varying preferences and needs of your engineering team.

Case Study: Automattic

To help you further understand how to successfully hire software engineers in Europe, let’s take a look at Automattic, an American global distributed company that's behind WordPress.com, WooCommerce, Jetpack, Simplenote, and many other popular web products. 

The Story

The company's name, Automattic, is a play on the founder Matt Mullenweg's first name and the word "automatic."The company is celebrated for its dedication to a distributed workforce. They’ve built a global team of software engineers across various countries, with a significant number based in Europe. 

Automattic’s approach to hiring software engineers in Europe has been successful for several reasons:

• Remote-first culture: Automattic has always prioritized remote work. This means that their team members can work from any part of the world, as long as they have a stable internet connection. This flexibility enables them to hire skilled software engineers in Europe without establishing physical offices in every location. 

• Successful onboarding and communication: Remote work and effective communication come hand in hand. Automattic has solid onboarding and communication tools to ensure remote software engineers maintain seamless communication and collaboration, despite the physical distances.  

• Competitive compensation and benefits: Automattic does its market research and offers competitive salaries and benefits according to the cost of living in different European regions. This helps them attract top-tier software engineers as the offers are more appealing than the local standard. 

• Inclusive hiring policies: Automattic’s recruiting process is designed to be inclusive and accessible to candidates of every region. Because their company is remote, they focus on finding the best software engineers by evaluating skills and experience over geographical locations. 

• Local recruitment strategies: Automattic has used European recruitment networks and job boards to locate and hire software engineers in Europe. Participating in European tech conferences and meetups allows them to build relationships and identify potential hires. 

Results

By successfully implementing these recruitment approaches, Automattic assembled a highly skilled and diverse team of software engineers in Europe. Their team of software engineers in Europe contributes to a number of their projects in product development and innovation, ensuring Automattic remains a leading player in web development. 

Automattic’s success shows how a global talent pool can be a powerful strategy for growth and innovation. 

Conclusion

There are around 5.5 million software engineers in Europe.

Businesses that hire software engineers in Europe are often pleasantly surprised to discover the wealth of technical talent and availability of expert software engineers. 

On top of this, hiring software engineers in Europe offers cost benefits and maintains quality at the same time; this combination of affordability and expertise is enough to make businesses and tech recruiters dive into Europe to enhance their software development capabilities. 

If you’re eager to dive into the pool of talented software engineers in Europe but need guidance on how to begin, reach out to us here.