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How to Hire Top Talent for Your EU Startup in 2025

10
min. read
July 15, 2025

In 2021, the VC funding in European Tech reached $113.7bn, which is $65.3bn more than in 2020, and $81.8bn more than in 2018. The increased funding leads to an increased number of new startups and the demand for talent. This surge has intensified the race for remote-ready, cost-efficient talent across Europe and beyond.

Graphics source: sifted.eu
Data source: dealroom.co

What's happening in the EU labor market in the meantime?

The European workforce is shifting to freelance work, with a 46% increase of freelancers in the EU labor market since 2000. With the increasing appeal of freelance work for employees, EU companies face the need to invest harder in hiring and retention. Also more startups are now exploring outstaffing and Employer of Record (EOR) solutions to remain competitive.

Gen Z - another story

Gen Z (projected to account for 27% of the workforce by 2025 ) has higher expectations from the workplace, including more flexibility and mental health support, sometimes even over financial compensation. Hiring for Gen Z requires flexible remote team setups and benefits that go beyond salary.

With the new reality in mind, EU startups need to be more innovative than ever to attract top talent. Here are some tips to help.

Tip 1: Clear Internal Expectations of the Role

Potential candidates are rarely friends with role ambiguity. They want to read clear job descriptions, which include day-to-day responsibilities, the company's values, and how the role contributes to its success.

Above reading the job description, candidates want to feel clarity when communicating with the recruiter, during the interviews, and when meeting the team. If ambassadors of your company can't explain what the role entails or how someone in the role will be successful, it'll be hard to attract top talent.

This is especially true for startups, which are often less established and have more rapidly changing needs. Though your startup is in its early stages and many things may be unclear even for you, the new hires should not feel it. It's important to take the time to document the expectations of each role and ensure your team can articulate them.

Also, be sure you have realistic expectations. The role's requirements should be realistic for one person to accomplish. Overloading an employee with too much responsibility will likely lead to resentment and a high turnover rate.

Here is Indeed’s detailed guide for writing job descriptions for 2022 you may find helpful. 

Tip 2: Prioritize the Team Right from the Beginning

Employee loyalty is one of the critical assets that you should be ready to invest in right from the beginning. The right people will enhance your startup culture, not hinder it. Furthermore, when you have the right team in place from the beginning, it becomes easier and cheaper to scale the business later on.

Recent statistics show that 81% of employees whose work benefits meet their needs are planning to stay with their current employer for two more years. On the contrary, only 51% of those who feel their work benefits do not meet their needs say the same.

Besides the financial compensation, employees mostly value health benefits, job security and flexible work. So, providing employees with the right culture and values and taking care of their physical and mental health is likely to decrease the turnover rate and increase employee satisfaction.

If you develop a truly human-centric corporate culture, the right talent will find you and want to be part of your team. 

Tip 3: Derive the Right Insights with the Right Questions

Who's your ideal employee persona and how will you determine if the candidate is a good match? You should answer these crucial questions before starting to recruit, as investing in the wrong talent is one of the most costly mistakes a company can make.

Don't underestimate the role of personality;  take enough time to determine which personal and professional traits are the most important for the role in question. Once you're done, move on to crafting the questions that will give you the insights you need to make the right decision.

The rule of thumb implies startups should focus on hiring for attitude and training for skills. This means that you should focus on the questions which reveal if the candidate has the right mindset, motivation, and attitude for the role, as these are much harder to change than actual skills.

And with the unavoidably turbulent ecosystem of a startup company, the ability to change, adapt and take the initiative is far more important than any specific skill.

Tip 4: Be Innovative with Tools and Strategies for Candidate Outreach

Appearing on the job posting websites should not be your only employee outreach approach. For example, with the advent of social media, there are now more opportunities to reach out to potential candidates where they spend most of their time. So, you can run an Instagram ad with your job announcement. 

We also advise you to scrape LinkedIn and Slack communities relevant to your field, where you're more likely to meet the right candidate. Such communities are usually formed with like-minded professionals and individuals, where the level of responsiveness is generally high. 

Last but not least, engage in professional networks. For example, if you're looking for a developer, participating in relevant online forums and Stack Overflow might be a great way to get their attention.

Whatever channel you choose to connect with your potential candidates, the message must be clear, concise and tailored to the specific role

Tip 5: Go Global with Hiring

In other words, with the increasing shift to freelance and remote work, why not consider hiring non-local talent? Though onboarding international talent may pose certain adaptation challenges for you and your team, it can significantly lower hiring costs and give access to under-tapped, high-quality talent pools. 

Collab Fabrik specializes in connecting startups with top professionals in Armenia and Georgia through EOR and outstaffing. Many startups choose to hire remote talent in Armenia via an Employer of Record (EOR) to simplify compliance and gain access to top-tier professionals with lower costs than in the EU. However, we frequently observe two main obstacles in the EU companies when helping them expand their remote team abroad.

The shift in mindset

Though there is no lack of virtual collaboration tools, many employers are still reluctant to embrace the idea of remote hiring. Some believe that the only way to get the job done is to have everyone under one roof. Besides, many are hesitant about whether people from different cultural backgrounds can form a team with seamless collaboration. 

Diving deep into the hiring procedures of another country

If the company is not looking for freelancers in popular freelance hubs like Upwork but wants to build a team of permanent workers, they need to get familiar with the local hiring system and procedures. Ensuring compliance with employment law in a foreign country is time-consuming and demands significant investments.

Well, if you're not willing to put extra effort but want to hire the best talent globally, here is how Collab Fabrik's expertise can help.

Why Armenia Is Europe’s Best-Kept Remote Hiring Secret. 

Many EU startups are now looking eastward to Armenia or Georgia for top-tier, affordable remote professionals.

A quick introduction. Collab Fabrik, a leading Employer of Record in Armenia and Germany, helps EU companies hire highly skilled and cost-effective remote talent in Armenia without the complexity of establishing a local entity.

Over 15+ partner companies from Germany, Spain, Switzerland, and France have successfully built remote teams in Armenia and Georgia within just a few months. By leveraging our EOR and outstaffing services, they gained access to highly skilled talent across IT, admin, and customer support roles - achieving up to 40% cost savings compared to traditional hiring in the EU.

How Can We Help You Do The Same

Collab Fabrik can be your hiring partner in the Caucasus with a full scope of sourcing, recruiting and employer of record services. You are completely relieved from the tedious and time-consuming administrative burden of setting up a local subsidiary or representative office. Collab Fabrik processes all the payroll, benefits, and taxes on your behalf. Whether you're looking to hire remote professionals or need a reliable Employer of Record in Armenia, our team ensures full compliance and a seamless hiring experience.

Interested in knowing more about how this scheme works? Let’s explore how Collab Fabrik can be your EOR and outstaffing partner for fast, compliant hiring in Armenia and Georgia.

Book a Non-Binding Call.

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