CV Keskus

Trends and challenges of Estonia labour market. Recruitment in Estonia at a glance.

Renita KäsperRecruitment Manager

29.11.2012

CONSIDERATIONS FOR THE INVESTOR:

• The new Employment Contract Act with significant changes became effective from July 1st 2009.

• Trade unions and employers generally have a cooperative relationship; it is unusual in Estonia to strike.

• Social security contributions (34.4%) calculated from the gross employment income are paid by the employer.

• Employees do not make any personal social tax contributions. The employee's part of unemployment insurance contributions and compulsory accumulative pension contributions are withheld from the gross income by the employer.

• Citizens of the European Union, European Economic Area and Switzerland do not need a separate permit to work in Estonia.

• A foreigner may work in Estonia as a member of the management body of a legal entity registered in Estonia, in order to fulfill management and supervision functions, for up to six months a year without a work permit or a residence permit for the purpose of employment and without being registered with the Citizenship and Migration Board under short-term employment provided they have a legal basis for residing in Estonia.

Estonia's population of working age is just below one million, with approximately 600 thousand in employment. There are more than 350 thousand inactive people (source: www.stat.ee).

Based on recent surveys, the unemployment rate has decreased within the last year (according to the statistics of the Estonian Unemployment Insurance Fund there were officially 47 thousand people registered as unemployed in December 2011) and it is likely that the rate will continue to decrease due the Estonian labour force acclimation with economy changes.

Unemployment (ILO):

13.8% (2009);

16.9% (2010);

7.3% (2011).

Average wage:

784 EUR (2009);

792 EUR (2010);

809 EUR (2011).

Working time:

8 hours per day, 5 days per week.

An employee is entitled to annual paid leave in the amount of 28 calendar days.

Age of retirement:

63 (both men and women);

65 starting 2017.

General vacation:

28 calendar days.

More and more foreign companies are discovering Estonia as a provider of share services functions

Reasons for that are:

•Skilled workers

•Education

•Cheaper costs

•Language skills

•Cultural match

•Work habits

How to recruit in Estonia ?

• Online portals like CV Keskus ( www.cvkeskus.ee)

• Recruitment companies

• Social Media ( Facebook, Twitter, LinkedIn)

• Personal Contacts

• Töötukassa (Unemployment Agency) www.tootukassa.ee

• Advertisements in Press

• Advertisements in public places

How CV Keskus can help? www.cvkeskus.ee

CV Keskus has several services which help our clients to find best possible people in Estonian Market:

• Online job ads

• Database search

• Evaluation

• Pre- selection

• Public search

• Full service/ recruitment

• Headhunting

Comparison of the unique visitors 2011 and 2012

Comparison number of new active cv-s of 2 largest job portals in Estonia

Challenges of recruitment in Estonia

• How to find right channels to communicate with target group that you are interested in?

• How to get your target group interested in your job offer?

• Is it reasonable to make the search yourself? Or to use local help?

• If, then which help to use? How to know which companies are trustful? What is the fair price for those services? Guarantees, that they offer...

• What salary level to offer? Where I can get right information about motivation packages?

• Legal information? How to make valid contract?

Common fails in recruitment

• You don`t know where to search

• You haven`t mapped the market, do this market even have specialists you need, how many are they, what are their expectations for motivation packages...

• You haven`t think through the profile of the person you are looking for

• You haven`t make „homework“, how many people you need to start a business in new market, what positions are essential for successful beginning and what is your recruitment budget...

• Your company is new or not known in this market, it means that you need to consider more strongly how do I brand my firm or product? Why people need to apply to my adds, why they want to work for me? You need to always remember that you are competing with all other companies in that sector where you are in, for best professionals in market.

• What your add is saying? Is it attractive enough? Does it talk with people who you want to apply? Is the message clear, does it describe really the work and conditions you are offering?

Thank you for your attention!