Common Challenges Nordic Companies Face When Hiring in Germany—and How to Overcome Them

Avomind
Sep 8
5 min read

For Nordic companies with ambitions to grow beyond their home markets, Germany often comes up as a natural next step. With Europe’s largest economy, global industrial giants, and a thriving innovation scene, the country presents significant opportunities for expansion. Yet while the potential is clear, hiring in Germany is rarely straightforward. Nordic firms often discover that the German labor market operates with different rules, expectations, and cultural nuances than they are used to.

Understanding these challenges is essential before stepping into recruitment. Companies that prepare properly are able to hire faster, integrate talent more effectively, and avoid costly compliance pitfalls. Below, we take a closer look at the most common obstacles Nordic businesses encounter when hiring in Germany—and how to navigate them successfully.

Germany’s Talent Market: High Demand, Intense Competition

Germany is home to some of Europe’s strongest industries, ranging from automotive engineering and advanced manufacturing to IT, finance, and healthcare. Its reputation as the “land of engineers” is well-deserved, and cities like Berlin, Munich, and Hamburg have become magnets for digital innovation and startup activity. However, this prosperity has led to a widening gap between supply and demand in the labor market.

By 2035, Germany is projected to face a shortfall of around seven million skilled workers. Already, many companies struggle to fill roles, particularly in IT, engineering, and healthcare. In the technology sector alone, more than 137,000 IT positions were left vacant in 2022, and the gap has only widened since. Healthcare employers face equally pressing shortages, with more than 90% of hospitals reporting difficulties filling nursing positions.

For Nordic companies entering the market, this means competing head-to-head with German industry leaders and global brands for the same limited pool of candidates. The result is a “talent war” that requires a thoughtful, proactive approach to recruitment. Simply posting job ads will not suffice—companies need to build an employer brand that resonates locally, while offering competitive packages that meet the expectations of German professionals.

Key Challenges for Nordic Companies Hiring in Germany

One of the first hurdles Nordic companies face when entering the German market is navigating the country’s strict labor laws. German legislation is designed to protect employees, with extensive requirements around contracts, working hours, and termination procedures. Works councils—employee representative bodies that can be mandatory in companies with as few as five employees—also wield significant influence over working conditions. This is a stark contrast to the more flexible frameworks common in the Nordics and can create unexpected delays if not anticipated early.

Another significant factor is language. While English is increasingly used in multinational companies, German remains the dominant working language in most industries. For many positions, especially those requiring direct customer or team interaction, proficiency at B2 level or higher is expected. Nordic employers who assume English will be sufficient may find their talent pool severely restricted.

Cultural differences also play an important role. German workplace culture tends to emphasize punctuality, precision, and formal qualifications. CVs are expected to be detailed and chronological, and candidates are assessed not only on skills but also on their ability to integrate smoothly into structured teams. Compared to the egalitarian and highly flexible Nordic workplace environment, Germany’s traditional approach can feel rigid. Companies that fail to acknowledge these differences risk losing out on candidates or struggling with retention after hiring.

Finally, speed of hiring is a recurring challenge. In Germany, the average time-to-fill a role is around 44 days, and prolonged processes are common. Yet in such a competitive environment, drawn-out timelines can result in losing top candidates to other employers who move faster. Nordic companies used to slower, consensus-driven decision-making may need to adjust to ensure they don’t miss their window.

Practical Strategies to Overcome These Challenges

The obstacles are real, but they are not insurmountable. Nordic companies can position themselves strongly in the German talent market by making targeted adjustments and leveraging their unique strengths.

One of the most effective strategies is to ensure strong legal and compliance expertise from the outset. Whether through in-house specialists, partnerships with local HR consultants, or Employer of Record services, companies must be confident that their contracts, payroll, and labor practices meet German standards. This reduces risk and builds trust with employees, who are accustomed to a highly regulated environment.

At the same time, employers need to adapt to evolving candidate expectations. German professionals are increasingly prioritizing flexibility, hybrid work models, and opportunities for career development. Salary transparency is also becoming a key factor, with more than half of German job seekers citing compensation as their number one consideration. Nordic companies already enjoy a reputation for work-life balance and egalitarian workplace culture—emphasizing these elements in employer branding can provide a competitive edge.

Language and integration support can also be decisive. Offering German language training, structured onboarding, and relocation assistance can significantly improve retention rates for international hires. In addition, companies should not underestimate the importance of cultural onboarding. Helping employees understand workplace expectations around communication, hierarchy, and collaboration in Germany ensures smoother integration and higher productivity.

Finally, recruitment processes themselves must be optimized. This includes shortening interview stages, maintaining clear communication with candidates, and setting internal KPIs to monitor time-to-hire. Leveraging technology such as scheduling tools or AI-assisted pre-screening can streamline workflows, but human oversight remains essential to assess cultural fit and leadership potential.

Candidate Expectations: What German Professionals Value Most

To succeed in the German hiring market, Nordic companies must align their offers with local candidate priorities. Research shows that the following factors carry the most weight in decision-making:

Competitive, transparent compensation packages
Flexibility in working hours and the option for hybrid or remote work
Clear opportunities for career progression and professional development
Purpose-driven organizations with a strong social or environmental mission
Inclusive workplace cultures that support diversity and fairness

Nordic companies are in a strong position to deliver on many of these expectations, particularly when it comes to flexibility, inclusivity, and purpose-driven business. By clearly communicating these strengths, they can differentiate themselves from German competitors.

Why Strategic Partnerships Matter

For many Nordic firms, the smartest way to approach hiring in Germany is to work with an experienced recruitment partner. Cross-border hiring involves not only compliance and sourcing, but also market knowledge, candidate engagement, and cultural expertise. Local recruiters understand where to find the best talent, how to approach candidates in a highly competitive market, and how to design processes that meet both German legal standards and candidate expectations.

Recruitment partners can also help companies scale more quickly. Rather than dedicating internal resources to navigating complex regulations, Nordic businesses can focus on growth, while relying on specialists to handle the nuances of German employment law, payroll, and onboarding.

Hiring in Germany offers enormous potential, but it is not without challenges. Nordic companies must adapt to strict labor regulations, language requirements, and cultural expectations, while competing in one of Europe’s most talent-scarce markets. Success requires preparation, speed, and a willingness to adapt strategies to local realities.

The good news is that Nordic strengths—flexibility, inclusivity, and a strong focus on work-life balance—align closely with what German candidates increasingly want. By combining these advantages with local expertise and strategic recruitment partnerships, Nordic companies can overcome barriers and build high-performing teams in Germany.

At Avomind, we specialize in connecting ambitious companies with top global talent. With a deep understanding of both the Nordic and German markets, we help businesses navigate complex hiring landscapes, ensure compliance, and secure the skilled professionals they need to grow. Whether you are setting up your first German office or scaling a cross-border team, Avomind provides the expertise, networks, and tailored support to make hiring in Germany a success.