As globalization progresses, more and more companies are establishing overseas subsidiaries to expand their businesses. When setting up subsidiaries abroad, hiring local staff is inevitable. This article discusses the benefits of hiring in Spain from employers' perspectives.
Lower Costs
Compared to other European countries, labor costs in Spain are relatively lower. According to Eurostat data, the average hourly wage in Spain was €14.5 in 2019 while the average hourly wage in Germany was €35.7 during the same period. Therefore, hiring in Spain can reduce enterprise labor costs and improve competitiveness.
For example, Huawei Corporation has set up a branch in Spain and hired over 1000 local employees. In addition to providing technical support, these staff also support Huawei's product sales and services. Due to the relatively lower labor costs in Spain, hiring there helped reduce costs and improve the competitiveness of Huawei's products.
Access to Local Market Information
Hiring local staff can help gain better understanding of the local market information and cultural background, which is essential for businesses to operate locally. Local employees can better understand local consumers' demands and psychology, providing better marketing strategies and services for enterprises.
For example, China Mobile has established a branch in Spain and hired many local employees. In addition to providing technical support, these staff also supporting Mobile's product sales and services. Being locals, they can better understand the local market information and cultural background to provide better marketing strategies and services for China Mobile.
Reduce Cultural Exchange Costs
When setting up subsidiaries abroad, cultural differences are inevitable issues. When enterprises hire local staff overseas, it can reduce cultural exchange costs. Local employees can better understand the enterprise culture and values, and help the enterprise adapt to local culture and laws and regulations.
In conclusion, hiring local staff when setting up subsidiaries abroad is inevitable. Hiring in Spain can bring advantages in reducing labor costs, accessing local market information, and reducing cultural exchange costs. Therefore, hiring in Spain is a good choice.