Having decided to upscale and open a company in Estonia, we were ready to encounter a different market with its own rules and specifics. We knew we would have to adapt to new laws, tax policies and reporting.
We prepared thoroughly by collecting information, studying relevant cases, and consulting local entrepreneurs. This helped us go through the process of company registration in Estonia and obtaining the e-resident status without any “surprises”. But when we started recruiting, our HR specialists realized that their experience of searching for and selecting staff in Ukraine had to be upgraded. Indeed, apart from the well-known stereotypes about Estonians, there are lots of other differences in their culture, habits and communication patterns. Let me share our experience of recruiting in Estonia and the local labor market, for those of you who are thinking of creating an international team.
How foreigners view Estonians and what they really are
If we were to form one stereotype about Estonians from the most prominent ones, we would find out that they were laidback introverts who love hugging trees. But those traits are really just an external manifestation of the deeply rooted Estonian philosophy of life.
What looks like remoteness and inapproachability is actually respect to one’s own personal space and that of others. Estonians do not enjoy empty small talk, do not give unsolicited advice and do not start conversations. But if you ask them for help, you will find that they are nice and well-natured people who do not refuse those in need and are sincerely happy to see their guests.
My own experience showed that the more candidates we interviewed, the more talkative extraverts we met. So we have busted this particular myth about Estonians for ourselves.
An interesting fact: Estonians do not like giving negative feedback, especially on work tasks. They prefer to say nothing or emphasize the positives. Sometimes this makes understanding one’s mistakes and correcting shortcomings difficult. |
Their slow tempo is explained with rationality and a habit to make informed decisions. Estonians do not strive to accomplish great deeds, they just organize their lives comfortably and thoroughly and do their work diligently. They don’t like learning on their own mistakes, so they double-check their every move not to make those. But not all of them are so laidback. Some Estonians are dynamic and active, they solve problems efficiently and respond to messages quickly.
The habit of hugging trees might seem a bit weird at first, but in reality it is love and respect for nature. Estonians cannot imagine their life without long walks in marshes and picnics in the forest that covers over half of the country. One of our candidates confirmed: “This is especially true for city dwellers. For them it is a chance to spend some time alone with the nature and get a break from… other Estonians.” Their ancestors believed the forest was sacred and worshipped forest spirits, so modern Estonians try not to shout or quarrel in the forest, and they are convinced that one can charge their battery by hugging a tree or a boulder.
Foreigners often pay attention to the informal communication style of the locals and the absence of subordination. It is customary to address even older people or one’s seniors informally, and definitely not by their full name. As demonstrated in a study by Tartu University in 2021, most Estonians view even official letters from state authorities (such as the Police Department) negatively if they are addressed formally. It seems patronizing and a sign of arrogance.
What you should know about Estonian labor market
Estonia is a small country, so its business and labor market are concentrated in two largest cities: Tallinn and Tartu.
Language
Russian language can be often heard in Estonia, especially nowadays, when many Ukrainian migrants opt for Russian to talk to the locals. But it is not welcome here, because many still remember the years of USSR occupation. Instead, young Estonians speak fluent English, so we chose it for our job listings. Get ready to communicate with potential employees in English, unless, of course, there is an Estonian expert on your team.
An interesting detail: job listings often contain a paragraph concerning Finnish and English languages command (both spoken and written). It is not perceived as a requirement, but rather as an option that allows one to think outside the box and widen one’s perspective. |
Channels for communication with candidates
We selected LinkedIn and Djinni to publish our job advertisements. Local job sites are also quite popular in Estonia:
Many advertisements are also published in Facebook groups where Ukrainians living in Estonia socialize.
The first job listing we published was blocked by LinkedIn for discrimination. This was due to mentioning that we were looking for an Estonian to join our team. We had to get rid of this condition, which proved beneficial for us. It helped us find an amazing specialist who meets all our requirements and speaks both Estonian and English fluently.
Schedule and work model
A 40-hour work week we are used to is also customary in Estonia. Most companies work from 8 a.m. to 5 p.m. Monday to Friday, with an hour-long lunch break.
One can start work only after signing an employment contract. Unreported employment is strictly punished by law.
Apart from 28 vacation days a year paid by the employer, Estonians have 12 days-off for national holidays. Under the Labor Law, business days preceding New Year’s Day, the Anniversary of the Republic of Estonia, Victory Day and Christmas Eve, are shortened by three hours.
The results of a study by cvkeskus.ee and Palgainfo Agentuur, a Salary Information Agency, show that 78% of employers offer a flexible work schedule, i. e. an option of working outside of office for several days a week or to select a work model convenient for the employee. One in five companies provides a remote work option. A flexible schedule and the option to work remotely are the benefits most greatly valued by prospective employees, and mentioning those in an advertisement usually doubles the number of applicants. The majority of candidates emphasize their wish to be able to work both from home and from an office in a hybrid format during interviews.
What Estonians value in their work
Besides a convenient work model, local workers opt for safety, official employment and a chance to work in a financially stable company. Atmosphere in the team is also important. Respondents in a survey by If Kindlustus said that their perfect colleagues should be friendly and honest, and should have a good sense of humor.
Important employer evaluation factors
(based on the results of a survey conducted by the Salary Information Agency and CVKeskus.ee job portal):
- The management honoring their promises
- Compliance with the law by the employer
- Equal treatment of all employees by the management
- Company stability and reliability
- A guarantee of ethical conduct in the company from the employer
- A work-life balance for the workers
- The company investing into up-to-date working tools
- The employer cares about professional development of the workers
- The company has a potential for growth
- The employer has created a comfortable and safe work environment
Good to know: since January 1, 2024 the gross minimum legal wage in Estonia is €820. The average gross salary at the end of 2023 exceeded €1,800 per month. The highest incomes can be found in the information and telecommunication industry (€3,222), finance and insurance (€2,813), and in the energy sector (€2,376). |
Five distinctive features of jobs in Estonia to help you recruit effectively
- B2B and B2C companies often emphasize the freedom in one’s actions and the potential of creative approach to customers’ problems.
- Special attention is paid to personal and professional development, participation in trainings etc.
- Most job listings are carefully designed, with photos and images, not just plain text.
- Most job advertisements do not list the salary, but there are efforts intended to fight this, including plans to introduce respective legislation.
- Usually the gross salary is indicated. You can find out the actual amount in the special calculator Palgakalkulaator 2023 – bruto / neto kalkulaator.
The outward “coldness” of Estonians is really tact and respect to people’s boundaries. Their “unhurriedness” hides thoroughness and a responsible approach to making decisions and performing their professional duties.
They are friendly and outgoing, have a great sense of humor, value a pleasant working atmosphere, and want some confidence in their future. Give them support, opportunities for development, and stability, and you’ll end up with valuable employees who will help your business conquer the European market. Just like we are already doing with our Estonian team.
