Employment as a Strategic Decision: Retaining the Talent in Estonia

A new US-based client asked us to help to employ a highly-skilled IT specialist in Estonia on its behalf. The company has been working with this developer for more than four years so far. They engaged him as an independent contractor.

However, the client planned a long-term project, for which it needed programmers with unique skills that this programmer had.

In order not to lose the gifted developer, the company wanted to shift from contracting and officially employ him in the country. It was also crucial for the client to engage the IT guy locally in Tallin, Estonia without having to move him to the USA, where the company was based. This would allow to carry on working with this specialist at a much lower cost (higher salaries paid in USA to specialists of this level, cost to get a work permit and business visa plus relocation costs) and without the red tape and bureaucracy involved.

The worker also wanted to skip contracting after he’s got a military subpoena, meaning he was supposed to leave his work place and get to the army to serve for 8 months as a minimum. It is a regular practice for call-up orders in most Post-Soviet countries to specify males reaching 27 to 30 years and even 35 years in countries like Armenia, Azerbaijan and others.

The IT guy was 29 and he didn’t want to make a break in his career and serve in the army. Nor did the employer company want to lose its valuable talent.

Our company officially employed this IT specialist and handled all HR in Tallin on our client’s behalf. We have registered him in all local statutory bodies and paid his monthly salary and bonuses too.

Shifting from contracting to employment has become an important strategic decision for the client company. As a result, the company was able to keep this top global talent and take up a new project. With the employment relations in place and Acumen justifying the importance of this professional to local authorities, the client’s project was a huge success. Our team prepared all necessary documents and handled communication with the local state bodies. The company could focus exclusively on the tasks related to the project.

This employee is still working for the company. It’s been over two years so far. The programmer has become a great asset to the company.

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