Employer of Record Finland
Finland Business Culture
Employer of Record Finland
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Business Culture in Finland
Anybody considering visiting or relocating to Finland should familiarise themselves with the cultural norms.
The Republic of Finland (Suomen tasavalta) is a parliamentary republic known for its robust industrial economy, world-leading human development records, and stable democracy. It is also known as the Land of a Thousand Lakes.
Finland’s GDP ranks an impressive 41st for a country with a population of only 5.5 million, meaning that foreign companies moving there will be entering a thriving economy. In Finland’s diversified economy, services account for a large share, while manufacturing and refining are also important. Electronics, automobile production (especially of tractors, trucks, buses, and military vehicles), chemicals, forestry (pulp and paper production accounts for 20% of exports), energy, and metals mining are among the most promising industries.
About 80% of the workforce in Finland is represented by a trade union, and collective bargaining agreements are widespread. When it comes to pay, collective bargaining agreements can’t go below what the law requires.
Here is a flavour of the rules and standards of conduct that newcomers to Finland should be aware of:
Get straight down to business. To a Finn, business is business, and it is conducted in a very formal manner. The Finnish are known for their practicality and can-do attitude. Transactional business is not seen as unethical in their eyes. They don't make conversation or mingle frequently during business hours. Similarly, they forgo in-person gatherings wherever possible. The use of email is adequate.
The Finns are known for being extremely quiet and conservative. Their restrained demeanour is a reflection of their culture and is admired as a sign of politeness. Most people are respectful and quiet on public transportation and in other public spaces. They place a premium on solitude. Making direct eye contact is nice but touching or hugging someone else is not. While they are reserved around new people, once they get to know you they are kind and willing to assist.
In the corporate world in Finland, your words will be regarded at face value. What you say stands as your promise to others. Arrangements made informally or over the phone will be treated as if they were written down. Be careful of your words, and don't pretend that something you didn't mean is the case.
Directness is acceptable in Finnish business etiquette. Even though they may not communicate frequently, people are very straightforward in their communication. What little they do say is highly significant. Being truthful is highly valued by them. Disagreements in the workplace are not regarded attacks on character.
Finland Business Culture
When it comes to Finland business culture, there are a few things to keep in mind to make a good impression:
Do's
- Respect punctuality and be on time for meetings and appointments.
- Dress professionally, as appearance is highly valued.
- Show appreciation and gratitude to colleagues and business partners.
- Speak clearly and directly, avoiding small talk.
- Emphasize equality and equality of opportunity in the workplace.
Dont's
- Avoid interrupting others while they are speaking.
- Don't make direct eye contact, as it is considered impolite.
- Don't discuss personal matters in a professional setting.
- Don't use overly aggressive or confrontational communication styles.
- Don't be late, as it is considered disrespectful.
getting started
Finland - Working Hours and Overtime
Working Hours
The standard work week in Finland is 40 hours long with 8-hour days. However, white-collar workers usually put in seven and a half hours a day, or 37.5 hours a week, as required by most collective bargaining agreements. Monday through Friday, standard business hours are eight in the morning until four or nine in the morning until five.
All hours worked that are over the weekly standard must be compensated as overtime and must follow the terms of the employment contract, collective bargaining agreements, etc.
Overtime
Compensation for overtime is compulsory, with the first two hours of overtime being paid at an enhanced rate of 50%, and any additional hours being paid at an increased rate of 100%.
It may be agreed to trade the overtime pay for more time off.
An employee has the right to decline overtime, and each instance of overtime work must be mutually agreed upon by the employee and employer.
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We are Finland Employer of Record experts
We have extensive experience helping businesses expand their workforce in the Finland. Take a look at our areas of expertise below:
Find out how payroll works in Finland and what you can expect when it comes to salaries, bonuses and tax
Enhance your understanding of what your employee is entitled to when working in Finland
Learn more about how you can attract and retain staff in Finland with both statutory and enhanced employee benefits
Unsure about what’s required when employing staff in Finland? Find out about Finland Work Permits and Visas here
We deliver a fully-managed EOR Service in Finland, including Payroll, HR and legal support.
Without Agility EOR, our ability to move quickly and scale would be extremely limited. Superb work from A to Z.
Carol Oliveira
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Frequently Asked Questions
Payrolling the employees is a key part of the service offered by an Employer of Record company. The Employer of Record will calculate and remit all taxes, social securities and similar payments, on behalf of both employer and employee. The client will be invoiced in advance by the EOR company, for the total cost of the payroll.
Yes. Our clients are free to dictate the structure of the employees’ remuneration including any bonuses or commissions they wish to offer. In some countries, there is a statutory requirement to provide “bonuses”, for example in the form of Christmas or holiday allowances.
Yes. Agility EOR will calculate what pay is due upon termination of an employee, factoring in such things as any untaken leave entitlements.
We find that most of our clients are in the Tech, IT, Finance, NGO (Not for Profit) and Professional Services industries. However, we have acquired the skills, knowledge and experience to help all industries across the globe.
As a private company, we’re not beholden to shareholders Private Equity targets. We aim to build long-term relationships with our clients. At Agility EOR, our approach is that we never forget that our business is all about people. Our Employer of Record solutions are tailored to each requirement, not a one-size-fits-all tech platform. We do the right thing by our clients and by the laws of each country we operate in. And we believe in openness; if we don’t feel we can offer you the best solution for a specific territory, we’ll say so.
We pride ourselves on our personable-approach so once you enter your new employees details into our dedicated platform, we’ll arrange a call with you to go through the details of the employment contract where together we can review and amend to your requirements. We liaise directly with your employee to build a rapport and obtain the necessary information to hire them compliantly, and set them up ready for their first payroll.
We never stop delivering! Even if you’re employee has been onboarded and is happily working for you and being paid each month, we’re here to partner with you whenever you or your employees need us. Even your ex-employees may need our assistance for tax documents, proof of employment requests etc… Our service never stops!