2024 Guide Developer Hiring Trends in Europe: What You Need to Know

Europe is home to some of the world’s biggest startups, and they’re fueled by the region’s top engineering talent. With hubs like London, Berlin, and Paris sprouting top startups like Monzo, Wise (formerly TransferWise), and BlaBlaCar, it’s no wonder companies are eager to augment their teams with highly-skilled remote engineering talent in Europe. 

In 2024, six developer hiring trends in Europe will shake up how you hire, retain, and support European engineering talent. Use these trends to adjust your recruitment strategies, build world-class tech teams, create a nurturing work environment, and keep your developers happy and loyal. This is your playbook for staying competitive, building a thriving workplace, and tackling the ongoing talent shortage head-on.

Our State of Remote Engineering Report covers these essential insights, including economic uncertainties, salary considerations, perspectives on artificial intelligence, job seeker preferences, the evolving recruitment process, and key insights for business leaders hiring remote developers. Understanding these regional trends is crucial for both developers and businesses. Download our report to learn more about the global state of remote hiring, and read on to discover the key European tech hiring trends you need to know.

Economic Uncertainty Across the Globe in 2024

Economic uncertainties have hit the global tech industry hard, and Europe isn’t immune. The State of European Tech revealed that European-based companies made up about 10% of global layoffs. With the EU tech industry being much smaller than the US, this number is quite significant. Layoffs.fyi shows that most European tech companies cut 15% to 30% of their workforce. Big names like Ericsson (8,500), SAP (8,000), Flink (8,000), Philips (6,000), and Booking.com (4,375) were some of the hardest hit.

But it’s not all doom and gloom. Layoffs in Europe have stabilized since early 2023. Early-stage tech companies are stepping up, creating almost double the number of jobs compared to their growth-stage counterparts. Plus, Europe is becoming a magnet for global talent. More tech professionals are crossing borders to work in European tech than those leaving for other regions, including the US.

These developer hiring trends show that Europe’s tech industry is bouncing back. Sure, global investment levels have dropped, with 2023 expected to see less than half the investment of 2021. But Europe is still ahead of the US in churning out new tech founders every year, a trend that’s been consistent for the past five years. This makes Europe a hot spot for tech innovation and top-tier talent.

State of the European Startup Landscape

The European startup ecosystem continues to thrive despite economic uncertainties. Major tech hubs in Europe are driving innovation and attracting talent from around the world. According to the Global Startup Ecosystem Index, the top ecosystems in Europe include:

1. London, UK (global rank of 2 – tied with New York City)
2. Paris, France (global rank 9)
3. Berlin, Germany
4. Stockholm, Sweden
5. Amsterdam, Netherlands
6. Moscow, Russia
7. Munich, Germany
8. Barcelona, Spain
9. Helsinki, Finland
10. Madrid, Spain

Some of the most notable startups that got their start in Europe include:

• Grammarly (Ukraine): Started by three Ukrainians in 2009, Grammarly has over 600 employees and works with more than half a million applications to analyze 14 trillion words a year for its 30 million daily active users.
• WeTransfer (Netherlands): Founded in 2009 in Amsterdam, WeTransfer allows the sharing of large files (up to 2GB) free of charge.
• Monzo (UK): An app-based mobile bank, Monzo offers smart banking options and was one of the fastest-growing crowdfunding campaigns in history.
• Klarna (Sweden): Founded in 2005, Klarna offers payment solutions to 205,000 traders in 17 countries and is one of Europe’s leading corporations.
• Wise (UK): A cost-effective means of transferring money internationally, offering some of the highest exchange rates available.
• Typeform (Spain): A cloud-based platform that revolutionizes the creation and response of surveys and forms, enabling meaningful human connections.
• Glovo (Spain): Connects customers with local couriers to purchase goods from various outlets and offers an urgent package delivery service.
• BlaBlaCar (France): A ridesharing service that connects drivers with empty seats to people traveling to the same destination.

The Best Hiring Hub for Top Remote Tech Talent in Europe

The best developer hiring hubs in Europe provide startups with highly specialized talent, English proficiency, favorable locations, highly educated individuals, and cost-effective talent. Here’s why Terminal turns to Europe to find remote talent:

• Deep pool of elite European developers: ~641,000 engineers and related experienced professionals in tech.
• Top 20 rank in English proficiency: Most countries rank in the top 20 globally for English proficiency, lowering language barriers and making collaboration seamless.
• 9 years of experience: Median work experience in Terminal’s active European markets.
• Time zone alignment: Given that three time zones cover the entirety of Europe, European companies can align to deliver at pace.

You’ll also find 40% of the world’s top engineering universities in Europe, resulting in a highly educated talent pool of software engineers. This vast pool of skilled professionals makes software development in Europe a huge source of economic growth.

Why Hire with Terminal

Dedicated software engineers and developers abound in Europe, including Terminal’s talent pools in Poland, Spain, Romania, and Hungary. Hire elite developers, mobile app developers, QA engineers, and more in Europe 40% faster with us. Here’s exactly why we choose to hire in these skilled tech talent pools: 

Why we hire talent in Hungary: Hungary’s labor laws align with European standards, making nearshoring easy for Europe-based companies, and US businesses find engineers from Hungary reliable. Centrally located with no time difference from Switzerland, Germany, and the Netherlands, real-time collaboration is simple. With 11 tech universities in the Times Higher Education World University Rankings 2023, Hungary offers a pool of highly-educated, top-tier talent.

Why we hire talent in Spain: Spain is emerging as a key destination for software development. The country’s strong connectivity and digital public services place it high in the EU rankings, and major Spanish cities like Madrid and Barcelona are well-connected to other IT hubs in Europe, making travel for in-person meetings easy.

Why we hire talent in Romania: Romania has a strong preference for JavaScript, Java, C++, and Python. Its strategic location and EU membership provide geographical and economic advantages.

Why we hire talent in Poland: Poland is a tech sector with experienced p and high gender diversity. It ranks 16th globally in English proficiency, making it ideal for international collaboration. Government acceleration programs and a fast-track visa program make Poland a favorable hiring market.

Grow Your Team With Terminal

Terminal makes your team with European developers straightforward, and removes the hassle of setting up operations. Jon at Pitchero shares his experience:

Terminal helped us hire a PHP engineer in Spain. We quickly saw pre-screened candidates, and video interviews allowed us to assess culture fit and skill set before our first interview.

Jon Milsom

By reaching beyond the UK, Pitchero accessed a broader talent pool without compromising quality. “I recommend Terminal to time-poor founders who need to build quality engineering teams quickly,” Jon adds.

Ready to hire developers in Europe? Let Terminal help you build and support your team, securing the best developers without the extra work. Start browsing European talent today.

Now, let’s review the insights from our 2024 survey on developer hiring trends in Europe. We’ll cover what developers value most when working with companies and the key factors driving their choices and satisfaction.

Trend #1 – Time Zones Are a Serious Challenge for Europe

While 85% of engineers appreciate the higher salary potential and growth opportunities, time zone differences present a significant challenge, particularly for 58% of European engineers. This issue isn’t unique to Europe; globally, 42% of engineers cite time zone challenges as a top difficulty when working with US-based companies

These findings highlight a tension between the desire for remote work and the reality of time zone hurdles. For leaders aiming to engage engineers globally, the data points to offering flexible work arrangements and active engagement and development opportunities.

Additionally, 50% of European engineers express a need for more flexible meeting schedules. Flexible hours are highly valued in Europe, with 61% prioritizing them compared to significantly fewer engineers in the US and Canada.

Key Recommendations

Acknowledge time zone challenges: Recognize and address the difficulties posed by time zone differences to improve remote work experiences. Promote flexibility: Offering flexible work arrangements can help mitigate the direct impact of time zone differences and attract top talent. Adjust meeting schedules: Implement more flexible meeting times to accommodate the diverse needs of your global engineering team. Understand regional preferences: Recognize that flexible hours are more valued in Europe, and tailor policies accordingly to stay competitive.

Trend #2 – Remote Work Leaves Hybrid in the Dust

Remote work is no longer a developer hiring trend in Europe, it’s the standard. Remote work is the top choice among global developers, with 63% preferring location-independent teams and 54% wanting to work from home full-time. Only a small fraction, 4%, want to go to the office five days a week. This strong preference for flexible, remote work contrasts sharply with many companies’ requirements for hybrid or full return-to-office setups.

Among European developers, 33% would prefer if their company had an office they could use without any requirements to come in. This shows a desire for optional office use rather than mandatory attendance.

Key Recommendations

Prioritize flexibility: Developers overwhelmingly prefer remote work, so offering flexible remote work options can attract and retain top talent. Rethink office requirements: Consider making office attendance optional rather than mandatory to align with developer preferences. Support remote teams: Invest in tools and processes that support effective remote work to maintain productivity and team cohesion. Adapt to market demands: Balancing company policies with clear preferences for remote work can help in staying competitive in the job market.

Trend #3 – Faster Interviews, More Flexibility in Assessments

European engineers are increasingly frustrated with lengthy and tedious recruitment processes. A notable 70% have experienced delays while job hunting. This inefficiency doesn’t just waste time—it actively drives talent away. Over half (57%) of engineers say that a complicated hiring process and excessive interview rounds would make them reconsider a job offer.

The issue isn’t just the number of interviews. A significant 56% of developers in Europe feel that their interviews are one-size-fits-all and not tailored to their unique skills and experiences. This generic approach leaves candidates feeling like just another number, not a valued potential hire.

Additionally, there’s a clear preference for take-home coding challenges over live coding exercises. This preference highlights the growing demand for flexibility and remote work options, trends that show no sign of slowing down.

Key Recommendations

Streamline your recruitment process: Cut down on interview rounds and speed things up to keep candidates engaged and interested, and improve the overall candidate experience. Personalize the experience: Tailored interviews that recognize individual skills and experiences make candidates feel valued and respected. Offer flexibility: Providing take-home coding challenges instead of live exercises aligns with the rising demand for flexible, remote-friendly work environments. Stay competitive: Keeping up with these trends and refining hiring practices is essential to attract and retain top engineering talent in a competitive job market.

Trend #4 – Job Security Is #1 for European Engineers

While contract work is gaining popularity, job security remains a top priority for European engineers. A significant 83% rank job security as the most important benefit of full-time employment. This highlights a strong preference for stability in their careers.

One of the main drawbacks of contract work, as reported by 50% of European engineers, is the constant need for self-marketing and finding new clients. This ongoing hustle can be exhausting and uncertain, making full-time roles more appealing.

Additionally, 41% of European engineers place high importance on benefits, further emphasizing their preference for the security and stability that full-time employment offers.

Key Recommendations

Emphasize stability: Highlight the job security offered by full-time positions to attract and retain talent. Minimize uncertainty: Address the continuous hustle required in contract work to show the advantages of stable employment. Promote benefits: Ensure that comprehensive benefits packages are part of your offering to meet the high expectations of European engineers. Understand priorities: Recognize and cater to the strong preference for job security to stay competitive in attracting top engineering talent.

Trend #5 – Salary is their top priority when looking for a role

The majority of European developers are earning below $75K. While over half of engineers feel good about their pay, there’s a strong push for more salary transparency, especially among engineers outside the US. This need for openness is essential for understanding and navigating the job market effectively.

Interestingly, equity isn’t a top priority for European developers. Only 16% of European engineers ranked equity in their top five concerns, indicating a different set of priorities compared to their US counterparts.

A significant 69% of non-US engineers believe that salary transparency would help them better understand the job market. Additionally, 76% of engineers want all job listings to include salary ranges, underscoring the importance of clear and upfront communication about compensation.

Key Recommendations

Push for transparency: Emphasize salary transparency in job listings to attract and retain top engineering talent. Understand regional priorities: Recognize that equity is less of a priority for European engineers compared to salary transparency and other benefits. Communicate clearly: Including salary ranges in job postings can help engineers better understand the dynamic market and make informed decisions. Align with expectations: Tailor compensation packages and communication strategies to meet the expectations of engineers, especially those outside the US.

Trend #6 – More Developers Are Open to Contract Work

Contract work is gaining traction among European developers, with many being drawn to the gig economy’s greater flexibility (55%) and project diversity (50%). This shift is significant, as 58% of engineers say they’d be open to contract-to-hire positions. The preference for more freedom and variety suggests that balancing teams with a mix of contract and full-time employees could be a strategic advantage.

These results, while in sharp contrast to the importance of pay, show that skilled developers are changing their views on contract work if the right opportunity comes along. 

Key Recommendations

Embrace flexibility: Highlight the flexibility of contract work to attract developers who prioritize freedom in their professional lives. Promote project diversity: Emphasize the diverse project opportunities available through contract work to appeal to engineers seeking variety. Consider contract-to-hire: Offering contract-to-hire positions can attract top talent and provide a pathway to full-time employment. Balance your team: A mix of contract and full-time employees can help meet the varying preferences and needs of your engineering team.

Summary: 2024 Developer Hiring Trends for European Engineers

Understanding what drives European engineers can give you a significant edge in your recruitment process. Here’s a quick rundown of the key insights and trends shaping the remote developer employment landscape across Europe in 2024:

• Job search intentions: 60% of engineers are gearing up for a job hunt, highlighting a critical moment for employers to adapt.
• Job security matters: 83% of European developers rank job security as their number one concern.
• Seamless candidate experience: Prioritize a positive recruitment process from the start. Make the interview process shorter, less disorganized, and more intentional for developers.
• Remote work preference: 63% of developers prefer remote and flexible working conditions, 54% want to work from home full-time, and 33% of European developers prefer optional office use without mandatory attendance.
• Salary transparency: 69% of non-US engineers, including European developers, believe salary transparency would help them understand the job market better. 76% of engineers want all job listings to include salary ranges.
• Contract work appeal: 58% of engineers are open to contract-to-hire positions, drawn by the flexibility and project diversity contract work offers.

Scale Your Startup with Europe’s Best Tech Talent

With more tech professionals crossing borders to work in European tech than those leaving for other regions, including the US, it’s clear that the area is a hub of global tech talent.

In 2024, our State of Remote Engineering Report reveals that the region’s developer landscape is shaped by trends like increased demand for flexibility, remote work, and shifting job market dynamics. European engineers are seeking roles that offer more autonomy, better pay, and increased stability. For tech employers,  improved retention rates, happier developers, and business success are within reach if they align themselves with these new preferences.

Terminal’s pool of European tech talent includes approximately 641,000 remote workers, developers, and related tech professionals. This deep pool of European developers offers a valuable resource for companies looking to save on employer costs while accessing top-tier talent. Start browsing our pool of vetted European developers today.