Recruiting fresh talent in a foreign territory poses many questions for companies planning their international expansion. Bradford Jacobs’ far-reaching experience in international recruitment is indispensable for moving into Israel, strategically placed at the eastern end of the Mediterranean and the south west corner of Asia. The highly-motivated and well-educated workforce creates a competitive employment market.
Our benchmark platforms as a Professional Employer Organization (PEO) are built on an all-embracing understanding of the economy and guarantee a smooth transition into Israel.
The Recruitment Process in Israel
Networking and market knowledge are key to recruiting in Israel, where it is estimated around half of upcoming positions are never advertised. Expats planning to relocate can find the transition particularly difficult without some knowledge of Hebrew, while employment agencies tend to represent only those job-searchers already based in Israel.
Aliyah organizations can assist foreigners with proven Jewish heritage to find work in the country, as they are automatically considered Israeli citizens through the ‘right to return’.
Incoming foreigners will need to be highly qualified for their targeted sectors as employers tend to favor Israeli applicants from the intensely competitive employment market, where accountants, medical and healthcare professionals, electrical and software engineers and IT specialists vie for the most sought-after positions.
Once candidates have been sourced, the recruitment and onboarding process includes the following:
• The candidate must have a job offer before applying for a B1 Work Visa. It is a criminal offence to work without one
• Once an employee, they must comply with the Income Tax Ordinance for both Israeli nationals and foreigners
• They must be registered with the Social Security Authority so their contributions can be remitted to the National Insurance Institute
• Create employment contracts
• Calculate salary (which must be paid by the ninth of the following month), tax and social security contributions to be remitted
However, the simple answer to avoiding these time-consuming and unproductive demands is to engage Bradford Jacobs as your Employer of Record (EOR). We will convert your Israel expansion blueprint into an action plan, as follows:
• Bradford Jacobs step in as EOR through our legal Israeli entity to guarantee your employees comply with employment contracts, payroll, HR, tax and, where required, visas and work permits
• You have daily control of your employee, while Bradford Jacobs manage all work-related registration formalities
• Employee completes time sheets and approved expenses claims and we invoice you, the client. Once paid, we remit all contributions to Israeli tax and social security authorities and transfer the balance into employee’s nominated account
Taking the first step
Within a few days your company has international presence in Israel, in prime position to explore further expansion without having risked the initial expense, commitment or hassle of setting up your own subsidiary or branch office.
Legal Checks you can make on Candidates/Employees in Israel
• Employers are allowed to confirm prospective employees have the right to work in Israel
• Reference and educational qualification checks can be made with the candidate’s permission
• Credit checks are restricted and must be directly related to the position and usually made only after a provisional job offer
• Criminal record checks are permitted for government security employers
• Employers providing services to children, the disabled or mentally ill need police confirmation that employees have not been convicted of a sex offence
Basic Facts on Hiring in Israel
• Interview questions are limited by data protection laws; educational and reference checks from previous employers can be made with the interviewee’s permission
• Employers are allowed to check candidates are legally entitled to work in Israel
• Oral contracts are legally binding and do not need to be written
• Under the Foreign Employees’ Law, their contracts must be in writing in a language they understand and contracts must detail employment terms and conditions
• Minimum wage is ILS5,300 ($1,620) per month
• Employees are allowed one-and-a-half days of paid sick leave a month to a maximum of 90 days annually, generally at full salary from the fourth day
• Working hours, typically from Sunday to Thursday, should not exceed 42 hours per month, with excess hours counting as overtime
• Employees are protected from discrimination on the grounds of gender, sexual orientation, nationality or race, religious beliefs or political views
• Paid holiday leave is a minimum 12-14 days from first day of employment, increasing annually to a minimum of 21-24 days
• Maternity leave is 26 weeks with allowance based on income and social security contributions
• Under termination regulations both parties must give notice of resignation or dismissal. Severance payments are based on a combination of salary, seniority, family and other relevant wage components
Working with a Recruitment Agency in Israel
Recruitment agencies in Israel generally act for jobseekers already based in the country, where the competitive employment market sees little more than 50 per cent of available positions advertised as vacancies are filled either internally or by networking.
This makes access particularly difficult for foreign-based candidates looking to relocate to Israel to find employment. However, individuals with proven Jewish heritage can be assisted by Aliyah organizations under the ‘right to return’ principle which treats all Jewish people from any country automatically as Israeli citizens.
The Israeli Employment Service operates as part of the International Labor Treaty, providing free placement services for workers and employers. The Employment Service comes under the supervision of the Ministry of Labor and Social Affairs and the Supreme Service Authority and assists close to half a million job seekers each year.
What are the Benefits of Outsourcing Hiring for Israel?
The major plus from outsourcing recruitment in Israel is to streamline international expansion by opening potential new markets quickly and cost-effectively. Companies can focus on planning and developing their new venture.
Advantages for the parent company include:
• A wide-ranging talent search undertaken by a Professional Employer Organization (PEO) with reduced recruitment costs
• Control over capital expenditure, as outsourcing removes the initial need to establish premises for a subsidiary
• Reduce risks with an ‘easy in, easy out’ operation while exploring fresh markets
• Quickly start new projects
• Focus on core business
• Improve flexibility
• Scale the global workforce to fit the pace of expansion
Take the next step!
This is the moment to outsource recruitment and payroll by calling in Bradford Jacobs. Our Professional Employer Organization (PEO) and Employer of Record (EOR) platforms will smooth your expansion path into Israel. We remove the risks of non-compliance with payroll, tax and social security regulations. Your new staff members are operational within days rather than the weeks or months it would take to establish a costly subsidiary, allowing you to plan for that further move.
If you are expanding into Israel or further afield and need to recruit globally without the hassle of red tape, contact Bradford Jacobs today.