Your Trusted Partner for Recruitment in Israel

To better fulfill your recruitment needs, we at Remote People are here to help you find top talent in Israel more effectively than recruiting on your own. Our team understands the local language, customs, and the intricacies of the Israeli talent market, giving you a significant advantage in securing the right candidates.

We know where to advertise your job openings to ensure maximum exposure and attract the best talent. Additionally, we assist in designing competitive, locally-appropriate compensation packages that not only appeal to top candidates but also help you optimize costs. 

Get in touch with us to navigate Israel’s recruitment landscape with confidence and ease.

Key Takeaways

  1. Israel recruitment agencies focus on finding you the best Israel talent.  
  2. Israeli employees earn average salaries and can pay up to 59% in individual taxes depending on their earnings. 
  3. The recruitment agency in Israel can recruit and select employees in as little as 12 hours based on the employer’s requirements.

Do you want to expand your business in Israel? As an ancient and self-sufficient nation, it has shown continued growth and resilience despite the onset of war in 2023. Its 2023 GDP is estimated at around $523 billion, while the central bank has forecasted a growth rate of 2% in 2024.

Furthermore, the shekel has recovered to its pre-war levels. That’s a significant improvement for a country that has faced geopolitical tensions with a population of approximately 9.6 million people. 

Israeli workers are committed, assertive, and straightforward, known as one of the hardest-working nations. You might be looking for dedicated employees who go the extra mile, but how do you incorporate such a workforce without the upheaval of moving to Israel and registering your business?

With an Israeli Employer of Record, you can hire Israeli staff without the challenges of immigrating to Israel.

Overview of the Israel Recruitment Industry

The recruitment industry in Israel is an integral part of the country’s robust economy, often referred to as the “Startup Nation” due to its high concentration of innovative companies and technological advancements. With a strong emphasis on sectors like technology, cybersecurity, biotechnology, and agricultural technology, the demand for skilled professionals is consistently high.

Overseas recruitment agencies play a crucial role in bridging the gap between employers seeking specialized talent and candidates looking for opportunities in these competitive fields.

In recent years, the industry has seen a shift towards digitalization and the use of advanced technologies in the recruitment process. Online platforms, artificial intelligence, and data analytics are increasingly employed to identify and engage potential candidates more efficiently.

Additionally, there is a growing emphasis on international recruitment to attract global talent, addressing the local skills shortage in certain high-demand areas. Companies are also focusing on employer branding and employee experience to retain top talent in a competitive market. The recruitment industry in Israel faces challenges such as a tight labor market and the need for diversity and inclusion within the workforce.

To address these issues, recruitment firms and employers are implementing strategies like upskilling programs and partnerships with educational institutions to develop a pool of qualified candidates.

Overall, the industry’s adaptability and proactive approach to evolving market needs position it as a vital component of Israel’s continued economic growth and innovation.

Recruit in Israel

Israel is the Startup Nation, with world-class talent in cybersecurity, AI, deeptech, biotech, and software engineering concentrated around Tel Aviv’s innovation hub.

We source pre-vetted candidates across industries, handling local employment screening and Israeli labor requirements.

No local entity needed. Your team can start in days.

FIND TALENT

What Are the Benefits of Recruiting in Israel?

Israel is known for its immense industrial growth due to a high global demand for sophisticated technology, software, and equipment. Its electronics sector has seen exponential growth over the last decade, with the diamond cutting and polishing industry being one of the largest in the world. 

Israel’s workforce is highly educated and offers a wide range of skills for recruiters looking for a diverse talent pool to choose from. Co-workers are known to adopt a collaborative or team approach and have a strong work ethic, which is among the reasons that international companies look to hire staff in Israel.

The benefits of recruiting in Israel include:

Large Talent Pool

Many Israelis are known to be highly educated with specialized skills. In 2020, the World Economic Forum ranked Israel 20th out of 132 countries for possessing an immensely talented and empowered workforce with outstanding global knowledge, problem-solving skills, and technical skills. With a large number of individuals having undergone military training.

Flexible Working Hours

The average number of international workweek hours is 32, compared to the 42-hour workweek adopted in Israel. Israelis work from Sunday to Thursday, which means that a company’s internationally recruited staff will be operational when Western businesses shut down on a Sunday.

Employees also have the option of flexible daily working hours, which means they can choose when to start their day, but this depends on their agreement with their employer.

Lower Cost of Living

The average cost of living in Israel is approximately $1830, which is 24% lower than that of the United States at around $2400. With the average salary of an Israeli worker equating to $3300 (11,000 shekels), individuals can cover their monthly expenses after tax deductions.

Night Shift

For companies in the United States looking to hire employees to cover the night shift, Israel is 7 hours ahead of the US. This time difference allows Israeli staff to work during the daytime while their American colleagues are asleep.

Bonus Pay

Statutorily, companies do not have to pay employees in Israel a bonus or a 13th check. Employees are, however, entitled to recreation payments, which they receive after working for the company for one year.

Legal Considerations When Recruiting in Israel

When recruiting and hiring employees in Israel, there are a few legalities that companies must consider to remain compliant while protecting the rights of employees. These legal considerations are as follows:

Employee Termination

Employees can only be terminated once they have received a fair hearing and, thereafter, written notice.

Minimum Wage

In April 2024, the minimum wage in Israel was revised to 5880.02 shekels per month, which works out to approximately $1582. Israel’s minimum hourly rate is 32.30 shekels.

Learn more about minimum wage in Israel

Taxation

Both employers and employees are legally required to make payments toward a health insurance fund and national insurance. The employer must contribute 6.75%, while the employee is responsible for a contribution of 12%. Corporate tax rates are 23%, while individual tax rates can range between 10% and 50%, depending on individual earnings.

Mandatory Employee Benefits

Based on Israeli labor law, employees must receive benefits such as severance pay, health insurance, and pension fund contributions. Employees in Israel are permitted 18 days of sick leave per year and 12 days of paid vacation leave, which increases with every year of service.

Recreation Payment

Despite Israeli staff not being entitled to a bonus payment, they are legally required to receive a benefit known as a recreation payment. The sum depends on the number of years of employment and is generally paid out in April, September, and October.

Working Hours

In Israel, employees can work up to 42 hours per week, but if they are required to work overtime, employers must pay 125% of their regular income for the first two hours. Thereafter, the overtime rate increases to 150% and must be outlined in the employment contract.

Parental Leave

According to Israel’s Employment of Women Law, employees have the legal right to maternity leave. Pregnant women who have worked for the same employer for at least 12 months can take 26 weeks of birth and parenting leave (BPL), or they can share it with their partner. If she has not worked for the same employer for 12 months, she is entitled to 15 weeks of BPL.

Choosing a Recruitment Agency in Israel

Choosing the right EOR in Israel requires careful evaluation, as not all providers offer the same level of service or expertise. The following are the key qualities to look for before making a decision.

Experience is the most important starting point. A reliable EOR must have demonstrated knowledge of Israel’s hiring culture, labor laws, and local market conditions. It is also worth checking whether they offer additional services such as Israel Employer of Record support. Professionalism is equally important. Look for independent reviews of any agency you are considering and pay attention to how they communicate and treat prospective clients from the first interaction. Finally, review all fee structures carefully before signing anything. Hidden costs are a common issue in this space, and understanding the full pricing picture upfront prevents unwanted surprises down the line.

Israel itself presents a compelling case for business expansion. It is an economically resilient country with a workforce known for efficiency and a strong culture of transparency. Despite its relatively small population, Israel has earned global recognition for its technological advancements and entrepreneurship, a reputation that has made it widely known as the “Startup Nation.” According to the Organisation for Economic Co-operation and Development, Israel ranks highly for tertiary-educated workers, giving businesses access to a well-educated talent pool alongside an advanced digital infrastructure.

Recruit Top Talent Across Middle East with Our Recruitment Expertise

Navigating the complexities of hiring and workforce management across different countries can be challenging. Partnering with a reliable recruitment agency ensures you stay compliant with local labor laws, streamline the hiring process, and secure top talent. Learn how Remote People can help you recruit in the following countries:

Recruitment Coverage in the Middle East
BahrainDubaiEgypt
IsraelJordanKuwait
OmanQatarSaudi Arabia
UAE  

Time to recruit top talent from Israel? Remote People can help. Contact us today to discuss your recruitment needs and discover how we can assist you in achieving your business objectives.