Turkey offers international businesses an attractive labor market with a young, educated, and digitally capable workforce. While hiring costs in Turkey are generally lower than in Western Europe or North America, many companies still seek ways to optimize expenses without compromising on the quality of their hires.
Whether you’re a startup expanding into the region, a multinational building a remote team, or a company testing the Turkish market, this guide will show you how to reduce hiring costs in Turkey strategically—without sacrificing the talent and skill you need to grow.
1. Understanding the Components of Hiring Costs in Turkey
Before reducing expenses, it’s important to understand what makes up the total cost of hiring an employee in Turkey. These costs go beyond gross salary and can include:
a. Salary and Bonuses
- Competitive base pay for the role and region
- Performance-based bonuses or annual incentives
b. Employer Social Security Contributions
- Employers contribute approximately 22.5% of gross salary to social security, which includes:
- Retirement insurance
- Unemployment insurance
- Health and disability insurance
c. Recruitment and Onboarding Costs
- Advertising job openings
- Recruitment agency fees (if applicable)
- Time spent interviewing and training new hires
d. Equipment and Office Space
- Laptops, software, and workspace (if in-office)
- Tools or platforms for remote teams
e. Legal and HR Compliance
- Employment contracts and local labor law compliance
- Payroll management and tax reporting
Knowing these elements helps you identify where smart cost-cutting can take place—without affecting candidate quality.
2. Leverage Remote Work to Reduce Overhead
One of the most effective ways to lower hiring costs in Turkey is by hiring remote employees, especially if you’re headquartered abroad or don’t yet have a local office.
Benefits of hiring remotely in Turkey:
- No office rent or utilities needed
- Reduced equipment costs (many remote professionals use personal setups)
- Access to talent across Turkey, not just in expensive cities like Istanbul
- Greater appeal to top candidates who now prefer flexible work arrangements
By building a remote or hybrid team, you reduce operational expenses and tap into broader talent pools across cities like Izmir, Antalya, Konya, or Gaziantep—where salary expectations are often lower.
3. Use an Employer of Record (EOR) Instead of Establishing a Legal Entity
Setting up a legal entity in Turkey involves time, bureaucracy, and legal fees. If you’re hiring fewer than 20 people or testing the Turkish market, using an Employer of Record (EOR) is often the more cost-effective choice.
How an EOR helps reduce hiring costs in Turkey:
- No company registration fees
- No need to hire local payroll, legal, or HR staff
- Reduced risk of penalties from non-compliance
- Faster onboarding—employees can start in as little as 1–2 weeks
An EOR legally employs your workers, handles all compliance, and lets you focus on performance and growth. While there is a monthly service fee, this is often far less than the cost of maintaining a full-fledged local operation.
4. Optimize Job Advertising and Sourcing Channels
Many companies waste time and money advertising on the wrong platforms or relying solely on expensive recruitment agencies.
Smart ways to cut sourcing costs:
- Use local job platforms: Websites like Kariyer.net, Eleman.net, and LinkedIn Turkey offer affordable access to top candidates.
- Tap into university networks: Partner with top Turkish universities for internships or entry-level hires.
- Referrals and social media: Encourage current employees to refer candidates. Leverage platforms like Instagram, Facebook Groups, and Twitter/X for tech and creative roles.
Using low-cost, high-yield channels allows you to reach the right candidates without excessive marketing spend.
5. Hire Based on Potential, Not Just Experience
Highly experienced professionals command higher salaries. In contrast, high-potential junior or mid-level professionals can often deliver comparable results with the right support.
How to implement this approach:
- Invest in training and onboarding programs to upskill new hires.
- Create mentorship structures within your team to support growth.
- Use assessments to gauge cognitive ability, learning agility, and motivation.
This strategy reduces salary expenses and fosters loyalty, as employees appreciate the opportunity to grow within your organization.
6. Hire in Tier-2 Cities and Underserved Regions
While Istanbul, Ankara, and Izmir are Turkey’s major employment hubs, hiring from secondary cities can significantly reduce hiring costs in Turkey.
Cities like Bursa, Antalya, Eskişehir, Kayseri, and Trabzon offer:
- Skilled graduates from local universities
- Lower living costs (and thus lower salary expectations)
- Less competition from major corporations
Hiring from outside the top metros can save you up to 20–30% on salaries and increase retention due to lower turnover rates in these regions.
7. Reduce Turnover with Better Onboarding and Retention
Hiring is expensive—not just the initial recruitment, but also the cost of replacing employees who leave. In Turkey, high turnover is especially common in sectors like tech and customer support.
Ways to improve retention:
- Provide a structured onboarding experience
- Offer competitive benefits, such as private health insurance, meal cards, and flexible working hours
- Foster a positive company culture, even for remote teams
- Give clear career development paths and regular feedback
Reducing turnover saves both direct hiring costs and indirect productivity losses.
8. Automate and Outsource Administrative Tasks
Hiring often involves a large volume of admin work: contracts, payroll, tax filings, and compliance checks. This can be expensive if handled internally by full-time HR or legal staff.
How to reduce costs through automation and outsourcing:
- Use HR tech tools for applicant tracking, payroll, and employee records
- Work with payroll providers or EORs to manage taxes and benefits
- Standardize your hiring process to reduce delays and repetitive tasks
Automation not only reduces overhead but also improves accuracy and compliance.
9. Consider Internships and Part-Time Arrangements
For roles that don’t require full-time, permanent staff, consider alternative employment models:
- Paid internships: Many university students in Turkey are eager for work experience.
- Part-time or project-based contracts: Useful for design, marketing, IT, and customer service roles.
These models can significantly reduce overall hiring costs in Turkey while building a pipeline of future full-time hires.
10. Benchmark Salaries Accurately and Negotiate Smartly
Many foreign companies overpay because they rely on inaccurate or outdated salary benchmarks. Turkish compensation trends vary widely by region, industry, and seniority.
What to do:
- Use local salary surveys and real-time data (e.g., from LinkedIn or Glassdoor)
- Consult with local recruiters or HR consultants
- Be transparent with candidates about benefits, taxes, and total compensation
With the right information, you can offer competitive yet cost-effective packages that attract top talent without overspending.
Final Thoughts: Smart Hiring in Turkey for Sustainable Growth
The Turkish labor market in 2025 is full of opportunities—but smart companies know how to reduce hiring costs in Turkey without compromising on quality. From using remote and EOR models to tapping into tier-2 cities and optimizing sourcing strategies, there are many ways to hire efficiently and effectively.
Quick Recap: How to Reduce Hiring Costs in Turkey
| Strategy | Benefit |
|---|---|
| Remote hiring | Lower office and equipment costs |
| Use an EOR | Avoid legal setup and compliance fees |
| Smart sourcing | Reduce advertising and agency fees |
| Hire for potential | Lower salary, high performance |
| Explore tier-2 cities | Competitive talent, reduced costs |
| Reduce turnover | Lower rehiring and training costs |
| Automate admin | Save HR and legal resources |
Want to hire in Turkey without overspending?
We help global companies reduce hiring costs while finding top Turkish talent. Contact us today to explore our cost-effective recruitment and Employer of Record (EOR) solutions.
