ABSTRACT
This chapter focusses on the proliferation of human resource management practices: What makes HRM decide to adopt certain practices? The recruitment processes are analysed against the background of the EU regulatory framework with regard to the use of migrant labour. Specific for the EU context are three forms of regulation, related to the free movement of workers, the freedom to provide services, and the freedom of establishment. Furthermore, we take into account the economic context (of relative or absolute labour shortages on local/sectoral labour markets). In this contribution, we recognise that intermediaries have (partially) built their business models on labour arbitrage (a notion that will be explored in the next sections), among other things through strategically choosing the countries where they register their businesses. The main features in this process of efficiency seeking, are temporary employment agencies with an international focus, and consultancy firms that advise businesses on tax or regulatory arbitrage.
