EU AI Recruitment Tools: Personio vs Factorial vs TestGorilla vs Retorio
AI-powered hiring without sending candidate data to US servers. Compare the top European alternatives to Workday and HireVue.
Read time: 10 min | Last updated: January 2026
TL;DR: Personio for all-in-one HR (recruiting to payroll). TestGorilla for skills-based assessments. Factorial for SME HR automation. Retorio for AI video interview analysis. Recruitee for collaborative ATS. All keep candidate data in the EU.
Hiring AI is everywhere. Resume screening. Video analysis. Skills assessments. Personality profiling.
But the EU AI Act now classifies recruitment AI as “high-risk.” This means strict requirements for transparency, human oversight, and bias auditing.
Using a US tool that analyzes candidate emotions? That’s now legally complicated in Europe.
Here’s how the European alternatives stack up.
The Quick Comparison
| Personio | Factorial | TestGorilla | Retorio | Recruitee | |
|---|---|---|---|---|---|
| Country | Germany | Spain | Netherlands | Germany | Netherlands |
| Main Use | Full HR suite | SME HR | Skills tests | Video AI | ATS |
| AI Features | Workflows | Automation | Scoring | Behavioral | Pipeline |
| Free Tier | No | Yes | Yes | No | No |
| Pricing | Enterprise | €4/employee | €26/mo | Enterprise | €199/mo |
The EU AI Act Reality
As of 2025, AI systems used for “recruitment or selection of candidates” are classified as high-risk under the EU AI Act.
What this means for employers:
- Candidates must be informed AI is involved
- Human oversight required for automated decisions
- Documentation of AI system performance
- Bias audits and regular checks
European tools are building compliance in. US tools are playing catch-up.
Personio: The European Workday
German company (Munich), founded 2015. Valued at €8.5B. The biggest HR tech company in Europe.
What Makes It Different
Personio covers everything: recruiting, onboarding, payroll, time tracking, performance reviews. One platform, full employee lifecycle.
What’s Good
True all-in-one. Stop juggling 5 different HR tools. Recruiting flows into onboarding flows into payroll.
AI workflows. Automate repetitive HR tasks. Approval chains, reminders, document generation.
European payroll. Covers Germany, UK, Austria, Spain. Understands local labor law.
Scale proven. 14,000+ companies use it. This isn’t experimental.
Serious compliance. ISO 27001, SOC 2, GDPR. German data protection as baseline.
What’s Not
Enterprise focus. Not for 5-person startups. Best for 50+ employees.
Complexity. All-in-one means more to learn and configure.
No transparent pricing. “Contact sales” means enterprise sales process.
Heavy. If you just need an ATS, this is overkill.
Best For
- Growing European companies (50-2000 employees)
- Companies tired of multiple HR tools
- Organizations needing European payroll
- Anyone who wants one vendor for HR
Factorial: Barcelona’s HR Unicorn
Spanish company (Barcelona), founded 2016. Raised €80M from General Catalyst.
What Makes It Different
Factorial targets SMEs who need “Personio lite.” All the core HR features, friendlier pricing.
What’s Good
Real pricing. €4/employee/month. Not “contact sales.”
Free tier exists. Try before you commit.
Modern UX. Actually pleasant to use. Your employees won’t hate it.
Full feature set. Recruiting, time tracking, documents, payroll, performance.
Fast growing. 10,000+ companies. Strong in Southern Europe.
What’s Not
Less enterprise polish. Bigger companies might hit limits.
Payroll limited. Fewer countries than Personio.
AI features lighter. Automation, yes. Advanced AI, less so.
Best For
- SMEs (10-200 employees)
- Companies wanting affordable HR software
- Startups growing out of spreadsheets
- Spanish/Southern European companies
TestGorilla: Skills Over Resumes
Dutch company (Amsterdam), founded 2020. The anti-resume movement in action.
What Makes It Different
TestGorilla replaces resume-guessing with actual skills testing. 350+ assessments for everything from coding to customer service.
What’s Good
Science-backed tests. Industrial-organizational psychology. Not just quiz questions.
Massive test library. Cognitive ability, personality, language, technical skills. 350+ options.
AI video interviews. Candidates respond to prompts. AI assists with evaluation.
Resume scoring. AI analyzes resumes against job requirements.
Anti-bias by design. Skills tests reduce unconscious bias in hiring. Data to prove it.
Generous free tier. Try it without committing.
What’s Not
Assessment only. Not a full ATS. Integrates with others.
Candidate experience matters. Some candidates dislike taking tests. Communication is key.
Scoring isn’t everything. AI suggests, humans decide.
Best For
- Companies doing volume hiring
- Roles where skills matter more than pedigree
- Organizations fighting unconscious bias
- Tech companies hiring developers
Retorio: Behavioral AI from Munich
German company (Munich), founded 2018. TechCrunch Disrupt winner. Psychology meets machine learning.
What Makes It Different
Retorio analyzes video interviews using behavioral AI based on the Big 5 personality model.
What’s Good
Scientifically grounded. Big 5 personality model is established psychology. Not pseudoscience.
Beyond assessment. Also used for sales coaching and leadership development.
TechCrunch validated. Won at Disrupt 2018. They’re legit.
Culture fit focus. Helps find people who match your team, not just skills on paper.
Enterprise clients. Big names use it. Proven at scale.
What’s Not
Video AI is sensitive. Candidates may be uncomfortable. Transparency essential.
Enterprise pricing. Not for occasional hiring.
Needs volume. Best with significant hiring scale.
German focus. Strong in DACH, expanding elsewhere.
Best For
- High-volume recruiters
- Sales team hiring
- Leadership assessment
- Companies with defined culture values
Recruitee (Tellent): The Collaborative ATS
Dutch company (Amsterdam), founded 2015. Merged with Sympa to form Tellent.
What Makes It Different
Recruitee focuses on making hiring a team sport. Beautiful pipelines, easy collaboration.
What’s Good
Visual pipelines. Kanban-style hiring. See everything at a glance.
Team collaboration. Easy for hiring managers to participate. Notes, ratings, feedback.
Job board integration. Post to multiple boards. Track sources.
Fair pricing. €199/month is transparent.
Now part of Tellent. Combined with Sympa HR for fuller offering.
What’s Not
ATS only. Need other tools for assessments, video.
TestGorilla integration. Works together, but separate products.
Mid-market focus. Enterprise might want more.
Best For
- Teams hiring regularly but not at massive scale
- Companies wanting collaborative hiring
- Organizations with multiple hiring managers
- Anyone who values good UX
Real-World Performance
Speed Impact
| Task | Before AI | With AI Tools |
|---|---|---|
| Resume screening (100) | 5 hours | 30 min |
| Initial assessments | 2 weeks | 2 days |
| Interview scheduling | 3 days | Same day |
AI dramatically speeds up early-stage filtering.
Quality Impact
Hard to measure precisely, but companies report:
- 40% less time-to-hire
- Better candidate quality (skills actually tested)
- Reduced bias (when using structured assessments)
The GDPR Question
Recruitment data is personal data. All these tools process it in Europe.
| Data Location | Certifications | Special Notes | |
|---|---|---|---|
| Personio | Germany | ISO 27001, SOC 2 | German DPA approved |
| Factorial | Spain/EU | GDPR, SOC 2 | Spanish privacy law |
| TestGorilla | EU | GDPR, SOC 2 | Dutch privacy culture |
| Retorio | Germany | GDPR | TUM spin-off credibility |
| Recruitee | Netherlands | GDPR, ISO 27001 | Part of Tellent group |
All handle Article 22 (automated decisions) properly with human oversight.
Pricing Comparison
| Tool | Model | Cost for 50 employees |
|---|---|---|
| Personio | Per employee | ~€500+/month |
| Factorial | Per employee | €200/month |
| TestGorilla | Per recruiter | €26-75/month |
| Retorio | Enterprise | Contact sales |
| Recruitee | Flat + per user | €199+/month |
Factorial and TestGorilla are most accessible for smaller companies.
Combining Tools
These aren’t mutually exclusive:
Recruiting stack example:
- Recruitee for ATS
- TestGorilla for assessments
- Personio for onboarding/HR
SME stack:
- Factorial (does everything adequately)
Enterprise stack:
- Personio (full lifecycle)
- Retorio (video analysis for key roles)
My Recommendation
Choose Personio if:
- You want one HR platform
- You have 50+ employees
- You need European payroll
- You’re growing fast
Choose Factorial if:
- You’re an SME (10-200 people)
- Budget matters
- You want modern, friendly UX
- You’re in Southern Europe
Choose TestGorilla if:
- Skills testing is your priority
- You do volume hiring
- You want to reduce bias
- You need to test technical skills
Choose Retorio if:
- You hire at enterprise scale
- Culture fit is critical
- You’re also doing sales/leadership training
- You’re comfortable with video AI
Choose Recruitee if:
- You want beautiful, collaborative ATS
- Hiring manager involvement matters
- You integrate with other tools
- Visual pipelines appeal to you
FAQ
Is AI hiring legal in the EU?
Yes, with requirements. The EU AI Act mandates transparency, human oversight, and bias monitoring for recruitment AI.
Do candidates have to be told about AI?
Yes. Both GDPR Article 22 and EU AI Act require informing candidates about automated processing.
What about emotion detection?
Banned in the EU under the AI Act. Tools using emotion recognition for hiring are not compliant.
Can I use US tools?
Legally yes, but data goes to US servers. GDPR transfer requirements apply. European tools avoid these complications.
Which is best for tech hiring?
TestGorilla for skills assessments. Recruitee or Personio for the overall process.
Try Them
- Personio: Request demo - Enterprise
- Factorial: Start free - Free tier available
- TestGorilla: Start free - Free assessments
- Retorio: Request demo - Enterprise
- Recruitee: Start trial - Free trial
See also:
Last updated: January 2026
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