That and the labor laws and very strict compared to the US. We have an office in Poland due to regulations most "employees" want to be contractors, this is due to a tax advantage / national healthcare I think. That said the offices in the US don't say it out loud, but in the EU seem to take a week off every other month for something.
At the end of the day, the employees have a much cushier life-work balance. You can argue (rightfully) that that's better for the people and society, but it also means it's harder for companies to succeed.
Being contractors is Poland - that’s because of the taxes exactly, not regulations per se.
Contractors get taxed 19% flat rate and a small% for health insurance (even less in IT - 9%?). Whereas full time workers get taxed similarly to people in the west.
At the end of the day, the employees have a much cushier life-work balance. You can argue (rightfully) that that's better for the people and society, but it also means it's harder for companies to succeed.