Intro to Swiss Market
As demand for specialised talent intensifies across the Swiss market, global staffing agencies are well-positioned to bridge prevailing skill gaps with cross-border talent.
That said, the unique complexity of the Swiss regulatory environment – particularly the Federal Law on Employment and Labour Leasing which mandates licensure – can prove difficult for foreign firms to navigate.
With full licensure across the UK, US, and DACH, Trinnovo Group’s specialist consultants are equipped to help businesses navigate the intricacies of cross-border recruitment.
Whether you’re hoping to expand into Switzerland, engage with the nation’s highly skilled candidate pool, or ensure compliance across your candidate supply chain, these tips should help you develop a stronger foothold in the talent market.
Licensure and Regulation
Guidance on Recruitment Firms
First and foremost, a State Secretariat for Economic Affairs (SECO) license is crucial for non-Swiss agencies seeking to directly recruit within Switzerland. This requirement extends to Swiss-based firms engaging in temporary staffing or hiring talent from outside the EU or the European Free Trade Association (EFTA).
Beyond the SECO license, some cantons require additional permits depending on your location and specific recruitment activities. At Trinnovo Group, we maintain our Swiss headquarters in Zug, necessitating both the SECO license and the relevant Zug-specific permit.
SECO will enforce fines of up to CHF 100,000 for staffing firms that operate without a license, and up to CHF 40,000 for companies that solicit their services.
If you need the services of specialist recruiters with localised market knowledge or you’d like guidance on how to navigate the regulatory landscape, contact Trinnovo Group’s consultants at +41 41588 0294, or fill out an enquiry form on our website: Here.
1. Know Your Permits
There are a few different permits you’ll need to familiarise yourself with before starting your recruitment process, and as an employer, the onus falls on you to ensure your recruit has the right paperwork. Here are the most common permits you’ll encounter:
· B Permit – This is relevant for five years for EU nationals, and one year for non-EU/EFTA nationals, and it’s renewable. The B Permit is issued to workers with an employment contract duration of at least 12 months.
· L permit – This permit enables internationals to live and work in Switzerland for one year and it’s based on the terms of the employment contract. In rare instances, this can be extended by another 12 months.
· C Permit – The settlement permit is issued to those who have lived (continuously) in Switzerland for 10 years. If you’re a US or Canadian citizen, this decreases to five years.
· G Permit – This cross-border permit is designed for people who commute to Switzerland for work (employed or self-employed), and it’s valid for five years. The permit is tied to the issuing canton and the holder must return to their primary residence once a week.
· Ci Permit – This residence permit applies to spouses and children (up to the age of 25) of intergovernmental organisations (or members of foreign representations).
Here are some key points to note about permits:
EU/EFTA Candidates
· Timing: It can take up to 12 weeks to receive a Swiss working permit.
· Freedom of movement: most EU/EFTA citizens can live and work in Switzerland, although any international will need to get a permit if they’re staying in the country for more than three months (in which case, they’ll need to apply for a residency permit before starting work). Similarly, you don’t need to apply for a residency permit if you’re providing services in Switzerland for under 90 days.
· Number of permits: There’s generally no limit to the number of permits allocated to EU/EFTA citizens. Currently, however, the number of permits allocated to Croatian nationals is limited. You can find out more about this here.
Non-EU/EFTA Candidates
· Non-EU/EFTA candidates need to be specialised to work in Switzerland, i.e., highly qualified workers, university graduates with professional experience, industry leaders, and knowledge workers.
· There is a limited number of work permits available for non-EU/EFTA candidates (which can vary based on nationality). This number has reduced in recent years, and it’s likely to add a layer of complexity and competition to the process.
· Cantonal requirements may differ, so it’s essential to familiarise yourself with the relevant geographical regulations.
For Employers
It’s vital to know what’s required of you as an employer before you start planning your recruitment process – the defensibility (and compliance) of your talent pipeline depends on it. In terms of permits, the most important points to consider include:
· You’ll need to do a labour market mapping exercise to prove that you need foreign talent because there are no suitable candidates inside Switzerland or the EU/EFTA region. Also known as a labour market test, this directive was updated in 2023 to exempt businesses in certain situations. For example, in areas with deep skill shortages. Whether or not you’ll have to do this falls under the discretion of the authorities. If you need specialist support, Trinnovo Group can help conduct this market mapping exercise for you.
· You are responsible for the work permit as the employer.
· You must offer salary and working conditions on par with what’s customary in the region (and the role) you’re hiring for.
Immigration laws are often fraught with complexity, particularly where cross-border recruitment is concerned. It’s important to consult specialists before committing to a process that you’re unsure of.
2. Use the Right Talent Engagement Process
There are a few ways you can start engaging with talent as an international business, so it’s worth figuring out which option resonates with your organisation’s unique needs and project scope. If you’ve not yet set up a local Swiss entity, the primary methods of employment are through an EOR (Employer of Record) or an ANobAG framework.
An EOR manages employment responsibilities such as payroll, taxes, compliance, and benefits. This option simplifies the hiring process, ensuring compliance with Swiss laws and reducing administrative burdens. EOR is ideal for companies seeking a quick, compliant entry into the Swiss market.
ANobAG, short for "Arbeitnehmer ohne beitragspflichtigen Arbeitgeber," applies when a Swiss resident works for a foreign company without a Swiss entity. The employee manages their own social security and taxes. This option is more cost-effective for the employer but requires the employee to handle additional administrative tasks. It's often more viable for independent professionals who are already comfortable with Swiss regulations.
Freelance and Independent Contractors are another flexible option, although it’s important to classify them properly to avoid landing in legal hot water. Unlike ANobAG workers, Freelancers won’t be considered employees of your company.
Direct Hiring is only possible once you’ve established a physical branch or subsidiary in Switzerland. While it takes substantial time and investment, it provides full control over the hiring process. To directly hire employees, you will likely need to obtain the necessary licenses from both SECO and the Canton in which your business is established and registered, depending on the citizenship and engagement model for the candidates you are seeking to employ.
These licenses are essential – hiring without the right licensure can result in large fines from SECO, reputational damage, and employment complications that could jeopardise your workforce and prevent you from obtaining work permits.
It's important to note that getting hold of these licenses can be a lengthy and expensive process, making it difficult to balance swift recruitment with the administrative burden of establishing a direct presence in Switzerland. As fully licensed recruiters, Trinnovo Group can handle the legalities for you, creating uncomplicated access to best-in-class talent (without the administrative burden).
3. Explore the Swiss Talent Market
Switzerland has been crowned the most competitive talent market in the world for the 10th year in a row (on the Institute for Management Development index), and it’s easy to see why – high standards of living, innovation hotspots, global-leading R&D, startup-friendly ecosystem, and top-tier compensation packages make for an enticing environment.
Understanding the nuances of the Swiss labour market will help you develop a stronger brand proposition, candidate attraction strategy, and compensation package for your prospective employees.
Building an Employer Brand Value Proposition
Swiss workers command some of the highest salaries in the world. A competitive landscape necessitates the need for competitive salaries as a bare minimum – benchmarked compensation packages are a must (licensing and permits depend on it).
Developing an attractive culture with targeted benefits is a great way to set yourself apart as an employer, and even if you’re only hiring remote workers, culture still translates to the virtual stage.
In our experience of hiring on the Swiss market, some of the key benefits job seekers are looking for include:
· Flexible working hours – According to Staffing Industry Analysts, nearly 80% of Swiss workers say flexible work is important to them. Tailoring your approach to the rising demand for flexible working could give you the edge in a tough market.
· Enhanced Parental Leave – with some truly exorbitant childcare fees, enhanced parental leave policies can help you stand out as an inclusive employer who’s willing to invest in the well-being of their employees.
· Learning, training, and professional development – given the meteoric rise of bleeding-edge tech (GenAI is a prime example), candidates are keen to upskill on the latest systems to future-proof their career prospects. Creating space for this can help you develop a defensible talent pipeline as you drive brand awareness.
Language
Switzerland has four national languages – German, French, Italian, and Romansh, with English serving as the bridge between them. While Switzerland is officially quadrilingual, only four of the 26 cantons are multilingual. It’s crucial to recognise the unique dynamic (and additional layer of complexity) this adds to the hiring process.
Understanding the unique linguistic nuances and dominant language between regions will help you develop more relevant hiring processes.
Understanding Salaries and Market Trends
The Swiss market moves quickly. It’s always evolving and it can be difficult to track in light of widespread digitalisation and oncoming regulatory overhauls (the enhanced sustainability reporting requirements for example).
We recently developed several market, salary, and day rate guides for Switzerland, covering the finance, digital, and Deep Tech sectors. Contact the team for your free copy on marketing@trinnovo.com.
4. Embrace Diversity, Equity, Inclusion, and Belonging
The Swiss workforce, despite recent progress, is suffering from one of the worst gender parity problems in Europe. LinkedIn data reveals that just 14% of the software engineering population is comprised of women. Plus, according to the Swiss Federal Authorities, the gender pay gap currently stands at 18%, with women being paid an average of 1500 fewer Francs than men.
Now is the time for future-facing businesses to champion diversity, equity, inclusion, and belonging. Between corporate paradigm shifts and rising consumer demand, employers have an opportunity to leverage D&I for business growth and meaningful social impact.
Follow our Women in DevOps community for regular insights into the most pressing D&I topics in the Swiss workplace. Find out more about our events programme here: Women in DevOps.
Diversity and inclusion are pillars of Trinnovo Group’s values, ethos, and ecosystem. We’ve used a community-led approach to recruitment since our inception back in 2018, and in that time, we’ve developed an international talent pool of diverse, engaged, highly qualified candidates. For example, we founded the Ex-Military Careers community to help veterans find meaningful work after leaving the armed forces, while at the same time, creating access to exceptional talent for our customers.
The rise of ESG-related concerns (ESG assets under management are expected to hit $40 trillion in value by 2030), has brought corporate social practices under increased scrutiny. Switzerland, a leader in sustainable finance, represents a strategic opportunity for employers hoping to break the mould and attract a world-class talent pool.
Trinnovo Group
Trinnovo Group is a community-led recruitment and advisory firm on a mission to build diversity, create inclusion and encourage workplace innovation. Our market specialists are equipped to help you thrive in Switzerland’s opportunity-rich landscape.
We deliver personalised, inclusive, and equitable talent solutions through our specialist recruitment brands:
Trust in SODA: Digital Tech Recruitment specialising in Software Engineering, DevOps, Data, Creative, and Cloud and Infrastructure.
Broadgate: Finance, Enablement, and Security Recruitment, specialising in Risk, Compliance and Financial Crime, Accounting, Sales and Relationship Management, and Transformation and Change.
DeepRec.ai: Deep Tech recruitment specialising in Computer Vision, NLP, C++, Data Science, Machine Learning, and Blockchain.
Our staffing brands are powered by four unique community groups, created to provide a platform for underserved talent to access a wider range of career opportunities.
Trinnovo Consulting: Digital transformation consultancy services specialising in process automation, strategy development and execution, executive training, cultural transformation, project delivery, and diversity, equity, inclusion, and belonging.
Our communities are Pride in Tech (LGBQIA+), Ex-Military Careers (Veterans), Ethnicity Speaks (Ethnicity), and Women in DevOps (Gender). We are enhanced by our consulting division – Trinnovo Consulting – which helps guide companies through change and transformation as they evolve into more inclusive, equitable employers.