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WORKING IN SWITZERLAND

Why Swiss employers are eager to hire US professionals

Personnel shortages are pushing big Swiss companies to recruit executives from abroad, specifically from the United States.

Why Swiss employers are eager to hire US professionals
US employees are sought after in Switzerland. Photo by frank mckenna on Unsplash

Some Swiss employers, including pharmaceutical giants Roche and Novartis, pull out all the stops to attract foreigners — especially from the United States — for top management positions. 

Companies even go so far as to cover the rent, private school tuition fees, and sometimes even taxes and health insurance, of the senior US executives.

Why are these employers offering perks to the professionals from the US?

“Depending on the size of the company, the number of [locally-based] candidates is very limited for certain positions. Hiring foreign executives is therefore inevitable,” according to recruiter Erik Wirz. “And in the United States, there are very qualified employees in the pharmaceutical or technological fields.” 

The demand also extends to top researchers or those who are recognised specialists in their field, Wirz added.

The high cost involved in relocating sought-after US personnel, as well as all the perks they receive once in Switzerland — typically a package ranging from five to six-figures — are worth every franc, according to a Roche spokesperson.

 “What matters to us is the aptitude and performance of our employees. We want to attract the best talent, regardless of their origin.”

But wait…aren’t Americans third-country nationals and therefore have restricted access to Switzerland’s labour market?

Yes, and as such, they are subject to stricter employment rules than their counterparts from the European Union and EFTA states (Norway, Iceland, and Liechtenstein).

However, according to rules set out by the State Secretariat for Migration (SEM), “admission of third-country nationals to the Swiss labour market is only granted if it is in the interests of Switzerland and the Swiss economy as a whole.”

Furthermore, “you must be a highly qualified specialist or skilled professional in your field. This means that you should have a degree from a university or an institution of higher education, as well as a number of years of professional work experience.

And in Switzerland’s employment hierarchy, you can be hired only if the employer can prove to the authorities that no suitable Swiss or EU / EFTA candidate could be found to fill the vacant position.

Clearly, the top US executives recruited by Swiss companies meet all these requirements, which is why they are allowed to come and work in Switzerland.

What’s in it for the American employees?

The financial benefits are obviously generous, as these execs earn more, and get additional benefits, while working in Switzerland they would back home.

“It is impossible to attract top managers if they get the same salary,” Wirz said.

There is, however, one negative aspect of working in Switzerland — or anywhere else outside of the United States.

And that is the burden of dealing with both the Swiss and US tax system, as Uncle Sam operates citizenship based taxation, even on people who live overseas.

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WORKING IN SWITZERLAND

Switzerland sees record high immigration from European countries

Switzerland has seen record immigration from European countries and a new report reveals a correlation with the country's low unemployment rate.

Switzerland sees record high immigration from European countries

Lots of data indicates that Switzerland needs foreign workers to fill job vacancies.

Now a report from the State Secretariat for Economic Affairs (SECO) confirms the importance that employees from the European Union and EFTA (Norway, Iceland, and Liechtenstein) have had for Switzerland’s labour market and economy in general. 

That is why “demand for foreign labour was strong in Switzerland in 2023,” SECO said in its annual report published on Monday, which assessed the impact that the Free Movement of Persons agreement (FMPA) has had on the country’s employment.

In 2023, 68,000 people from EU and EFTA countries came to work in Switzerland, according to SECO, driven by “employment growth that has significantly exceeded the EU average.”

Why does Switzerland need EU / EFTA workers?

Simply put, they are needed for the country’s economy to function optimally.

As SECO pointed out, while the number of pensioners is growing (due mostly to Switzerland’s exceptionally high life expectancy), “Swiss working-age population has experienced only slow growth over the past 20 years.”

“The country’s economic growth is not possible without immigration,” said Simon Wey, chief economist at the Swiss Employers’ Union. “We need foreign labour if we want to maintain our level of prosperity.”  

READ ALSO: How EU immigrant workers have become ‘essential’ for Switzerland 

In what sectors is the need for these workers the highest?

“A large number of people from the EU coming to work in Switzerland are highly qualified and are employed in demanding activities in high-growth branches of the service sector, such as the branch of special, scientific and technical activities, that of information and communication or the health sector;” SECO’s report said.

But the Swiss economy also recruits EU nationals as low-skilled labour, particularly in the hotel and catering industry, as well as construction and industry.

Why are only people from the EU / EFTA states recruited?

The reason is that, unlike nationals of third countries, people from the EU / EFTA have an almost unlimited access to the Swiss employment market, thanks precisely to the FMPA. 

Also, those coming from the neighbour countries (as most of Switzerland’s foreign labour force does), have the required language skills to easily integrate into the workforce in language-appropriate Swiss regions.
 

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