How do recruitment agencies and Professional Employer Organisations (PEO’s) looking to leverage technology and expand internationally comply with local laws and regulations – for example in Switzerland?
Developing cost effective strategies to find the right candidates are important in reducing employee turnover and keeping costs down for recruiters. But technology has done much more for the recruitment sector:
- The internet has empowered recruitment agencies to set up global teams with their own international branches or local partners. This has led to more efficient workflows, seamless expansion, and global specialisation across sectors and markets.
- Recruiters can be agile to target new trends and shift attention quickly to focus on emerging opportunities.
- Technology has widened the frontiers of search and increased the ability to seek out talent.
As in many other areas, technology has developed faster than the law. For recruiters, having the ability to search, interview and sign new candidates for clients digitally is now standard practise. However, Swiss national laws and regulations can often be at loggerheads with this.
- With over 25’000 multi-national organisations registered in Switzerland (many requiring specialist skills) this is an attractive market for international recruiters.
- In Switzerland recruiters have to be licensed by the State Secretariat of Economic Affairs (SECO). In order to recruit for Swiss-based companies the recruiter must be legally compliant. If they don’t have a Swiss branch, the recruitment agency can partner with a local SECO-licensed partner.
- This “last mile” can be confusing and frustrating, but in the hands of an experienced PEO local partner recruiting in Switzerland can be seamless for the international recruiter and highly profitable.
Statistics from the US, show that the PEO’s are a well-established and trusted route for all types of companies:
- According to the (U.S.) National Association of Professional Employer Organisations (NAPEO), between 2008 and 2017, the number of worksite employees employed in the PEO sector grew at a compounded annual rate of 8.3%, from about 1.8 million to 3.7 million.
- Studies also show that businesses that use PEO companies grow 7-9 percent faster, have 10-14 percent lower employee turnover, and are 50 percent less likely to go out of business. There are 907 PEO’s in the U.S. providing services to 175,000 small and mid-sized businesses that employ 3.7 million people.
After a successful record of supporting companies in the home market, many of these PEO’s are expanding internationally. Technology makes expansion easier, but there are pitfalls to be aware of:
To avoid compliance issues, the PEO often chooses to work with a local expert. This allows:
- Foreign companies to be able to keep up with developments across industries in international markets.
- International PEO’s to work with a local knowledgable partner to cover in all jurisdictions where the client company is present.
- The client company to reduce tedious and complex Benefit Plan administration in international markets.
- The client company to be assured of being compliant and thereby legal in all international markets.
While technology has undoubtably made international expansion and growth easier for both Recruiters and PEOs, local laws and regulations in Switzerland clearly demonstrate the need and value for partnering with local service provider.
As Switzerland’s most trusted payroll provider, Accurity GmbH has over 20 years’ experience providing clients with the best advice about their payroll, pensions and social security and ensuring they make the right decisions. If you would like to speak with one of our team of experts, simply contact us now. If you are an international recruiter or PEO looking to work in the Swiss market, contact our team today to see how we can make Switzerland easy for you!