14 August 2025
Which is better for hiring in Switzerland: EOR or staffing agency?
Expanding into Switzerland but don’t have a local entity? You’re not alone. Many international companies face this challenge when looking to tap into Swiss talent quickly and legally.
Two common options for hiring in Switzerland without an entity are:
- Working with Swiss Employer of Record (EOR)
- Partnering with a staffing or temp agency
Both models support international hiring—but they serve different needs. In this guide, we’ll break down how each one works, their compliance responsibilities, and which is best suited for long-term success in Switzerland (and Spain, where applicable).
What is Swiss Employer of Record?
Swiss Employer of Record is a fully compliant employment solution that enables international companies to hire in Switzerland without opening a local entity.
We become the legal employer of your chosen talent in Switzerland, while you maintain full operational control over their work.
Here’s what Swiss Employer of Record handles on your behalf:
- Local employment contracts aligned with Swiss labour law
- Payroll, social contributions, and tax filings
- Work and residence permit support (where required)
- Employee benefits, insurances, and HR compliance
- Offboarding and termination procedures
Best for: Long-term hiring, remote teams, and market expansion—especially when you need a stable, compliant solution without the overhead of setting up a subsidiary.
What is a staffing agency in Switzerland?
Staffing agencies (also known as temp or recruitment agencies) focus on short-term placements. They supply workers to businesses on a temporary basis, often under a labour leasing arrangement.
In most cases:
- The agency is the legal employer
- The employee is assigned to your business
- The contract is limited in duration
This can be helpful for short-term projects, seasonal needs, or interim cover—but it’s not ideal for building a permanent team or establishing a long-term presence in Switzerland.
Key differences: Swiss Employer of Record vs staffing agency
Compliance and cost considerations
Legal compliance
Switzerland has strict rules around labour leasing. If you’re using a temp worker long-term through an agency without the right permits or setup, you risk misclassification—along with potential fines or legal issues.
Swiss Employer of Record ensures full compliance with Swiss labour law, including:
- Work permits and residence registrations
- Tax residency and withholding rules
- Mandatory pension and social contributions
Total cost of ownership
While staffing agencies may seem cheaper up front, the mark-up model (often 25–50% on top of wages) can significantly increase costs over time. Swiss Employer of Record uses a flat monthly fee, making budgeting predictable and transparent.
Why choose Swiss Employer of Record for hiring in Switzerland
If your goal is to build a long-term, compliant team in Switzerland—without establishing a local entity—Swiss Employer of Record is the smarter, simpler solution.
With us, you can:
- Hire employees quickly and compliantly in Switzerland
- Skip the cost and delay of setting up a Swiss subsidiary
- Retain full day-to-day control over your workforce
- Avoid compliance risks, tax headaches, and admin burden
- Access expert support throughout the entire employment lifecycle
Whether you’re hiring a single remote employee or building out a Swiss team, we help you scale with confidence—fully compliant, fully supported.
Make the right choice for your hiring strategy
When comparing Swiss Employer of Record vs staffing agencies, your decision should come down to your long-term hiring needs and compliance priorities.
For international companies hiring in Switzerland without a local entity, Swiss Employer of Record provides the compliance, flexibility, and peace of mind you need to grow—legally and efficiently.
Need help with Swiss hiring? Get in touch to learn how Swiss Employer of Record can help you hire talent quickly, compliantly, and without borders.
