Recruiting Leaders in Switzerland: A Practical Guide

In the second part of our series, Doug Mackay continues his conversation with Christian Biedermann, Founder and Managing Director of Coopers Group AG (Talentor Switzerland). Having explored the cultural nuances of the Swiss market in Part One, they now turn to the practical realities of employment law, compensation, and the mechanics of building a successful team in Switzerland.

Doug Mackay: Christian, let us get into the practicalities. When a UK company is ready to hire in Switzerland, what are the key differences in employment law they need to be aware of?

Christian Biedermann: The Swiss labour market is generally regarded as one of the most flexible and business-friendly in Europe. At the same time, it is built on a strong culture of mutual trust, social partnership, and clearly defined employer responsibilities. Employment is governed by the Code of Obligations, and while a written contract is not strictly mandatory, it is highly recommended.

One major difference is our approach to industrial relations. Strikes are exceedingly rare here because we have a long tradition of avoiding conflict through negotiation. Many sectors are governed by collective bargaining agreements that set out the conditions for employment. Termination is generally more straightforward than in many neighbouring European countries. While employers are not required to demonstrate the same level of justification seen elsewhere, dismissals must still comply with Swiss employment law and cannot be abusive or discriminatory. Respecting notice periods and following a professional process remains essential.

Doug Mackay: Speaking of notice periods and probation, how do those typically structure in Switzerland?

Christian Biedermann: The standard probation period is one month, though it can be extended up to three months by written agreement. During probation, the notice period is very short – typically just seven days.

After probation, statutory notice periods apply: one month during the first year of service, two months for years two through nine, and three months for ten years or more. However, for executive and senior management roles, it is very common to negotiate longer notice periods, often three to six months from the outset, to ensure business continuity. UK companies need to factor these longer timelines into their succession planning and recruitment cycles.

Doug Mackay: You mentioned in our previous chat that Switzerland is an expensive market. How should UK companies approach compensation and benefits to remain competitive?

Christian Biedermann: Competitive compensation is important, but attracting talent in Switzerland is rarely just about salary. Senior professionals evaluate the entire package, including pension contributions, flexibility, leadership quality, career opportunities, and the long-term stability of the employer. There is no statutory national minimum wage, but salaries are high across the board.

Beyond the base salary, employers must account for social security contributions, occupational pension plans, accident insurance, and other statutory obligations. Depending on age and salary level, the total employer costs can be significantly higher than many international companies initially anticipate. It is also standard practice in many Swiss companies to pay a "13th-month salary," which is essentially the annual salary divided by 13, with the extra month paid out in November or December. If you do not offer a competitive pension scheme and understand these structural expectations, you will struggle to attract top-tier talent.

Doug Mackay: What about work permits? If a UK company wants to relocate a British executive to Switzerland, how difficult is that post-Brexit?

Christian Biedermann: It has certainly become more complex. Switzerland is not in the EU, but we have bilateral agreements allowing the free movement of persons for EU and EFTA nationals. For them, obtaining a permit is largely an administrative process.

However, post-Brexit, UK nationals are considered "third-country nationals." This means they fall under a strict quota system. To secure a work permit for a UK executive, the employer must prove that the candidate is highly qualified and that no suitable candidate could be found in Switzerland or the EU/EFTA region. While the process is more structured for UK nationals following Brexit, work permits remain achievable for highly qualified executives and specialists. The key is early planning and ensuring the role and candidate profile are aligned with the relevant permit requirements.

Doug Mackay: Finally, what is the most common mistake you see foreign companies make when setting up their Swiss operations?

Christian Biedermann: The biggest mistake is assuming that success in one market automatically translates into success in Switzerland.

Switzerland may be geographically small, but it is a highly sophisticated and competitive market. Customers expect reliability, employees expect transparency, and business relationships are built on trust over time. The companies that succeed are those that adapt their leadership approach, invest in local expertise, and take the time to understand regional differences across the country. Switzerland rewards long-term thinking and consistent execution.

My advice is simple: build your Swiss organisation around people who understand the local market. The right leadership hire can accelerate your growth by years, while the wrong one can be a very costly learning experience.

This is one of a series of conversations with the Talentor International network, which Collingwood joined in 2023.

If you are a UK company looking to expand into Switzerland, our executive search service and our experience across the technology sector are a useful starting point, alongside our conversation on navigating the German market. To talk it through, get in touch.