The shortage of skilled labor and the growing demand for flexibility are pushing Swiss companies to turn increasingly to payrolling. This employment model allows businesses to work with specialized professionals without hiring them directly. Fabien Baiata, CEO of Helvetic Payroll, explains.
Payrolling is gaining momentum in Switzerland. This model enables companies to "hire" external consultants with proven expertise through a service provider. More flexible than a fixed-term contract or prior to a permanent contract, it offers significant advantages for temporary assignments, particularly benefiting SMEs. However, choosing the right partner company is essential to ensure that contracts comply with current social security and tax regulations. Fabien Baiata, CEO of Helvetic Payroll, shares his insights on the key challenges of this employment model.
Can you explain the concept of payrolling?
Fabien Baiata: Payrolling is a turnkey solution for companies that need a specific talent for a defined period or a particular project while ensuring compliance with the Federal Act on Employment Services and the Hiring of Services (LSE). In practice, it involves a contractual relationship between the company, the professional carrying out the assignment, and an intermediary company. This intermediary is responsible for sourcing and recruiting the right talent while acting as their official employer. It manages the employment contract and ensures compliance with legal obligations, such as social security contributions and taxation.
Are there any statistics on the number of Swiss companies using payrolling?
Baiata: Payrolling is often part of broader HR practices, such as temporary staffing, which makes it difficult to provide precise figures. However, our umbrella organization, Swissstaffing, estimates that several thousand companies in Switzerland currently use service leasing. We’re also seeing increasing demand for this solution, particularly for short-term projects.
Do you think payrolling will continue to expand in Switzerland?
Baiata: Yes, it’s a growing trend that clearly reflects the evolution of the labor market. On one hand, younger generations are seeking a better work-life balance and more meaningful projects, prompting companies to rethink their recruitment strategies and to take account of the LSE way of working. At the same time, many professionals prefer working on diverse assignments rather than being tied to a single employer long-term. Additionally, the internationalization and digitalization of the economy are accelerating the adoption of payrolling, both among large corporations and small and medium-sized enterprises.
In which cases is payrolling particularly beneficial?
Baiata: There are four main scenarios where payrolling proves especially useful. First, when a company wants to call on external talent quickly without adding administrative complexity or increasing its payroll. Second, payrolling offers greater flexibility than a fixed-term contract (CDD) to meet temporary staffing needs. Third, it ensures full compliance with strict regulations, including social security and contractual obligations – we continuously update our practices to align with the latest legal developments. Lastly, payrolling enables foreign companies without a Swiss subsidiary to call on local talent while remaining fully compliant with Swiss regulations.
In which sectors is payrolling most commonly used?
Baiata: Payrolling is mainly used for knowledge-based or highly skilled professional services. The sectors that rely on it the most include IT and new technologies, pharmaceuticals and healthcare, finance and banking, as well as engineering and construction.
Can payrolling also be beneficial for SMEs?
Baiata: Absolutely. SMEs, which often have limited HR resources, find payrolling to be a practical solution for managing temporary needs, such as filling in for an absent employee or handling a specific project. Our support enables SMEs to focus on their growth while accessing specialized talent. In many cases, a successful assignment in a smaller company eventually leads to the position being internalized.
What risks should be considered?
Baiata: The main concern is compliance with Swiss regulations. Some payrolling companies do not fully meet their obligations regarding social security contributions or salary certificates. That’s why it is crucial to work with a certified partner under the Wage Protection Ordinance (LSE), such as those affiliated with Swissstaffing. This certification ensures that the company adheres to Swiss labor laws, particularly in terms of social security, salary payments, and working conditions. Transparency is another key factor. Client companies must have full visibility into costs and processes, ensuring they are clear and well-understood from the outset.
Biography
Fabien Baiata is CEO of Helvetic Payroll, the Swiss leader in payrolling. An expert in external talent management, he supports companies and the self-employed by ensuring compliance and flexibility. With solid experience in human resources and contract management, he simplifies payroll administration to optimise the competitiveness of companies in Switzerland.
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Last modification 05.02.2025
