In today’s competitive job market, finding the right talent for your organization can be a daunting task. Hiring employees abroad can be challenging. As an employer, you have to contend with language barriers and unfamiliar nuances of the local employment laws.
Thankfully, there is a solution that can streamline the hiring process for companies looking to expand their business in Sweden – an Employer of Record (EOR).
The Benefits of an EOR in Sweden
For companies that are looking to hire in Sweden, an EOR offers many benefits. An EOR can help you fast-track the hiring process, as it already has an established legal and administrative framework in place. Companies that use an EOR in Sweden can be confident that their documentation and compliance are handled by a team of experienced professionals who understand local labor laws.
Compliance is particularly important in Sweden, where labor laws are strictly enforced. Employers who violate employment laws can face serious financial penalties and business disruptions. Partnering with an EOR ensures that your company is legally compliant, avoiding unexpected surprises and negative impacts on your reputation.
Why Hire Talent in Sweden?
Located in Northern Europe, Sweden is home to an abundantly talented workforce. At the same time, Swedish workplace customs are similar to those in North America, facilitating collaboration.
The Swedish economy has a high GDP. Plus, the country is known for its exceptionally high quality of life, happiness levels, and comprehensive education system. These factors can help you onboard well-educated, eager workers who will bring a strong sense of morale to your workplace.
Swedish employees will also bring a dash of local culture and diversity to your team. This Scandinavian country is famous for its workday coffee breaks called fika in Swedish. And Swedes take their fika seriously! It’s a chance to unwind and get to know coworkers in the middle of their busy workdays.
Swedish is Sweden’s official language, but around 85% of Swedes consider themselves proficient English speakers. English is taught and prioritized in Swedish primary schools, so you shouldn’t have to worry about language barriers with your new Swedish hires.
How Can I Legally Hire Employees from Sweden?
To hire from Sweden, your company needs to have a legal entity operating in the country. Getting an entity set up can be time-consuming. The efforts are only worth it if you intend to dramatically expand your business into the Swedish market in the long term.
An EOR service provider like Borderless can be an invaluable resource when it comes to hiring employees in Sweden. Not only can it help you navigate complex labor laws and regulations, but it can also offer a range of services to support your business operations.
From payroll and tax management to onboarding and offboarding processes, an EOR service can help streamline your business operations.
Swedish Employment Documents
Sweden generally offers its workers either indefinite or fixed-term work contracts.
Employers provide written contracts to be signed within 30 days of an employee’s start date. There are no language requirements for Swedish contracts, as long as the employee and employer both follow the terms of the agreement.
These regulations are important to follow if you want to stay compliant while hiring in Sweden, along with a few rules around probation periods and termination.
Vacation, Breaks, and Holidays
On the cultural front, Sweden observes a number of national and civic holidays you should consider when building your distributed team.
Swedes celebrate:
- January 1: New Year’s Day (Nyårsdagen)
- January 6: Epiphany (Trettondagen)
- April 7: Good Friday (Långfredagen)
- April 9: Easter Sunday (Påskdagen)
- April 10: Easter Monday (Annandag påsk)
- May 1: Labor Day (Första maj)
- May 18: Ascension (Kristi Himmelsfärds Dag)
- June 6: National Day (Nationaldagen)
- June 23: Midsummer (Midsommarafton)
- November 5: All Saint’s Day (Alla Helgons Dag)
- December 24: Christmas Eve (Julafton)
- December 25: Christmas Day (Juldagen)
- December 26: Boxing Day (Annandagen)
- December 31: New Year’s Eve (Nyårsafton)
Taxes and Payment
There is no official minimum wage in Sweden.
Most Swedes pay only local income tax at rates that vary between 28.98% and 35.15%. There is an additional 20% state tax levied on earners who make above a certain wage, set by the Swedish Tax Agency.
Sweden also has a corporate income tax of 20.6% in place for businesses and employers to pay.
Employer Responsibilities
An EOR like Borderless takes care of anything to do with legal compliance and HR. That being said, you are still responsible for the day-to-day operations of your business.
Things like onboarding and offboarding, corporate training, defining the scope of work, and people management will all fall to you as the employer.
However, an EOR will help you ensure legal and compliant contracts.
Now that you know the basics of Swedish labor customs, standards of living, and lifestyle, keep reading for a step-by-step guide on choosing the best EOR for you.
Choosing an EOR
To select the best-fit EOR for hiring your distributed team, there are a few factors you should consider.
1. The Needs of Your Team: To ensure a successful hiring process from Sweden with an EOR, it is essential to start with a clear idea of the positions you want to fill, the skills needed, and the type of employment contract you’ll require. This will guide the rest of the process and ensure that you are identifying candidates that meet your business needs.
2. Proven Track Record: Has your EOR successfully hired and onboarded from this region before? It is important to research the EOR service providers available in Sweden and select one that meets your company’s specific needs. Look for a provider that offers comprehensive services, pricing transparency, and a proven track record of compliance.
3. Scale of Service: How comprehensive do you want your EOR services to be? The best EOR service or package can look very different for your company, depending on your expansion scale in Sweden.
4. Security and Data Privacy: On a digitally-connected team, your company’s intellectual property (IP) is at higher risk. Make sure you review your EOR’s security credentials. A good EOR service should be able to answer any questions you may have related to company IP and how they plan to protect your sensitive data.
How Borderless Can Help
As an Employer of Record (EOR) service, Borderless is an excellent solution for companies looking to hire in Sweden. By outsourcing your hiring administration tasks to a third-party provider like Borderless, your company can save time and money, and focus on your core business objectives.
Our guide to hiring your dream team will help ensure a successful hiring process and lay the foundation for a productive and efficient workforce. Book a demo with Borderless today to see how we can help.
Disclaimer
Borderless does not provide legal services or legal advice to anyone. This includes customers, contractors, employees, partners, and the general public. We are not lawyers or paralegals. Please read our full disclaimer here.
