25 September 2017
BY LUCY MOORE
Switzerland is considered one of the most stable and secure economies in the world, built on its long term financial and political stability. Its prosperous economy, low unemployment rates and highly skilled labour force has seen the country reach 2nd highest gross domestic product (GDP) per capita globally. Switzerland’s strong service sector (mainly financial services) is largely responsible for this competitive economy, generating 74% of total Swiss GDP. The drawback of this prosperity is the associated raise in living standards and wage expectancy that follows, posing a real resourcing challenge for businesses in Switzerland.
Switzerland has one of the highest average wages in the world. Swiss entry level professionals earn on average £66,671 per annum, twice the amount of the UK average at £25,953. Zurich and Geneva are top of the list with the average wage in Zurich just under £80,000. Global companies are seeing their human resource costs doubled and even tripled for Swiss operations compared to other countries. It’s perhaps no surprise then that, in times of austerity, a number of businesses operating in Switzerland have looked to outsource some functions to other locations in an effort to lower operational costs.
One such location is Liechtenstein which has become a hub for this outsourcing. Located between Switzerland and Austria, it is the fourth smallest independent state in Europe and prides itself on being a “one stop shop” for financial service companies. The principality is less than 80 miles from Zurich and operates the same national currency as Switzerland, making it a popular choice. Its free access to the European Market, moderate corporation taxation and a stable social, legal and economic system may help to explain why over 37,800 people choose to settle there. With an additional 20,000 people choosing to commute to work on a daily basis.
Of course, relocation to any region cannot happen without some challenges. This can be represented in anything from a reluctance of key staff to change location through to technical and legislative issues which make the movement of some functions difficult.
Whatever the challenge, we at JDX feel confident that our presence in Switzerland and eight other locations across the globe will be key in ensuring we are able to assist our clients during times of transition.
JDX specialise in providing skilled labour to the finance and insurance industry and are well versed in supporting our clients to move or change critical functions without impacting quality of output.
Following the opening of our office in Zurich, we look forward to working with more clients in Switzerland, Liechtenstein and the rest of Europe.