For foreign companies, Sweden’s talent pool is a significant competitive advantage. While 47% of adults hold tertiary degrees, the real differentiator is their linguistic capabilities and international orientation. An estimated 89% of Swedes speak English fluently, compared to 38% across the EU, while 70% speak at least three languages.
No doubt, the country has excellent opportunities for international businesses. And its workers are some of the most skilled in Europe. Did you know that utilizing a Swedish EOR is one of the easiest ways to hire employees from Sweden? We’ll explain how an EOR service works and recommend the best providers in the country.
Why Hire with an EOR in Sweden
An Employer of Record (EOR) is a third-party company that assumes the legal employer role for your workers in a foreign country. You still retain complete control over their day-to-day work and management, though. Essentially, if you wish to hire someone in Sweden but don’t have a legal business entity there, the EOR steps in to manage all the official employment responsibilities.
Setting up a business in Sweden is straightforward—the World Bank ranks Sweden as the 10th easiest country globally for starting a business, requiring just three steps and taking about 16 days to register an Aktiebolag (limited liability company). The Swedish Companies Registration Office has streamlined the process, and most paperwork can be completed online. However, incorporation is just the beginning of your challenges…
Once your entity is established, you’ll need to navigate Sweden’s talent market, which can be competitive and expensive without local knowledge. You’d likely need to partner with Swedish recruitment agencies that understand how to attract top talent in cities like Stockholm, Gothenburg, and Malmö.Â
From there, you’ll have to create employment contracts that comply with Swedish labor law, onboard your new employees, and manage their HR requirements. Sweden has employment legislation in place to protect workers, including the Employment Protection Act, the Working Hours Act, the Annual Leave Act, and the Discrimination Act, as well as collective bargaining agreements that vary by industry.Â
That’s why hiring through an EOR is a more efficient and risk-free alternative, especially if you’re testing the Swedish market or building a small team. They’ll handle HR administration, including Swedish payroll processing, social security contributions, benefits, vacation allowances, and tax reporting requirements. Many EORs also assist with recruitment, using their networks to help you find qualified Swedish professionals.