Negotiating a Salary in Switzerland

[Bibliophile]

Hello everyone,

My husband recently got an offer from the Swiss branch of his company to work in the corporate headquarters in the Zurich region. We were very excited at the thought of moving to and living in Switzerland and were willing to make a few financial/cost of living sacrifices to do so but were in shock when we finally got the salary offer. To say that it was lower than we expected would be an understatement, in essence, they were offering a 1% increase in salary to move to an area which is more than 50% higher in cost of living than the area we are living in now.

We knew that we couldn't just do a straight out COL calculation because there are so many factors involved but this was so much lower than we expected that we were a bit flabbergasted.

I have done some research and it appears that the salary they offered my husband is the very MINIMUM that somebody with a bachelor's degree and a few years of experience can expect to make in his industry in Switzerland. Though my husband is young (in his very early thirties) he does have several years of experience AND he has multiple masters degrees, including an MBA.

The funny thing is that the Swiss branch were the ones who came courting my husband, the head guys over there were impressed by some of the things my husband had done in his current position and encouraged him to apply for the position we are in negotations over right now.

Everyone we spoke with said that the Swiss are "fair" but this seems low and if this is a serious offer, a bit of a waste of time on both sides, especially since they paid for him to fly all the way to Switzerland for his interviews.

At this point we are wondering, does anybody have any advice on salary negotiations? I mean why would they go through all this trouble and then offer him a salary they almost have to know he can't afford to accept? Is this a test? Or were they maybe not as impressed with him during the interview process?

Thanks a lot in advance for the advice, we appreciate any insights anyone can give us.

[Bevdeforges]

There are probably alot of factors in play here, and a big one is the "operating style" of the Swiss branch of the company. There is also the practical matter of whatever budget constraints the head office may put on them. That sort of thing can only be judged by someone inside the company - and if your husband has any contacts in whatever department or division deals with the foreign branches, he may want to use them to find out what's going on.

When I was job hunting in Germany, I got an offer from a company that really seemed to want to hire me - but they offered basically a flat salary offer (what I was making in the US simply translated to DM) and then offered some dodgy offer of financing my move by buying me a round trip ticket and "allowing" me to cash in the return part against my expenses. That was, apparently, SOP for both the industry and the company. (In part, to be fair, because it was more or less a start-up, at least in its international branches.)

Luckily I talked to a colleague in Germany about salaries, and found that I had been seriously low-balled. I was told I should expect (and ultimately got) considerably more from another company, based strictly on local pay scales. (The job, too, turned out to be much, much better than the somewhat dodgy offer.)

You probably have to evaluate the offer in light of all the internal factors, and take a look at your bargaining power within the company. Will working overseas enhance your husband's position within the US company if and when he decides to return? What "perks" are included with the job? (Company car? Housing allowance? Relocation?) That might actually improve the salary offer quite a bit. And how much power does the Swiss branch have to negotiate? It could be a low-ball opening shot, or does the head office hold them in a fairly tight budget grip? Just a few things to consider before you blow off what could be an interesting offer.

Be sure to consider the tax angle. Are they offering tax equalization (which is worth alot) and/or tax assistance?
Cheers,
Bev

[k98_man]

Also, what do you consider in cost of living? Transportation might be cheaper if you can use public transportation which is a LOT bigger/better in Switzerland (from what I hear everything is ALWAYS on time).

Good luck and I hope you can move to Switzerland!

[elevatorman]

Is your husband working for Schindler? I think Schindler, like many other Swiss companies, are making you a offer that depends on several factors such as experience, age, family stand etc.

[Protzenalp]

Hi

You also have to remember that taxation in Switzerland is a lot lower than most other places. Expats in certain parts of Switzerland can end up paying as little as 12.5% in income tax...

There are other forums where you may be able to get some information. There is the english forum. Google English Forum in Switzerland

A lot of local expats will give you information. They are a bristly lot though

[Glenhope]

Hello,


The Swiss can be tough negotiators, but everything is negotiable.

Given the cost of living, salaries in Switzerland are often lower than you would think they would be. Of course Public Transport is first class and cheap. You can buy a ticket, known as a GA, which will give you free travel almost everywhere in Switzerland for 1 year. This costs about CHF 4000 (US 3500). There are cheaper options like Halbtax, which means you pay half price for tickets and local area monthlies are cheaper than 2 weeks of daily tickets.

You need an orientation to the country, plus tax and social security system, which frankly your husband's company should pay for. If after a visit and access to orientation info, you don't feel it makes financial sense, tell the company, you can't afford to move.

Remember also accomodation is expensive and hard to find especially in Zurich and it is harder for non Swiss. They should save you that trouble and handle negotiations.

[k98_man]

Originally Posted by Glenhope

Hello,


The Swiss can be tough negotiators, but everything is negotiable.

Given the cost of living, salaries in Switzerland are often lower than you would think they would be. Of course Public Transport is first class and cheap. You can buy a ticket, known as a GA, which will give you free travel almost everywhere in Switzerland for 1 year. This costs about CHF 4000 (US 3500). There are cheaper options like Halbtax, which means you pay half price for tickets and local area monthlies are cheaper than 2 weeks of daily tickets.

You need an orientation to the country, plus tax and social security system, which frankly your husband's company should pay for. If after a visit and access to orientation info, you don't feel it makes financial sense, tell the company, you can't afford to move.

Remember also accomodation is expensive and hard to find especially in Zurich and it is harder for non Swiss. They should save you that trouble and handle negotiations.

Is it cheaper for students or is it the same? Also, is it for citizens only or can someone with a student visa also buy this?

Thanks,
Mansal

[Glenhope]

Originally Posted by k98_man

Is it cheaper for students or is it the same? Also, is it for citizens only or can someone with a student visa also buy this?

Thanks,
Mansal

I am not allowed to post urls, so you need to search on SBB website: The General Abonnement - Prices[/url].

It's less that I wrote previously (3100). You can have it by the month as well. There is a special price for students, but only if you can prove you are studying at a Swiss Uni. Whether student or not, if you are 16-25, you get student rate.

Also you don't need to be resident to buy this. There is even a corporate GA, which is intended for companies to enable employees who have occasional need for GA to share one.

However, beware. Public transport has become so popular that it's difficult to get a seat if you travel in peak hours, especially on Intercity trains.

[Protzenalp]

Here is the link:

SBB: Railpasses - The General Abonnement

Originally Posted by Glenhope

I am not allowed to post urls, so you need to search on SBB website: The General Abonnement - Prices[/url].

It's less that I wrote previously (3100). You can have it by the month as well. There is a special price for students, but only if you can prove you are studying at a Swiss Uni. Whether student or not, if you are 16-25, you get student rate.

Also you don't need to be resident to buy this. There is even a corporate GA, which is intended for companies to enable employees who have occasional need for GA to share one.

However, beware. Public transport has become so popular that it's difficult to get a seat if you travel in peak hours, especially on Intercity trains.

[k98_man]

Thank you guys a lot! For an entire year of public transportation (that I know I'll take advantage of), this is awsome

Best regards, Mansal