How Employee Leasing Works in Sweden

According to Investopedia, training a new employee will cost you more than $1,500. Also, an employer, on average, spends more than $4000 per hire.

In this article, we are going to show you how employee leasing companies work in Sweden and more importantly how employee leasing will impact your business.

Employee leasing Sweden

What Is Employee Leasing

Employee leasing is a business agreement in which a company has a professional employment organization, all the way is known as PEO, puts its employees on the PEO’s payroll, and leases the employees back to the company. In other words, it’s the act of outsourcing human resources and payroll tasks from one company to another. Also, this is done on the current and permanent employees of a company.

Is Co-Employment the Same as Employee Leasing

The short answer is no, not at all. A PEO does not supply labor to a company, instead, a PEO supplies HR services and benefits to a company and its existing workers.

It’s a frequently asked question because previously the PEO industry used the term employee leasing to describe what it did. So, that inadvertently connected the employee leasing industry to temporary staffing services which is a completely different field in and of itself. But again, they’re also using the term leasing.

If you have questions about PEOs and would like to learn how they can benefit you, contact Swapp Agency today.

Employee leasing Sweden

The Pros of Employee Leasing in Sweden

1. Zero liability of having employees or risk.

One of the best parts about outsourcing your HR services is that your company no longer has enough liability and risk of having employees. Workers’ conversations, unemployment services, payroll services, legal services, paperwork are covered completely. Other resources that come into play with simply having employees are 100% covered.

2. No more need to worry about government issues (taxes, most of the paperwork, etc.)

Legal aspects are taken care of. You no longer have to worry about your employees and all the government issues that come with the employees.

The leasing company will make sure everything is in compliance with the government. There’s no need to fill out quarterly payroll tax reports. And no need to worry about filing employee regulation forms and documents.

3. Stable medical benefits. If you choose this option, an employee leasing company covers those as well.

We all know accidents happen. When they do, the company usually pays for it, literally. When you have no employee risk, you no longer have the risk of insurance premiums increasing.

The leasing company covers all of this, including the paperwork that comes with it.

4. Save time which allows your business to make more money.

Save time, make more money. That’s the name of the game for all of us in business. As cliché as it sounds, time is money.

On average, 25% of a company owner’s time is taken up on employee paperwork. What if that time was given to creating more business?

With employee leasing, there is no need to worry about employee paperwork. This saves time, which in turn creates more money.

Employee leasing Sweden

The Cons of Employee Leasing in Sweden

1. Sometimes employees feel as if they don’t belong to their company. It’s easy to fix. Discuss this with your employees. Let them know it is saving the company money and still providing the benefits they deserve. If you talk about it with them, they will be more understanding.

2. Client is highly dependent on the PEO or their employees. This is simply nothing more than a trust issue. The great thing is if you do not trust that PEO, there are many others to choose from. It’s important to build a relationship with the PEO before leasing your employees to them.

How to Choose the Right PEO

With the right PEO, these cons can easily turn into your pros. The right PEO won’t make your employees feel as if they are working for someone else. The right PEO will give you the peace of mind to not have to worry about the legalities of your employees.

A lot of people are using employee leasing but aren’t using all the elements of the bundle. They may have workers’ comp and payroll, but they don’t use retirement planning and health insurance. Those are pieces of the bundle that you’re paying for of infrastructure that you may not need to be paying for. So, a professional PEO can do an analysis to see if you need to use all the services.

The right PEO provides more than just workers’ comp, unemployment insurance, and payroll services. It also provides you with:

  • outsourced human resource services;
  • job descriptions;
  • health insurance;
  • a full legal team for you and your staff;
  • data security you can rely on;
  • thorough background checks, reference checks, and skills testing when needed.

Why to Use Swapp Agency

Our Employer of Record company will provide you with all the needed services. You will have more time, and your company will grow faster. There is no more need to worry about the paperwork and liability that comes with having employees. No more insurance hikes when those accidents happen, and they will.

For further information please take a moment and visit our site at Swapp Agency.


As a business owner, you want to concentrate on making money and not waste your time on employee-related headaches like payroll, benefits, HR, and workers’ compensation. There are many pros and very few cons to companies using employer leasing.

The solution is employee leasing where the employees have two employers. The direct employer is you, you tell the employees how to operate in day-to-day business. You work with the Employer of Record, we provide the payroll checks, handle workers’ compensation, and offer benefits if applicable. With this setup, you can concentrate on making your company more successful instead of having to deal with employee headaches.

To learn more about employee leasing eliminating employee issues and saving money, you can visit Swapp Agency on the web.