Labor shortage in Switzerland: What employers can do

The author Kathrin Neumüller completed her doctorate at the University of St.Gallen on the subject of employee inspiration and motivation. She has been working as a project manager at ValueQuest since the beginning of May 2023. Together with Dr. Jakub Samochowiec and Dr. Johannes Bauer from the Gottlieb Duttweiler Institute (GDI) in Rüschlikon, I wrote a study on behalf of the Migros Group on the Swiss labor shortage. In our latest blog post, I present the most important findings from the study "Strategies for dealing with the labor shortage".

The Swiss labor market is facing major challenges

"The labor shortage will continue to worsen and the activities to date are not yet sufficient. As the largest private employer in Switzerland, we need to define and implement further sustainable measures," says David Girod, Head of HR Management Migros Group. The Swiss labor market is therefore facing major challenges. Without immigration, it threatens to shrink. However, even with high immigration figures, the current growth cannot be maintained. This alarming situation calls for an immediate rethink on the part of employers, who must prepare for the coming changes. The GDI study provides answers to this question.

To deal with the labor shortage, employers need to think outside the box and question previous maxims: What growth is needed? Is the wage, which directs employees to certain sectors and jobs, really the best means of control or is the market failing to allocate resources? Do we need more state regulation? And what would a four-day week achieve? The study identifies the causes of the labor shortage and countermeasures.

How can Swiss companies deal with the labor shortage in the future?

In the fight against the labor shortage, for example, companies can specifically increase their attractiveness as an employer and actively invest in their employer branding in order to attract and retain qualified specialists in the long term. Employer branding allows a company to improve its image and differentiate itself from other companies as an attractive employer. A strong employer brand helps to attract talent, as potential applicants have a positive image of the company and are convinced that this employer is the best fit for them. In addition to the company's image, employer attractiveness also includes the actual conditions and benefits for employees. This includes aspects such as remuneration, working conditions, development opportunities, work-life balance and corporate culture. But how can companies increase their attractiveness as an employer? To answer this question, they should consider the wishes and needs of their employees - preferably taking into account the employees' life circumstances.

The motivation, willingness to perform and loyalty of managers and employees play a key role in determining whether the path to an agile organization can be successfully mastered. Successful organizations consistently use employee surveys and 360 leadership feedback as a dialogue tool, which has a positive impact on commitment and the company's success.