Skills shortage in Switzerland: Swiss Life Study 2024

Demographic change meets recruitment reality

The demographic trend is clear: more and more people are remaining fit, motivated and productive beyond the normal retirement age. Nevertheless, many companies are reluctant to face up to this reality. Age-friendly HR policies are rarely seen as a strategic response to the shortage of skilled workers.

On behalf of the Swiss life insurance group Swiss Life, the market and opinion research institute ValueQuest conducted an online survey of 1,054 employers in German-speaking and French-speaking Switzerland in spring 2024. The results show a clear expectation gap between intention and reality. 

The big "Expectation Gap": A misunderstanding between the generations

One of the most exciting findings of the study is the so-called "expectation gap" - a massive misjudgement of mutual expectations. Around 70% of employers are of the opinion that the willingness of employees to work beyond the reference age is rather low. They therefore assume that most employees are looking forward to retirement. Only 29% of the Swiss employers surveyed believe that most employees could work well until 66 or 67. At the same time, only 23 percent clearly reject this statement.

There is a clear perception gap here: Companies in Switzerland often assume that older employees no longer want to work. However, employee surveys show the opposite. Many over 55-year-olds would be quite prepared to stay in employment for longer - provided the working conditions and workload are right.

However, if you ask those affected themselves, a completely different picture emerges, which is reminiscent of a Motivation Arbeitnehmer study. Many older employees would be perfectly willing to stay in work longer, but often under adapted conditions such as a reduced workload of 70 percent. However, they do not feel sufficiently valued or encouraged by their employers. Employees' needs for flexibility and recognition are clearly not sufficiently recognized. 

The result is a vicious circle: companies do not encourage employees to continue working because they believe there is no demand, and employees do not signal their willingness to do so because they are not interested.

Due to the shortage of skilled workers, older employees are rarely hired

Although about half of all companies report difficulties in recruiting skilled workers, the most obvious solution is rarely utilized. Only 13% of the companies surveyed actively encourage working beyond retirement age. This is particularly paradoxical when one considers that 22% explicitly cite the hiring of older employees as a measure to meet their demand for skilled workers. There is considerable untapped potential here, as around one-fifth of Switzerland’s unused labor potential lies in the 55-to-70 age group.

Time to rethink the labor market

The Swiss Life study makes it unmistakably clear: in view of demographic change and the ongoing shortage of skilled workers, the Swiss labor market can no longer afford to do without the experience, loyalty and expertise of the 55+ generation. The reluctance of older employees to change jobs is not only due to a lack of will, but also to a lack of signals from the labor market.

It takes more than just declarations of intent. What is needed is a profound rethink of corporate culture. Companies need to overcome outdated images of age and proactively create a culture of appreciation for all generations. This includes flexible working models, targeted further training and recruitment that views experience as a valuable asset rather than a cost factor. This is the only way to unlock untapped potential and effectively combat the shortage of skilled workers.