Demanding employees an ever greater challenge for SMEs

Despite the downward trend in the Swiss job market, the labor shortage remains by far the biggest challenge for SMEs. More than half of Swiss SMEs (51 %) - particularly companies in the construction industry and in the healthcare and social services sector - are faced with systematic problems when filling vacancies. And two out of five companies are struggling with high staff turnover. This is confirmed by AXA's SME labor market study, which was conducted for the third time this year.

Many SMEs are also noticing the continuing shortage of skilled workers in the behavior of their employees. 28% of SMEs are increasingly confronted with wage demands, 23% are experiencing more demands regarding working hours and 18% are encountering greater resistance to increased workloads. "The ongoing shortage of skilled workers is changing the balance of power on the labor market: employees know their worth and are formulating additional expectations of future employers. SMEs must increasingly be able to respond to this if they want to fill their vacancies," explains Michael Hermann, Managing Director of the Sotomo research institute, which conducted the survey on behalf of AXA.

Personal initiative in the battle for the best talent

In order to survive the competition for labor, companies are increasingly relying on solutions such as greater flexibility in terms of workload and working hours. Around half of all companies surveyed (48 %) stated that they would offer more part-time positions in 2024 in order to be able to recruit enough employees. 47% offer more flexibility in work arrangements such as working from home or trust-based working hours. Around a third of small and medium-sized companies also offer additional benefits such as vacations or further training and a fifth (21 %) of all respondents stated that they would offer new employees significantly higher salaries. 32 percent of companies also stated that they also grant substantial pay rises to existing employees in order to retain them in the company. "It appears that most SMEs are starting with themselves when it comes to tackling the labor shortage - and are thus helping the principles of New Work to achieve a breakthrough," concludes political geologist Michael Hermann.

Only two out of five SMEs train apprentices

Another approach to attracting new employees is to focus on those who are new to the labor market. Swiss vocational education and training is considered a model of success worldwide and is a central component of the Swiss education system. Small and medium-sized enterprises play a key role as training centers for the skilled workers of tomorrow. A win-win situation, as SMEs could train a well-prepared workforce in this way and retain young people in the company - or so it seems. Nevertheless, according to the SME labor market study, only 40 percent of the companies surveyed offer apprenticeships. Two thirds (67 %) of those companies that offer apprenticeships justify this step by saying that they can train better-prepared skilled workers directly in their own company and retain them (51 %). As many as 37% of the companies surveyed want to do a service to society, while around a fifth (22 %) hope that this will benefit their image. And just under one in seven companies admits to gaining cheap labor as a result.

Significantly more apprenticeships in the manufacturing industry

Despite these advantages, 60 percent of the SMEs surveyed stated that they do not offer apprenticeships. Two thirds of them cite a lack of prerequisites as a reason for this, for example because there are not enough fields of activity within the company in which the apprentices can be deployed. In second place is the lack of resources within the company; around a third of respondents lack the time or qualifications to train apprentices. Just under one in seven companies stated that they had offered apprenticeships in the past but had not found anyone interested. It is striking that SMEs from the manufacturing industry are significantly more likely to train apprentices than companies from the service sector. "The manufacturing industry has historically been more closely associated with apprenticeships and the professions there are more often based on vocational training than in the service sector," explains Michael Hermann.

Around half of all SMEs that offer apprenticeships according to the labor market study have difficulties filling them. The paradox is that companies in the manufacturing sector in particular find it much more difficult to find apprentices than SMEs in the service sector, even though they offer significantly more apprenticeships in the overall population. "Apprenticeships in the manufacturing sector are probably perceived as less attractive by career starters, as they often require physical work, involve shift work and are lower paid than in the service sector. The construction industry in particular is known for the fact that companies find it difficult to fill their apprenticeship positions," says Michael Hermann.

Public perception of the younger generation is only partially correct

If you believe the public discourse, the younger generations Y and Z want "the Foifer und s'Weggli": to work as little and flexibly as possible, but preferably for a high salary and in a working environment in which they can realize their potential and develop further. However, the results of the SME labor market study show that this view is only partially true. Although the companies' view coincides with the public perception in many aspects, more than a third of respondents cite flexible working hours (39 %) and a good work-life balance (38 %) as a greater need for younger than older employees, 33% state that younger employees are more likely to want to realize themselves at work than older employees.

However, a closer comparison of the generations shows that young employees do not have higher expectations than the older generation - on the contrary. From the perspective of SMEs, the over-30s even have significantly higher expectations of their employers. Contrary to the cliché that only younger employees demand flexible working conditions, the results of the SME study are very balanced with regard to these needs. A healthy work-life balance and flexible working time models are important for all age groups. However, there are clear differences when it comes to salary as a deciding factor for the choice of employer. Half of the companies surveyed found that salary is more important for employees over 30 than for employees under 30. Only 24 percent consider salary to be a higher priority for the youngest employees. Older employees therefore expect more material recognition for their work than generations Y and Z. However, immaterial aspects such as appreciation, team spirit or manners are also much more frequently demanded by older employees from the perspective of the SMEs surveyed.

Young people perform less and are less loyal - but not sick more often

Contrary to public perception, young employees demand less in return for their commitment. At the same time, their contribution to the company is also viewed less positively, as the feedback from the SME labor market study shows. Accordingly, younger employees show less responsibility and commitment than their older colleagues. The companies surveyed therefore confirm the common cliché that young employees perform less and only "work to rule". There were particularly large differences in the assessment of loyalty to the company. "Surveys show that younger employees are more willing to change jobs than older ones. This is also reflected in the survey results. At the same time, this perception should be put into perspective; after all, younger employees have had less time to prove their loyalty to the company than long-term employees," says Michael Hermann.

However, the assumption that younger generations are more likely to suffer from mental illness in the workplace is not confirmed. It is true that the resilience and mental robustness of the younger generation is also rated slightly worse than that of older employees. However, in the perception of the SMEs surveyed, employees aged 31 to 50 are more frequently affected by mental illness than those under 30 (23 % vs. 19 %). However, a majority of the SMEs surveyed (53 %) found no difference between the age groups. Accordingly, mental illness has an impact on working life regardless of generation.

Source: www.axa.ch