Companies are facing an increasing labor shortage across many sectors. Marcel Keller, head of Adecco Switzerland, believes that developing employees' skills plays a crucial role in enhancing companies' competitiveness and attractiveness.
Despite a significant easing due to the current economic downturn, the labor shortage in Switzerland remains at a high level. According to the country’s leading business associations, nearly 430,000 workers could be missing from the labor market by 2040. Healthcare professionals, as well as construction site managers, electricians, and specialists in engineering, finance, and mathematics, are particularly in demand. To address these shortages, the federal government launched two sets of measures, in 2011 and 2019. Among other initiatives, a series of seven measures was developed to strengthen the competitiveness of older workers, help hard-to-place job seekers reintegrate into the workforce, and promote the professional integration of foreigners living in Switzerland. Marcel Keller, head of Adecco Switzerland, explains how companies can tackle this shortage.
Your latest study reported a decline in the labor shortage index. What are the prospects for the coming years?
Marcel Keller: The labor shortage will persist over the long term, mainly due to demographic changes and digitalization. To address this sustainably and maintain their own competitiveness, companies must invest more in their employees and offer targeted training and development programs.
Shouldn't digitalization actually help reduce the labor shortage?
Keller: Since last year, we have seen a growing easing of the shortage of skilled workers in some areas of software developers and IT application analysts. The use of AI in software development partly explains this relief.
However, the use of AI is also increasing the need for specialists to develop these technologies, maintain them, and ensure ethical responsibility. This could intensify the shortage of skilled labor in the short term. In the long term, companies will need to train their current employees in new technological tools to sustainably combat the shortage of skilled labor.
What strategies should Swiss companies adopt to attract and retain talent?
Keller: Adecco Group’s study Global Workforce of the Future shows that, aside from better opportunities at other companies, the second most common reason for resignations in Switzerland is a lack of investment in training and education. These findings highlight the importance for companies to invest in the development of their employees. Doing so not only creates career opportunities and prospects within the company but also helps boost employee satisfaction and retention. Considering the recruitment of people undergoing career transitions can also help fill gaps in the labor market.
Why is it important to retain employees aged 55 and over, even beyond the official retirement age?
Keller: It is a key lever in tackling the shortage of skilled labor. Given Switzerland’s aging population and the growing imbalance between the workforce exiting the labor market and those entering it, it is essential to keep experienced professionals in employment longer. Studies show that many older workers would like to continue working beyond retirement age but often lack the opportunity to do so. Without their active participation, it is becoming increasingly difficult for companies to meet the demand for skilled labor. Flexible working models and a corporate culture that respects all generations are therefore essential to remain competitive over the long term.
How is the labor shortage situation expected to evolve in Switzerland over the coming years?
Keller: Demographic trends will continue to worsen the situation. In addition, companies are increasingly facing unforeseen long-term absences and fluctuating staffing needs. Both factors make workforce planning even more challenging.
While the economic slowdown is leading to a slight easing in some sectors in the short term, the structural causes of the skilled labor shortage remain. Demographic changes and the advance of digitalization will continue to have a lasting impact on the labor market in the years ahead. Companies that want to stay competitive should therefore start developing long-term strategies now to secure their future staffing needs.
What advice would you give companies to optimize their recruitment?
Keller: First, companies should identify their staffing needs as early as possible and plan several years in advance. This enables them to better prepare for future market changes and avoid bottlenecks. Second, new employees should be trained and familiarized with company processes more thoroughly from the outset. This not only boosts their productivity but also strengthens their loyalty to the company. Finally, a positive work environment and the active promotion of inclusivity significantly contribute to employee satisfaction. Companies should take steps both to foster a culture of appreciation and respect, and to achieve the flexibility and healthy work-life balance necessary for long-term success.
