SMEs fight for skilled workers and rely on flexibility

The shortage of skilled workers remains the biggest challenge for Swiss SMEs. In addition to competition from large companies and the state, the increased bargaining power of employees is increasing the pressure. More flexible working models are becoming key in the competition for talent.

August 2025

Despite rising unemployment figures, the labor shortage remains the dominant concern for SMEs. According to the latest AXA labor market study, 44% of companies had great difficulty filling vacancies, while a further 40% struggled with recruitment problems at least to some extent. Highly specialized specialists and managers are particularly in demand and difficult to find. At the same time, increasing staff shortages are causing further stress.

Competition from the state and corporations
Two thirds of SMEs feel under pressure from large companies and state institutions in the competition for talent. While SMEs score points with values such as team spirit, closeness and appreciation, they remain at a disadvantage when it comes to wages, career opportunities and pensions.

Team spirit beats specialist knowledge
Insufficient specialist knowledge is considered the most common recruitment problem. Nevertheless, the study shows that soft factors are often decisive. Almost three quarters of companies prefer applicants with better teamwork skills to candidates with stronger but less compatible specialist knowledge. Reliability and honesty are among the most sought-after qualities.

Diversity as a goal without clear implementation
More than half of SMEs state that they consider diversity to be important. However, concrete measures remain the exception, with only 45 percent having introduced corresponding programs. Particularly in the area of recruitment, diversity often remains a non-binding goal without strategic anchoring.

Employees with more power
The study shows a clear shift in negotiating power in favor of employees. Two thirds of SMEs see their employees in a stronger position. Higher wage demands, demands for flexible working hours and changed behavior characterize the situation. Larger SMEs in particular are clearly observing this development.

Flexibility as a response
More than half of the companies surveyed are responding with flexible working time models and part-time options. Individual solutions for workloads, additional benefits and social services complement the strategies. Although salary increases play a role, they remain secondary to flexibilization.

Outlook and succession issues
Despite the challenges, 91% of SMEs are optimistic about the future. Economic uncertainties, changing customer requirements and the lack of young talent are a cause for concern. Succession planning in particular remains critical. 44% of companies rate the search for suitable solutions as difficult.

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