Career development and outplacement services increasingly in demand

In the present three-year comparison by Grass & Partner AG for the period 2016-2018, a rethinking with regard to new orientations and succession arrangements is becoming apparent, particularly among SME management and board members. The reasons for this lie in the current changes on the labor market. Structural change, economic influences and, above all, digitalization are leading to new requirements in terms of skills and culture. More diversity, primarily in the sense of educational, talent and age diversity, is in demand. Those affected are therefore increasingly using professional support for career development and outplacement. The three-year survey by the company, which is one of the leading outplacement providers in Switzerland, is based on a survey of around 700 management employees and specialists from a wide range of industries.

Increasing pressure increases demand for outplacement services

The current study shows that the pressure on employees with staff and management functions has increased further. The rate rose from 23 percent in 2017 to 30 percent of those undergoing reorientation in 2018. The reasons for this lie largely in economic and technological developments, which are also confronting management levels with new requirement profiles.

The more stable economic situation overall last year had a positive effect on the industrial sector. Here, the current three-year survey by Grass & Partner AG records a decline in those in the new/outplacement process from 22 percent in 2017 to 11 percent in 2018. The care rate in the retail sector decreased from 10% in 2017 to 7% last year. The public sector also recorded a decrease in separations. The rate decreased from 11% in 2017 to 7% in 2018. Both the services and IT sectors came under pressure last year. They recorded a significant year-on-year increase in separations from 5% to 12% and from 11% to 16% respectively. There was also an increase in the use of outplacement services in staff and management support functions: The share there has increased from 23% in 2017 to 30% in 2018.

Continued positive trends for older employees

Another trend on the labor market can be seen in the area of older employees. Here, the current three-year survey reflects a strong increase in the number of over-50s and over-55s. Thanks to successful professional support, their chances for professional reorientation have improved significantly. Based on all of last year's newplacement mandates, Grass & Partner was able to reduce the time it took for the individuals concerned to start a new job from 6 months in 2017 to 5.6 months in 2018. The current high demand for experienced employees and know-how carriers in the booming SME environment has certainly contributed to this development. For this clientele, the focus is increasingly on succession planning, shareholdings and company takeovers.

Women grab their chances

The current figures on the presence of women in the executive floors of Swiss companies are on the decline. This is matched by the fact that Grass & Partner is recording a steady increase in female executives who receive targeted support in the area of career development or initiate it themselves. This is certainly also with the intention of proactively counteracting this trend. The next three-year survey may provide information on further developments in the Swiss labor market in this regard.

Grass & Partner conducted the first study of this kind for the years 2005 to 2007. Since then, the company has been conducting the three-year surveys, providing relevant information on the labor market situation in particular to members of management bodies as well as at cadre level.

Source and further information: www.grassgroup.ch

Another recent article on the topic of outplacement services can be found at here.