Demographic change – the role of Boards in preparing for the future
swissVR Monitor I/2025 – a survey of board members in Switzerland
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Summary
The impact of demographic change is already evident in many companies. More workers are retiring every year, with record levels expected by the end of this decade. At the same time, fewer young people are entering the labour market. Meanwhile, improved life expectancy means the number of older consumers is increasing, and this group is an attractive target market for many businesses. But whether companies are able to make use of demographic change primarily as an opportunity rather than as a risk depends largely on their Board of Directors. This edition of swissVR Monitor therefore takes a closer look at how prepared companies are for demographic change and how their Boards are discussing the challenges it represents.
Key findings
Cautious rating of the economic outlook
Swiss Board members are less optimistic than in H2 2024 in their rating of the economic, sector and business outlook over the next 12 months. Their rating of the prospects for their sector and their company continues to reflect the long-term average. The major factors they see influencing the outlook for business over the next 12 months include weak sales in neighbouring markets, a possible US trade war and geopolitical tensions.
Economic, sector and business outlook over the next 12 months [swissVR Monitor II/2020 to I/2025]
Question: How do you rate the prospects for the Swiss economy / sector / your company over the next 12 months?
Note: Neutral answers are reflected in the difference between the sum of positive and negative answers.
Demographic change already a reality for many companies
Demographic change is often perceived as a future trend, but 40% of Swiss Board members report that its impact on their company is already evident. One in five expect its impact to become evident over the next three years, while one in three think it will take more than three years before the company feels the impact. Boards in large companies are more likely than those in small companies to report the impact of demographic change is already evident.
Impact of demographic change on Switzerland
Question: What impact do you think demographic change will have on the following areas of the Swiss economy?
(1 = very small impact; 6 = very large impact)
Sufficient expertise, but more time could be invested by the Board of Directors
The picture that emerges of how Swiss Boards are tackling the issue of demographic change is uneven. Nearly 90% of Board members surveyed think their Board has sufficient expertise to assess the impact on their company of demographic change. However, only just over half feel their Board takes the time it needs to tackle this issue.
Statements about demographic change and Boards
Question: Please rate your agreement with the following statements about your Board of Directors.
Board members think the state needs to do more
Board members would welcome a number of government measures over the next decade to tackle demographic change. Virtually all Board members would like the state to continue to provide tax relief on pensions, while around 90% would welcome measures to increase tax incentives for employees who continue working after retirement, to make labour law more flexible in relation to weekly hours of work, and to manage migration in line with business needs.
State measures in response to demographic change
Question: What measures should the state implement over the next ten years in response to demographic change?
Key issues for the Board of Directors
|
Rank I/2025 |
Rank II/2024 |
Issues |
|
1 |
2 |
Formulating a new corporate strategy |
|
2 |
1 |
Risk management |
|
3 |
3 |
HR challenges at management level |
|
4 |
3 |
Improving efficiency / optimising internal processes |
|
5 |
9 |
Digitalisation / robotics / automation |
|
6 |
5 |
Talent (recruitment, retention, etc.) |
|
6 |
- |
Corporate transactions (acquisitions, cooperation arrangements and mergers) |
|
8 |
6 |
Responding to market developments / behaviour of competitors |
|
8 |
7 |
Compliance (with legislation and internal codes of conduct) |
|
10 |
7 |
Sustainability / corporate social responsibility |
Interviews
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About the survey
swissVR Monitor is based on a survey carried out jointly by swissVR in collaboration with Deloitte and the Lucerne University of Applied Sciences and Arts. The aim of this bi-yearly survey is to gauge Board members’ attitudes to the outlook for the economy and business as well as corporate governance issues. swissVR Monitor also aims to share with the wider public the ways in which Board members perceive their role and the current economic situation. Each edition also explores a special focus topic and conducts interviews with experts. A total of 360 Board members took part in the current edition of swissVR Monitor, providing a good overview of the views and challenges facing board members in Switzerland.
