In Switzerland, managers are the sixth-largest occupational group.
Keystone / Christian Beutler
Despite the trend towards flat hierarchies, the number of managers is not decreasing but rather increasing. Here are the reasons as to why.
The current trend: in Switzerland, 8.7% of all employees are managers. This is according to the latest figures from July 2024 from the Federal Statistical Office (FSO). This means there are more than 400,000 people in managerial positions. This is an all-time high. Managers are the sixth-largest occupational group.
Why it’s surprising: the trend towards flat hierarchies has actually been in place in the economy for some time: Hierarchical levels should be reduced, everyone should be able to have a say, management should be “agile”. This should actually mean fewer bosses. These figures show the opposite.
The connection: It has to do with precisely this modern corporate management. Leadership expert Matthias Mölleney explains: “There are smaller units that need someone to take responsibility.” Leadership is different than it used to be, but the bottom line is that it can mean more managers. The Federal Statistical Office also brings more regulations and reporting obligations into play. This also requires managers.
Why this trend?: Matthias Mölleney cites yet another development: Titles would often be awarded instead of a pay rise. He says: “We live in times when wages cannot be increased indefinitely. But then you have an appreciation in the form of such a title.” According to business psychologist Christian Fichter, it is a common misconception that a management position goes hand in hand with high wages. He also speaks of a “title inflation”: numerous management tasks, disguised with English terms, were previously not titles.
Christian Fichter is Head of the Institute of Business Psychology at Kalaidos University of Applied Sciences.
Matthias Mölleney heads the Centre for HR Management & Leadership at the Zurich University of Applied Sciences.
What are the consequences?: “Many managers have become managers even though they shouldn’t have,” believes Christian Fichter. “They may lack social skills, intelligence – intelligence is an underestimated factor – and resilience. And they generally lack the ability to lead people,” says Fichter. These people are then often overwhelmed, which in turn causes employees to suffer. Both experts point out that the idea of a management job – influence, freedom to organise – often does not match the reality.
What needs to change: “Companies need to get a different understanding of leadership,” says Matthias Mölleney. “They have to commit to flat hierarchies, they have to really want the,” says Mölleney. That would mean inverting the pyramid: where previously the boss was at the top, there should be the mass of customers. These should be followed by the employees who fulfil the customers’ wishes. “And then it wouldn’t have to go quite so far down,” says Mölleney. In other words: fewer hierarchies, but controlled by the customers, not by numerous managers.
Translated from German using DeepL/amva
