The Executive Talent Challenge in the DACH Region
The DACH region (Germany, Austria, Switzerland) remains one of Europe’s strongest economic engines. Yet beneath this strength lies a growing vulnerability: a shortage of executive talent.
For mid-sized firms in particular, the challenge is not just about finding leaders. It is about finding leaders capable of navigating global competition, digital transformation, and the unique culture of the Mittelstand.
Demographic Pressures
Demographics are working against the region. A significant share of executives is approaching retirement, leaving leadership gaps that cannot easily be filled. At the same time, fewer young professionals aspire to careers in mid-sized or family-owned firms. Many are drawn instead to the stability of large corporates or the excitement of start-ups.
The result is a shrinking pipeline of future leaders for ETIs. Companies that once relied on predictable generational succession now face real uncertainty about where the next wave of leaders will come from.
Global Competition
The scarcity of talent is compounded by the fact that the best executives in the DACH region are no longer recruited only locally. They are targeted globally by multinational corporations offering highly attractive packages, international exposure, and access to cutting-edge innovation.
This global war for talent puts ETIs in a difficult position. While they offer cultural authenticity and stability, they cannot always match the scale, resources, or international visibility of larger players. As a result, retaining top leaders has become just as challenging as attracting them.
What Attracts Leaders Today
To remain competitive, ETIs must rethink their employer value proposition. Salary remains important, but it is far from the only factor. Executives increasingly value autonomy in shaping their roles, a long-term vision that extends beyond quarterly results, and a culture that feels both authentic and meaningful.
Here, the Mittelstand model can become a unique asset. Its legacy of continuity, values, and entrepreneurial spirit resonates with leaders who are tired of short-term corporate pressures. But this strength only works if it is clearly communicated and supported by modern governance structures.
Strategic Levers for ETIs
Attracting and retaining leaders in the DACH region requires a deliberate strategy. Three priorities stand out:
Strengthen employer branding by showcasing the firm’s cultural assets, values, and long-term vision.
Modernise governance to include flexibility, transparency, and decision-making frameworks that appeal to new generations of leaders.
Expand international exposure within leadership roles, giving executives the opportunity to operate across borders and compete on a global stage.
From Scarcity to Opportunity
Talent scarcity in the DACH region is not a passing trend, it is a structural challenge that will define the next decade.
But for mid-sized firms that position themselves well, it also represents an opportunity. By aligning their culture and governance with the expectations of modern executives, ETIs can stand out as employers of choice in an increasingly competitive market. Those who act now will not only fill roles but also strengthen their long-term resilience.
