According to the IW-Survey on the Balance between Flexibility and Stability most companies cultivate a management style that simultaneously aims to flexibilise and stabilise employment relations as well as work processes. Thus, flexibility and stability are rather complements than substitutes. This resulting management style can be characterised as the existence of trust in the responsibility of employees, the ambition that workers are to act likewise entrepreneurs, the implementation of annual consultations between the manager and the individual worker and the commitment of managers to promoting job satisfaction and motivation. The survey also shows that the likelihood of pursuing a combined flexibility- and stability-orientated approach is significantly higher in innovative and very successful companies. This holds also for specific personnel and organisational policies.
Download | PDF
The German labor market is on the verge of a fundamental upheaval. While the number of people in the labor force has risen steadily in recent decades, it is likely to drop significantly as soon as the baby boomers retire.
The demographic transition is confronting Germany with a growing shortage of skilled workers. In a simple, static labor market model, wages in occupations where the demand for labor is high should rise at an above-average rate to restore market equilibrium.