Generational turnover in SMEs: a challenge in the evolving labor market

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The Italian labor market is undergoing a deep transformation, characterized by complex dynamics and significant challenges for small and medium-sized enterprises (SMEs). One of the most relevant issues is generational turnover, which continues with difficulty, as highlighted by a survey conducted by I-AER (Institute of Applied Economic Research) on a sample of 541 SME entrepreneurs.

According to the survey results, over the past three years, more than half of SMEs have maintained a stable percentage of workers over fifty, while in one in four companies, this share has even increased. This phenomenon is also confirmed by national data: in 2024, employment in Italy increased by 352,000 units, but more than 80% of this increase involved people aged over 50.

From a regulatory perspective, the legal implications are equally significant. Vincenzo Fabrizio Giglio, an expert in labor law, emphasized that, according to Italian law, decisions based solely on age could be considered discrimination. Regulations aimed at individuals over 50, therefore, aim to balance disadvantaged situations, seeking to prevent age from becoming an obstacle to full workforce integration.

Another critical aspect is the perception by companies of the costs associated with generational turnover. Giglio points out that many businesses fear the costs related to the onboarding of new employees, especially during training periods, which in some sectors, particularly highly skilled ones, can be particularly significant. Other obstacles include the costs of separation if a newly hired employee proves unsuitable after a trial period, which is often insufficient for a proper evaluation of the candidate’s skills.

Furthermore, another factor contributing to resistance to generational turnover is the higher propensity of young people to change jobs, a factor that is more commonly observed among those who have recently entered the workforce, according to Giglio.

These dynamics make it necessary to reflect on possible corrective measures, particularly regarding key tools such as the trial period and apprenticeships. If properly reformed, these tools could facilitate a smoother integration of younger generations into the labor market, allowing SMEs to renew themselves without compromising the quality and continuity of their human capital.

In conclusion, generational turnover in Italian SMEs remains a complex challenge, requiring a strategic vision and strengthening policies to support the integration of young people into the labor market, while also ensuring balanced intergenerational integration.

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