Axa into a future without titles in Switzerland: the first large company to eliminate hierarchies in Switzerland

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For many companies in the financial or pharmaceutical sectors, these are the most important moments of the working year: promotions. The page containing the appointment of new managers or vice presidents is the most visited page on the intranet in many companies. The next step on the career ladder is often celebrated with a lively aperitif.

While some celebrate it, others blame it on disappointment; Because once again this year, the hoped-for rise in the hierarchy did not work. Because this is not only good for the ego, but also for the wallet: Promotions are often associated with a significant increase in wages.

But that’s all over now. At least Axa is in Switzerland. The insurance group removed all titles from the organizational chart and business cards at the beginning of 2024. In the future, there will be no more female directors, vice presidents or vice presidents.

cultural change

A consistent step: “We started removing the privileges of the team earlier,” explains Axa human resources manager Daniela Fischer (47) in an interview with Blick. “Personally, I have never been a fan of status titles or symbols.” Because they support outdated, hierarchical structures and “no longer fit the culture we strive for at Axa.”

The insurer’s goal is a work organization where everyone meets at eye level and employees can make profitable contributions to the company at meetings, regardless of their positions.

“The removal of titles fits well with the rapidly changing business world. “This opens up completely new design possibilities,” Fischer is convinced. For example, responsibility is distributed on more shoulders. Of course, Axa is not run on a grassroots democratic basis, but individual teams and employees have much more decision-making power than before.

consistent step

To achieve this, the insurance group redefined 13 levels of responsibility and 450 job profiles. This outlines the most important tasks, requirements and area of ​​responsibility. It was a fluid process as there was internal criticism of these profiles. “We still need to improve the explanation,” Fischer admits. “Sometimes there is still too much of the old world in job profiles.”

St. Heike Bruch (57), Professor of Leadership at the University of St. Gallen, is interested in new ways of working and the attractiveness of employers. It can learn a lot from the development at Axa: “If a company wants to operate in a less hierarchical and therefore more modern way, the elimination of titles and status symbols is a very logical step.”

Advantage: This system is less exclusionary and exclusionary, but rather more integrative. “Axa is definitely a pioneer in the financial industry,” says Bruch. Especially in periods when there is a shortage of skilled workers, Axa makes itself more attractive in the job market. “This attracts people who want to work more agile.”

Popular among men

Especially young people. In hierarchically managed companies, they often have to wait a long time for promotions. The potential for disappointment is accordingly high. “With 13 levels of responsibility, the developmental steps in the career ladder are smaller,” says the Axa human resources manager. “The hierarchy of responsibility meets the younger generation’s desire to make a difference in the company as quickly as possible.”

But Bruch warns that experienced workers may leave: “For some people, having a title is still very important. “As motivation, but also as proof that you have accomplished something.” First of all, reducing titles only works if it is authentic and the culture truly encourages collaboration and less hierarchical leadership. “If changes only start on the surface, it demotivates everyone involved,” says Bruch.

Employees stay on board

Axa was also aware of this danger and prepared its employees for cultural change for months. Successfully: “Only four out of 4,200 employees have not yet signed the new employment contract,” says Fischer, proudly.

Along with the removal of titles, Axa has also introduced a new compensation system that promises greater transparency, especially regarding bonuses. The bonus amount is now fixed in the employment contract. Is the variable share the same for all employees at the same level?

If the company is doing well, management and the board of directors (not directly at the top) decide how much of the predetermined bonus will actually be paid. Fischer: “This provides more transparency and is less arbitrary than the old system.”

Source :Blick