Business managers: skills opportunities and challenges (2023 update)

Summary

In 2022, business managers account for around 1.4 per cent of the overall employment in the EU. They are important in coordinating activities towards greater digitalisation, better effectiveness, and circularity within EU businesses. 
Business managers fulfill various roles in planning, organising, controlling, and coordinating several activities within an enterprise or an organisation. These include financial, administrative, human resource, policy and planning, research and development, advertising, public relations, and sales and marketing activities. Jobs within this group include financial human resources, project, department, advertising, public relations, and corporate social responsibility managers. 

Key facts

• Around 2.6 million people were employed as business managers in 2022, which accounts for 1.4 per cent of total EU employment in the same year. 
• Between 2012 and 2022 overall employment stayed at similar level. Over the same period employment across all occupations in the EU increased by almost eight per cent.
• Employment decreased by 50 thousand workers between 2012 and 2019.  
• Between 2019 and 2020, during which the EU experienced economic lockdowns, 110 thousand business manager jobs were lost. Employment fully recovered in the following year, and by the end of 2022, there were 87 thousand jobs above the pre-Covid-19 level.
• Almost half (49 per cent in 2021) of business managers are employed in the wholesale and retail trade, manufacturing, and the professional, scientific, and technical activities sectors. 
• In 2021, more than three quarters of business managers (76 per cent) obtained a qualification level of ISCED 5 or above, equivalent to the education level achieved after completing upper secondary education/ post-secondary non-tertiary education. The qualification level of the occupation is not expected to change over the period to 2035.
• Slightly more than half of business managers are men. In 2021, 58 per cent of business managers were men. 
• The employment of business managers is projected to slightly increase between 2022 and 2035.
• By 2035, employment in the occupation is expected to grow by almost 200 thousand jobs. However, a much larger number of business manager jobs will need to be filled over the same period. This is because an estimated 1.5 million people are expected to leave the occupation mainly due to retirement. Considering also the expansion demand, this means that an estimated 1.7 million job openings will need to be filled between 2022 and 2035. 
• The skills required by business managers in the future will be affected by the latest digital technology developments such as FinTech and digital marketing. Awareness over sustainability issues will also be needed to prepare enterprises for the green transition.

Employment and job demand

Employment trends for business managers were very similar to all manager jobs in the past decade. Larger employment drops, such as the one during the Covid-19 pandemic, were compensated by faster recovery in the growth years.

Figure 1: Year-to-year employment change for business managers (2013-2022)

Source: European Labour Force Survey. Employed persons by detailed occupation (ISCO-08 two-digit level) [LFSA_EGAI2D__custom_7778289]. Own calculations.

In 2021, more than half (57 per cent) of business managers were engaged as business services and administration managers. They participate in formulating and administering policy advice and strategic and financial planning within an enterprise and monitoring and evaluating strategies and policies. They also consult with and advice the chief executive and managers of other departments or sections on various issues. 

In 2021, around two fifths of business managers were engaged as sales, marketing, and development managers. People employed in these jobs are those who plan and manage activities related to advertising, sales, marketing, public relations, and research and development within an enterprise.

Between 2016 and 2021, the share of employment accounted for by these two occupations slightly shifted. The share of business services and administration managers declined between 2016 and 2021, while the share of sales, marketing, and development managers increased over this period. 

Figure 2: Employment in business manager jobs (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

In the OJAs, sales, marketing and development managers are more frequently requested than the business services and administration ones. It may reflect higher job demand for these roles, supporting the employment shift observed in recent years, but also higher job turnover for sales, marketing and development managers. 

For more details on skills demand and job openings for this occupation,  please access the Cedefop’s Skills OVATE tool.

Figure 3: Online job advertisements for business managers (2022, in %)

Source: Skills in Online Job Advertisements indicator based on Cedefop’s Skills OVATE. Own calculations. Note: Online job advertisements are by definition not equivalent to job vacancies. See Beręsewicz (2021) or Napierala et al. (2022).

In both 2016 and 2021, about half of business managers were distributed across three economic sectors, namely the wholesale and retail trade, manufacturing, and the professional, scientific, and technical activities sectors. In 2021, the share of business managers employed within these three sectors was almost 50 per cent. Other sectors where a notable share of business managers is occupied are the information and communication and the public administration and defence sectors, which in 2021 employed 8 per cent and 7 per cent of business managers, respectively. 

Figure 4: The top sectors employing business managers (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

The share of employment is highest in Latvia and lowest in Italy (Figure 5). 

Figure 5: Business managers as a share of overall country employment (2021, in %)

Source: European Labour Force Survey. Microdata. Own calculations.
Note: Data for CY, EE, IS, LV and LU have lower reliability because of small sample size.
LFS data for MT are not available. 

The majority of the workforce is comprised of men. In 2016, 61 per cent of business managers were men compared with 54 per cent in the economy as a whole. In 2021, male employment accounted for 58 per cent of employment, compared to 54 per cent across all occupations.
More business managers are aged over 50 compared to the age average across all occupations, even though the occupation appears to age relatively slower compared to overall employment (Figure 6). In 2021, over one third of business managers were aged 50 to 64 years compared with 28 per cent across all occupations. 

Figure 6: Business managers by age (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

The services offered by business managers are frequently needed on a permanent basis within enterprises. This is to some extent reflected in the share of business managers reporting part-time or temporary employment (see Figure 7). These are considerably lower compared to the shares across all occupations. 

Figure 7: Contract and hiring trends for business managers (in %)

Source: European Labour Force Survey. Microdata. Own calculations.

Skill needs and future trends

As with other managerial jobs, business managers’ skill needs focus on communication, innovation or presenting, while digital skills – not just office tools, but also specialised software or even databases – are also highly needed.

Changing skill needs also indicate a higher need for further training – both overall and digital upskilling needs are higher than all occupations average.

Figure 8: Skills, training needs and job perception of business managers (in %)

Source: European Skills and Jobs Survey. Microdata. Own calculations. 
Unless stated otherwise, it is a share of people reporting that a task/skill is part of their job.
*Always or often
** Share of workers reporting these needs to a great or moderate extent.

Cedefop’s Skills forecast provides a detailed view of the future demand for business managers. Overall, employment for business managers is expected to increase more than the average across all occupations over the period 2022 to 2035. This means that, compared with 2022, there will be about 192 thousand more business manager jobs.

Future employment growth will be registered across most countries, but its level will vary by country. Figure 9 compares the employment growth experienced over the relatively recent past (2011-2021) to that projected to take place in the future (2022-2035).  Portugal, Slovakia and Romania are among those with the highest past and expected future growths, while Finland, France and Hungary represent the opposite trend.

Figure 9: Past and expected future employment trend of business managers

Source: European Labour Force Survey. Microdata. Cedefop Skills Forecast.
Note: Data for CY, EE, IS, LV and LU have lower reliability because of small sample size. 
LFS data for MT are not available. 

New job creation is, however, not the main driver behind job demand. Most job openings are a result of people leaving them for other opportunities, or those leaving the labour market completely (retirements; parent leave, etc.). This replacement demand is much more substantial, and in the case of business managers, it stands more than seven times as much as new job creation, as it is estimated at around 1.5 million (Figure 10). 

Overall, when the expansion demand is added to replacement demand, an estimated 1.7 million job openings for business managers will need to be filled between 2022 and 2035.

Figure 10: Future job openings for business managers (000s)

Source: Future job openings indicator based on the Cedefop Skills forecast. Own calculations.

More than three quarters (76 per cent) of business managers held high-level qualifications in 2021 (i.e. at ISCED levels 5 or above). This is not projected to change much by 2035. The share of workers with low levels of qualification (ISCED level 2 or lower) is projected to stay very low in 2035, while the share of medium qualified workers (i.e., those qualified at ISCED level 3 or 4) is projected to decline to 20 per cent.

Looking ahead

The skills required for business managers are being continuously shaped by megatrends such as demographic and technological change, and transition to more environmentally friendly practices. The impact of these drivers can vary depending on the specific sector and the nature of each manager’s job. There are however developments that affect in one way or another the business managers across all sectors. These include technological progress, the acceleration of green transition by the European Green Deal, and the need for resilience and adaptability against unanticipated crises affecting the business world.

• Technological developments penetrating the business world affect everyday operations in various sectors. The effects of technology work of business managers may vary depending on the sector in which they are employed. Overall, this occupation is not threatened by automation but it will need to adapt to using a variety of digital tools in tasks such as information analysis and knowledge management to reach concise decisions.
• Turning innovations like big data, blockchain, the internet of Things and artificial intelligence into opportunities for business development depends on management’s ability to harness digitalisation (Sestino et al, 2020). Digital literacy will continue to be an important competence for business managers with implications for continuous learning on the use of software and skills. For example, big data analytics can significantly improve various human-resources related processes such as candidate screening in recruitment processes (Hamilton & Sodeman, 2019). Yet, it also requires knowledge of and compliance with regulatory frameworks like the principles of the European data protection regulation.
• Managers working in the banking and financial sector will need to embrace and adapt to ‘FinTech’ (Financial Technology), which includes the use of a range of technologies like blockchain. FinTech is revolutionising the provision of financial and banking services in investment management, customer management, regulatory compliance, integration of technology, security and privacy, and risk management (Lee & Shin, 2018).
• Marketing managers need to quickly adapt and learn about new tools and opportunities available via digital marketing to showcase their companies or clients in the cloud. Targeted advertising is the new focus of digital marketing, facilitated by data analysis (Bibby et al, 2021). The newly arrived ‘metaverse’ and blockchain are other technologies set to impact the future of marketing (Mager & Matheson, 2023). Adequate digital literacy is needed to successfully orientate in this rapidly changing field. Communication between marketing and other departments within a company will be crucial to optimise marketing strategy and ensure the best possible result. Critical and analytical thinking are important to ensure managers have the ability to gauge the potential of new technologies for their marketing schemes and take the right marketing decisions.
• The use of AI promises to supplement business managers’ intelligence in strategic decision-making. For example, in marketing, AI can assess different outcomes of alternative strategies, identify results of brand investments, and identify target audiences and suitable advertising campaigns (Stone et al, 2020).
• The green transition is a cross-cutting development affecting the future business development plans throughout sectors. Knowledge and implementation of sectoral sustainability related regulation will form an integral part of future business planning and strategy-making in the EU. Knowledge of the European Green Deal (EGD) related legislation will be needed across sectors, but administrative and commercial managers - and particularly those employed ins sector such as construction and manufacturing and in large energy-consumer firms - may need to adapt to fundamental changes in firm operation. This requires not only formal knowledge about the potential of green technologies, but also skills like agility and effectiveness in decision-making to take the right decisions and guide their implementation. According to a recent survey, most businesses in the EU are not  familiar with and prepared for the EGD.  They lack a comprehensive strategy to respond to the fundamental business and value-chain transformation set out in the EGD, as it affects procurement, supply-chain management, manufacturing, finance, Environmental, Social and Governance (ESG) and human resources (PWC, 2022). This calls for further education and training for business managers, as they plan and coordinate the future activities of their organisations.

• Transversal skills related to crisis and resource management, resilience, and adaptability will be needed to cope with future disruptions in business activity such as the recent pandemic and Russia’s war in Ukraine. The pandemic affected business operations significantly and required swift emergency responses from business managers. New forms of business operation emerged, such as adapting to changes in consumers’ behaviour, accommodating labour flexibility, adopting corporate and individual social responsibility, creativity, and increasing digitalisation (Rodrigues et al, 2021). Smaller enterprises proved to be more resilient that larger ones (see the box below), which might indicate that those running larger firms (such as business managers) need greater agility in doing so. Russia’s war in Ukraine contributed to increasing energy inflation and material shortages. This has led to developments towards the use of alternative energy sources. Business managers in energy production are rethinking their investment portfolios (see for example the case of this Greek company). These two ongoing challenges highlight the need for resilient, stress-tolerant, strategic, adaptable European business managers. Such competences require skills like time, materials and budget management, assessment and monitoring of performance at personal and team level, and coordination and optimisation of available resources.

Demographic changes and the move towards a more service-based European economy highlight the need for managing human resources effectively. European workforce is ageing, and this creates troubles in filling the vacant positions of retirees. According to recent Cedefop research, servitisation hollows out the middle of EU’s occupational distribution, putting additional pressure in filling middle-skilled vacant positions. Shortages of skilled workers are already appearing in sectors such as care and construction. A sector’s reputation as being “dirty” or having bad working conditions may also contribute to that. Attracting and managing young workers will not only need adequate communication skills, but also effective retention strategies. Ensuring career progression opportunities, maintaining work-life balance and developing mentorship relationships are some of the necessary strategies according to recent studies. Business managers need to come up with tailored solutions that fit their own company and the respective sector.

The demand for a diverse set of skills will continue to shape the future of business managers. Keeping up with technological change and sustainable development in a crisis-ridden and globally connected world to plan and formulate organisational strategy requires a mix of technical and soft skills and professional experience, shaped by the imperative of adaptability and lifelong learning.

Business managers typically complete between three to six years of higher education. Business schools around Europe are increasingly incorporating courses on sustainability and digital technologies to ensure the graduates’ fit to the labour markets of the future. Erasmus+ projects like the DEMS (Developing E-marketing Skills for the Business Market), CHAISE, and B-Skills constitute example of good practices in training for emerging skill needs in the business world. The ongoing DEMS project aims to develop new training courses for e-marketing skills in the business market. An analysis of current marketing curricula in conjunction with a company needs analysis survey will inform the composition of open access learning/teaching modules for digital marketing. The CHAISE Skills Alliance project aims to develop a strategic approach on blockchain and distributed ledger technologies development for Europe and deliver training material that will help tackle blockchain skill shortages. The objectives of the project include an innovative 5-semester Blockchain VET Programme that will address technical, non-technical & cross-discipline skill needs and will be available in 11 EU languages. In a similar way, the B-skills project is engaged in developing flexible training material to enhance the skills of adult learners in Blockchain.

However, a higher education qualification will not suffice in the competitive world of future business as new developments will require constant up-skilling and learning. A lifelong learning approach is key to ensuring sustainable development of labour markets in Europe. Micro-credentials are considered a tool in the lifelong learning framework of Europe. They are certified short-term learning experiences, such as trainings or online courses. Offered in flexible formats, micro-credentials offer skills and knowledge development on a specific topic or challenge. Such short-run training can be used by business managers to enhance their soft skills, attitudes and values, or gain additional technical knowledge (e.g., on digital technologies). For example, the ongoing Erasmus+ Valuable Creativity project has developed a Massive Open Online Course for creativity in companies, that is targeted towards CEOs and managers. The course introduces successful case studies on the use of creative methods to bring forward new solutions of products, new markets, and new ways of work-organisation. Other examples of good practices include the Artificial Intelligence micro-credential (a set of online courses) provided by the Technical University of Denmark (see box below):

How to cite this publication:

Cedefop (2023). Business managers: skills opportunities and challenges. Skills intelligence data insight.

Further reading

Beręsewicz, M. and Pater, R. (2021). Inferring job vacancies from online job advertisements, Luxembourg: Publications Office, 2021. http://data.europa.eu/doi/10.2785/96387 

Bibby, C., Gordon, J., Schuler, G., & Stein, E. (2021). ‘The big reset: Data-driven marketing in the next normal’, McKinsey, 25 March 2021

Cedefop (2023a). Going digital means skilling for digital: using big data to track emerging digital skill needs. Luxembourg: Publications Office. http://data.europa.eu/doi/10.2801/772175

Cedefop (2023b). Skills in transition: the way to 2035. Luxembourg: Publications Office. http://data.europa.eu/doi/10.2801/438491 

Cedefop, Eurofound (2018). Skills forecast: trends and challenges to 2030. Luxembourg: Publications Office. Cedefop reference series; No 108. http://data.europa.eu/doi/10.2801/4492

European Commission (2019). The European Green Deal. COM(2019) 640 final.

European Commission (2020). A Renovation Wave for Europe – greening our buildings, creating jobs, improving lives. COM(2020) 662 final.

European Commission (2023). Energy strategy

European Commisison (2016). General Data Protection Regulation. REGULATION (EU) 2016/679. April 27th, 2016

Hamilton, R.H., Sodeman, W.A. (2019). ‘The questions we ask: Opportunities and challenges for using big data analytics to strategically manage human capital resources’, in Business Horizons, Vol. 63(1), pp. 85-98

IMT Atlantique (2023). Erasmus Mundus in Management and Engineering of Environment and Energy

Lee, I., Shin, Y.J. (2018). Fintech: Ecosystem, business models, investment decisions, and challenges, in Business Horizons, Vol. 61(1), pp. 35-46

Mager, S. & Matheson, B. (2023). ‘Rising technologies for marketers to watch’, Deloitte Global Marketing Trends 2023, published 24 January 2023

Napierala, J.; Kvetan, V. and Branka, J. (2022). Assessing the representativeness of online job advertisements. Luxembourg: Publications Office. Cedefop working paper, No 17. http://data.europa.eu/doi/10.2801/807500

Rodrigues, M., Franco, M., Sousa, N., Silva, R. (2021). ‘Reviewing COVID-19 Literature on Business Management: What it Portends for Future Research?’, in Sustainability, Vol. 13(11)

Sestino, A., Prete, M.I., Piper, L., Guido, G. (2020). ‘Internet of Things and Big Data as enablers for business digitalisation strategies’, in Technovation, Vol. 98

Stone, M., Aravopoulou, E., Ekinci, Y., Evans, G., Hobbs; M., Labib, A., Laughlin, P., Machtynger, J., Machtynger, L. (2020). ‘Artificial intelligence (AI) in strategic marketing decision-making: a research agenda’, in The Bottom Line, Vol. 33(2)

Tomaskovic-Devey, D., & Orellana R.  (2022). The Key to Retaining Young Workers? Better Onboarding. Harvard Business Review. May 12th, 2022.

Wood, J. (2023). ‘Europe’s small businesses proved resilient to COVID-19 pandemic disruption. Here’s what that means for SMEs’, World Economic Forum, published 3 January 2023