The shortage of skilled labour will remain a major issue for companies in all industries worldwide in 2024. In order to categorise the issue correctly, it is first important to understand what officially qualifies an employable person as a skilled worker: The term covers all employable people who have completed either an academic degree or vocational training - so this could be a trained office administrator or a graduate in business administration.
There is a battle for expertise, practical experience and commitment on the international labour market - what is the status quo in Germany? What are the causes of the current shortage of skilled labour? What specific measures can companies take to find and retain well-trained employees in the future?
The status quo
Many companies in Germany are confronted with a shortage of qualified specialists. According to the latest Lünendonk study on the market for digital experience services in Germany (2023), 75 per cent of respondents see the prevailing shortage of skilled workers as the greatest threat to successful digital transformation and the achievement of long-term business goals. And this fear is entirely justified:
In May 2023, there were around 767,000 vacancies.
A decisive factor in this is often a lack of qualifications. This is shown by a study conducted by Statista with the Federal Employment Agency, which also includes the so-called skills gap in the survey: This term stands for vacancies that could not be filled because there were no qualified jobseekers for these positions.
To close this gap, on 23 June 2023 the Bundestag adopted comprehensive measures to combat the ongoing shortage of skilled workers. These include incentives for qualified immigrants, the promotion of diversity and the strengthening of initial and further training.
The causes
The shortage of skilled labour has many different causes, which can vary depending on the region and industry. These are some of the most common reasons for the shortage of skilled labour:
Demographic Change
In Germany, as in many developed countries, demographic change is leading to an increasingly older population. The retirement of a large number of experienced professionals is resulting in a shortage of skilled labor.
According to a survey by the Institute for Employment Research (IAB), Germany could lose around seven million workers by 2035 due to demographic changes.
Lack of Attractiveness of Employers
As the older generations of professionals retire in the coming years, the next generation of employees will enter the job market. Millennials and Generation Y-Z will comprise the majority of the workforce in the coming years. These generations have very different demands from their employers, and their preferences and expectations differ greatly from those of their predecessors.
According to the Deloitte Millennial Survey, 70 percent of post-Millennials would prefer an employer that offers hybrid working and home office options. Additionally, 25 percent of respondents cite the meaningfulness of their job as one of the most important criteria when choosing a company. These figures highlight that organizations must understand and respond to the needs of their target group to attract and retain the workforce of the future.
As Germany's leading Transactional Experience Partner, it is essential for diva-e to meet these demands. Therefore, we invest strategically not only in our products and services but also in our Human Resources. Personal freedom, individual training, remote work, and the option of workations are critical needs of our workforce. These are vital not only for maintaining a positive internal atmosphere but also for ensuring the willingness and motivation of employees to actively and passionately contribute to achieving our company's goals.
International Competition for Talent
Qualified and well-educated professionals in growing industries often have their pick of employers. In sectors that operate internationally, the global competition for talent is significantly higher than it was a few years ago. The option to work remotely for organizations abroad and the willingness to leave Germany is high among young talents, particularly in the software and IT industries.
Interested in jobs in this field? Check out our job listings.
Technological Advancement
The rapid digitalization across almost all industries requires completely new skills in many professions. New positions demanding high levels of expertise are emerging. The swift technological progress necessitates continuous education and skill adaptation. Many employees are not sufficiently prepared for the new demands of the digital transformation in their respective fields.
Measures against the shortage of skilled labour
Recruiting Internationally
According to Personio, without immigration, Germany would have about 33 percent fewer working people by 2060. Therefore, it is sensible for companies to start looking for talent internationally today, even though recruiting abroad comes with legal requirements such as residency and work permits. One focus of the Bundestag’s measures is the targeted integration of refugees to fill vacancies requiring specific expertise. Asylum seekers needed in the German job market will be allowed to stay in Germany, even if their asylum application is initially rejected. The prerequisite is that they must be professionally qualified and have a job offer or employment.
Companies need to understand that this is not an automatic process. Long-term collaboration requires investing in the integration of international employees, such as providing language courses or cultural programs.
Diversifying Positions
Filling open positions with a more diverse workforce not only expands the talent pool but also enhances employer branding. Companies that value inclusion and equality are perceived as more attractive employers, especially by young talent. This helps attract qualified professionals and boosts competitiveness in the long run.
To avoid bias in recruiting, application processes can be anonymized, focusing solely on qualifications and skills, ensuring decisions are made independent of gender, ethnicity, age, or other characteristics. Today, it is more important than ever for companies to position themselves as attractive employers to remain relevant in the job market. This not only aids in successful external recruiting but also strengthens internal employee retention. Learn more about how diversity is embraced at diva-e here.
Programs to Qualify Skilled Workers
Continuing education is also a key focus of the Bundestag’s measures. Training initiatives play a crucial role in minimizing the skills shortage by qualifying existing workers, attracting new talent, and meeting labor market demands.
Educational programs can enhance the skills and qualifications of current staff and promote the requalification of individuals from other professions. This allows employees to qualify for new tasks and requirements. Through training initiatives, workers from any industry can retrain in high-demand areas, expanding the pool of potential skilled workers. There are numerous training programs available for different sectors. Detailed information and options can be found on the website of the Federal Ministry of Education and Research (BMBF).
diva-e also offers graduates, returnees, or career changers opportunities to start a professional career in the digital field through the diva-e Campus. With diverse training programs, participants gain practical experience in working with various technologies, providing them with the know-how needed to start digital projects. Unlike many training programs, this education comes with permanent employment at diva-e with full salary. We offer this initiative for different digital areas and positions. Visit our diva-e Campus section to learn more.
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