Findings Reveal: 84% of Companies Encounter Shortage of Skilled Workers - Eighty-four percent of businesses encounter a shortage of skilled labor, according to the study.
Let's slide into the nitty-gritty of the problems that German businesses are currently grappling with. According to research, a whopping 84% of German companies are reeling under a skills shortage, making it a widespread issue across industries [1]. One researcher from the Institute for Employment Research (IAB) has aptly summed up the situation: "The skills shortage remains the most frequently cited problem across industries" [2].
Aside from the skills shortage, another nagging issue is high wage costs, particularly for start-ups and mid-sized enterprises that must strike a delicate balance between competitive salaries and maintaining financial stability [3]. Furthermore, absenteeism—often a symptom of workforce stress or dissatisfaction—also poses challenges [4].
Looking ahead, things aren't looking rosy. Approximately two out of three businesses anticipate struggle to secure sufficiently qualified workers in the future, with concerns being especially pronounced in the construction industry [5]. But, fret not, for not all is lost.
A multitude of measures are being proposed and implemented to combat this skills shortage, chief amongst them being measures to improve training and education, personnel development, and work-life balance [6].
While the labor shortage is less pronounced in simple tasks, such as helper roles, it is still palpable, particularly affecting industries such as hospitality, temporary work and security services, agriculture, and mining [7]. It's high time we dive deeper into the possible solutions to tackle this conundrum.
Facing the Future: Solutions Pipeline
The German government intends to tackle the skills shortage issue head-on by incorporating the Skilled Immigration Act (expected to be fully implemented by mid-2024). This legislation aims to ease the arrival of skilled workers from abroad by simplifying qualification recognition, slashing EU Blue Card salary thresholds, and expanding eligibility criteria, particularly for IT professionals and healthcare workers [8].
The Act is poised to facilitate the integration of skilled workers by introducing an Opportunity Card. This document allows these workers to live and work in Germany temporarily while seeking employment, even if that employment is part-time. Additionally, family reunification provisions have been enhanced [8].
On the corporate front, young companies are zeroing in on strategies to create appealing working conditions, focusing on long-term personnel development, work-life balance, further education, and in-house vocational training to retain skilled employees. They mainly rely on their own recruitment and retention efforts [9].
Last but not least, Germany is streamlining visa and immigration processes through digitalization, including online visa applications and automated permit renewal alerts. Companies are also leveraging HR tech solutions to oversee compliance, onboarding, and retention of growing numbers of international skilled workers, ultimately supporting an efficient and effective response to the skills gap [8].
In conclusion, German businesses are caught in a vicious web of challenges stemming from skills shortages, wage costs, absenteeism, and global uncertainties. To facilitate a way out of this maze, the German government is pushing through the Skilled Immigration Act, supported by corporate strategies that accentuate working conditions, personnel development, and digital HR technologies. Stakeholders must work together to empower businesses, especially start-ups and SMEs, to navigate these challenges, fostering growth, innovation, and retention of skilled talent.
[1] Institute for Employment Research (IAB) research report[2] Germany announces plans to attract skilled workers amid skills shortage[3] Germany's Skilled Immigration Act[4] The Global Competitiveness Report 2020-2021[5] The State of the German Economy 2022[6] German businesses' perceptions of skills shortages and how they address the issue[7] The Local: Recruitment strategies for businesses in Germany[8] Official details of Germany's Skilled Immigration Act[9] Shaping a Talent-Friendly Society: Germany's HR Tech Approach
- The German government is actively addressing the skills shortage by implementing the Skilled Immigration Act, which aims to simplify the arrival of skilled workers from abroad and increase eligibility for IT professionals and healthcare workers.
- In response to the skills shortage, many young companies are focusing on creating appealing working conditions, including long-term personnel development, work-life balance, further education, and in-house vocational training to retain skilled employees.
- Approximately two out of three businesses are concerned about their ability to secure sufficiently qualified workers in the future, with the construction industry expressing particular concern.
- In addition to government legislation and corporate strategies, Germany is streamlining visa and immigration processes through digitalization, providing HR tech solutions to support the recruitment, onboarding, and retention of international skilled workers.
