unveiled: 84% of german businesses plagued by skills deficit, wage pressures, and high absenteeism
Eighty-four percent of companies encounter difficulties finding skilled workers, according to the research study. - Majority of Businesses Struggle with Worker Skills Shortfall, According to Research
German businesses continue to grapple with a persistent issue: a ** skills gap. According to a study by the Institute for Employment Research (IAB), a staggering 84%** of businesses in Germany are currently grappling with this challenge.
Michael Oberfichtner, an IAB researcher, explained, "The skills gap remains the most frequently cited problem across industries." Other pressing factors include burdensome wage costs and elevated absenteeism.
In an alarming sign of things to come, about two out of three businesses are doubtful they'll secure adequately qualified workers in the future. The construction industry, in particular, shows significant concerns, with only a quarter not anticipating problems.
To combat this deficit, half of the businesses surveyed view continued education opportunities, personnel development, and work-life balance improvements as potential solutions.
However, 5% of the 15,000 businesses anticipate they'll have too many staff, particularly in the industry. "Industries like manufacturing, wholesale, and retail are feeling this burden the most," notes IAB researcher Ute Leber, citing weak external trade and the energy transition as key factors.
In 2022, approximately 55% of businesses reported feeling burdened by elevated wage costs, a 12 percentage point increase from the previous year.
While the labor shortage is less pronounced in simpler tasks like entry-level positions, it is still noticeable. One in three businesses expects difficulties in filling these roles. The hospitality industry, service providers like temporary work and security services, agriculture, and mining are disproportionately affected in this regard.
Battling the skills deficit
Although the IAB doesn't provide specific strategies to tackle the current skills gap in German businesses within the study results, various approaches are recommended from external sources:
- Increased Apprenticeship Remuneration: Companies in sectors experiencing a shortage of applicants have escalated apprentice salaries to lure young talent. This includes substantial increases in apprenticeship pay, with a 6.3% rise in tariff-based allowances by 2024, marking the highest since 1992.
- Eased Immigration Policies: Germany's Skilled Immigration Act aims to attract more international skilled workers by facilitating easier qualification recognition and expanding eligibility for the EU Blue Card.
- Strategic Recruitment and Retention: Young companies prioritize attractive working conditions, long-term personnel development, and improving work-life balance to retain skilled workers. They also emphasize in-house vocational training and presenting the company as an attractive employer.
- HR Technology Integration: The incorporation of HR technology is becoming more common, with a focus on simplifying processes like visa applications and qualification recognition, in line with broader automation trends in HR.
These strategies offer a multifaceted response to addressing the skills gap, encompassing both domestic talent development and international recruitment efforts.
In light of the skills gap persistently troubling German businesses and contributing to issues like wage pressures and high absenteeism, one potential solution could be an increase in apprenticeship remuneration for sectors experiencing a shortage of applicants. This might involve substantial rises in apprentice salaries and significant tariff-based allowance increases by 2024, mirroring trends since 1992.
Moreover, the strategic integration of HR technology could present an avenue for streamlining processes such as visa applications and qualification recognition, which might help address the skills gap from a broader automation perspective, making Germany more attractive to international skilled workers.
