Struggling with Skills Deficit: 84% of German Businesses Feel the Heat
Majority of Businesses Struggle with Skills-based Workforce Deficiency (84%) - Major research indicates that a significant number, approximately 84%, of businesses encounter a shortage of competent workforce personnel.
Wish the hiring process was a walk in the park? Well, dream on, because for a whopping 84% of German businesses, that's just not the case. That's right, folks, the hunt for skilled workers remains the number one headache for businesses across industries in Germany, according to a study by the Institute for Employment Research (IAB).
"The skills deficit remains the most prominent issue, acknowledged across various industries," said IAB researcher Michael Oberfichtner. Other pressing concerns include hefty wage bills and sky-high absenteeism, the study reveals.
More than two-thirds of businesses are skeptical about their prospects of attracting qualified candidates in the foreseeable future. Things look particularly bleak in the construction sector, with only a quarter expecting to dodge the deficit bullet.
So, what can businesses do to tackle this skills deficit? According to about half of the 15,000 surveyed businesses, continuing education programs, employee development, and a better work-life balance could help.
But it's not all doom and gloom. While worries about labor shortage are less prevalent for simpler jobs like helper roles, they're still a thing. The hospitality industry, temporary work and security services, agriculture, mining, and other service providers are feeling the heat the most.
Now, Germany's not just sitting idly by. The government's taking steps to make the country more appealing to potential internationals. They're easing up on immigration policies, making it a breeze for skilled professionals to move there. The EU Blue Card, for instance, has different salary thresholds for general professions (€48,300) and shortage occupations (€43,759.80).
By offering language classes, administrative support, and highlighting its strong legal protections, quality of life, and stable economy, Germany is stepping up its game to lure in skilled workers. In addition, fast-track visa processes ensure that skilled workers can join the workforce speedily. Integration support rounds up the package, making it easier for international professionals to settle in.
So, what can businesses do to stay competitive and keep their profits rolling in? Consider investing in upskilling and reskilling programs, forging Partnerships with educational institutions, or offering enhanced benefits to attract and retain top talent. After all, a skilled workforce is the lifeblood of any successful business.
- IAB
- Germany
- Hiring struggle
- Skills deficit
- EU Blue Card
- Opportunity Card
- Integration Support
- Fast-Track Processes
- Upskilling and Reskilling Programs
- Partnerships with Educational Institutions
- Enhanced Workplace Benefits
- Michael Oberfichtner, a researcher from the Institute for Employment Research (IAB), acknowledged the skills deficit as the most prominent issue faced by businesses across industries in Germany.
- In an effort to combat the skills deficit, about half of the 15,000 surveyed businesses suggested continuing education programs, employee development, and a better work-life balance as potential solutions.
- The German government is taking steps to attract skilled professionals, such as easing up on immigration policies, offering language classes, administrative support, and the EU Blue Card with salary thresholds for general professions and shortage occupations.
- To stay competitive and maintain profits, businesses could consider investing in upskilling and reskilling programs, forging partnerships with educational institutions, or offering enhanced workplace benefits to attract and retain top talent.
