The shortage of skilled workers has become one of the biggest challenges for companies in Germany. In technology-intensive industries in particular, it is becoming increasingly difficult to find and retain qualified specialists. At the same time, modern working methods and project processes require efficient time management. Here are software solutions for Project time recording Into the game. In the following article, we address, among other things, the question of how these solutions can help companies overcome the shortage of skilled workers.
Causes & Effects of the Shortage of Skilled Workers in Germany
Perhaps you have already noticed it in your company: The shortage of skilled workers has become a serious hurdle for companies in Germany. If you're based in a technology-intensive industry, such as IT, engineering, or healthcare, you know how difficult it is to find (and retain) qualified personnel. Several factors contribute to these challenges:
Demographic change
Germans are getting older, but not enough new talent is coming along. This is of course also reflected in the working world. The Boomer Generation is about to retire, resulting in a shrinking laboratory pool. Only a few young people are available for the German job market or they go abroad. The perspective has also changed. Where older generations have identified themselves and their success even more through their jobs, the trend is currently moving more and more towards a focus on leisure & flexibility — keyword: 4-day week. Younger people no longer see the advantage of working full time. Why because work is no longer as important in their lives as it was for previous generations.
Technological progress
The rapid development of new technologies requires highly qualified workers with specific know-how. There is increasing demand nationwide for specialists in areas such as artificial intelligence, big data, cybersecurity and digital transformation. The lack of qualified specialists in these areas can significantly impair the innovative capacity and competitiveness of companies. True to the motto: If you don't keep up with the times, you have to keep up with the times Walk.
Global competition
Companies in Germany see themselves in global competition for talented specialists. Everyone wants to attract the best in their field to their company. Attractive offers from companies in other countries and the opportunity to work internationally (so-called Workation), attract potential applicants. This increases pressure on German companies to offer innovative incentives and attractive working conditions to attract and retain talented professionals over the long term.
Work-life balance: Interest in working less
It is not only young people who are increasingly paying attention to a balanced Work-life balance. Many older people also want to retire earlier and even accept lower salaries in return. Currently, one in five people opt for early retirement, while younger people aim for shorter working weeks. This leads to a job gap that would have to be filled by other employees — but these are often not available.
Consequences: What are the effects of the shortage of skilled workers?
The shortage of skilled workers has serious consequences for the economy: “Companies can barely grow anymore and value creation is slowed down by around 90 billion euros, i.e. around 2.5 percent of gross domestic product,” says the Deputy DIHK Managing Director Achim Dercks. Small companies in particular suffer as they have less budget to make their workplaces more attractive. Although skilled workers benefit from rising wages, not every company can increase salaries indefinitely. It is therefore urgent for every company to develop a strategy to remain competitive, as even simple jobs are increasingly vacant.
Measures against a shortage of skilled workers: What can you do in your company?
The Shortage of Skilled Workers presents companies with enormous challenges and slows down the growth of many companies. In particular Smaller Companies Are struggling to assert themselves on the job market. Targeted measures are needed to remain competitive and close staff gaps. Here you can find out which strategies you can implement in your company.
Use Software to Track Project Time
Accurate project time recording is crucial to overcome the shortage of skilled workers. It enables optimal use of resources, increases productivity and creates transparency. Through the exact Recording of working hours Companies can identify bottlenecks, optimize processes and ensure fair billing. The use of software solutions for project time recording, such as ZEP, offers decisive advantages over manual methods.
Modernize Your Recruiting
As Albert Einstein once said: “The definition of insanity is doing the same thing over and over again and expecting different results.” In an employee market, companies must actively apply for employees. This means rethinking the application process and making it leaner and more applicant-focused. Use modern communication channels and offer flexible options such as video calls to set yourself apart from other employers and be attractive to potential employees.
Improve employee retention
In a tight job market, it is crucial to retain skilled workers in the company, as every vacancy entails high costs. Strong employee retention reduces willingness to change and increases motivation and productivity. Factors such as respectful leadership, good employment opportunities, a positive working atmosphere and a balanced work-life balance play a central role here. Optimize these aspects to strengthen employee loyalty and prevent the brain drain.
Encourage talent
Talents are not only excellent specialists, but also potential managers. Many companies overlook the dormant potential of their employees and prefer to search for candidates externally if necessary. A strategic talent program helps to identify and specifically promote internal talent in order to prepare them for new positions. The focus is on the necessary competencies for the respective field of activity.
Digitize Your Business
Modern technologies can significantly reduce the need for skilled workers by Digitize processes, Automate and Streamline. One example from the consulting industry is the implementation of AI-based analysis tools. These tools can analyze large amounts of data to identify patterns and trends that previously had to be worked on manually by many professionals. By automating such analyses, companies can focus their experts on more demanding tasks while developing more efficient solutions for their customers.
Question business processes
In order to reduce personnel pressure in times of shortage of skilled workers, companies should critically question their business processes. One example from the IT sector is the automation of routine tasks through the use of Robotic Process Automation (RPA). Instead of burdening employees with repetitive and time-consuming tasks, these can be automated using RPA tools. This leaves more time for strategic and value-adding activities while increasing efficiency and optimising staffing requirements. Search adjustments help companies to react more flexibly to staff shortages and improve overall performance.
Federal Government Skilled Workers Strategy: These are the 5 areas of action
Demographic change, decarbonization and digitization pose major challenges to our society and are leading to profound changes in the world of work. The successful implementation of these transformation processes is crucial to ensure the country's future innovative strength, competitiveness and prosperity.
The new Federal Government Strategy for Skilled Workers What developed in 2023 in Cooperation with Employers, Trade Unions, Federal States, Leading Municipal Associations and the Federal Employment Agency and focuses on ensuring sufficient numbers of qualified specialists at all levels to actively address the upcoming changes.
1. Contemporary education 🎓
In addition to academic education, vocational education and training is crucial for the next generation of skilled workers in Germany. Dual education offers young people practical qualifications and career opportunities. Companies secure their future specialists through this demand-oriented training. The Federal Government and Social Partners are committed to modernizing and increasing the attractiveness of training occupations, particularly in the context of digital and ecological transformation as well as in health and education professions.
2. Targeted Continuing Education 📕
In View of Rapid Structural Change and Securing Future Skilled Workers, Continuing Vocational Training Plays a Central Role. Companies are primarily responsible for continuing education for their employees, with small and medium-sized enterprises in particular being supported in expanding their continuing education offerings as needed. The Federal Government is funding these measures as part of a national continuing education strategy to strengthen the continuing education culture in Germany.
3. Increase labor force participation 📈
Labor force participation in Germany has increased significantly over the last two decades, particularly among women, older people, people with an immigrant background and people with severe disabilities. Despite one of the highest employment rates for women in Europe, many women still work part-time, often as a result of family responsibilities. The Federal Government is striving to further increase labour force participation and improve the reconciliation of work and family through targeted measures such as the reform of the tax and transfer system and the promotion of full-time employment and more flexible working time models.
4. Improving work quality
Ensuring a high quality of work and healthy and attractive working conditions is crucial to retain skilled workers in the long term and to promote their performance. Companies and public administrations must Duty of Care as an Employer And therefore increasingly rely on an employee-oriented work culture that also meets the requirements of a modern working world.
5. Modernize Immigration & Reduce Emigration 👣
The Federal Government of Germany is striving to develop immigration policy in order to promote the integration of skilled workers from the EU and third countries and to reduce emigration. The aim is to provide immigrant professionals and their families with long-term prospects in Germany through improved framework conditions, simplified recognition procedures and targeted support measures.
Conclusion
The shortage of skilled workers poses enormous challenges for companies in Germany, particularly in technology-intensive industries such as IT, engineering and healthcare. Causes such as demographic change, rapid technological development and global competition for talent are exacerbating this problem.
In order to successfully address this bottleneck, targeted measures such as precise project time recording, modernized recruiting, improved employee retention, talent promotion, digitization of processes and the review of business processes are crucial.
At the same time, the Federal Government's new strategy for skilled workers focuses on up-to-date training, targeted continuing education, increasing labor force participation, improving work quality and a modern immigration policy. Only through these integrated approaches can companies remain competitive and operate successfully in the long term.
