Recruiting in Germany in 2024: the real challenges and strategies for success

I was thinking when would arrive the moment to talk about our experience in recruiting in Germany: due to several complicated projects we are currently running in this 2Q of 2024, I do believe is the right time. No dubs, we are facing formidable challenge for several reasons. Both for our recruiters but also for our clients, especially those without a strong presence on the market, and maybe less aware of Country’s dynamics. I would like to bring our personal experience and the need to be aware of the evolving landscape to develop effective strategies for attracting and retaining top talent. Here are some insights into the current difficulties we faced and still – unfortunately- we are facing, plus few a practical advice we are trying to put in place to enhance our recruiting efforts. Please note, we are using international recruiters, not local ones. This could be an additional challenge to be considered.

Challenges we are facing with German recruitment landscape

1. Skilled worker shortage: Germany is facing a significant shortage of skilled workers -but in general this is a quite common issue in whole CEE Region- particularly in the STEM (Science, Technology, Engineering, Mathematics) fields. Germany continues to experience high demand for IT professionals, engineers, and healthcare workers. To address this, Germany enacted the “Skilled Worker Immigration Law”, which includes a new jobseeker’s visa from March 2024 and relaxed visa requirements to attract more foreign talent. This legislative move underscores the pressing need for skilled workers across various sectors.
2. Economic uncertainty: the German economy has been impacted by rising energy prices and geopolitical tensions, particularly Russia’s war on Ukraine. These factors have led to potential cutbacks in certain sectors, adding complexity to the recruitment process. Economic instability makes it challenging for companies to offer competitive compensation packages, further complicating the recruitment landscape.
3. Passive candidates: a significant portion of the workforce consists of passive candidates who are not actively seeking new jobs but might be open to offers. LinkedIn data indicates that 70% of the global workforce is made up of passive candidates. These individuals are often top performers in their current roles and are difficult to attract. Recruiters must master personalized outreach and relationship-building to engage these candidates effectively.
4. Employer Branding and Remote Work Preferences: employer branding has become crucial as candidates increasingly consider a company's reputation before applying. We did this experiment to completely change approach to engage candidates and seems it works. Thanks to brilliant Renata Viana for her intuition!? Approximately 75% of job seekers research an organization’s reputation before applying for a job. Companies with strong employer brands experience significantly lower turnover rates. Moreover, many candidates now prefer remote or flexible working arrangements. Employers who insist on traditional office-based roles may find it harder to attract top talent, as flexibility has become a key consideration for job seekers.

5.????? Frequent Job Changes for Salary Increases: In the current job market, candidates are increasingly changing jobs more frequently to secure higher salaries. This trend is driven by the dynamic nature of the market, where skill shortages and competitive offers make job-hopping a viable strategy for career advancement. Unlike in previous years, where long-term tenure was the norm, today's professionals leverage frequent job changes to maximize their earning potential and career growth. Companies need to recognize this trend and adapt their retention strategies accordingly, offering competitive salaries and clear growth paths to retain top talent.

?What we learn: strategies for an effective recruiting (no, is not a magic receipt unfortunately…)

1. Enhancing employer branding: Surprising or not, even if in your sector, in your Country you are a well-known brand, if you are going abroad and specifically if you were not known in Germany…. you have a big problem to face. Developing a strong employer brand is essential. Companies should define their Employer Value Proposition (EVP) clearly and ensure consistent messaging across all platforms (yes you need to be social, much more than just adding few pictures on your LinkedIn company page). You need for instance some employee advocacy that can amplify the company’s positive attributes (brand ambassadors), and a strong online presence that reflects company values and culture is crucial. Conducting surveys to understand what employees value most can help in crafting a compelling EVP.
2. Leveraging technology: Utilizing advanced recruitment technologies like AI-powered ATS can streamline the hiring process. Automation can significantly reduce the time spent on administrative tasks, allowing recruiters to focus on engaging with candidates. However, maintaining a human touch is crucial to avoid alienating potential hires. About 85% of companies use some form of automation or AI in their recruitment process, primarily to save time and increase efficiency. Please note that metrics in recruiting are the real pulse of the market. We are continuously taking in consideration the interaction rate of candidates when we launch a new project…and in Germany is extremely hard to get noted among thousand of recruiter, head-hunter, TA people that are populating LinkedIn and approaching continuously with their sourcing strategy the pool of potential candidates…yes is a real war for talents.
3. Targeting passive candidates: To attract passive candidates, recruiters should personalize their outreach efforts. Understanding their career goals and tailoring messages to highlight how the company can help achieve those aspirations is essential. Building long-term relationships through social media engagement and networking can also make a significant difference. Relationship-building with passive candidates involves patience and genuine engagement. From other side, companies should try to understand more the desires of their people…adapt or die is no longer valid only for employees but nowadays should be a mantra for companies.
4. Offering flexible work options: a consequence of the previous sentence. Flexibility in working arrangements is a top priority for many candidates. Companies should consider offering various forms of flexibility, such as remote work, flexible hours, and hybrid models, to appeal to a broader talent pool. Investing in the necessary technology to support these arrangements is also crucial. Flexibility programs should be tailored to individual preferences, ensuring a balanced work environment that meets diverse needs.
5. Data-driven recruitment: I already spoke about that but I’d like to state it in a separate point. Using data analytics to inform recruitment strategies can optimize the process. Tracking metrics such as time-to-hire, cost-per-hire, and candidate satisfaction helps identify areas for improvement. Data-driven approaches enable more efficient hiring processes and better decision-making.

In conclusion, while recruiting in Germany in 2024 presents numerous challenges, companies that adapt to the changing landscape and implement strategic, technology-driven, and flexible approaches will be better positioned to attract and retain top talent. By focusing on enhancing employer branding, leveraging technology, targeting passive candidates, offering flexible work options, and using data-driven strategies, organizations can navigate the complexities of the German job market effectively. We are a recruiting company, we are not a Wizard promising miracles. An effective recruiting strategy is made by few ingredients:

-??????? Understanding the reality

-??????? Be open for innovation and thinking out of the box

-??????? Talking with different stakeholder on the market to have broader view

-??????? Partnering with headhunting company, do not consider us a ‘vendor’

-??????? Be flexible, be flexible and yes, be flexible!!!!

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We are Guidi Consulting . We are a group of passionate recruiters, consultant, people happy to contribute to create a better work environment. Interested to learn more? Contact us!

#guidiconsulting #recruiting #employerbranding

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