The German tech talent shortage: A view from the inside
It’s not groundbreaking news that the tech hiring market is wild at the moment. The THRYVE team recently took a trip to Munich where we got to see it firsthand.
Here are a few of the biggest challenges our clients are seeing:
- HUGE offers going well-above market rates. That’s great... If you’re the talent in question. But for businesses - this presents a new challenge and risk. It seems clear for now that the companies with the deepest pockets are going to get first disposal of the market, but there are still opportunities to attract those who aren’t driven by cash.
- Counter offers galore. Everyone knows how hard it is to replace the talent on their team right now, and so they’re doing as much as possible to try and stop them from moving on. From the perspective of the candidate - what’s already known may be seen as lower risk, presenting another challenge for those trying to hire.
- Apple’s new 10,000 employee R&D centre is being built and they’ve already started sourcing candidates. That’s a lot of people in a market that’s already hugely underserviced, and they’ll have to get them from somewhere.
- Companies are really struggling to retain their best talent. It’s not for lack of trying, or for being valued employers, but simply because the market is in such a frenzy that many of those offers are uncounterable.
- There’s so much competition, with everyone hiring for the same positions. And as many have the same ideas around values, culture, and engagement - it’s becoming difficult to distinguish one opportunity from the next.
We asked our clients what they were doing about the shortage, and here’s what they said:
- Avoid a one size fits all approach. Just because it’s working for other businesses, doesn’t necessarily mean it’s the answer for you. Be consultative and curious – identify your needs and your advantages to create bespoke solutions that will work for your specific situation.
- Consider building smaller ‘hubs’ across the EU to reach a wider group. Not everyone has the ability or the desire to move to Germany, so if you’re struggling to hire local talent, then it might make sense to build bases across your target countries to allow locals to join the business without making the move.
- Hire freelancers to plug any immediate gaps. It’s becoming pricier by the day to hire perm, with salary hikes and benefit packages stretching far further than a fruit basket – freelancers could help you solve your immediate business challenges while you ascertain how this market will behave in the longer term.
Another sensible solution is to speak to us at THRYVE. We cover a lot of ground – outsourcing, perm, and freelance solutions. Plus, we’ll help you market and position yourselves as the employer of choice. It’s our job to know the market inside and out. Knowing where you stand in comparison will help you take important steps towards sourcing the talent you need.