Modernizing Recruitment, Raising Salaries, and Embracing Remote Work in Germany

Conducted by Jobilla in the fall of 2022, the study Shifts in the German Recruiting Market 2022 provides valuable insights into the German labor market's changing hiring practices and employer branding strategies. 

This study addresses the key factors impacting recruitment. It evaluates diverse strategies for improving hiring practices, which will significantly benefit recruiters, HR professionals, and companies, in particular, looking to gain a competitive advantage in the German labor market.

In terms of content, the study's first phase contains three topics: Market Overview, Changes in the Recruiting Market, and Employer Branding & Application Process. This article will examine the study's most significant findings and discuss why companies must use new recruiting methods to stay competitive in today's job market.

Market Overview

The labor market is rapidly changing, and companies struggle to keep up. To attract and retain top talent, companies must adopt new recruiting methods.

It's becoming increasingly difficult for companies to stand out in today's job market as candidates have more options. It is because of this that companies must invest in more effective and innovative methods as a means of attracting qualified candidates.

In this industry-wide study, 300 companies answered an online quantitative survey and six qualitative interviews were conducted with HR managers and recruiters. And the results are clear.

The survey found that nearly 69.3% of participants recruit mostly mid-level professionals, meaning that a large talent pool is essential to fill open positions in a timely and optimal manner. To successfully accomplish this, the future of recruiting lies in candidate-driven recruiting.

Changes in the Recruiting Market

The second part of the study examines how the recruiting market has changed over the past five years and how it may change going forward. The majority of companies surveyed indicated that recruiting continues to be challenging for most companies, and it will remain so for some time.

This phase examines the simultaneous development of labor shortages, escalating hiring costs, and increasing unsuccessful hires. The skills shortage has undeniably exacerbated the situation and further complicated the application process, as companies need help finding suitable candidates for their unfilled positions.

In addition, the study highlights the low success rate of employer portals and the financial impact of using external recruitment agencies. As the demand for top-notch talent increases, companies often have to devote significant resources to these external agencies, resulting in a substantial overrun of their hiring budget.

With more job openings than qualified candidates, companies need help finding the right talent. 85.3% of companies have indicated that recruiting has become more complex, and  46% of companies have indicated that hiring costs have increased by at least 25%. Only 17% of companies have yet to see a change in expenses.

Employer Branding & Application Process

Employer branding is essential for companies to attract the best talent. However, the study revealed that 41% of surveyed companies do not consider investing in employer branding. Only 28.3% of companies reported increased investment in employer branding in the past five years, while 31% plan to invest in the future. 

Interestingly, the study found that 62.3% of companies still plan to use traditional media such as radio, television, and print for employer branding, while only 49% utilize social media. Concerning the application process, 81% of companies require a CV, and 60% require a cover letter. Unfortunately, the study also revealed that 41.3% of companies need to implement a passive candidate attraction strategy. 

Lengthy application processes can discourage candidates who prioritize better salaries, benefits, and flexibility between remote and hybrid work. Thus, companies need to adapt their employer branding and application processes to match the needs and preferences of modern job seekers.

The second and third phases of the study, Shifts in the German Recruiting Market 2022, will be published in the following months. In addition to providing additional insight into the current labor market situation, these studies will highlight the importance of adapting to the ongoing changes in recruiting.

Are you interested in learning more? Click the button below to download the study.