War for Talents:How to successfully master the battle for the best young talent!
Skilled workers are currently in short supply. It is therefore becoming increasingly difficult and expensive for companies in Germany to find qualified personnel. The shortage of skilled workers costs medium-sized companies EUR 64.1 billion per year. This is based on a survey conducted by PricewaterhouseCoopers GmbH (PwC) in 2019. No wonder a veritable battle for young talent has developed.
We equip you for the war for talents. For this, it is first important to develop an understanding of the term. Building on this, in this article you will learn what reasons exist for the fight for the "high potentials" and how this affects your recruiting. Finally, we will show you in concrete terms how to master the war for talents and how Hays can help you along the way.
War for talents describes the increasing competition between companies for qualified personnel. The best young talents, so-called high potentials, are particularly in demand. Steven Hankin introduced and defined this term in 1997 during the course of a study by the management consultancy McKinsey & Company. The war of talents must be distinguished from the war for talents. It refers to competition among graduates.
Increasing competition is due to the effect that in some countries and territories there are more job vacancies than suitable workers. In these areas, companies today must make increasingly more effort to reach high potentials than they did just a few years ago. This development has now also reached Germany. Nursing and MINT professions (mathematics, computer science, natural sciences and technology) promote the war for talents most strongly in this country.
Reasons for the war for talents in Germany
The reasons for the war for talents in Germany are diverse. However, there are a few effects that are largely responsible for the fight for young talent.
Demographic change leads to fewer skilled workers
Society in Germany is getting older and older. According to the Federal Statistical Office, every second person in Germany is older than 45 and every fifth is older than 66 years. Demographic change in Germany is based on a low birth rate and leads to fewer and fewer skilled workers of working age.
Increased competition due to globalisation
Globalisation leads to increased international competition for skilled workers. The whole world is open to our young talents. Especially in Europe, national borders are no longer a hurdle when choosing a job. Companies must therefore increasingly assert themselves against employers from abroad.
Higher demand for workers in the STEM and care sector
Our society is increasingly developing into a knowledge society. Certain industries are growing and changing. Therefore, the demand for know-how and qualified workers in these areas is increasing. Above all, specialists in the MINT professions are in demand. The health care system is also affected, as more and more elderly people and those in need of care inevitably lead to a higher need for nurses. Also not conducive to this development: Fewer and fewer people are willing to train as nurses – which is not least due to the comparatively low pay and the heavy physical and mental strain of the profession.
Changing values and high demands of young professionals
The skilled workers of tomorrow have different demands on the job than past generations. Generation Y wants to work independently and flexibly. For Generation Z, a balance between private life and work is particularly important. As an employer, you should be prepared for this. However, this does not mean that the young professionals are satisfied with a low salary. Rather, the demand for a total package of conditions increases.
The impact of the war for talent on your recruiting system
Due to demographic change, there are increasingly fewer qualified workers year for year. As a result, you as a recruiter have to expect fewer applications per advertised position. You simply have a smaller selection of potential employees.
The shortage of skilled workers also gives junior staff better opportunities on the labour market. Where the number of vacancies exceeds the number of suitable employees, high demands arise on recruiting. There is a competition between employers that you no longer win with ordinary recruiting methods that are void of any colour and not highly attention-grabbing. Fresh expertise and new recruiting strategies are needed, but they cost time and, above all, money.
Measures to master the war for talents
Upload job postings and hope: With this tactic, it will be difficult to catch the best candidates. To emerge victorious from the war for talents, you should take action. Here, you will find a list of the most common methods for finding the best talented people despite the shortage of skilled workers.
Salary alone is no longer enough. Values play an increasingly important role for high potentials. Young professionals want to identify with their work and their company. This makes it all the more important that you stand out from the competition as an attractive company. This is exactly what you achieve with employer branding measures. Give your company a face and develop an employer brand that is tailored to the needs and wishes of the high potentials.
Salary alone is no longer enough. Values play an increasingly important role for high potentials. Young professionals want to identify with their work and their company. This makes it all the more important that you stand out from the competition as an attractive company. This is exactly what you achieve with employer branding measures. Give your company a face and develop an employer brand that is tailored to the needs and wishes of the high potentials.
The talent pool includes all candidates who are in the application process. Some are in a waiting phase, others are already in contact. In both cases, it is important to take care of the contacts. Already in this phase, a company can operate employer branding and ensure a positive experience for applicants. Therefore, cultivate your talent pool and convince with your employer brand even before the first interview. For example, keep in touch with applicants and send them information about your company culture at this stage.
The talent pool includes all candidates who are in the application process. Some are in a waiting phase, others are already in contact. In both cases, it is important to take care of the contacts. Already in this phase, a company can operate employer branding and ensure a positive experience for applicants. Therefore, cultivate your talent pool and convince with your employer brand even before the first interview. For example, keep in touch with applicants and send them information about your company culture at this stage.
The more your industry is affected by the skills shortage, the more important it is to invest in training your own workforce. As a result, you not only develop specialists, you also engage them directly in becoming committed to your company.
The more your industry is affected by the skills shortage, the more important it is to invest in training your own workforce. As a result, you not only develop specialists, you also engage them directly in becoming committed to your company.
Instead of waiting for the right candidates to come to you, you should also actively establish or expand contact with these people. With this method, you can contact potential junior staff before they are actively searching. Individualise your contact request and choose the right high potentials – then open up a new pool of young talents.
Instead of waiting for the right candidates to come to you, you should also actively establish or expand contact with these people. With this method, you can contact potential junior staff before they are actively searching. Individualise your contact request and choose the right high potentials – then open up a new pool of young talents.
Flexible working hours and corporate culture have become must-haves for every company. Applicants no longer have to choose the lesser evil; they filter out the best offer with the best conditions. Workplace design, working atmosphere and all work-life balance measures are important competitive factors in the fight for new talent. So think about what measures your employees and high potentials feel comfortable with.
Flexible working hours and corporate culture have become must-haves for every company. Applicants no longer have to choose the lesser evil; they filter out the best offer with the best conditions. Workplace design, working atmosphere and all work-life balance measures are important competitive factors in the fight for new talent. So think about what measures your employees and high potentials feel comfortable with.
In addition to active sourcing, there are other methods that map a specific form of recruiting and complement conventional methods.
Guerilla recruiting: Unexpected measures make you stand out. Think about extraordinary actions, use humour and provocation – and you'll get more attention. Of course, the campaigns should fit your target group, otherwise you run the risk of driving away their young talents.
Social media recruiting: Through social media, you have a huge pool of potential junior staff. With a little creativity and expertise, your job advertisements go viral and you do something for your employer branding at the same time.
Robot recruiting: Special software can simplify applicant management. It scans incoming application documents according to predefined criteria and makes your recruiting more efficient.
In addition to active sourcing, there are other methods that map a specific form of recruiting and complement conventional methods.
Guerilla recruiting: Unexpected measures make you stand out. Think about extraordinary actions, use humour and provocation – and you'll get more attention. Of course, the campaigns should fit your target group, otherwise you run the risk of driving away their young talents.
Social media recruiting: Through social media, you have a huge pool of potential junior staff. With a little creativity and expertise, your job advertisements go viral and you do something for your employer branding at the same time.
Robot recruiting: Special software can simplify applicant management. It scans incoming application documents according to predefined criteria and makes your recruiting more efficient.
The labour market is currently undergoing change. And we at Hays are following this change. With innovative solutions, we have always adapted to the shortage of skilled workers and changes in the labour market.
Jobs are still today often found by applicants: Organisations publish a job posting and collect the incoming applications. On the other hand, many recruiters are already actively looking for their workforce of tomorrow.
What should you do now? Continue tried and tested methods or jump in at the deep end? With the Find & Engage concept from Hays, you combine the advantages of both approaches. We use best practices thanks to the long-term competencies of conventional recruitment with the methods of tomorrow's recruiting. With data-based tools and the latest technologies, we find the best talent for you. But that's not all: Our experienced recruiters establish a personal bond with the candidates. This helps you to attract the best junior staff, especially in market segments where there is a particularly pronounced shortage of skilled workers.
The extensive range of services offered by Hays
Our innovative recruiting concept is reflected in an extensive range of services: From consulting to the implementation of recruiting solutions to support in regular operation. Here are a few helpful services that will help you in the war for talents.
Workforce management: We help you to holistically optimise your procurement and management processes for human resources.
Candidate management: We provide consultation, implement and relieve you in day-to-day business – according to your wishes.
Digital consulting: We provide digital transformation support and optimise your recruiting processes.
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