According to the German Federal Employment Agency, there are currently around 240,000 vacancies, the highest in a decade. This figure stands in stark contrast to the number of job seekers, for example, in mechanical engineering, where there are only 21,000 direct job seekers out of 34,000 jobs – and even if all the people are hired, there are still 13,000 vacancies.
According to a 2020 report on skilled talent by the German Chamber of Commerce and Industry (DIHK), 45% of industrial companies said they had been vacant last year because they could not recruit suitable new employees. Under this special background, in order to compete for technical talents, enterprises have to completely launch a talent war.
The term "battle for talent" was coined in 1997 by Steven Hankin, who works at McKinsey & Company consulting firm. Although this expression is somewhat exaggerated, it is indeed very much in line with this situation.
Due to the shortage of personnel, all kinds of companies are competing for the same skilled talent. The "weapons" used to wage this war are diverse, but much more comfortable than those used on the battlefield – from flexible working hours and (digital) training opportunities to promoting a healthy work-life balance, are some of the benefits that companies offer to attract job seekers.
Companies that want to win the battle for talent in mechanical engineering should strive to be the best employer for the candidates they are trying to attract. That's why meeting the needs and aspirations of potential employees is crucial – but these conditions are often unmet until the employment relationship is formally confirmed.
Instead, companies should establish a basic hiring strategy around the core values shared by this generation of job seekers. There is already a lot of research discussing this approach. The basic idea is that each generation of people born at a given time grows up in a similar cultural and social environment. Researchers seek to understand the values, worldviews, and needs of each generation through investigation and analysis.
Currently, the most sought-after job seekers in the talent race in mechanical engineering are Gen Y and Gen Z. The former points to people born between 1981 and 1997, also known as "millennials" because they were born at the turn of the century.
According to a study of Germany's "Most Attractive Employers of 2018", millennials place great emphasis on a pleasant working atmosphere, a high degree of diversity and a good work-life balance in their daily work and life. In addition to this, training opportunities, good career prospects and competitive remuneration are also key factors.
According to a study entitled "Generation Z – Future Employees" (Germany only), job seekers belonging to Generation Z (those born between 1998 and 2016) are in a similar situation. They also believe that maintaining a healthy work-life balance is paramount. This means that mechanical engineering companies can, among other things, stand out in this battle for talent by providing more flexible working hours.
Gen Z job seekers place a high value on working from home. In fact, 4 out of every 10 candidates would turn down a job without this option. There are many jobs in the field of mechanical engineering that are suitable for telecommuting. For example, with digital engineering and general online tools, design engineers can theoretically do their jobs anywhere.
More than half of Gen Z candidates believe that achieving self-worth and knowing what it means to be a job is paramount – a clear indication of the growing importance of the "new job" in mechanical engineering.
Therefore, companies in this field must be prepared for change if they want to be not defeated in the battle for talent. Senior managers cannot see this as a concession to the younger generation. Rather, they are a means of increasing employee satisfaction. With this in mind, when there are enough tech talent to be selected, they create immeasurable value.
This war will gradually be staged in China, which is a good thing for job seekers. You who are reading this article, if you continue to strengthen your own ability, you will also be the talent who is "robbed" in the future!