Unemployment? In fact, there is no longer much to fear throughout Central Europe, according to a new study by Stocklytics.com. Especially if you have some education, a job seems almost guaranteed in the coming years. In the largest economy in Europe, Germany, the shortage of skilled workers has even ‘reached a critical level,’ according to the researchers. ‘And the scale of this problem will only increase in the future.’
According to the research data, the number of skilled workers in Germany is expected to fall to 23.3 million by 2040, about a quarter less than the current number. No wonder the German Economic Institute expects the shortage of skilled workers to significantly impact the industry in the region over the next 15 years. By 2025, all of Central Europe will face a tight labour market, say the researchers, with the number of vacancies increasing and unemployment falling to a historic low.
Economists have calculated that economic growth this year would be more than 1% higher if there were enough workers.
According to a recent study by the German Economic Institute, the neighbouring country already has a shortage of about 573,000 skilled workers. Economists have calculated that economic growth this year would be more than 1% (or 49 billion euros) higher if there were enough workers. That is significant, especially considering that economic forecasts for 2024 predict growth of just 0.2%.
Decline and Aging
According to the researchers, the ageing population, low birth rates, and increasing demand for highly skilled professionals collectively ensure that the labour shortage is now the second-largest business risk for German companies. By 2035, the German labour market is expected to have a shortage of another 4.3 million skilled workers, reducing their total number to 25.7 million. In 2040, the total German workforce will decline by 5.5 million people despite an increase in highly educated workers.
‘On the old continent, by 2040 more than a quarter of the population will have reached retirement age.’
‘The old continent faces a future whereby 2040 more than a quarter of the population will have reached retirement age,’ the researchers say. At the same time, they note that education and training systems have hardly focused on the skills needed to replace retiring workers or meet the demand for labour in growing industries, such as ICT and artificial intelligence. ‘Solving these problems is essential to securing Europe’s competitiveness,’ they conclude, somewhat redundantly.
Contributing to a Solution?
Interested in contributing to a solution in the German labour market? In September, ToTalent is organizing the first Webinar Tage in history for recruitment parties interested in the DACH region. The webinars will be free for the target audience to view. Click on the link for more information: Partner Brochure
You hear much about talent intelligence, or TI, in the recruitment industry. Last year, the first international conference on this topic was organized in Hoofddorp, and this year, the event will return there for its second edition in September. But what exactly are we talking about when it comes to this subject? And why is it important?
TI heavily utilizes buzzwords like big data, A.I., machine learning, and social listening.
If we first ask Google’s Gemini, we learn that Talent Intelligence is a relatively new field within the recruitment industry that revolves around ‘collecting, analyzing, and using data and insights about potential candidates and the labour market. The goal is to make informed decisions about recruitment, selection, and talent retention.’ We also learn that TI makes use of big data (online profiles, CVs, labour market data), AI and machine learning (advanced algorithms, always sounds good), and social listening (online conversations and discussions about vacancies and the labour market).
Active Listening
Let’s immediately ask about the benefits of this new TI approach because Gemini doesn’t take long to come up with an answer. Recruitment can become more efficient thanks to targeted searches and identifying the most promising candidates. Recruiters would also be better able to respond to supply and demand in the labour market and tap into a higher quality of candidates. By actively listening to the needs and expectations of candidates, the employer’s image can finally be strengthened, and the candidate experience can be improved, according to the A.I.
TI can promote diversity by uncovering biases in the recruitment process.
OpenAI’s ChatGPT also comes up with a similar list of ‘strategic reasons’ to use (more) Talent Intelligence, from gaining insights into the talent pool and market trends to cost reduction, faster time-to-hire, higher retention, and more strategic workforce planning. TI can also promote diversity by uncovering biases in the recruitment process and helping implement inclusive recruitment strategies, according to ChatGPT, which further points out that Talent Intelligence can stimulate better recruitment decisions, strengthen the employer brand, and drive growth.
TikTok or Telegram
Now, you quickly get those lists when you ask ChatGPT something, but according to Geert-Jan Waasdorp, the A.I. application is reasonably accurate this time. The founder of Intelligence Group, one of the companies in the Netherlands specializing in TI, believes that the value of this specific form of Business Intelligence lies particularly in knowledge of the target group and the external labour market. ‘With that, you can sometimes achieve a recruitment advantage of 12 to 18 months without anyone taking advantage of it now. Think now, for example, about using TikTok or Telegram. Or recruiting on channels where freelancers are located.’
‘How high is the turnover at your competitor? What skills are they recruiting for? With TI, you can gather that kind of information.’
He says TI can also give you insight into what is happening at the competition. ‘How high is the turnover there? Are people dissatisfied? Is a too-low salary offered? What skills are they recruiting for? With TI, you can gather and benefit from that kind of information. You can also discover new talent pools with it and gather arguments to start looking and recruiting differently internally. Once, Big Data was a trend. Now it is A.I. I think Talent Intelligence connects them all. Your insights combined with external data and a layer of A.I. over it to entice your target group.’
Grip on Your Most Important Resource
According to him, Talent Intelligence is indispensable for gaining control over the most important resource in your organization: people. ‘Those who master this never suffer from ageing or other surprises in the market. All recruitment successes have two ingredients: vision and data. Talent Intelligence provides the latter and is the fuel for vision. Knowing your target group and the labour market is essential in winning the war for talent. Without Talent Intelligence, talking about the war for talent is an empty shell. And you also don’t just run onto the battlefield without a gun.’
‘You also don’t just run onto the battlefield without a gun.’
His vision aligns with that of Draup, a Talent & Sales Intelligence Platform from Bangalore, India, which also outlines the significant benefits of a more data-driven approach to recruitment. ‘Talent Intelligence can reduce costs, improve the process, and reduce time-to-fill,’ says CEO Vijay Swaminathan, one of the speakers at the first edition of the Global Talent Intelligence Conference. ‘TI provides insight into the (in)effectiveness of current approaches to recruiting and managing talent and helps us revise our systems,’ he says. Without data, there is no chance for improvement.
Want to Know More?
Buy your tickets for the Global Talent Intelligence here. Or contact us for information about group tickets. GTIC
Tight labour market? Look globally, and you’ll find that there is, of course, plenty of talent. At Undutchables, we have been working with multilingual personnel for 28 years, both people already living in the Netherlands and those relocating from abroad, so we know the challenges and especially the benefits of employing an international workforce. This incredible talent source could be just the solution your company is looking for in the current job market. But how do you approach it? How do you get the most out of this underutilized talent pool?
3 Significant Shifts
First, let’s look at three significant shifts we currently see in the Dutch and global labour market:
#1. Scarcity: The shortage of skilled personnel is becoming an increasingly urgent problem. Economic growth combined with an ageing population creates a high demand for skilled workers, but while some companies find creative ways to tackle this problem, many others still struggle with dealing with the fact that they have more vacancies than available candidates.
#2. Laws and Regulations: Many governments have recently been paying more attention to their labour laws. This has already led to some policy changes in the Netherlands regarding requirements for temporary workers, work permits, and more, with further adjustments expected in the near future. Some of these changes open up recruitment options, such as work permits for freelancers or reduced financial requirements for start-ups hiring foreign workers. Other changes aim to improve the economy by creating clear policies and user-friendly systems.
Many governments have recently been paying more attention to their labor laws.
Of course, some changes, such as the proposed abolition of the 30% ruling for international employees or the tightening of permit requirements, can also create additional challenges. With all these political movements shaping the labour market landscape, it’s important to stay informed about current policies and upcoming legal changes to ensure you can easily navigate the complex landscape of labour regulations in the Netherlands and worldwide.
#3. A.I. and Digitalization: The rise of A.I. and digital technologies has recently caused a massive shift. This is also transforming job requirements. Some jobs are slowly being phased out as they are replaced by automation. Other jobs are being adapted or newly created to collaborate with digitized processes efficiently. At the same time, the use of machine learning in the workplace is increasing exponentially. This evolution in the types of jobs and tasks needed reinforces the need for a diverse talent pool.
Adding Diversity
With all these challenges, why add international and cultural diversity? Diversity, besides being a proven positive factor for business success, can also solve the difficulties of a tight labour market.
Diversity solves scarcity: By tapping into the global talent pool, you can creatively and effectively address the shortage of skilled workers in your local networks and help fill vacancies with great results. Not only will you increase the list of potential candidates, but you will also discover a diverse group of candidates who are already present in your backyard. Changing your search parameters and expanding your network can be a great way to gain an edge in a recruitment market that constantly complains about scarcity.
Better reflection of your target audience: A diverse internal team that reflects your customer base is better equipped to understand and meet the needs of your target audience. Your team will be better able to use their insights to improve processes that work better for your customers. This will enable team members to feel valued for their input while allowing your company to tailor products to customer needs better.
Broaden your customer base: Diversity also helps you resonate better with a broader audience. Besides better processes with target audience insights, reflecting the diversity of your customers internally and in your marketing efforts can help expand your reach. When more customers see themselves reflected in your brand and see that you are addressing their specific needs, they are more likely to use the products and services you bring to market. This is a great way to expand your business into new markets while improving your internal team culture.
More innovative ideas: Listening to different perspectives fosters creativity and ingenuity. A team of individuals with diverse backgrounds means more ideas due to how each person approaches a situation. This means you will see more out-of-the-box thinking, new angles, creative solutions, and more input and collaboration potential. This continuous innovation allows you to seize opportunities to improve current processes and add new methods that benefit your team (and results).
More revenue: Diverse teams can generate higher revenues through innovation and market expansion. With all the added creativity, market knowledge, broader customer base, and stimulating company culture that comes with a more diverse workforce, it’s no surprise that this will also increase your profit potential.
How to Benefit from This
‘International talent’ might sound like something you need a long boat or train trip (or at least an in-depth internet search). In reality, many great international candidates are already present in the Netherlands, but many companies are unaware of how to find and utilize this talent. The first step is knowing where to find these job seekers and how to ensure your job postings and company culture attract the talent you are looking for.
The key to becoming visible to international talent is: adapting your approach to this.
The key to becoming visible to international talent is adapting your approach. Branding initiatives that emphasize diversity and writing inclusive job postings are a good start. The strategy must go beyond just your exterior. A recruitment strategy that supports international job seekers and improves internal culture and processes to retain these employees once hired will help you get a grip on this part of the talent pool. But first, here are some tips to ensure your marketing strategy is aimed at the international target audience.
Tip 1: Dive into Your Target Audience:
The first step is always to get into the minds of your audience so you can understand their motivations, values, and needs. This can be extra challenging when reaching international candidates, as this target audience contains many variables. Thinking about some specific questions can set you on the right track. For example:
Where do they look? Discover which platforms and channels your target candidates use. International candidates, for example, might use country-specific alternatives to LinkedIn (such as Xing for Germany) or spend more time on platforms specifically designed for expats.
What are they looking for? Identify the key factors that attract them to an employer. This can again differ for international job seekers compared to local candidates as they may value a job where the company language is English or an employer that offers Dutch lessons as part of the package.
Why are they looking? Analyze their motivations for moving to a different country for work. Is it career advancement, a better work-life balance, or a specific industry not well-represented in their home country? These insights will help you craft a marketing message that appeals to their goals and aspirations.
Tip 2: Strengthen Your Employer Branding:
Adapting your employer branding to appeal to a diverse workforce will help you reach international candidates and support a diverse and inclusive internal culture. For example, a global audience may respond well to cultural sensitivity or diversity statements and feel reassured by efforts to promote diversity in the workplace. Even minor gestures like mentioning local accommodation support in job postings can make a big difference. Employer branding has a significant impact on recruitment. By ensuring your company’s values and branding align with the international audience, you make a stronger impression on potential candidates and ensure your company is seen as a welcoming and inclusive workplace.
Tip 3: Diversify Your Recruitment Strategies:
To reach international talent, you must be flexible and creative in your recruitment strategies. For example, you could partner with organizations specialising in global recruitment, attend international job fairs, or use social media platforms like LinkedIn to connect with potential candidates worldwide. By diversifying your recruitment strategies, you can expand your reach and attract a broader range of candidates.
Undutchables Recruitment Agency has extensive experience helping companies attract and retain international talent.
Undutchables Recruitment Agency has extensive experience helping companies attract and retain international talent. With 28 years of experience finding the best multilingual candidates, we can help you succeed in the dynamic labour market.
For more information on how we can help, visit our website or contact us directly. Whether you need help understanding the latest trends, adapting your employer branding, or implementing recruitment strategies, Undutchables is here to guide you.
By adapting your recruitment strategies, strengthening your employer branding, and deepening your understanding of the target audience, you can more effectively tap into the rich resources of international talent and overcome the current labour market challenges. And in doing so, you’ll position your company for sustained growth and success in a globally connected world.
Acquisition and Retention of Talent
Once your branding is ready, the real talent hunt can begin. Ideally, many job seekers will find you on their thanks to your new and improved marketing strategy. However, that’s not the only adjustment needed to onboard the right (international) talent. Your brand image is just the beginning. Fine-tuning your recruitment strategy to better appeal to international candidates and focusing on improving retention will make your efforts pay off.
1. Recruitment
When it comes to recruitment, you need to focus on making your internal recruitment process more inclusive and smoother and improving your job postings to be more attractive to the diverse audience you seek. This may require some adjustments, so we’ve added key points to consider as you redesign your recruitment strategy.
Assess which skills are essential: It’s tempting to include all possible desired skills in the job posting, whether they are must-haves or just nice-to-haves. By focusing on the skills essential for the position rather than an exhaustive list of qualifications, you can attract a broader group of candidates. This allows you to review applications you might not have received otherwise but which may have the most valuable skills for the role.
Write a strong job posting: You want to write a job posting that clearly describes the role and requirements. While doing this, choose your words carefully to avoid unconscious biases and stereotypes in your job description.
Create a diverse interview panel: Ensure diverse representation in your interview panels. Invite employees with different backgrounds, nationalities, roles, and genders to participate. This helps eliminate biases in internal decision-making and makes candidates feel welcome, showing that the company truly believes in diversity.
Train your hiring managers: The first impression potential new employees get comes from the interviews they attend and the hiring managers they meet. Train your management and recruitment teams to prioritize diversity, so this is reflected in the interviews they conduct.
Get your entire organization on board: When diversity initiatives are encouraged and supported throughout the organization (not just by HR), it becomes natural to make this part of the recruitment process and create an inclusive environment for international talent. This requires evaluating your company culture and possibly making changes. Help your employees see the value of a diverse team. It always starts with the leaders in your company, so engage them first by outlining the many benefits of working with diverse talent.
2. Retention
Focusing solely on attracting talent in a tight labour market can be tempting. Unfortunately, this often means that once a candidate says yes, the next equally important stages are forgotten. Creating an onboarding plan and fostering a culture where international employees can thrive is essential for employee retention. This also means you’ll have fewer open positions and be spared much of the pain of recruiting in a scarce market. How do you do that?
Create an onboarding plan: Ensure your onboarding program is clear and useful for international colleagues. Ensure training is available in a language the employee understands and the mentors can reach out to reflect the diversity you are trying to build. Consider incorporating different perspectives into your onboarding strategy. This helps you cover all bases, providing a great introduction to the company for all new employees.
Integrate diversity into onboarding: Make diversity and inclusion an integral part of the onboarding agenda. Show interest in the new employee’s professional and personal talents and experiences. This is also a good opportunity to communicate your company’s values and goals regarding diversity.
Create an inclusive culture: Ensure your commitment to a thriving diverse workforce continues after onboarding. Promote an environment where everyone feels valued and knows they belong by fostering a culture that encourages diversity at all levels.
Regularly seek feedback: Continuously improve by seeking feedback from your international employees. No one can tell you better whether you are doing your inclusion initiatives right than the employees who feel like the most diverse team members. Let them know their voice is valuable and you are interested in improving based on their feedback.
Conclusion
The benefits of international talent are clear, from addressing labour shortages to boosting innovation and a broader customer base. By adjusting your marketing strategy, fine-tuning your recruitment strategy to attract international talent, and improving your internal culture and processes to retain these employees, you can position your company for success in an increasingly global market. Before you know it, you’ll be ten steps ahead, as while your competitors struggle to find talent in a saturated market, your multilingual team is already hard at work.
About the Author
Aubrey de Wilde is a Digital & Content Marketer at Undutchables, specializing in working with international talent. Get in touch to discover how they can help you leverage this valuable talent pool.
Want to Learn More?
In 2023, the first edition of the conference Internationalization of the Dutch Labor Market took place in Rotterdam. Along with OTTO Work Force, the second edition will be held on September 9 in The Hague. During this conference, participants will be inspired by the facts, context, practice, best practices, dilemmas, challenges, problems, and solutions. There are no sacred cows, just facts and practice. Problems and solutions. So register now:
