We’ve long awaited any real data to back up the notion that Europe, too, will seen an increase in its total number of resignations. Now, new data by the Office of National Statistics for the fourth quarter of 2021 (Q4) gives us a real indication that job swaps are happening en masse. In Q4 of 2021, approximately 1.14 million job-to-job moves took place in the United Kingdom. That is the highest number of job-to-job moves taking place in a single quarter during a the 20 years wherein the ONS has measured it.
Job-moves were slowly becoming a trend since the beginning of the 2010s, but the period of uncertainty surrounding the COVID-19 pandemic led to a drastic fall. Now, due to a variety of reasons, the Great Shuffle — not Resignation — is taking place. “It’s a more fluid market than perhaps we’ve seen in a lot of years”, said recruiting expert Bill Boorman on an episode of Recruitment Revealed by Gary Berney. “So I view it as The Great Shuffle, in which there will be some winners and losers. I think that describes the market much better.”
The Great Shuffle taking place in the UK. Source: Statista
“It’s a more fluid market than perhaps we’ve seen in a lot of years.”
The Great Shuffle is driven by a couple of key factors, as noted by Boorman. “I think people have put a lot of energy in a sort of survival mode, to get through the two years. Some people have done a lot, and now they’re ready for the next chapter, a new role. Meanwhile, organisations who are having difficulties to hire are throwing out hail mary offers. With these breathtaking salaries that are on offer, now is the time when employees are at their premium.”
Vacancies nearing record-high 1.3 million
While job-to-job moves still, at least, puts someone into a job — less can be said about the total number of vacancies. As vacancies started off at a below-average rate of approximately 611 thousand at the beginning of 2021, it now more than doubled. There were an average of 1.298 million job vacancies across November 2021 to January 2022, up from 1.185 million the previous three months.
“The good news is that the economy is continuing to create jobs. The bad news is that businesses are struggling to hire.”
The growth rate, however, finally slowed down. Although the number of vacancies continues to rise across most industries, education and transport and storage industries fell compared to a quarter ago. Education’s growth rate was at 17.3% (compared to 19.3% in the previous quarter). Transport and storage fell to 17.1%, from 43.4%. The current ratio of 4.3 vacancies to 100 employee jobs is a new record, too. “The good news is that the economy is continuing to create jobs. The bad news is that businesses are struggling to hire”, said Matthew Percival, director for people and skills at the Confederation of British Industry (CBI).
Globally, firms spend over $400 billion on HR services, according to Royal Bank of Canada. Much of that money is spent on those responsible for poaching executives, star bankers or legal experts. Also known as headhunters.Based on reports coming out of the Czech Republic, 2021 became a historic year for those hunting the heads — and their role is quickly broadening: they’re no longer just poaching candidates at management levels.
“The year 2021 was record-breaking in terms of headhunting. It was a 50% rise compared to 2019.”
Ivar Mesenský, the co-founder of Czech consulting agency Wolf Hunt, saw an increasing number of companies turn to the service. “In 2021, we recorded the highest demand in five years, since 2016”, he told Czech news-outlet E15. “After the substantial decline in the spring of 2020, when the first Covid-19 wave arrived, companies were forced to adapt to the new situation. The year 2021 was record-breaking in terms of headhunting. It was a 50% rise compared to 2019.”
Not just hunting managers
“In recent years, companies have increasingly turned to us for specialist positions and other ‘non-managerial’ positions that they were previously able to fill from their own resources”, Mesenský said. “So the desire for companies to use headhunters across different levels of positions is growing significantly.”
“We use headhunting for positions where we know we’ll struggle, because the path of standard job boards has historically not paid off.”
That sentiment was echoed by Eliška Štěpánková, HR manager of distribution automation service Fidoo. “We use headhunting for positions where we know we’ll struggle, because the path of standard job boards has historically not paid off. It is therefore necessary to use someone who is an active part of the community and not just a ‘foreign lady from HR’.” Štěpánková and Mesenský both highlighted IT positions as the stand-out jobs for which headhunters are called into action.
“Companies attach much greater importance to strategic purchasing or business roles.”
According to Jan Bubeník, founder of headhunter firm Bubeník Partners, the changing world is the main reason for the sharp increase in demand for headhunting. “The pandemic, the energy crisis and inflation are factors that force companies to react immediately and undergo a reorganisation of the current structure. The new situation also requires new experts. There is not only an exchange of people in key roles, but also the emergence of new roles. Companies attach much greater importance to strategic purchasing or business roles.”
We’ve seen our fair share of greats in the past 150 years, but they used to be earmarked for actual occurrences. As we once saw the The Great War followed by The Great Depression, these were events of global impact that rightfully carried the name great. The 1960s even produced one of the greatest films of all time, the Steve McQueen and Richard Attenborough-led The Great Escape.
Greats are being born everywhere at a rate that would make Alexander the Great blush.
Now, we’re amidst a bundle of greats. They’re being born everywhere at a rate that would make Alexander the Great blush. Within the past pandemic-filled years months alone, we’ve taken to great and not let go. The Great Lockdown, naturally, ensued. The World Economic Forum gave birth to The Great Reset. Then there’s the The Great Shift. And, of course, in the world of recruitment, everyone was consumed by The Great Resignation.
In the footsteps of The Great Resignation
And in case you missed it: the United States is still caught up in an en masse departure fiasco that sees an average of more than 4 million Americans quit their jobs every month. Over a 25 year period, no year ever saw as many quits as 2021. So much wasn’t the case for Europe, where many talked about the idea of resigning, but very little actually did.
Source: Randstad
Job change in northwestern and southern Europe, meanwhile, stagnatedcompletely.
Randstad’s 2021 Workmonitor saw the percentage of actual job change climb in both the APAC, Latin and indeed Northern America — but not in Europe. Job change has actually stagnated or decreased in most European areas. Eastern Europe saw its actual job change drop by 2% compared to 2020. Job change in northwestern and southern Europe, meanwhile, stagnatedcompletely.
“We all know that expressed intentions aren’t quite the same as the actual act of quitting.”
So far, The Great Resignation hasn’t blown over to Europe. And it illustrates an interesting difference between the two continents: while Europeans may say want to quit, they aren’t acting on it as much. “We all know that expressed intentions aren’t quite the same as the actual act of quitting”, European labour market expert Wim Davidse told ToTalent.
‘The Great Shuffle’
Bill Boorman
So what exactly is going on in European hemispheres? Labour markets around the continent have tightened up as jobs vacancies rise rapidly. “The Great Resignation is a nice headline grabber”, says recruiting expert Bill Boorman on an episode of Recruitment Revealed by Gary Berney. “I think it misleads what’s going on in the market. While we see unprecedented levels of resignations in organisations, people resigning are actually moving to [different] roles.”
“I think [The Great Resignation] misleads what’s going on in the market. I view it as The Great Shuffle, in which there will be some winners and losers.”
“It’s a more fluid market than perhaps we’ve seen in a lot of years”, Boorman continues. “So I view it as The Great Shuffle, in which there will be some winners and losers. I think that describes the market much better. And when you think about it strategically, it’s much more about how you’re organising your talent acquisition.”
What’s behind it?
Boorman sees several factors driving the The Great Shuffle. “I think people are knackered”, he says. “The impact of the COVID period saw many people performing two roles. Talent acquisition teams are smaller than they were pre-Covid, with significantly more amounts to deal with. I think people have put a lot of energy in a sort of survival mode, to get through the two years. Some people have done a lot, and now they’re ready for the next chapter, a new role.”
The idea of a next chapter is particularly visible among those with young families, Boorman notes. “They have had an enforced two year-period at home. Having previously spent most of their time away from families, have now gone: ‘Hang on a minute, I’m not going to go back to where I was’. They’re ready for a change.”
“Organisations who are having difficulties to hire are throwing out hail mary offers. With these breathtaking salaries that are on offer, now is the time when they’re at their premium.”
Perhaps ironically, Boorman sees the current recruitment desperateness as another major factor currently being overlooked in the shuffle kerfuffle. “Organisations who are having difficulties to hire are throwing out hail mary offers”, he said. “Offers with massive salary hikes. People are not stupid. They’re aware of the fact that this has a [certain duration] of time. With these breathtaking salaries that are on offer, now is the time when they’re at their premium.
In many ways, 2012 became the year when the European Union seemingly got over the side-effects of the 2008 global financial crisis. Unemployment shot up by approximately 5% over the course of four years, resulting in EU and EA (Euro Area) unemployment rates of 12%. Since then, the unemployment rate in the EU had gradually declined year by year — until the COVID-19 pandemic in 2020 resulted in an increase for the first time in 8 years.
Eurostat estimates that a total of 13.612 million people in the EUwere unemployed in the month of December, 2021. That is a decline of roughly 210.000 in the EU compared to the figures a month earlier, in November. Or: 0.1%. The EU unemployment rate was 6.4% in December 2021, down from 6.5% a month earlier And 7.5% compared toDecember 2020. These figures were published by Eurostat, the statistical office of the European Union.
Source: Eurostat
For the EA (Euro Area), the unemployment rates were higher to begin with, but have also declined. In December 2021, the euro area seasonally-adjusted unemployment rate was 7.0%, down from 7.1% in November 2021. It is down 1.2% compared to December 2020, when it was 8.2%.
Unemployment rate for women declines
Women and men also saw their unemployment rates decline across the EU. The unemployment rate for women was 6.6% in the EU, down from 6.8% in November 2021. The unemployment rate for men was 6.1% in December 2021, down from 6.2% in November 2021. In the euro area, meanwhile, the results were eerily similar. The unemployment rate for women decreased from 7.5% in November 2021 to 7.3% in December 2021. While the unemployment rate for men decreased from 6.8% to 6.7%.
SmartRecruiters is on a mission to connect people to jobs at scale. At scale meaning for both enterprises and those searching for jobs. Career sites are a focal point in that search for any prospective job seeker. But they have, subtly put, been lacking from any type of innovative approach. “Unfortunately, many of today’s career sites are static pages that present static lists of open positions”, SmartRecruiters say. “Companies invest large amounts of money in advertising positions, but quickly lose those candidates to the competition because they couldn’t find relevant information.”
Attrax has made career sites more visible by giving customers the tools to interact with candidates through personalised experiences that improve application conversion rates by 50% or more.
Enter another acquisition by the Hiring Success Company: Attrax. The London-based company has become the industry-leading smart careers site system, aiming to convert visitors into high-quality job applicants. Through an application of AI and applicant tracking, Attrax has made career sites more visible by giving customers the tools to interact with candidates through personalised experiences that improve application conversion rates by 50% or more.
Career pages: an unpleasant afterthought
“Today, career sites are an afterthought, historically disconnected from the rest of the recruiting process”, said Jerome Ternynck, Founder and CEO at SmartRecruiters. “This creates an unpleasant experience for candidates and recruiters. We chose Attrax for its impressive technology and proven ability to help customers build award-winning career sites. The integration of SmartRecruiters and Attrax provides truly intelligent career sites that operate in tandem with the ATS to deliver Hiring Success.”
‘A digitised, experience-driven function’
“As talent acquisition accelerates its transition to a digitised, experience-driven function, companies will need to create much more personalised candidate journeys to achieve their hiring goals”, Dr. Sven Elbert, Senior Analyst at Fosway Group, added. “By integrating advanced career site technology with their ATS, talent acquisition teams can tap into a wealth of new data and insights to build more effective recruiting strategies and candidate experiences and improve hiring outcomes.”
“Not only has it provided us with a fully branded and personalised candidate experience. It has also all delivered industry-leading conversion rates.”
Successful client cases are there for the taking. Namely: what it has done for Mitchells and Butlers PLC. “Attrax has transformed the way we attract and engage with our candidates in the current recruitment landscape”, said James Edwards, Recruitment Marketing Manager at Mitchells and Butlers PLC. “Not only has it provided us with a fully branded and personalised candidate experience. It has also all delivered industry-leading conversion rates, through the implementation of Integrated end-to-end workflow and analytics.”
When pizzas are ordered with the click of one button at Uber Eats, the latest Richard Osman novel is on its way before you know it through Amazon’s swift and easy interface — while that little AirBnB apartment in Brighton is booked with ease. Why? Because all the information you require to make those decisions is available to you on a single page.
Everything is done to benefit the visitor — so as little time as possible is spent on gathering the necessary information.
That’s customer feedback, photos, transparency of costs and average waiting, response or delivery times. Everything is done to benefit the visitor — so as little time as possible is spent on gathering the necessary information. Now relay that idea to the recruitment process — and despite the notion that it’s internet-centred, they usually offer nothing like the experience of the aforementioned websites.
’80% of candidates who read a job ad do not respond’
It starts with job ads. According to softgarden research, a staggering 80% of candidates who read a job ad do not respond. That’s particularly troublesome due to the fact that 70% of companies cite job ads as their primary method for attracting candidates. “The reason is that they do not find what they are looking for”, softgarden statein theirlatest whitepaper. The German recruiting solution delved into five steps companies can take in order to close the gap on a more AirBnB-type recruitment style.
1: Make the career page the main reference
Following the idea of all the information on one page, softgarden suggest using the career page as the main platform. “Job seekers want all the information and services they need on one page: employer reviews, recruiting KPIs, and ways to apply. What other platform could be better than your own career site?”, they state.
“If job seekers have to visit multiple websites to find detailed information, most of them quickly lose interest.”
According to their research, approximately 80% of candidates who start their job search on a general job portal are forced to then use Google to get more information. That in itself is risky, softgarden add. “If job seekers have to visit multiple websites to find detailed information, most of them quickly lose interest. However, if the candidate arrives directly at a career site that offers all the content they need, the candidate‘s journey is complete.”
2: Use employers reviews
As organisations from all over the world thrive on a notion of transparency — softgarden argue it’s time to do the same in the recruitment process. Seldom do customers make purchases without any sort of review. Even when something has been rated 3.5 out of 5 stars, any rating is better than no rating. So why do recruitment sites fall into the latter category, rather than the former?
59% of candidates are more motivated to apply if the career page includes an employer review.
According to softgarden, up to 59% of candidates are more motivated to apply if the career page includes an employer review. “The ratings in these assessments provide rational data based on verified data that inspires confidence in candidates”, softgarden add. “This is especially true because when a rating is 5 stars or less, you can immediately see how the employer is rated.”
3: Publish recruiting KPI’s
When you’ve ordered your quattro stagioni — you know when it’s set to be delivered. But when it comes to a job application, you likely have no idea when you’re due for a response. Even if it may take longer for companies to get back to someone sending over their CV or application, the key is transparency, softgarden argues.
“Why not integrate your internal KPIs directly on a career page?”
74% of candidates are more motivated to apply to the employer who publishes recruitment KPIs on their career page. “Why not be more transparent like the best shopping apps”, softgarden say. “Why not integrate your internal KPIs directly on a career page? What is your average Time-to-Hire? When will candidates receive feedback? What is your recruitment rate? What it really comes down to is being as open as possible in your contacts with the candidate.”
4: Speed is of the essence
Avoiding click-throughs is a sentiment any marketeer will preach — as should those involved with recruitment, according to softgarden. 60% of applicants do not want to take more than 5-10 minutes to apply. So speed is of the essence. “The digital age has made us all a little more impatient, so it‘s important to pay attention to the loading speed of your career page”, they say. “A page that takes too long to load is often disappointing to the visitor and causes them to leave. Such a candidate will leave your page without even reading it.”
5: Optimise your Google SEO rankings
As candidates can be ruthless if they don’t find the right information, Google can be ruthless when it comes to their rankings. Word of advice from softgarden: make sure your career page isn’t hard to find. “Since Google highlights and ranks pages with the best user experience higher, make sure your career page loads quickly, is user-friendly, and is optimised for mobile devices. With a search engine optimised company career page, it is possible to apply very quickly and directly on that page.”
One the back of a €1.6 billion turnover in 2020, House of HRis eyeing an evenbetter future. According to SIA, the Roeselare, Belgium-based company now ranks as the 22nd largest staffing-firm in the world. Now, the company has announced its latest acquisition. House of HR is acquiring a 100% stake in Germany-based SOLCOM, which has excelled at recruiting IT and engineering staff.
Fourth German acquisition
Remarkably, House of HR have been browsing the German market quite a bit in the past. After acquiring Timepartner and Zaquensis in 2016 (which have subsequently been merged), avanti in 2021, SOLCOM becomes the fourth German company to be acquired by House of HR. With the acquisition of SOLCOM, House of HR is now estimated to be the third biggest HR company in Germany, the company adds in its press statement. Oliver Koch, who has risen through the ranks at SOLCOM over the course of 15 years, will continue to lead the company.
https://youtu.be/c9mEyLiLRAs
‘IT footprint was missing’
House of HR CEO Rika Coppens
In lieu of a widespread scarcity of IT and engineering specialists, House of HR hadn’t been able to add a recruitment firm active within that field to their impressive portfolio. SOLCOM, in many ways, provides what House of HR say that had been missing in their footprint, the company says. “SOLCOM will strengthen House of HR in its ambition to be more present in IT consulting. Which is an area that is becoming ever more important in all industries.”
“Finding successful companies for sale in IT is not easy. It has been a part of our wish list for a long time.”
“House of HR is growing fast thanks to organic growth and several acquisitions in recent years”, says CEO Rika Coppens, who was named among the top 50 most powerful HR-women in the world. “In 2021 [we acquired] the Dutch company Cohedron, which is active in the public sector and avanti that specializes in healthcare. We are very proud to realise this acquisition, as finding successful companies for sale in IT is not easy. It has been a part of our wish list for a long time.”
Generational thinking can be a tricky endeavour. It often takes place on a terrain that it is filled with myths, stereotypes and clichés. Moreover, differences within a generation can typically be larger than between different generations. Nevertheless, with Generation Z entering the labour market scene, it is absolutely true that this is, in fact, a new type of generation. The eldest of the bunch are now 25 — also known as Zoomers. But what do you need to know about them to successfully persuade and recruit them?
#1:Environmental purpose? Double it.
We are, by now, all too aware that the Generation Z is a generation that is guided by environmental, social and governance (ESG) issues. But the difference may be greater than you might think. Recent research by British insurance company Bupa illustrates that two in three Gen Zs (68%) are anxious about environmental issues – more than any other generation.
One in three (31%) would turn down roles in companies with poor ESG.
The report shows that Generation Z priorities mental health over their earnings. Over half (54%) would take a pay cut to work for a business that reflects their ethics. Moreover, one in three (31%) would turn down roles in companies with poor ESG. Finally, 59% of Gen Z and over half of people overall (52%) said they would stay longer with a company that had ESG commitments, as well as recommend it to others as a good place to work.
“Our research shows that they are quickly becoming critical to success”, said Sally Pain, Chief Sustainability Officer at Bupa. “For companies who want to build and nurture future leaders for their business, investing in strong targets that connect with their employees’ personal values is vital.”
2:They know their worth
Generation Z is entering the labour market at a time wherein recruiters having a hard time tracking down enough candidates. The time, also dubbed The Great Resignation, will lead to the generation being aware of their bargaining power. “Pay needs to get higher”, said Dragos Badea, CEO of Romanian start-up Yarooms. “Growing up with the spectre of crippling student loan debt from their older siblings, Gen Z is much more likely to put financial reward as a top motivation for choosing a workplace unlike personal development that was so popular with millennials.”
3: Lazy? Think again
We mentioned stigmas — and the dominant stigma for Generation Z is one we’ve all heard: they’re a bunch of cappucino-drinking, avocado-munching lazy generation. According to a report by Kronos, Gen Z views themselves as one of the most hard-working generations ever. “One-third (32%) of Gen Z respondents say they are the hardest-working generation ever, with Millennials ranked as the second-hardest working generation at 25%.”
4: Referrals are the way to go
Yello looked at Gen Z’s favourite places to work — and highlighted referrals as the common preferred recruiting method. According to the report, nearly 62% of Gen Z prefers and relies upon referrals from an employer’s current or former employees as the most-trusted search for job searches. Job boards came in second (56%), while company websites (55%) round of the top three.
Source: Yello
5: Gen Z hates outdated recruiting methods
Gen Z are digital natives. Grown up in the advanced Netflix and YouTube era, they truly value technology that works. According to Yello, 54% of Gen Z won’t complete a job application if the recruiting methods are outdated. Meanwhile, tech-savvy as they are, 26% agree with the notion that a lack of tech throughout the hiring process would deter them from accepting a job.
6: Gen Z demands diversity
Early benchmarks by the Pew Research Center showed that Gen Z is, in fact, the best-educated and most ethnically diverse generation ever.88% of Generation Z argue that workplace diversity is important. 78% of Gen Z would consider finding a new job if their employer didn’t demonstrate a commitment to promoting a diverse workplace.
78% of Gen Z would consider finding a new job if their employer didn’t demonstrate a commitment to promoting a diverse workplace.
7: Speed is key
Generation Z loathes drawn-out application processes. According to the Center for Generational Kinetics (GenHQ), 60% of Gen Z says the job application should take less than 15 minutes. “Many employers want to screen out applicants quickly, so there can be additional steps and a longer screening process after the initial application is submitted”, the research states. “But the key we uncovered is to take specific steps to get Gen Z to complete the initial application step so both Gen Z and the potential employer can learn more about each other.”
8: They want to learn, but require leadership
According to a Kforce survey, nearly 61% of Gen Z argues opportunities for career growth was the most important factor when considering a job offer. But as soon as they’re in the jobs, 54% of recent graduates find difficulty transitions from college to the workplace. They require leadership, Kforce argues.
“Respondents reported that instilling professional norms was their greatest challenge when managing Generation Z employees.”
“Respondents reported that instilling professional norms was their greatest challenge when managing Generation Z employees. Followed closely by conflicting expectations for tasks and assignments. Managers should establish regular one-on-ones during onboarding. Use this time to check in on assignments, offer feedback and open the floor to questions and concerns.”
#9:They value face-to-face communication
While Gen Z is hardly seen without a smartphone in hand, this generation actually prefers face-to-face instruction to remote learning. “Generation Z grew up with technology, yet most of them prefer in-person communication over tools like texting and videoconferencing”, says University of Nebraska–Lincoln broadcasting professor Barney McCoy. “Gen Z students are better at focusing in a classroom, but they do have a shorter attention span than their millennial counterparts.”
“Generation Z grew up with technology, yet most of them prefer in-person communication over tools like texting and videoconferencing”
#10: Gen Z is eager to return to the office
As many Gen Z workers have entered the workplaces amidst the global COVID-19 pandemic, 1 in 5 have only worked remotely, according to Skynova research. It has lead to Gen Z slowly growing less fond of remote work. Particularly due to it being tough to create co-worker friendships. 61% of the Gen Z remote workers say they’ve had problems making co-worker friendships, opposed to only 12% of those working on-site reported having an issue making friends.
Nearly half of those surveyed (47%) say they plan to look for an in-person job next, and 22% say they wanted a hybrid role.
Beyond making friends, acquiring skills, finding a mentor and networking are all aspects Gen Z has found difficult to grasp. It has lead to 58% of the generation planning to stay for 1 year than less, compared to 31% of millennials and 19% of Gen X and older. Finally, nearly half of those surveyed (47%) say they plan to look for an in-person job next. Meanwhile, 22% say they wanted a hybrid role.
As the war for talent rages on, job search hasn’t seen many changes over the course of the past few years. Today’s candidate, particularly in sectors like tech, can be hugely picky about where they want to work. With younger generations increasingly value-driven (rather than money-driven), it has completely changed the way candidates search for jobs. Now companies and recruiters are scrambling — while unfilled vacancies continue to rise throughout large parts of the world.
“How can the experience of moving jobs be so poor? We believe it’s because the industry has prioritised the company filling a vacancy has left candidates feeling like second-class citizens.”
Enter London-based Otta, which aims to flip the script when it comes to job search and candidate experience. “The job you choose is so central to your fulfilment, wealth and relationships”, Otta co-founder and CEO Sam Franklin wrote in a blog. “How can the experience of moving jobs be so poor? We believe it’s because the industry has prioritised the company filling a vacancy has left candidates feeling like second-class citizens.”
‘A candidate-first job search’
Otta co-founder and CEO Sam Franlin
Otta works as a matching platform for jobs at tech companies. It helps candidates on their way by giving a full list of transparent information they need in order to make their decision: founder bios, employee reviews, salaries and industry information. “We set out to build a different way to find a job, and we call it candidate-first job search”, Franklin adds.
“We want to support ambitious people to find fulfilment in their jobs.”
“It’s a new category that flips the industry’s dynamics on its head. It’s centred on being fanatical about the candidate Our mission is to become the world’s career champion. This means putting candidates first — not companies. We want to support ambitious people to find fulfilment in their jobs.”
‘We’re just as picky as you are’
For candidates, Otta promises to be just as picky as they are. Moreover: it promises relevant roles only — while offering ‘fluff-free’ job descriptions. “No recruiters, middlemen, or sifting through unsuitable roles”, the website reads. “We cut out the noise, and help you invest energy in the best opportunities. UX gurus, ops rockstars and SQL ninjas are a thing of the past. We break down the jargon to get to what you’ll really be doing.”
Source: Otta on Twitter
“UX gurus, ops rockstars and SQL ninjas are a thing of the past.”
Up next: tech hubs across Europe
So far, the British start-up has been hugely successful in matching people with jobs. Beyond securing a $20 Series A investment led by Tiger Global management, the platform also became the #2 source of hires in the UK for the companies on Otta. “Thousands of people have started new jobs because of our product. We’ve surpassed Glassdoor, Indeed and we’re catching up to LinkedIn quickly!”, Franklin emphatically adds.
“We’ll be using 2022 to go deeper in the US, where we’ve already had strong traction, and next up are the tech hubs across Europe.”
The company recently expanded to the US market, where it is already seeing ‘considerably more’ applications than in the UK. “In addition to product development, we’ll be pushing the accelerator on scale”, Franklin says. “We’ll be using 2022 to go deeper in the US, where we’ve already had strong traction, and next up are the tech hubs across Europe.”
The US Army has announced it will boast its sign-on bonuses to a maximum amount of $50,000 over the course of six years in an attempt to bridge the gap in its recruiting goals. It comes during a time wherein the US military missed its recruitment goals for almost all of the services in 2021, according to CNN.
In 2021, the US Army missed its goal of 10,400 by 3,060, recruiting only 7,340 new army members by the end of November 2021. Now
“How we incentivise is absolutely essential. And that is absolutely something that we know that is important to trying to get somebody to come and join the military.”
“We are still living the implications of 2020 and the onset of COVID, when the school systems basically shut down”, Maj. Gen. Kevin Vereen, the head of Army Recruiting Command told AP. “We lost a full class of young men and women that we didn’t have contact with, face-to-face. We’re in a competitive market. How we incentivise is absolutely essential. And that is absolutely something that we know that is important to trying to get somebody to come and join the military.”
‘71% of people ages 17 to 24 are ineligible for US Military’
Within the US, eligibility is one of the biggest reasons for a lack of suitable candidates. According to a Bloomberg report, a staggering 71% of people ages 17 to 24 are unable to join the military due to a variety of reasons. Those reasons include obesity, a lack of high school diploma or a criminal record. “That means the remaining age cohort is the prime attraction for all recruiting from not just the military, but also colleges and employers”, as per the Bloomberg report.
A staggering 71% of people ages 17 to 24 are unable to join the military due to a variety of reasons.
In May 2021, the US Army launched an anime-animated series in an attempt to speak to one of the toughest generations to recruit: Gen Z. The series, entitled The Calling, tells the tale of several older teens who became military members, illustrating what drove people just like them to sign up for military service. In 2021, the US Army had about $425 million available for marketing efforts.
Less bonus money in Europe
As countries all over the world struggle to hire enough members of the military — and the US refills its bonus pot — European countries have typically relied less heavily on money as an incentive to achieve recruiting goals. And if they do, bonuses are nowhere near as high. While the average soldier cost the US Army approximately $33k in bonus money to recruit, Germany paid no recruitment and retention bonuses to career soldiers in 2020.
Germany paid no recruitment and retention bonuses to career soldiers in 2020.
For a full grasp of the state of armies throughout Europe, we must first look at the reported net flow. In other words: how many people came in, and how many people came out? For both the UK and the Netherlands — 2021 became a positive year based on those statistics. Despite the pandemic, the British Army reported a positive net flow of personnel for the second year running. After 20-odd years where the outflow had generally been larger than the inflow, 2021 proved to be another positive year for the recruitment of new forces personnel. In total, the British Army intake was 17,073 while outflow was 13,846, as per the most recent Commons Library Research Briefing of 11 January 2022.
Inflow and outflow: not the whole story
The Royal Netherlands Army also saw similar results in terms of its net flow in 2021. For the first time in 7 years, the army saw a positive net flow. Despite the fact that it was able to recruit roughly half the number of what it was able to recruit in 2020 and 2019. The reason for the relatively low net inflow is threefold, as explained in the Royal Netherlands Army’s latest report.
In total, the British Army intake was 17,073 while outflow was 13,846. For the first time in 7 years, the Royal Netherlands army saw a positive net flow.
The Royal Netherlands Army decided on a new policy to give all sufficiently functioning officers and non-commissioned officers who worked on a temporary contract a permanent appointment. Moreover, they retained older servicemen through a new end-of-service-arrangement, which meant they would be discharged at a later age. Finally, they saw job and income security through the COVID-19 pandemic as a primary reason for personnel to stay on board.
Unfilled vacancies across the board
But for both armies, and armies all over the world, it has been a fairly typical case in recent years where they aren’t able to fill anywhere near enough vacancies. As of July 2021, the Dutch Defense had 8.637 unfilled vacancies — as they work with a capacity of roughly 80% regular military functions. “Many regular military functions are now being done by civilian personnel”, the report states. The issues have resulted in marine trips being shortened due to a lack of personnel.
“In the German army, only about 60% of the posts for officers in the area of aircraft engineering personnel are filled.”
Similar sounds come out of the German Army (Bundeswehr), which saw around 20,200 military personnel positions above junior ranks unfilled at the end of 2020. That equates to around 82% capacity, as 18% of vacancies remain unfilled. The Bundeswehr reported that highly specialised technical and medical skills were the primary issue. “In the Army, like in the previous year, only about 60% of the posts for officers in the area of aircraft engineering personnel are filled.”
Belgian Army and U.S. Soldiers pose for a group photo. Source: 7th Army Training Command.
“It will be an enormous task to recruit enough replacements for the Belgium army.”
Belgium’s military force has also seen similar personnel issues — and is one cited as ‘in transformation’. In the next three years, Belgium will have lost approximately 5,500 members of the military over the course of five years due to its ageing workforce. “It will be an enormous task to recruit enough replacements”, said Ludivine Dedonder, the Belgian Minister of Defense, who announced that the country would look to hire a total of 2,300 military personnel positions within that same span.
Despite well-directed and flashy recruitment video’s, armies all over the world have struggled to hire enough personnel. Now, during a time when shortages are slowly becoming the norm across several sectors, it seems like armies will suffer a similar fate. While higher recruitment and retention bonuses could lead to short-term fixes, it remains to be seen whether it will have any real impact on whether recruitment goals will be accomplished.
The last few years haven’t been particularly kind to those working in aviation. With drastic losses of income, most airlines have relied on government funding in order to stay alive. Air traffic plummeted in 2020, and revenue passenger kilometers (RPK) dropped by 68%, from 8.9 trillion to 2.9 trillion.
The world is hungry for air travel
Now, at a time where more borders open in lieu of the seemingly milder omicron variant and more fully vaccinated people, the aerospace industry is reportedly showing strong signs of recovery. According to McKinsey research, the world is hungry for air travel. “History has shown that following an economic crisis, aircraft construction eventually returns to its pre-crisis way of operating and sales figures”, the report states.
Source: McKinsey
By 2023, the total number of RPK’s will likely reach above the pre-pandemic level of 8.9 trillion.
According to McKinsey’s base-case scenario, the revenue passenger kilometers (RPK) will increase to approximately 7.1 trillion in 2022, which amounts to approximately 80% of the 2019 levels. By 2023, the total number of RPK’s will likely reach above the pre-pandemic level of 8.9 trillion.
“[Sustainable aviation] can only be achieved by acquiring the right talents in the various domains of expertise that will help us grow our activities as we come out of the crisis.”
“Airbus has demonstrated resilience throughout the COVID crisis, and has laid the foundations for a bold future for sustainable aviation”, said Thierry Baril, Airbus Chief Human Resources & Workplace Officer. “This can only be achieved by acquiring the right talents in the various domains of expertise that will help us grow our activities as we come out of the crisis. While preparing the long-term transformation of the Company.”
Emphasis on new skills
It won’t just be any type of recruitment effort. Airbus’ strategy will largely revolve around the acquisition of new skills it needs in the post-COVID-19 world. Those skills have to support Airbus’ long-term projects and ambitions. “About a quarter of the planned recruitments should focus on acquiring the new skills to support our long-term projects and ambition. Notably in the fields of decarbonisation, digital transformation and cyber technology”, the company stated. After its initial wave of recruitment, the company has said it will re-assess and adjust accordingly.
Some call it Europe’s real migrant crisis. According to the Center for Global Development (CGDEV), Europe will soon be short large numbers of workers across various sectors. As most countries have broken their number of open vacancy records, shortages are slowly becoming the norm. But as open vacancies are, in many ways, pose an immediate problem. The continent faces a much larger problem in the long-run. That problem is called ageing.
Under the medium prediction by the UN, by 2050 Europe would have a population of 710 million. That is approximately 36.4 million less than in 2021.
According to an extensive study conducted by the United Nations, Europe will have 95 million fewer working-age people (between 20 and 64) in 2050 than in 2015. Under the medium prediction by the UN, by 2050 Europe would have a population of 710 million. That is approximately 36.4 million less than in 2021. “Europeans are living longer and having fewer kids”, said Charles Kenny, co-author of the CGDEV study.
Germany’s labour shortage is Europe’s worst
While much of Europe will experience labour shortages, experts see Germany coming off worst. According to the CGDEV and United Nations (UN) studies, Germany is projected to have worker gap of 7 million by 2050. That notion is echoed by a McKinsey study into the future of work in Europe, which predicts Germany could see its labour pool decline by about 4 million people by 2030.
‘It is dramatically slowing down our economy’
The employer-friendly German Economic Institute thinks the worker situation will be even worse by 2030. It estimates that the labour force in Germany will shrink by more than 300,000 in 2022 alone — and will lead to an accumulated shortage of people of working age of 5 million by 2030. “The shortage of skilled workers has become so serious by now that it is dramatically slowing down our economy”, Christian Duerr, parliamentary leader of the co-governing Free Democrats (FDP), told business magazine WirtschaftsWoche.
“The shortage of skilled workers has become so serious by now that it is dramatically slowing down our economy.”
On a positive note: the German government seems to be fully aware of the issue. And is one of the first to actively seek a real solution for its impending worker crisis. In early 2020, Germany initiated a so-called Skilled Workers Immigration Act. Unlike the British version of it, it aimed to fast-track visa and residence permit applications for skilled workers from abroad with vocational skills. But as the COVID-19 crisis arrived, paired with subsequent lockdowns and travel restrictions arrived, it shattered any hope of the act succeeding.
400,000 immigrants needed every year
Now, the Federal Employment Agency has upped the ante with a lofty goal. It has publicly stated that Germany needs 400,000 immigrants every year in order to fill the gaps in the labour market. “We can only get the problem of an ageing workforce under control with a modern immigration policy”, Duerr added. “[Germany has] to reach the mark of 400,000 skilled workers from abroad as quickly as possible.”
“We can only get the problem of an ageing workforce under control with a modern immigration policy.”
Germany was one of many European countries to increase its minimum wage in the past year. As birth rates have remained historically low, the country now looks to skilled migration as the only way out of its impending talent crisis. Whether it will be enough, remains to be seen.
In a series of articles, we’re delving into labour shortage forecasts for Europe. Subscribe to the ToTalent newsletter for updates and more precise analysis on Europe’s worker gaps.
