Skills shortage and rising salary expectations characterise the labour market
On the 27th of November 2023, the recruitment consultancy Robert Walters published its annual salary survey, which was conducted among over 500 specialists and managers in Germany. The study provides comprehensive insights into salary and labour market trends for 2024 and is aimed at specialists and managers in permanent and interim positions with the core disciplines of Accounting & Finance, Banking & Financial Services, Legal, Information Technology, Sales & Digital Marketing, HR and Real Estate.
Key findings of the study:
Skills shortage and talent competition: 88% of companies surveyed are concerned about the ongoing skills shortage; 42% report intense competition for qualified candidates.
Benefits: Flexible working hours, bonus schemes and company cars are the most sought-after additional benefits for 2024.
Work-life balance and remote work: 76% of employees emphasise the importance of a good work-life balance; 87% of companies offer remote work.
Corporate strategies to address the skills shortage
Thomas Hoffmann, Senior Director North at Robert Walters, comments on the current challenges: "The shortage of skilled labour and the competition for talent demand a clear strategy from companies. It is not only important to offer competitive salaries, but also to develop a comprehensive understanding of the needs of employees in order to remain an attractive employer."
The current economic situation, marked by hiring freezes and redundancies, reinforces the need to meet the challenges in terms of salary increases and flexible working conditions. The survey indicates that 50% of employees are open to counter-offers from their current employer, with 90% willing to accept if it includes a pay rise.
The Robert Walters survey reveals that 81% of organisations are experiencing a decline in applications, while only 47% are considering the use of remote workers in response to the skills shortage. This highlights the intense competition for qualified candidates experienced by 42% of companies and emphasises the need for strong employer branding and the creation of attractive workplace cultures.
What professionals expect from their employer
The survey reveals that 73% of professionals express a desire for further training, particularly of a technical nature (65%). The primary reasons for changing jobs include advancing their own career (29%), the desire to explore new opportunities (18%) and dissatisfaction with leadership in the company (16%). More than half of respondents (53%) anticipate a salary increase, with 46% expecting a rise of 6-10% and 39% expecting an increase of 1-5%.
Additionally, 68% of respondents favour a hybrid working model, involving office presence for 2 to 3 days a week, underlining the increasing importance of flexible working models.
Thomas Hartenfels, Senior Director South at Robert Walters, adds: "Our study shows that, on the one hand, companies need to respond flexibly to the needs and expectations of the workforce in order to compete for talent. On the other hand, value orientation is also becoming increasingly important. In addition to work-life balance and flexible working models, teamwork, team culture and effective communication are also sustainable tools that can be realised through office presence. Striking the right balance between working from home and flexibility, on one hand, and fostering a shared team spirit and strengthening team culture, on the other hand."
You can find the complete Salary Survey by Robert Walters here.
