Talent Shortages in Germany's IT Sector Impeding Business Performance

21 Oct, 2023

Talent Shortages in Germany's IT Sector Impeding Business Performance

A recent study conducted by IT search and recruitment firm Keller West, in partnership with Sapio Research, has revealed that approximately two-thirds of senior IT professionals in Germany, defined as those earning a salary of over €90,000 per year, are witnessing detrimental effects on their businesses due to the acute shortage of IT talent.

The repercussions of this shortage are widespread, with a significant impact on business performance. These consequences include the tardy delivery of projects (cited by 39% of IT leaders), hindrances in launching new products or services (36%), difficulties in effectively addressing priority business requests (31%), escalated operating costs (30%), projects exceeding their budgets (24%), and the burnout of existing employees (24%).

The study further emphasizes the potential benefits of more training and professional development programs to mitigate the adverse impacts of talent shortages. Notably, 69% of senior IT leaders rate the quality of training available at their organizations as either 'good' or 'excellent.' Furthermore, 60% of respondents believe that increased investments in the professional development of their department would significantly enhance its capacity to contribute to commercial success.

The study also uncovers the recruitment challenges faced by senior IT leaders. On average, just over half (55%) of new IT hires are considered successful, possessing all the necessary technical and soft skills for their roles, leaving nearly half of these hires ineffective.

As a result of these challenges, two-thirds of senior IT leaders (66%) have adapted their hiring strategies. Among the strategic changes implemented, 63% have introduced or expanded apprenticeship programs, 51% have cross-trained employees from other areas of their organizations, 45% have initiated visa or right-to-work schemes, and 37% have eliminated the requirement for a related degree for new candidates.

Alex Gerritsen, partner and head of DACH for Keller West, noted, "The quality of training and the availability of support for ongoing professional development have become essential tools in employee recruitment and retention. Employees of all levels recognize the importance of continuous learning and skill development. In addition to core training, businesses are encouraged to encourage their employees to explore their interests. Technology evolves rapidly, making it nearly impossible to predict the skills that will be required by the business in the coming 12 months."