The international shortage of skilled workers is hampering German exports and investment abroad. In Germany, the economy is actively engaged in responding to this shortage.
It is involved in training qualified employees in their companies and is benefiting from this in numerous ways. The establishment and expansion of training structures across the world means that the group of those benefiting can be significantly expanded. To support this, German industry and international stakeholders are able to draw upon collaboration with the German education and training industry and its network platform iMOVE.
Risks posed by the skilled worker shortage
The international shortage of skilled workers is placing the German economy's commercial activities abroad at risk. One third of German companies with export interests refer to the problem of finding suitable personnel for their company as risky. These are the results of the AHK World Business Outlook Survey conducted in spring 2018 which reports on the responses of more than 5,100 German companies worldwide.
Despite the financial crises and high levels of risk, global economic growth is certainly robust in overall terms, and German companies are looking to the future with confidence. However, the shortage of skilled workers is still a significant risk factor and, in the international analysis, comes in third position behind economic policy and demand. The problem is even more pronounced in individual regions. In North America, it is the second most important risk factor and in China and Asia / Pacific even occupies the top spot.
German companies benefit from in-house training
In German society there is a long-standing and well-established tradition of company-based training to help overcome shortages of skilled workers. Around 20 per cent of all companies — equivalent to 428,000 — provide training; the majority of these are small and medium-sized companies. In Germany, vocational training is not organised and financed solely by the state, but the private sector is also involved, and even covers the majority of the costs. However, 70 per cent of the funding invested is recouped through the productive contributions of trainees during the training.
The German economy generates €7.7 billion annually for vocational education and training compared to just under €5 billion from public expenditure. The costs to companies are incurred largely from creating the conditions required for training in the workplace and from paying for the training remuneration which trainees receive. This, on average, is approximately €880 gross per month and enables a modest standard of living.
The companies provide training each year for over 500,000 new trainees and almost 70 per cent of these are subsequently offered employment and taken on. Average net costs for companies over the course of the 3-year training occupation amount to around €11,000 — however the net costs reduce from year to year while the level of training productivity continues to grow. Even in the training phase, just under one third of companies managed to achieve a positive gross margin.
Complex benefits for companies
The advantages enjoyed by companies providing the training are varied. Those providing training make cost savings in terms of job advertising, recruitment and the induction of trained skilled workers, and they are able to counteract poor hiring choices and staff turnover. Those companies also gain precisely the expertise they need because the training regulations provide sufficient scope for delivering hard and soft skills which are specific to the company. Short-term employee absenteeism, in the case of illness or holidays, can be covered by trainees in a cost-effective manner and without complications.
Internally-trained skilled workers develop a high level of identification with the company which has trained and supported them. Those providing training therefore not only have young people “breathing new life” into their companies, but are also ensuring the future of their company in the best way possible by training qualified successors ready to replace those skilled workers who are about to retire. Last but not least, they image of their company is enhanced: Training companies demonstrate a particular social responsibility and generally therefore also enjoy a certain level of respect.
Cooperation with German training providers
In order to respond internationally to the challenge of the skilled worker shortage, German companies which are active abroad are cooperating in increasing numbers with an estimated 22,000 German training providers. These providers have a precise understanding of the requirements of qualified training and continuing education under international standards and are providing their clients with tailored solutions to meet their respective requirements.
Today, the export of products and services in the area of vocational training and continuing education has become an established component of the German education and training industry. Services provided by this growth sector include curriculum planning, training of trainers, the planning and equipping of educational establishments, teaching materials and much more.
iMOVE: Training – Made in Germany
iMOVE in the Federal Institute for Vocational Education and Training is the central network platform for the initiation of cooperation projects in the education and training industry. As the export initiative of the Federal Ministry of Education and Research (BMBF), it supports the German economy which seeks to initiate and develop international training measures to help open up new markets.
However, iMOVE also provides access to German training providers for international stakeholders who value the successful German approach to training. Those seeking information are able to access services provided free of charge via the iMOVE website, which is available in a range of different languages. This includes access to the iMOVE provider database containing profiles and contact information of around 250 German training providers as well as the opportunity to post an individual request in the iMOVE B2B marketplace.
