The Problem of Skilled Labor Shortage
There is a growing shortage of
welders worldwide, and its impact is becoming increasingly evident. In Germany, every other company complains about difficulties when it comes to finding qualified workers. The trades in general are facing ever-greater challenges in finding appropriately trained young talent. This is due to two main reasons:
Firstly, there is a growing trend toward academic education. As a result, more than 40% of workers aged 30 and older hold a university degree.
Secondly, many girls and women do not feel confident entering trades or manual labor professions.
One solution for the skilled labor shortage is to hire foreign workers. In this context, foreign students are to be tied to local companies and apply their talents in the domestic industry. Another way to address the skilled labor shortage is through pooling. In this model, skilled workers are not exclusively available to one company. Instead, they use other work options such as
temporary work or freelancing to be available to various businesses depending on need.
In-house Permanent Employment
With the skilled labor shortage, it is becoming increasingly difficult for individual companies to find suitable personnel, especially welders. The solution to this could lie in the form of in-house recruitment.
The advantage is that permanent employees can be tied to the company for the long term. This is especially true for newcomers to the profession, as they can gain work experience within the company. Training programs supported by the company improve their qualifications and further bind them to the business.
The result is that these workers are available to the company whenever needed. However, the downside is that they must always be paid. If there is no current demand, they are still employed and incur costs.
Furthermore, the company must develop a strategy to find welders. This involves marketing efforts to attract potential workers. It is also labor-intensive to develop a selection process with its own criteria and then implement it as part of the recruitment process. This requires company resources, which are often needed elsewhere, especially in smaller businesses.
Once hired, it can be difficult to part ways with welders in the event of restructuring or changes in demand. This could lead to legal disputes and other negative consequences. Therefore, it is important to consider whether hiring a permanent welder in-house, with their constant availability, is worth the effort.
Recruiting with a Staffing Agency
A permanent position can also be filled by using a
staffing agency. The advantage of this is that the permanently employed welder is constantly available to the company. Additionally, the staffing agency develops and implements the recruitment process. Not only does this free up resources within the company, but the staffing agency also brings relevant experience. This reduces the risk of wasting resources or hiring the wrong professional.
However, hiring a staffing agency comes with higher costs. These costs do not affect the risk, as often payment is only made for the successful placement of the welder. Once success is achieved, the fee for the staffing agency is due.
Moreover, the disadvantages of ongoing wage costs due to changes in workload and the difficulty of termination in the case of company restructuring still apply. The only difference is that the recruitment effort is transferred to the staffing agency with higher costs.