Interview withJörg Friedrich, VDMA

Businesses need to publicise salary levels to recruit young talent

The shortage of skilled labour is causing problems in Germany's mechanical engineering sector. Companies need to communicate better to attract young talent, says Jörg Friedrich from industry association VDMA.

Businesses need to publicise salary levels to recruit young talent

Mr Friedrich, Germany's largest industrial employment sector is struggling to recruit staff. According to a new VDMA survey, only 14% of all companies are currently able to fill all or almost all vacancies for skilled labour. Where is the shortage particularly acute?

When it comes to qualification levels, skilled workers with dual vocational training are in particular demand, especially in the fields of mechatronics and automation technology. This is where companies have the greatest difficulty finding suitable people. But there is also a shortage of graduates. The problem is not quite as great for unskilled labour. Looking at individual company divisions, there is a shortage of personnel in production, design, and research and development in particular.

What are the consequences?

The labour shortage is clearly leading to a drop in turnover. In our survey, every second mechanical engineering company was affected by this. Specifically, 27% of companies said that they are making up to 5% less turnover due to labour shortages. 13% said that the reduction was between 5% and 10%. For 7% of companies it is more than 10%.

Companies must also pass on expertise themselves. However, the in-house training company rate in the sector fell from 40.9% to 36.8% between 2018 and 2023. Trade unions accuse employers of not doing enough. Are they right?

It's true that the training company ratio has fallen. Nevertheless, our perception is different. Companies are doing a lot to recruit young people. Compared to many other sectors, the mechanical engineering industry has been providing more apprenticeships than most other sectors for years. In our survey of around 300 VDMA member companies, a third of all companies stated that they are planning to increase the number of apprenticeships. However, 22% are unable or barely able to fill the positions. This particularly affects small companies in rural regions, many of which will eventually discontinue their apprenticeship programmes if they cannot find anyone.

If no applicants can be found in some areas, will the requirements for young talent perhaps have to be lowered?

That is already happening. Today, companies are giving many more young people a chance, who they might not have hired in the past. At a certain point, however, there are limits to this, because ultimately mechanical engineering professions are very demanding, especially in maths. And here, again, companies invest by providing private lessons, for instance. At the same time, however, employers should be able to expect that everyone with a school-leaving qualification in Germany can do maths and write properly. According to our association members, the level here has deteriorated significantly in recent years.

Mechanical engineering is not the only industry struggling to find suitable young talent. Against this background, are the apprenticeships paid attractively enough?

Apprenticeships are absolutely attractively remunerated. Industrial mechanic trainees, for example, earn an average of around 1,200 euros per month. In many other sectors, pay is not as good. Our surveys also show that the trainees are very satisfied with both their occupation and the employers they are being trained by. This is also shown by the DGB's training report. There, mechatronics technicians, industrial mechanics, electronics technicians and IT specialists are regularly among the top 5 training occupations. The problem is that young people do not know these industrial professions well because they take place behind closed factory doors.

What needs to be done here?

As an association, we regularly appeal to companies to give school pupils even better insights into their day-to-day operations. Companies need to address the issue of recruiting young talent, and offer many more opportunities such as work experience placements and open days. They also need to send young trainees to schools so that they can talk about their experiences. To this end, we launched a Europe-wide campaign in April to motivate and, if necessary, support such activities. The aim is for companies to send the right messages in their communications, not just any message.

The problem is that young people don't know these industrial professions well because they take place behind closed factory doors.

Jörg Friedrich, Head of Education Department, VDMA

What are the right messages?

When mechanical engineering companies communicate externally, for example via social media, they often put technology at the centre of attention. However, they need to put people at the centre, and show potentially interested parties exactly what they can expect from the company. We know from surveys of pupils and students that the hard facts are the most important thing for them. What can you earn, what are the working conditions like, what is the working atmosphere like and so on. Things like working from home or sustainability are also important, but often come second.

So the companies should specifically state how much one can earn as an apprentice?

Perhaps not necessarily down to the last euro. But yes, we are clearly calling on companies to address salaries, among other things, when recruiting young talent. So far, this has not happened enough. However, there are now the first videos from companies in which trainees say: „I earn well.“

There is a drop in orders for mechanical engineering firms, and the green transition has to be tackled. Do companies not have other things to worry about instead of social media?

Nowadays, companies simply can't avoid drawing more attention to themselves in order to attract young talent. That may have been different 20 years ago. There are already many companies, including small ones, that are proving that the effort is worthwhile. But you really have to do it. Complaining doesn't help.

Jörg Friedrich, Head of the Training Department at the German Engineering Federation –Source: VDMA/ Sarah Kastner Photography