Equal Opportunities in the Labor Market as Part of the HR Strategy to Combat Labor and Skills Shortages (1st Quarter 2024)
In the first quarter of 2024, the Randstad-ifo HR manager survey focused on equal opportunities in the labor market, especially in light of the shortage of workers and applicants. The tools most frequently used by companies for equal opportunities are the flexibilization of working hours and of hours worked. In addition, three-quarters of the companies surveyed have changed the structure of their job advertisements and application processes in the last five years – one reason being to receive more applications.
Almost half the companies (47%) are taking measures to ensure the participation and opportunities of all potential employees in the labor market. A further 22% have such measures in the pipeline. Just under one in three companies (31%) do not see this as part of their HR strategy. While the number of companies that have already integrated this into their strategy is slightly higher in the manufacturing and service sectors (49% each), the figure is lower in the trade sector (39%). In the latter, one in four companies is planning to take such steps. In the manufacturing and service sectors, slightly more than one in five companies stated this in addition to those already implementing it.
The size comparison is striking here. The smaller the company, the less likely it is to take measures: in large companies with 500 employees or more, 67% stated that they use such instruments. A further 24% plan to do so. This means that only 9% stated that this was not an issue in their HR strategy. In companies with 250–499 employees, more than half of HR departments are taking such measures (57%), as are 35% of small companies with fewer than 50 employees.
More than Two-Thirds of Companies See Development Opportunities for People with Disabilities
Companies see the greatest need for improvement in opportunities for people with disabilities. Here, 69% of the companies surveyed stated that they had identified development opportunities and a need for action in their company. More than half (55%) also see opportunities for people with lower levels of educational and almost as many (54%) see opportunities for people with a migration background. One in three companies still sees room for improvement in the further training and qualification of employees. Respondents see less need for action in terms of employer attractiveness for all age groups (22%) and equal opportunities and equal pay for all genders (21%): particularly with regard to the shortage of labor and skilled workers, demographic change and the part-time rate of women.
A comparison of company size shows that smaller companies generally see slightly fewer development opportunities or less need for action than large companies. Here, too, the most frequently mentioned measure is to ensure opportunities for people with disabilities. In companies with 250–499 employees, 81% stated this; in companies with 500 employees or more, the figure was 71%, and in small companies and microenterprises it was 66% and 65%, respectively.
Flexibilization of Working Hours and Hours Worked Most Important Tools
The most frequently used tool is the flexibilization of working hours. A full 66% of companies stated that they offer this to their employees. Half the companies also ensure that the number of hours worked can be flexibly arranged, so part-time work is therefore possible. However, this is significantly less common in small companies with up to 50 employees (42%) than in large companies (250–499 employees: 59%, over 500 employees: 53%). A total of 39% of respondents use the lowering of entry requirements as a measure. It is striking that 46% in the trade sector use this tool, compared to only 35% in the service sector. The flexibilization of the place of work is offered less frequently than the other two flexibilization options. Here, just under one in three companies stated that they implement this. While 39% of companies in the service sector take this action, the figure is 30% in manufacturing and 19% in trade. However, this is probably mainly due to the fact that some professions can only be carried out at a fixed location.
In a comparison of company sizes, it is noticeable that the free choice of place of work increases significantly with increasing company size. While one in five companies in the smallest companies offer this flexibility, this figure is almost one in three among companies with 50–249 employees, 43% among companies with 250–499 employees, and almost half (47%) among large companies with 500 employees or more. Language courses are offered similarly frequently. This was stated by 28% of participants. While 32% in manufacturing and 31% in the service sector organize language courses for employees, the figure is significantly lower in trade at 15%. A comparison of company sizes once again shows how frequency of the measure rises as company size increases. A total of 51% of companies with 500 or more employees offer language courses to their employees, compared to 14% of companies with fewer than 50 employees. Support for childcare in the form of a company daycare center or a daycare allowance is provided by just over one in five companies. The service sector stands out here in particular, with 28% of companies offering such services. Here too, the offer increases with the size of the company. Further training and support in finding a place to live were also mentioned in isolated cases.
Three-Quarters of Companies Have Adapted Job Advertisements and Application Processes
Three-quarters of the companies surveyed stated that they had changed the structure of job advertisements and application processes in their company in the last five years in order to receive more applications. It is striking that large companies in particular have made changes. Almost all companies with 500 or more employees (96%) and slightly more than half of companies with fewer than 50 employees (59%) have done so. In addition, more companies in the manufacturing and service sectors have made a change (77% in each case) than in the trade sector (70%).
The most common change is the possibility of advertising via social media platforms. This was stated by 62% of companies that had made a change. This is probably primarily aimed at appealing to the younger generation and adapting to their way of life. This change was mainly made in manufacturing (68%) and the service sector (62%), slightly less so in trade (53%). The difference between company sizes is particularly marked. In large companies with more than 500 employees, 93% of respondents have included this application option; in companies with 250–499 employees, the figure was 76%; in companies with 50–249 employees, 64%; and in companies with fewer than 50 employees, 41%. Almost one in two companies (45%) has also made it easier for career changers to apply. This can be seen as a response to the increasing shortage of labor and skilled workers.
It is essential to become more flexible when hiring staff, especially in bottleneck occupations. It is also clear that companies already feel compelled to respond to this. In trade, the figure is 50%; in manufacturing and in the service sector, 41% and 45% respectively. In companies with 250–499 employees, 59% stated that they had made this change. In contrast, only 36% of small companies with up to 50 employees did so. A reduction in entry requirements, such as training or professional experience, is accepted by 40%. There are only slight differences here among economic sectors and size categories. For example, 21% of the companies surveyed no longer require a photo with the application. In contrast, only 12% of small companies with fewer than 50 employees do so. One in five companies also omits a cover letter in the application in order to keep the process low-threshold. While 35% of very large companies stated this, only 10% of small companies with fewer than 50 employees did so. Doing away with references (11%) and age information (10%), on the other hand, only occur rarely and here too are most likely to occur in large companies. The question about the use of AI was answered in the affirmative by 3% of the companies surveyed.
Companies See Themselves as Having the Greatest Responsibility
When asked about who bears responsibility for offering more equal opportunities in the labor market, most participants – 68% – answered that they themselves do. For 63%, the education system also plays a major role. A total of 51%, i.e. one in two companies, believe that the government shares responsibility. For 48%, the individual is also responsible.
