The order books of the German economy are fuller than ever before. According to the ifo Institute, it will take at least 4.5 months to work through the backlog of orders. This is an all-time high. The ifo Institute has been compiling this data since 1969. However, despite the strong order situation – particularly in the automotive and mechanical engineering sectors – companies continue to face major challenges. Above all, the current high levels of absences due to Covid-19 can hardly be offset by an already stretched workforce.
To ensure that production and sales do not grind to a halt, temporary staffing is the solution of choice. Whether it’s a surge in orders or staff absences, it is regarded as a flexible staffing solution in challenging situations. Companies want motivated staff with low staff turnover. However, there is already a severe shortage of candidates in the temporary work sector too. Demand is high, as are the current Job vacancies at SYNERGIE.
Higher wages in the temporary work sector
High demand, combined with a shortage of candidates, is leading to higher wages for temporary workers. Client companies are now paying significantly more than the collective agreement rates for the temporary work sector, even for basic qualifications. Even in the Logistics, a sector known for its relatively low wage levels, hourly wages of up to 14 euros and more are paid. Incidentally, in the temporary work sector, the starting rate has long been above the statutory minimum wage, and this is set to remain the case.
How do recruitment agencies manage to recruit good project staff and deploy them reliably, even in a labour market where there is a severe shortage of workers?
Good support for candidates
It is not just a matter of recruiting the right candidates; as well as good pay, temporary workers need to be well looked after. High-quality service providers invest in effective onboarding, organise transport, provide workwear, arrange safety briefings and work-related certificates, implement clients’ COVID-19 measures, and much more besides. None of this comes for free.
This is what we recommend to our client companies
We advise our clients to start the recruitment process with realistic salary offers right from the outset. Otherwise, valuable time is wasted because no suitable candidates can be found. This reduces the risk of the project being jeopardised by excessive staff turnover.
If this balance is achieved, the client company benefits from reduced absenteeism, faster induction of temporary staff, higher productivity and improved performance. This ensures that production runs smoothly, enabling the full order books to be processed on time.
Source: https://www.ifo.de/node/67955
