Pressure from labor shortage remains: Three quarters of companies complain of productivity losses

Press release

Pressure from labor shortage remains: Three quarters of companies complain of productivity losses

• Number of companies with declining productivity due to staff shortages remains at high level 
• One-third plan to hire new staff in the next three months 
• One in two companies is considering using AI to combat productivity losses

Düsseldorf, 21 August 2023. The shortage of labor continues to put companies under massive pressure, under massive pressure at a time where Germany's economy continues to weaken. This is the result of a recent study conducted by The Stepstone Group among 10,000 respondents, including around 2,800 executives and HR managers. Because of a lack of personnel, 76 percent of all companies are reporting losses in their overall productivity, which is 16 percentage higher than before the Corona pandemic. 

"These numbers are alarming, but should no longer surprise us," says The Stepstone Group Labor Market Expert Dr. Tobias Zimmermann. "People are the undisputed number one competitive factor. Companies that are already successfully counteracting this with targeted measures to recruit employees and the use of innovative technologies are securing a long-term lead in the market that will be difficult to catch up with. This is precisely what we must do from now on. Otherwise, the labor shortage will have dramatic economic consequences. “

Public sector and healthcare industry complain of highest productivity losses

More than 8 in 10 (88 percent) of respondents in the public sector and 83 percent of employers in healthcare and social services sectors complain of losses in their ability to provide products or services. Wholesale and retail (80 percent) also have to cope with cutbacks in this area.

This is despite the fact that more than a third of all companies have hired more staff within the last three months. Approximately the same number (35 percent) are planning to hire new staff in the next three months. In the public sector, almost every other employer (48 percent) intends to do so.

However, hiring new employees is a major challenge for many companies. 90 percent of companies complaining that they are having difficulty locating suitable candidates in the first place. "We are already seeing the negative economic impact of jobs going unfilled," says Zimmermann. "Matching the right candidates with the right jobs and companies will become the game changer in the future. That's why at The Stepstone Group we're investing heavily in smart technologies that match companies with the right job seeker even faster."

Companies are still hesitant to use AI tools to ease the workload of employees

The labor shortage is forcing companies to take further measures against productivity losses: "In the long term, there will be fewer and fewer workers. At the same time, AI will transform the labor market. That's why it's all the more important to automate processes where they can relieve the burden on humans," Zimmermann emphasizes.

Although almost one in two companies is already using artificial intelligence to automate processes, according to the study, companies are far from exhausting the technology's potential, as Zimmermann points out: "AI can provide support, particularly in time-consuming administrative activities. Investments in powerful technologies that go hand in hand with human skills will pay off. We will continue to need people precisely in those areas that cannot or should not be automated - for example, in nursing or childcare, but also in creative areas or social interactions. We should empower and educate people to use AI where it helps them."

About the survey

How do people assess their job opportunities on the labor market now and in the future? How high is the willingness to change among employees and how strongly are employees themselves currently affected by the effects of the labor shortage? And how do HR managers view the current labor market situation? To answer these questions, The Stepstone Group surveyed around 10,000 people in July 2023 for the "Pulse Check Labor Market 2023" study. Among them were 1,700 executives and 1,100 HR managers. The results are representative of the working population.

About The Stepstone Group 
The Stepstone Group is a leading global digital recruitment platform that connects companies with the right talent and helps people find the right job. The Stepstone Group connects more than 110 million job applications with over 140,000 employers every year. With its integrated platforms, The Stepstone Group simplifies the candidates job search as well supporting recruiters with AI-powered solutions for the entire recruitment process. In 2022, The Stepstone Group generated revenue of around €1 billion. The Stepstone Group operates in more than 30 countries - including Stepstone in Germany, Appcast in the USA and Totaljobs in the UK. The company is headquartered in Düsseldorf, Germany and employs more than  4,000 people worldwide. For more information: www.thestepstonegroup.com/en/

Contact

The Stepstone Group Media Relations

press@stepstone.com