In Germany, the unemployment rate among senior executives is generally low, hovering around 1-2% according to data from the German Federal Employment Institute (Bundesagentur für Arbeit). An astonishing figure in the midst of the economic crisis, but one that once again underlines the fact that the job market is in constant movement. Let’s take a look at how and look ahead to 2024.
Despite global economic uncertainties, the German private sector is showing signs of resilience, particularly in executive recruitment. Forecasts for the first quarter of 2024 point to modest but steady growth in hiring. According to recent data from the Bundesagentur für Arbeit (Federal Employment Agency), the number of executive positions is set to increase by 0.3%, adding around 30,000 new opportunities.
Competitive market and changing executive priorities
Competitiveness remains a key factor, as German companies fight to attract and retain the best talent. According to a survey conducted by the Institut für Arbeitsmarkt- und Berufsforschung (Institute for Labour Market and Occupational Research), 70% of managers in Germany are looking to improve their remuneration, while 50% prioritize well-being at work. In addition, there is a clear trend towards a better work-life balance, with 48% of executives expressing this need. The need for German companies to prepare their managers to evolve in a changing context is more crucial than ever. The selection and training of talent for management roles is becoming a strategic priority. Companies need to adopt flexible and innovative approaches to identifying organizational strengths and gaps, aligning opportunities and overcoming challenges. The aim will therefore be to anticipate and adapt to an uncertain future.
Predominant sectors
Germany’s predominant economic sectors, such as the automotive industry, engineering, technology and financial services, have a significant impact on the job market for senior executives. In fact, the proportion of managers working in industry is as high as 26% in Germany. Their recruitment is booming thanks to a variety of factors, including globalization, digital transformation, demographic trends and corporate preferences for specific skills.
An era of managerial transition
The trend in executive recruitment in Germany for the first quarter of 2024 highlights a period of managerial transition. Companies must not only meet market demands, but also anticipate future needs to remain competitive. Success will depend on their ability to effectively navigate this ever-changing landscape in terms of tasks demanded, types of candidate sought and core competencies. For example, overall, a third of private sector managers in Europe are under 35. Only 16% are 55 or over. Here too, there are differences between countries: the proportion of those aged 55 and over is 16% in the UK and 15% in France, while it is 19% in Germany. The specific missions, high demands and responsibilities of executive positions make it difficult to find these profiles. Finding qualified candidates for these positions can be a real challenge for companies (bearing in mind that each country has its own recruitment process and requirements.
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