Industry giants such as Brigitte Mohn, edtech startups such as Great2Know and experts such as Gülsah Wilke discussed how the labor market is changing, where qualified talent can be found and why startups and medium-sized companies should rely on a diverse corporate culture.
How to educate, reach and retain qualified employees? The labor market was the main topic on various panels at this year’s Hinterland of Things conference. Founders Foundation CEO Dominik Gross opened the conference with the current status quo:
“In 2023, the German economy will have lost the equivalent of 90 billion euros due to a lack of workers.”
Well-known startups are also facing the challenge of finding and retaining qualified personnel – across all industries. According to a recent Bitcom study, there will be a shortage of 663,000 IT specialists in Germany by 2040. SMEs are feeling the effects of this to an equal extent: in a survey conducted by Heidelberger Druckmaschinen AG, medium-sized companies stated that the shortage of skilled workers is now a bigger problem than high energy and raw material prices or bureaucratic hurdles.
The good news is that the Hinterland of Things conference has shown what companies can do to counteract this development. Employers should take a stand, establish a healthy corporate culture, rely on technological innovation in the area of recruiting and on the early training and further education of talent. We have summarized here what this specifically means.
The rise of right-wing parties in the European elections has prompted the panelists at the Hinterland of Things conference to call for more diversity – not least because more diversity and inclusion increases competitiveness in the labor market. Many talented people can be found internationally and need a diverse and inclusive work culture. According to a study by the IU International University, diversity is a decisive factor in attracting new employees.
Brigitte Mohn, member of the Bertelsmann Stiftung Executive Board, is convinced that entrepreneurship ultimately reflects the attitude of society and can strengthen cultural diversity.
“It is no longer possible to be apolitical. Take a stand and create familiar spaces for dialog.”
Gülsah Wilke, Founder @ 2hearts & Partner @ DN Capital
Every company must now take a stand.
Employers must not forget that they represent a reputable and trustworthy authority for many people in Germany. It is now up to companies to use this trust in the right way, says Zarah Bruhn, founder of the impact startup Socialbee and a speaker on social innovation.
“Your employees may not trust the state and democracy and the traditional media, but they do trust their employers. So use your voice.”
Zarah Bruhn, Founder @ Socialbee
To increase diversity, startups should exchange ideas and share their talents, experiences and developments across Europe, instead of working in isolation. And internally, cultural support is also worthwhile for companies of a certain size, so that international professionals feel welcome. Social entrepreneur Gülsah Wilke suggests building a support network within the company. Colleagues could support new employees with bureaucratic or language issues.
“It’s always a mixture of professional and personal components that make you feel welcome,” says Wilke.
Compared to France or Great Britain, Germany has the advantage of a strong middle class. That’s why a collaboration between startups and medium-sized companies is necessary, adds Tina Dreimann from Impact-VC Better Ventures.
A healthy working environment is just as important for candidates as professional qualifications are for companies. At the Hinterland of Things conference, impact startups and HR techs that bring international talent together with companies met. We introduce three of them:
The impact startup Socialbee, founded by Zarah Bruhn, a social innovation agent, finds jobs for refugee workers. Through training, coaching and targeted matchmaking with companies, refugees are optimally prepared for entry into the German labor market.
DN Capital VC partner Gülsah Wilke, as founder of 2hearts, is committed to promoting diversity in the technology industry. 2hearts offers a network and mentoring programs that help talented people with a migration background enter the tech industry and support them in their professional development.
Magdalena Oehl’s bootstrapped startup TalentRocket is a specialized platform for lawyers. With customized job offers and career advice, TalentRocket helps companies find qualified legal professionals.
The recognition of social startups in the industry shows that successful recruiting goes hand in hand with social responsibility.
Corporate culture is defined in different ways, but it is clear that a fruit basket and flat hierarchies in the job ad are not enough.
Kerstin Hochmüller is CEO of the drive technology company Marantec and is involved in innovation processes in medium-sized industry. For her, culture is a question of how we interact with each other. “For me, it is the mindset that connects, and not the approach of creating a unified culture,” says Hochmüller. In times of quiet quitting and frequent job changes, the shared mindset is probably more important than ever for employees to be able to work freely and independently.
Nina Koch, Director Customer Success Continental Europe at Slack, is convinced that employees work best when they “work independently and organize themselves.” She argues, “Employees spend 33 percent of their time the next day doing work for their actual work.” Empion founder Annika von Mutuis takes a similar view. It is important to be successful at work itself, she says, as this is a value in itself.
There is still potential for more efficiency in companies, which can be released through a healthy working environment. But often it is hierarchies and bosses that make employees dissatisfied: “It’s about getting along well with your superiors”.
Young talent in particular pays attention to management behavior in the company. According to an EY job study, 32.4 percent of respondents between the ages of 21 and 35 have changed jobs because they were dissatisfied with their boss. Annika von Mutius, founder of recruiting software, knows: “Employees want to feel valued. Ultimately, it’s about getting along well with your supervisor.” Dissatisfaction with the boss is the most common reason for termination, according to Mutius.
At the Hinterland of Things conference, the term impact was discussed primarily in terms of social and ecological aspects. Every startup aims to be profitable in the long term. For impact startups, the balancing act of being socially or ecologically sustainable and profitable at the same time can be challenging.
That’s why there are special impact VCs that support startups on their mission. The Berlin-based Female Catalyst Fund Auxxo, for example, invests exclusively in startups with at least one female person on the founding team. Their KPI is easy to measure: “For us, the KPI is whether or not there is a female founder on board,” explains Auxxo founder Gesa Miczaika, referring to studies that show that diversity at the management level leads to more diversity at all levels.
Although there are specialized impact VCs, prospective impact founders should first consider which business model suits them best. VC financing is not always necessary: “For me, impact also means building a measurable new SME,” says founder Magdalena Oehl. She built the recruiting platform TalentRocket by bootstrapping. For her, the motivation behind the business idea is more important. “Once you have clarified the ‘why’, commitment is very easy because you know what you are doing,” she says. This clarity helps startups to stay focused and committed despite challenges.
The EdTech industry in Germany has great potential to fundamentally transform the education system. The NRW EdTech Report by Founders Foundation shows that the number of EdTech start-ups has increased significantly since 2020. In North Rhine-Westphalia in particular, the number of new EdTech start-ups rose by an impressive 93 percent.
This development is necessary because the education system is only making very slow progress: “So much has happened in the world in 20 years – and so little in schools,” laments founder Fredrik Harkort of Cleverly, an e-learning platform for children.
What makes Cleverly special is that the EdTech works together with Allianz Consulting. Dr. Ninon Latzitis from Allianz sees a clear advantage in the joint cooperation: “For us, these collaborations are a win-win, because we are investing in children, breaking down social barriers and relieving the burden on parents.”
It is not yet common practice for companies to invest in education at an early stage. Stefan Peukert, who founded the educational tool Masterplan, emphasizes the importance of sending role models to schools at an early stage to promote entrepreneurship. He didn’t know at the time that he would one day be in a position to start his own business, he says.
Despite the growth, there are challenges. The market is highly competitive and it is important to find a niche, advises Elisa Hertzler, founder of the skills management platform Peers Solutions. She recommends promoting cooperation between research institutes and encouraging public offices to use software from startups.
© 2024 Hinterland of Things
