Employer brand against shortage of skilled workers: How do you deal with internal grievances?

Corona, inflation, supply bottlenecks: SME have many challenges. However, the shortage of skilled workers continues to cause SME the most headaches, according to the SME barometer of the consulting firm Ernst & Young. 

The survey found that 54 percent of the companies surveyed consider the shortage of skilled workers to be a rather great or very great threat to their own business.

See Picture 1. Source: Ernst & Young

The problem is likely to get worse. Most of the companies surveyed are planning to expand their workforce in the coming months.

See Picture 2. Source: Ernst & Young

Employer brands

It has never been more important for companies to build an employer brand. Qualified employees are not only more sought after than ever in the labour market, but they also have many more choices.

Whereas in the past there was only the option of choosing from employers in the immediate local area, in the age of home office and digitalisation, employees can work for companies from all over the world - depending on the field of activity. So, employers are not only competing locally, but globally. And this also applies to locally operating SME.

SME have disadvantages

It is mainly smaller companies that are often at a disadvantage in today's labour market. Large companies benefit from their recruiting budgets and their name recognition. They can also compensate for shortages of skilled workers by transferring specialists to other positions within the company or to other plants. SME usually cannot do this.

SME are also often less "sexy", especially among young applicants. They do offer advantages for families, for example, as they usually require less physical flexibility. Nevertheless, they are usually not the first choice for university graduates, for example.

Focus on corporate culture

There are simple and inexpensive solutions to position oneself as an attractive employer in the labour market. It doesn't always have to be an outsized salary, or comfortable seat cushions and free snacks in the fridge.

Essentially, most applicants are primarily concerned with one thing: They want to be treated fairly and well and work for a company with high ethical standards.

Especially for the Millennial generation, a company's corporate culture and ethical orientation are increasingly important. Even the salary is often secondary for younger applicants - even though it is still considered very important.

Reporting systems with a signalling effect

Nothing characterises a corporate culture as much as the way it deals with criticism and complaints. Are grievances in the company simply swept under the table or actively addressed? Are empty promises made by the management or do those responsible deal with the concerns and needs of their own employees.

Since 17.12.2021, companies with 250 or more employees must introduce so-called whistleblower systems throughout the EU. This means that they must provide their staff with a reporting channel that allows for the anonymous reporting of grievances. The EU directive also stipulates how these reports must be handled.

Smaller companies will probably have until 2023 to introduce such reporting systems. However, they are well advised to do so already today. Because as soon as whistleblowing systems are obligatory, the branding effect is gone. Those who already introduce such a whistleblower system today, without a legal obligation, will stand out from the competition as an ethical employer.

Use the signal effect that a whistleblower system has for your employer brand. The obligation will come anyway, today it is still a chance!