Temporary work as an indicator (Interview Suzana Bernhard)

Suzana Bernhard, Managing Director of the DEKRA Arbeit Group, describes the current mood in Germany and identifies the most important challenges for companies and the national labor market in 2023.

What interim conclusions have you as the DEKRA Arbeit Group drawn so far for the current year 2023?

The interim conclusion for 2023 is somewhat mixed and divided. In the first three months, business development was positive and initially continued the previous year's positive trend. From the second quarter onwards, however, the picture changed and almost all sectors saw a noticeable decline or at least stagnation in demand for employees - despite the spring growth that usually sets in at this time.

How do you assess this latest development, and what challenges is the personnel services industry facing in particular this year?

How do you assess this latest development, and what challenges does the personnel service industry face? The personnel service industry has always been an upstream indicator of the immediate downstream macroeconomic situation in Germany. And this mirror image shows very clearly how unsettled or, in some cases, problematic the general business and sentiment situation is on the corporate side.

On the one hand, many sectors are still struggling with a highly volatile order situation or even production stoppages, which have been exacerbated in post-pandemic times by the Ukraine crisis - along with the associated supply chain problems and a drastic rise in energy and commodity prices - over the past 12 months.

On the other hand, political measures and regulations are also having a dampening rather than a positive effect on economic development in Germany. Unfortunately, there is often no clear strategy or targeted, timely support from the federal government, regardless of whether it concerns issues such as the climate and energy transition, international migration of skilled workers or digital topics of the future. Unfortunately, companies are left alone with many worries and questions about the future, or at least left in the dark for far too long, which at best leads to entrepreneurial restraint - but in the worst case, at some point even to migration abroad or the threat of insolvency.

The direct impact on us as a personnel service provider can therefore be summarized quite simply. Compared to previous years, our customers have to be much more cautious and short-term in their staff planning, which often reduces our response time for filling vacancies to just a few days in times of an increasing shortage of skilled workers and applicants. Whereas in the past there was a predictable need for personnel with a few weeks' lead time, we currently have to adjust our staffing levels “virtually on sight” from one day to the next.

Added to this is rising inflation, which is accompanied by a dramatic wage-price spiral. An effect that poses major challenges for employees, employers and, of course, for us as a personnel service provider in equal measure.

In your opinion, what are the decisive factors for the sustainable future success of Germany as a business location?

In my opinion, the development of the German economy depends on how well we manage to reconcile ecological challenges with good economic growth conditions in the future.

There is no question that we need to break new ground with regard to digitalization, the shortage of skilled workers and meeting our climate targets, and that a rethink is required in many areas. However, the necessary changes must by no means overburden the main pillars of our economy and must allow Germany as an industrial location in particular sufficient breathing space, both in terms of time and money.

People and companies in Germany are definitely ready for change and have shown often enough how adaptable, community-oriented and optimistic they are. But only if they are offered a clear perspective and the change process is transparent, fair and open, instead of holding endless ideological debates that only drive our society further apart.

In this context, what are the most important challenges for the personnel services industry in 2023?

Of course, I can only speak for the DEKRA Arbeit Group and not for the entire industry. But the most important challenges for us lie in three major areas.

The biggest challenge will certainly be to develop even more flexible work concepts and ever new personnel solutions in view of the demographic trend in Germany. It is already clear today, for example, that the demand for employees can no longer be met without additional skilled workers from “international countries”. This does not just mean EU employees, but a large number of well-trained workers from all over the world.

As the DEKRA Arbeit Group, we are therefore positioning ourselves ever more broadly and internationally in order to be able to offer our customers the right employees at all times in the future. For our part, we have long since made all the necessary preparations and are practically in the starting blocks, although we are still waiting for the specific political details of the latest Skilled Immigration Act in the personnel services sector.

The second major topic is and will certainly remain the digital transformation. Fortunately, we are among the pioneers of digitalization across the industry and have already introduced many innovative new features across the board in recent years. But the digital revolution continues unabated - and we, too, are called upon to open ourselves up to ever more modern solutions and to tirelessly see the digital future as a real opportunity for a better working environment, even better cooperation with our customers and colleagues and environmentally and cost-efficient corporate development.

And the third major point is really a very personal challenge - or let's call it a personal goal. Since DEKRA Arbeit was founded almost 25 years ago, I have been firmly convinced that the greatest guarantee of success lies in open, human and positive cooperation. Everything we have achieved to date - and all the challenges we will face in the future - could and will only be mastered together with our employees, customers and business partners. Because in my opinion, solidarity is the strongest factor for the future! And we will maintain this attitude from the bottom of our hearts and with full conviction. No matter what hurdles or developments lie ahead of us.