Our recent Panel Discussion “Closing the Workforce Gap: How to keep Europe Competitive, Innovative and Cosmopolitan?” took place at the Confederation of German Employers’ Association, BDA, on October 29, 2024, where over 40 Young Leaders from across Europe discussed Europe’s Workforce Crisis during an Young Leaders Advocacy Seminar. The summary distills the panel’s main points, highlighting Europe’s need for skilled talent, mobilization of workforce, innovation friendly policies, and a welcoming culture to remain globally competitive.
Panelists:
- Steffen Kampeter, CEO of the Confederation of German Employers’ Association
- Michael Bültmann, Managing Director at ABB E Mobility
- Dr Tobias Zimmermann, Head of Insights and Creation at The Stepstone Group
Moderator:
Dyria Sigrid Alloussi, Program Director at United Europe
Key Skills for Europe’s Competitiveness:
To remain competitive globally, Europe needs to foster problem-solving, collaboration, and teamwork skills. Businesses must tailor their strategies to their particular needs, as there is no silver bullet to solve the crisis. A shift towards fewer hierarchies and a focus on proactive problem-solving is essential. The term “war on talent” was first coined in Silicon Valley and indicates an emphasis on quality and the need for investment into talent.
Europe’s Standing:
A recent survey indicates that Europe has a strong foundation in attracting talent, with Germany ranking among the top five countries worldwide. However, countries like Canada, the US and Australia are taking a more active approach, positioning Europe as reactive in this global talent race.
Addressing the Workforce Gap
A compelling European narrative is needed to unify and attract talent to the European economy. While immigration is one tool, it won’t fully solve the problem. The panel emphasized the importance of mobilizing Europe’s existing workforce, enhancing productivity through AI, and encouraging flexibility and adaptability in the labor market.
Innovation Challenges
Innovation thrives with diverse leadership and access to capital, but Europe’s regulatory environment often hampers progress. While the US fosters a more open environment for technology driven innovation, European start-ups face challenges due to regulatory restrictions and risk aversion in venture capital markets. Innovation and necessary regulation should be harmonized to ensure both safety and space for technological progress in Europe.
Regulation vs Business Needs
For business innovation, governments should establish a balanced regulatory framework that minimizes risk without overreach. The panel noted that heavy regulation in Europe creates barriers for start-ups. However, countries like France and the Baltics are making strides by creating a more business friendly environment within the European regulatory framework, which other European countries could emulate.
Welcoming Culture and Integration
A welcoming culture is essential for integrating skilled migrants. Germany however, has a long certification process and lacks sufficient childcare and family support structures. Multinational companies are setting examples with their onboarding programs, which SME businesses could follow.
Skills-based Hiring vs Certification
While global trends lean towards skills-based hiring, Germany’s job market remains highly certificate-driven. The panel suggested that while changing this culture will take time, skills-based hiring is gaining traction, especially with support from AI and specialized recruitment agencies.
Creating a European Narrative
The concept of a unified European narrative akin to the American Dream was discussed as an ideal rather than an imminent reality. While some leaders advocate for a renewed European spirit, the movement lacks widespread support. On a practical level, multinational businesses are contributing solutions to Europe’s workforce challenges, despite limited policy-level initiatives.
We thank the BDA, Confederation of German Employers’s Association, Steffen Kampeter and his team for the successful seminar, support and collaboration.