Business-critical success factors for the food industry
How digital workforce management helps you tackle labor shortages, cost pressures, and quality demands — while staying flexible and competitive.
Planning smarter in volatile times
In an industry defined by seasonality, strict regulations, and tight margins, efficient workforce management has become a decisive success factor for food producers. It’s not just about optimizing staff deployment and meeting quality and qualification standards. Creating attractive workplaces, involving employees in scheduling, and boosting job satisfaction also play a vital role. This whitepaper shows how a modern workforce management solution supports your business in addressing these challenges—now and in the future.
The food industry at a glance
The food industry is one of the most significant sectors within Europe’s diverse manufacturing landscape. In Germany alone, around five million people work across the entire value chain—from farm to fork. Within that chain, the food industry is the third-largest segment, following hospitality and food retail.
In 2022, nearly 6,000 companies in the German food industry employed over 600,000 people, generating around €218 billion in revenue. Exports are a key driver: one in three euros (over €77 billion) was earned abroad.
The sector is dominated by small and medium-sized enterprises (SMEs)—90% of companies have fewer than 250 employees. In terms of revenue, the food industry ranks fifth in Germany, behind automotive, mechanical engineering, chemical/pharmaceuticals, and electronics.
Overview food industry in Germany
Top 5 food industry segments by workforce size (Germany)
- Bakery products: 176,907 employees
- Meat and meat products: 150,118
- Confectionery, long-life baked goods & ice cream: 55,315
- Convenience & other foods: 42,439
- Dairy products: 42,131
6 Key Challenges in the Food Industry
Volatile markets, workforce fluctuations, strict quality requirements, and mounting productivity pressure—food manufacturers face a unique mix of challenges. While each company has its own priorities, six key issues affect nearly everyone in the industry:
1. A volatile market environment
Fluctuating order volumes—driven by retail demands and seasonal trends—require exceptional flexibility. Add to that the time sensitivity of perishable goods, and manufacturers are often forced to plan production and staffing on extremely short notice.
2. Strict quality and compliance standards
Food production demands consistently high quality. Certification schemes and audits ensure compliance, but companies must guarantee that only appropriately trained employees are operating machinery and workstations. That requires full transparency into qualifications—at all times.
3. Balancing internal vs. external labor
High employee turnover is a recurring problem. Onboarding and training new staff takes time and reduces productivity. That’s why retaining internal employees is critical. Still, external staff are often necessary to maintain output—but only if clear, efficient processes are in place to manage their deployment.
4. The skilled labor shortage
The shortage of skilled professionals is especially severe in the food sector. According to Stefanie Sabet, Managing Director of the Employers' Association for Food and Beverage, open positions in Germany take an average of 200 days to fill. This leads to productivity losses and rising costs.
What’s needed are industry-specific strategies to boost employer attractiveness and improve retention. In today’s labor market, it’s no longer just about pay—people experience matters. Fair scheduling, life-phase-adjusted working hours, and employee inclusion are crucial for engaging talent.
5. Rising costs across the board
Inflation, geopolitical conflict, and soaring energy and raw material prices are driving food production costs ever higher. Yet passing those costs on to consumers is difficult—if prices exceed supermarket thresholds, products may be pulled from shelves altogether. As a result, cost efficiency in production is more important than ever.
6. Cross-border operations and complexity
Multinational food manufacturers must ensure transparency and productivity across borders. However, inconsistent systems, local regulatory complexity, and manual HR processes are still common. To stay competitive, organizations must rethink and harmonize their digital strategies globally.
Business-critical success factors: Proven impact from the field
Digital workforce management isn’t just about planning shifts—it’s about measurable results. Here are six concrete benefits that leading companies in the food industry have achieved with a modern, data-driven approach.
95 %
Forecasting accuracy in staff planning
-50 %
Reduction in sick leave
100%
Compliance with legal and regulatory rules
-30%
Decrease in unproductive work hours
0%
Use of temporary workers eliminated
-85%
Reduction in planning effort
10 success factors with digital workforce management
Companies in the food industry can tackle their most pressing challenges by implementing a standardized, digital workforce management (WFM) system—adapted to their needs and size. Here’s how:
1. Long-term planning for greater flexibility
By planning ahead based on forecasted production orders, aligning vacation planning, and managing time accounts proactively, companies gain planning flexibility and boost productivity across the organization.
2. Project times and cost centers for better cost control
Transparent cost tracking across the production process is critical. With WFM, labor hours can be precisely allocated to specific cost centers and projects, providing end-to-end clarity for controlling and decision-making.
3. Real-time visibility into qualifications
To ensure that every machine is staffed with properly trained personnel, qualifications must be actively managed and kept up to date. A digital system not only ensures transparency, but also enforces qualification-based scheduling—only qualified employees are assigned to corresponding roles.
4. Certifications require transparency
For critical certifications in production to be attained or renewed, companies must clearly demonstrate qualification compliance. A WFM system flags upcoming expirations and ensures training is scheduled on time. If issues arise, the system can verify whether all roles were properly staffed with certified personnel.
5. Access control and permissions
Who can access which areas—and are they properly qualified to do so? A WFM system helps define and manage access rights, including temporary permissions for audits or sensitive zones.
6. Creating an attractive work environment
Even shopfloor employees need modern, flexible work models. WFM enables individualized schedules, such as part-time shift work or life-phase–adjusted hours—critical for engagement and retention.
7. Empowering employees through self-service
Involving employees in time-related processes via self-service portals or mobile apps increases satisfaction and reduces admin overhead. This lowers turnover—and costs. Examples include preferred shift requests and digital shift swap marketplaces.
8. Flexible scheduling options
Especially amid labor shortages, flexible scheduling is a competitive advantage. Self-determined options like wish-based rosters and digital shift swaps give employees more freedom and companies more agility.
9. Integrating temporary workers when needed
When internal capacity runs short, temporary labor is sometimes unavoidable. A digital WFM system streamlines this: agencies get real-time visibility into unfilled shifts and required qualifications. Once deployed, worked hours are tracked, and billing data is automatically sent—right down to the cost center.
10. A global system landscape
Multinational operations require unified processes. A centralized, cloud-based WFM platform ensures standardization, compliance, and seamless integration with other systems—across all locations. The result: consistent data, increased transparency, and improved comparability across regions.