Smart solutions to overcome the skilled labor shortage
How digital workforce solutions help companies stay flexible, attractive, and fit for the future.
An existential challenge for businesses
The Baby Boomer generation is retiring—and that’s making companies nervous. As the working population shrinks, the pressure to quickly fill vacancies with qualified employees is rising. The specter of a “skilled labor shortage” is haunting boardrooms across Germany. While politics and business scramble for innovative solutions, many of them already exist. The key? Companies must act—sooner rather than later.
According to the Federal Statistical Office, Germany will reach the peak of its labor force by the end of 2025. From there, the number of available workers will decline steadily. By 2035, up to three million workers may be missing from the German labor market. This demographic shift isn’t a passing trend—it’s a long-term transformation with global roots.
Who will replace the Boomers?
Boomers—those born between the mid-1950s and 1960s—are now preparing for retirement. As they step back to enjoy their well-earned rest, companies must already have solutions in place. The looming gap is already visible: in 2021, 350,000 more people retired than entered the workforce. This gap is only widening. Time is short.
The greatest risk for German businesses
Roughly 400,000 new workers are needed annually to keep German businesses running. With 1.7 million open positions currently unfilled (IAB data), the talent gap is becoming the most critical business risk—even surpassing energy and raw material costs, according to a Deloitte study.
Hiring is becoming a mammoth task
Germany’s new immigration law provides a modern framework for skilled labor migration, aiming to attract talent from outside the EU. However, the process is slow—visa approvals can take up to a year. In parallel, companies must tap into domestic potential, such as underemployed or inactive working-age individuals. For many, rigid 9–5 schedules or a lack of skills make re-entry into the workforce unrealistic.
According to the ifo Institute, 17% of women in Germany would like to work more but are unable to. Regional and industry-specific bottlenecks persist, particularly in construction, technical trades, and healthcare. The good news? These challenges can be addressed.
A shift in power: Employers must now apply to workers
We’re no longer in an employer-driven market. Instead, job seekers are in the driver’s seat, choosing from multiple offers. Employers must now position themselves as attractive, flexible, and people-first. That means rethinking recruiting, scheduling, and skills development—and offering a genuinely positive “people experience.”
A LinkedIn survey showed that 40% of employees would consider quitting if denied flexible work options.
Work-Life-Balance is a real expectation
Today’s workforce expects more than a paycheck—they want control over their time. Traditional shift systems and rigid scheduling are out of sync with this new reality. Companies with outdated workforce models risk losing top talent.
Digital WFM tools are the way forward
Workforce management software enables companies to respond to these challenges with strategic precision. From flexible shift models and workload balancing to self-service tools and qualification tracking—digital WFM delivers both structure and agility.
- Companies using WFM tools report up to a 50% drop in sick leave
- Workforce satisfaction rises
- Planning quality improves
- Compliance becomes easier
- Talent stays longer
12 WFM Tools That Make a Difference
Here are the top workforce management tools that enhance both employer appeal and employee satisfaction—while improving business outcomes:
Flexible Working Hours
Accommodate part-time, reduced hours, or fixed days off through customizable scheduling.
Flexible Shift Models
Move beyond rigid 3-shift models with options like 5-shift setups or peak-period balancing.
Respecting Employee Preferences
Account for individual needs in planning to reduce frustration and turnover.
Accurate Demand Planning
Use historical data to prevent under- or overstaffing and align skills with actual needs.
Mobile Time & Vacation Apps
Empower employees to manage shifts, leave, and availability from anywhere.
Digital Shift Swap Tools
Let employees trade shifts easily via automated systems—with skill checks built in.
Fair Vacation Planning
Align leave requests with team needs to ensure fairness and harmony.
Detailed Reporting
Gain real-time visibility with dashboards and automated alerts for planning support.
Employee Self-Service Portals
Streamline processes for time tracking, overtime approval, and HR tasks.
Reducing Overtime with Smart Planning
Auto-scheduling optimizes staffing while complying with labor laws and contracts.
Equitable Workload Distribution
Use algorithms to balance unpopular shifts and reward fairness.
Skill & Learning Management
Track qualifications, trigger renewals, and plan employee development proactively.