Challenges when hiring local tech talents in German companies

Tech talent is a crucial component of any business operating in the modern world. No matter the industry, some kind of technology is involved in various operational processes of every company — and for good reasons.

The competition among companies is tough today. If a business plans to get ahead and achieve the desired levels of success, acquiring and utilizing the modern pieces of tech is necessary. With technology and computers, comes the need to hire tech talent.

German companies face various challenges while looking for ideal talent and getting them on board. In order to overcome these challenges, it’s essential to understand them first. Here are 5 of these challenges for you to learn about.

Geographical barriers

Local talent that’s tailored to your needs is often very hard to find in your geographical area. In the majority of cases, an employer’s ideal candidate is living elsewhere in the world where they cannot be on-boarded for an in-office job.

Not being able to find and hire local talent poses many short- and long-term efficiency issues. However, with the spread of COVID-19, companies and employers have left their comfort zones to explore the possibilities of remote work.

Remote work comes with its own set of challenges, including time zone issues & management and monitoring problems. However, for the most part, remote work environments have trimmed down the geographical barriers between employers and their ideal tech talent.

Ever-changing requirements

Today’s technology might become irrelevant tomorrow. That’s why employers need candidates that can adapt to the alterations in the tech world and constantly produce efficient results. However, finding and hiring such talent is a challenge, especially when confined to limited geographical space.

Differentiating between the true talent, that can tailor their skills to the industry needs, and robotic puppets is a tough job in itself. Many employers find it challenging to perform it effectively, and when they fail, the company might need to reopen the position and go through the hiring process once again.

A large number of irrelevant applications

Let’s face it: every employer has gone through the trouble of having to go through dozens and hundreds of applications, only to find out 80% of those were low-quality and irrelevant. Many candidates would desperately throw their resumes at every job opening they find, without considering their chances of actually getting hired for the position.

While irrelevant candidates submit their resumes leisurely, employers have to waste a large chunk of their time finding and eliminating these applications.

Competition from rival companies

Top talent, especially in the tech sector, is in high demand. Every competitive company wants to get the most talented candidates on board. This boosts the competition among employers and they have to propose better opportunities to these candidates to win them.

Top talent knows their worth and won’t join a company solely based on the paycheck. Nowadays, long-term career opportunities and attractive promotion cycles are in high demand by employees. Employers have to find a sweet spot between providing the best possible opportunities to the candidates, and keeping the expenditures in check to not overflow the resources.

Not having a top-class HR department

Some companies, mostly smaller ones, face the problem of working with a mediocre HR department. As job postings, interviews, and hires are conducted by the said department, the overall hiring results could suffer.

Numerous tech companies with small/no HR departments delegate the HR functions (benefits, payroll, and unemployment administration for employees) to PEOs (Professional Employer Organization) such as NHGlobal Partners or software development companies like Grid Dynamics that provide both tech talent recruitment and HR services.

Final word

Tech talent in the 21st century is well-aware of its worth and employers need to provide them with the best attractions to get them onboard.

AI Engineering is Grid Dynamics' dedicated unit for European SMEs — bringing enterprise-grade engineering talent to growing businesses. We help German companies break through local hiring barriers with our staff augmentation service: pre-vetted, senior-level developers who integrate directly into your team, managed by our dedicated HR and admin support. No recruitment bottlenecks — just the right engineers, ready when you need them.