Why are more and more companies turning to recruiters in Germany?
A typical 360° Recruiter- that is, a recruiter who does both client acquisition and candidate sourcing- will tell you that their day usually starts off with cold calling. One obvious reason they do cold calling on a regular basis like this is to get a few jobs in so that they can start building their pipelines. While this still remains the case for me and my colleagues at Euro London Appointments, it is very often the case that companies call and ask us to assist them with roles that they have in Germany.
I have been in recruitment now for 8 months and as such, have not known any different. So, for the purpose of this article, I asked
a few colleagues of my mine who have been with the company for more than 5 years if this was always the case.
Interestingly, they told me that just as recently as 2 years ago, it was not like that at all. They would have had to canvass quite a number of companies before getting any client to actually give them a job to
work on and in the past 2 years, things have started to change.
In a typical week here in Frankfurt, we now get in a lead per day coming in through calls and e-mails alike.
This demand boom or “Nachfrageboom” in German simply boils down to the very tight candidate market in Germany at the moment. The unemployment rate in Germany is at its lowest level in 38 years at an impressive 3.4% (April 2018) i.e. since July 1980! This means that most people have jobs and not only that, they have jobs that are secure (due to strict employment laws) and jobs that they enjoy.
On the other hand, there are many companies hiring and hiring rapidly. Germany’s job creation level is at it’s highest since reunification with 638,000 jobs being created in 2017 alone. Putting the lack of candidates and the abundance of jobs together, gives you a very tight candidate driven market.
Kandidatenmangel + Überangebot von Stellen = enger Kandidatenmarkt
In these circumstances, many employers, especially SMEs, find it very difficult to find candidates quickly, if at all. This is when they approach recruiters – especially recruiters who are actually based in Germany to overcome the tight candidate market. The increase in the amount of incoming requests that we and many recruiters in Germany have had are testament to this. If you have a casual look at the job section on LinkedIn, you will also see that a lot of the jobs in Germany are actually posted by recruitment agencies indicating that many companies are working together with agencies to fill their jobs.
But if the candidate market is so tight, how does using an agency solve this problem- you ask?
Well first of all, recruitment agencies have a pool of existing candidates that they can turn to as soon as a job comes in. They do not have to start the search from zero and as such have access to a pool of actively looking candidates and are able to close a job much quicker than a typical in-house recruiter. Even if it is a job in a niche market and they have to start the search from zero, they are able to dedicate a huge chunk of their time and energy into sourcing great candidates as they do it all day, every day. Recruiters are also able to sell the job and the company to candidates both online and as they speak to candidates making client’s jobs stand out of the multitude of generalistic job ads available online.
All in all, what I am trying to say is, if you have been job hunting for a while now and notice that a lot of jobs in Germany are posted by recruiters, you now know why. This somehow bothered me when I myself was job hunting for some reason but after working for a recruitment agency myself, it makes a lot of sense! If you are indeed a candidate looking for a job in Germany and not registered with us yet, I would urge you to do so as we have so many jobs coming in on a weekly basis that could be interesting for you and as they say business is all about having the right connections at the right time. If you are on the other hand, looking to hire people and are finding it difficult to navigate around the German market, give us a ring and we would be happy to help.
Best regards from Frankfurt,
I specialise in Sales and Marketing positions across Germany and would be more than happy to connect with you on LinkedIn or via e-mail (firstname.lastname@example.org) to discuss business opportunities