Tackling labour shortages: three ways to attract new EU recruits

When there are not enough workers to fill the jobs available, productivity, customer satisfaction and timely access to services all suffer, according to a September 2024 report ‘Company practices to tackle labour shortages’ by the EU Agency Eurofound.

Skills shortages are affecting employers in many EU countries as large cohorts of older workers retire and new digital and green expertise is required. Poor quality jobs, and some of the recruitment strategies used to fill them, are also a factor, the report says.

In the first of two stories looking at the report’s findings, we highlight three ways businesses have made themselves more attractive to the EU workers they need to hire.

Pay, perks and flexible work options

When a Croatian hotel found it difficult following the COVID-19 pandemic to recruit workers who knew the local attractions and could serve customers effectively in languages, including Croatian, German and Italian, it raised pay, overtime and bonuses, helped with housing costs and offered flexible work options. It retained existing staff and attracted students and workers with care responsibilities – and did not need to reduce capacity. It plans to reassess training and reward systems to meet future needs for digital and green skills.
French construction materials multinational Saint-Gobain increased pay for new hires at its Romanian plasterboard subsidiary, as demand rose. Existing workers can benefit from referral bonuses, while the company also offers perks including free buses, private healthcare, life insurance, gym memberships and regular social events. New staff joined from further afield, although an ageing workforce and high turnover mean the business is now looking to recruit from third countries.

Targeted hiring strategies

In a competitive talent market, international market research company Ipsos has targeted its hiring strategies for its Prague office on new graduates. Recognising that many recruits will want to start families, Ipsos offers an on-site crèche for younger children, alongside teleworking for two days a week. Training, gym membership and company cars are also available. Recruitment is now generally strong and turnover rates are low.
A Spanish construction company found it hard to recruit technical staff, especially those with expertise in building tunnels, at a time of acute skills shortages and a post-pandemic boom. The business hired five tunnel specialists from Peru, following consultation with its trade unions, paying for their travel, housing and local training during time-limited contracts. It has also improved working time flexibility and parental leave policies in order to attract women, and parents more generally. Sector shortages remain, however.

Flexible and reduced hours work

Hungary-headquartered AI chatbot provider Talk-A-Bot has found it difficult to recruit both developers and sales professionals as the complexity of its services increases. The business has succeeded in recruiting IT professionals despite local skills shortages because it is well-known and has offered a flexible and remote working schedule – for up to three days a week – since the pandemic. A fifth (22%) of its staff are female, and it is working to dispel the idea that IT is a young person’s field. It uses professional recruiters and a referral programme to find and retain staff.
Recruitment difficulties meant Austrian online marketing company eMagnetix was losing potential customers when it decided to move towards a 30-hour working week, on full pay. In preparation, it assessed how long tasks took, created periods of uninterrupted concentrated working while automating other processes. Staff are in the office for one core day a week and work three core hours a day, choosing their other hours flexibly. The resulting media coverage led to more job applicants and a new investor, enabling the company to expand.

To find out more, download the Company practices to tackle labour shortages report.

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Company practices to tackle labour shortages

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EURES report on labour shortages and surpluses, 2023

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