Strategic Approaches Help German Companies Attract and Retain Skilled Employees Amid Evolving Expectations

The shortage of skilled workers is increasingly challenging German companies to attract and retain talent, according to a recent KOFA study. The study reveals that 14.7% of firms experience candidates signing contracts but failing to start their jobs, while nearly a quarter face resignations during probation. Furthermore, over a third of candidates reject offers in favor of other positions, highlighting the urgency of effective recruitment and retention strategies.

Companies have observed a significant shift in employee expectations, with 91% reporting higher demands than in the past. As a result, three-quarters of businesses—especially small and medium-sized enterprises (SMEs)—are intensifying efforts to meet these evolving needs. Successful recruitment tactics include leveraging employee referrals, internships to attract young talent, and targeted social media job postings. On the retention front, fostering a culture of trust, offering flexible working hours, and providing development opportunities have proven vital. Regular employee discussions help address individual needs effectively.

The KOFA study also points out underutilized yet effective approaches such as active sourcing during recruitment and offering support for childcare or eldercare, both linked to reducing turnover rates. Importantly, the study emphasizes that talent retention success depends more on the implementation of appropriate strategies than on company size, with SMEs benefiting from personalized engagement and flexible solutions.

Complementing these findings, a free seminar scheduled for January 15, 2026, in Teltow will support employers and leaders in managing organizational change. Led by business graduate and economic psychologist Moritz Meißner, the event will focus on understanding habit formation and modification to facilitate the adoption of new working methods. Attendees will engage with practical leadership techniques and real-world company examples aimed at navigating transitions and actively involving teams. The seminar runs from 9:30 AM to 3:00 PM and requires advance registration by January 6 due to limited spaces.

Together, these insights and initiatives underscore the critical need for German companies to adopt flexible, trust-based, and proactive strategies to successfully attract and retain a skilled workforce amid rising employee expectations and ongoing changes in the work environment.