Spotlight on talents in the German battery industry
How companies can secure their demand by promoting diversity.
The demand for skilled workers in the battery industry will increase steadily over the next ten years. This will result in the creation of tens of thousands of jobs in battery production in Europe alone. Between 1,000 and 5,000 additional skilled workers will be needed annually until 2033, just in production. The industry is then expected to consolidate and employment figures should reach a plateau. Consolidation will likely lead to companies with higher product quality and process yield standards to assert themselves against competitors, while others will fall short. In order to meet those standards and persist in a competitive market, companies need qualified skilled talents who are able to understand and manage complex production processes.
If the battery industry wants to fully tap into the potential of skilled workers in the labour market, it needs to place greater emphasis on diversity and offer equal opportunities for all employee groups. The competition for specialists with experience in battery production has become global. This study examines the labour market in Germany’s battery ecosystem from various points of view, with a special focus on diversity. Companies that succeed in attracting and retaining skilled talents through a diversity-friendly company culture will have an advantage in competing for skilled workers. This study evaluates current figures, models the needs of various occupational groups and explores the potential of diversity, based on the state of research. Those evaluations and analyses lead to recommendations aimed at supporting companies in the battery ecosystem to comprehensively analyse their own situation and foster development strategies. The study intends to demonstrate what companies can do to become an attractive employer in the global labour market. This is becoming increasingly important as the shortage of skilled workers is prominent.
Our new study shows: promoting diversity can be a lever to overcome the shortage of skilled talents. The study examined the labour situation in the German battery ecosystem focussing on diversity. Benefit from the results and recommendations and make your company an attractive employer.
According to data from the German Federal Employment Agency, the battery production sector has a lower proportion of women at 24% compared to the labour market as a whole, but a higher proportion of women compared to STEM occupations in general. Battery cell manufacturing may offer more attractive work conditions for women compared to other STEM occupations. The proportion of foreign nationals at 16% is about the same as their proportion in the labour market as a whole. It appears that this industry has offered special incentives for foreign nationals in recent years. They account for 73% of the increase in personnel between 2020 and 2021. A modelling for this study shows that the proportion of women and foreign nationals based on individual occupational groups is higher in this industrial sector than it could be expected based on the proportion in the respective skilled occupations (training and university courses). Among the skilled workers that are in demand, skilled occupations of a technical nature (especially mechanics) and in natural sciences (especially materials/chemistry) are particularly sought after. However, with a significant gender pay gap of 18% and falling representation of women and foreign nationals in leadership positions, their sustainable integration in this sector faces challenges similar to those found in the labour market as a whole.
The analysis of data collected in an online survey for this study shows that when company management has committed to promoting diversity, the proportion of women and the age diversity are higher in their workforce. Around 40% of the surveyed companies have already made such commitments, establishing an essential basis for their company’s attractiveness and the lasting employment of skilled talents.
This study provides concrete measures and recommendations to support these efforts. Three aspects are of special importance to realise positive effects through diversity: Raising awareness, accountability and repetition. Thus, to achieve these effects it is important to teach diversity-oriented competencies in management development, establish diversity in the company culture, promote diversity by company management and at all management levels, and integrate diversity into processes with accountability. Increasing accountability for measures can help ensure that they are in fact implemented, notwithstanding a possibly more traditional company culture. This leads to positive experiences so that company cultures can (gradually) change. Participative processes should be consistently repeated, leading to the acceptance of diversity and alternative lifestyles over the long term. Thus the labour market becomes more globalised, interdisciplinary and inclusive.