Mind the tech talents gap: Germany

Challenges, trends and useful tips of hiring foreign IT talents in Germany

This column is part of a series called “Mind the tech talent gap” created by Spice IT Recruitment Agency in cooperation with leading local tech companies.

Recruiting tech talent is hard, but that’s why we’re here. Ten years on by now we’ve been helping tech companies find, hire and relocate hard-to-find ready-to-relocate tech talents from around the world.

A growing tech talent shortage is a serious issue for a number of countries, including Germany. There’s an acute skills shortage across the EU, but it’s hit Germany particularly hard. IT professionals are in particular demand because they’re needed by practically every sector, including new industries. Well, there are bad news about that and good news as well. But there’s definitely a way.

Let’s start with the good.

Good News: IT ecosystem in Germany is booming

“A startup is founded every 20 minutes in Berlin.”

Wait — what? Yes, we are serious! Like absolutely serious. And yes, you get it right. You read it right. According to NY Times, the German capital hosts 124 startups for every 10.000 inhabitants. It’s no news that Berlin is one of the leading IT hubs of Europe. Let’s look together at exact numbers:

• Globally, Berlin ranks 10th as IT hub, thanks to its strength in attracting a large and innovative talent pool.
• Startup Genome values the Berlin IT ecosystem at $22Bn. Global average is $4.1Bn.
• McKinsey estimate IT companies based in Berlin will generate 100,000 jobs by 2020.

Not bad huh? Some categories experiencing significant growth rates in Berlin are FinTech, Digital Health, AI, Food Technology and, of course, Cyber Security.

“If you look at the total number of foreigners starting startups and working in IT companies, by the most recent numbers I looked at, Berlin was pretty much at the same level as Silicon Valley,” says Benjamin Rohé, founding managing director of the Berlin-based German Tech Entrepreneurship Center, a center connecting an international network of companies to universities and startups.

Bad News: everyone wants a piece of the pie

HR Director Sirian O’leary from Zalando (Germany’s most famous eCommerce startup) said:

“If there is one business fact that has always been true in IT recruitment it is that the demand is higher than the supply. The key to Germany’s success is the ability to attract and retain talented and highly-motivated people”.

Like most advanced IT ecosystems, with a lot of IT сompanies that are building global businesses but doesn’t have enough local talents, Germany suffers a lot from a talent shortage. The world-wide skills shortage has massively increased competition for the top candidates, so it’s becoming a real challenge for German companies to find and hire tech talent.

How to solve tech’s talent crisis in Germany

What if we told you there is a speedy and efficient way to bring the world’s best IT specialists into Germany? Would you believe us? What if we had proof?

The economic research institute Prognos estimates a 3 million shortage of skilled workers in Germany by 2025. The German Labor Office estimates that by 2025 Germany will need some 6 million highly skilled employees and that some 2 million people will have to immigrate to Germany to meet that need.

If there is a lack the tech talent in your country, just hire internatioanally — that is a simple yet efficient solution. Get the talent your company needs by looking abroad!

“Hiring foreign talents isn’t so much a matter of choice, more of a necessity — especially when companies cannot find the resources they need locally, or when the resources they do need are too expensive” added Sirian. “Both the shortage and high costs of local talents are top reasons to address foreigners”.

Startup Genome ranks Berlin as the number 5 city in the world (and #1 in Europe) for it’s capacity to attract outside talents. Some other numbers:

• Germany has the 3rd highest acceptance visa rate in the world at 77%.
• Germany attracts the largest percentage of startups from outside the country(11%)
• Germany has the 2nd highest percentage (43%) of foreign founders in the world (behind Silicon Valley)
• 16.5% of Berlin’s population is foreign — 186 different nationalities residing within the city’s borders. Within the IT scene, 49% of the IT workforce is foreign.

Foreign tech talents have outstanding experience, incredible qualifications and a shedload of enthusiasm. And if you’re based in Germany, they’re easier to hire than you think.

There are a lot of foreign professionals that would love to relocate to Germany. Some of the local companies already know and use that in their recruitment strategy.

“Our location is one of our biggest assets,” said Helen Findriks from Home24 (the firm with more than 1,100 employees, that has become one of the largest European online furniture stores). “We are really selling the destination and location just as much as we are selling the role. When we are hiring internationally, we aren’t just convincing people to take a new job, we are actually convincing them to take a whole new life.”

German IT companies can offer to the foreign candidates the opportunity to meet new people, create new experiences and learn about the world. Money is important, of course, but it isn’t always the top priority. New cultures and experiences can be more challenging and rewarding.

The benefits of hiring foreign tech talent

If you’re aiming to grow your business, the fastest way to grow it is to hire foreign talents.

It’s time-saving

Foreign candidates are generally more motivated to move jobs and countries for opportunities in Germany. Motivated candidates means less time to build a pipeline. They’re usually more responsive in scheduling interviews and less likely to dropout throughout the process.

It’s money-saving

Hiring international talents can be a good strategy for rapidly growing companies. When your resources are limited it’s better to invest as much as possible in the product and to save on labor costs without compromising quality.

You can choose the best

The percentage of (for example) Russian developers interested in relocating for roles in Germany is disproportionately higher than the % of those willing to relocate within Europe. From a recruitment point of view — you get to choose the most suitable candidate for you rather than settling for the available one.

Outstanding personal qualities

As a general rule, people who are willing to relocate have a global mindset. They tend to be natural risk takers, which often leads to creative problem solving.

Your step-by-step guide to hiring foreign talents

Ever wonder how to hire international talent in Germany? How to maintain a work and residence permit for non-EU nationals? Just keep reading. It’s easier to procure than you’ve thought.

First of all you need to memorise two simple words: Blue Card. The EU Blue Card is the fastest, most efficient way to hire non-EU developers, designers, programmers and IT specialists in Germany.

What you really need to know:

• The Blue Card is an EU initiative (Council Directive 2009/50/EC)
• Adopted by 25 countries
• For highly skilled, highly educated employees
• Works just like a visa
• Provides full socio-economic rights (including family relocation)
• Valid for four years
• Card holders automatically qualify for permanent residence after 33 months (21 if fluent in German), if they stay in the role

% of European Blue Cards issued between 2012–2018:

• Germany — 89%
• Spain — 4%
• France — 3%
• Austria — 1%

Germany is actively promoting the Blue Card as a simple, easy and efficient way to bring the world’s best and brightest IT specialists into the country. As a result, the processes and procedures you need to go through to get a Blue Card have been simplified and sped up too.

To get the EU Blue Card international candidates candidates must have:

• Two+ years relevant professional experience
• A valid university degree (or 5+ years relevant professional experience)
• If their profession is regulated, the relevant legal paperwork

The Blue Card has a minimum salary threshold. Germany has set the minimum salary threshold as 1.5 times the average national salary. This currently equates to €52.000. The minimum salary for “in demand” jobs, including IT, software development, mathematics and engineering, is slightly lower: 1.2 times the average national salary. That currently equates to €40,560.

So your offer to international candidate need to:

• Meet the minimum salary threshold
• Clearly state the salary
• Be valid for at least one year

How to apply, how long it takes & how much it costs:

1) Written declaration

You need a written (and signed!) document that states:
- reasons for employment
- benefits you will gain (i.e. why you’re looking abroad to hire)
- the employee meets all your “conditions and requirements”

2) Application form

There’s an official application form that should be filled in and signed by the candidate. There is a processing payment fee of around €140.

3) Embassy appointment

The candidate will need to make an appointment with the German embassy in their own country and bring written declaration (1) and application form (2).

Time it takes to process the application:

7 days — Minimum

21–28 days — Average

90 days — Maximum

As you can see, the procedure of hiring international tech talents is as simple as 1,2,3.

If you’re German, struggling to find top notch designers, stellar iOS engineers, developers, product owners, scrum masters, devops geniuses or IT managers, all you need is contact us. Find the perfect hire among our 150K+ candidates, wherever you are in Germany. Access qualified international candidates via our professional sourcing team of 35 IT -recruiters. We’ll take care of the papers and documents and make hiring internationally as simple as hiring locally.