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Staff leasing · Knowledge

How staff leasing can cushion the skills shortage

In short

The skills shortage weighs on companies, workers and the economy. Staff leasing can help: it places qualified people at short notice and flexibly – across all levels of requirement – and opens access to the labor market for new groups.

Key takeaways
  • In 2022 more than 200 occupations counted as bottleneck occupations; more than half of them at skilled worker level.
  • According to the DIHK, the skills shortage holds back economic output by around €90 billion (~2.5% of GDP).
  • Staff leasing places everyone from assistants to experts – flexibly, fast and taking work off HR.
  • Transfers into permanent employment and training by staffing providers increase the supply of skilled workers.

The skills shortage is everywhere and weighs on companies, workers and the economy. Staff leasing can be an effective building block in easing the problem.

The scale of the skills shortage

The data does not show a general shortage of workers, but it does show scarcity of skilled workers. In 2022 the Federal Employment Agency counted more than 200 bottleneck occupations – more than half of them at skilled worker level, particularly in care, health, skilled trades, construction, sales, hospitality and transport. The main cause is demographic change: falling birth rates meet large cohorts going into retirement. The DIHK estimates that the shortage holds back economic output by around €90 billion – about 2.5 percent of gross domestic product.

What is staff leasing?

Staff leasing – also called Leiharbeit, Arbeitnehmerüberlassung or Personalleasing – is third-party placement with three parties: a staffing company (the agency) leases a temporary worker to a client company (the hirer) for a limited period. The worker stays employed by the staffing provider. The instrument is used at order peaks, but also over longer periods to cover absence through illness or parental leave.

How staff leasing helps with the skills shortage

Contrary to what is often assumed, temporary workers are not only assistants in production and warehousing – placements cover every level of requirement, from assistant through skilled worker to expert. Their biggest advantage is flexibility: when there is a bottleneck, the staffing provider supplies suitable people as fast as possible, saving time and recruiting costs and taking work off the HR team. Once the assignment period ends, the client can take suitable people on permanently. At the same time staff leasing opens the labor market to groups with more difficult access – older workers, people with disabilities or those returning to work.

Training by staffing companies

Staffing providers increasingly look after their employees' training too – from forklift certificates and welding qualifications through communication training to SAP courses. The German Staffing Association (GVP) offers in-person and online seminars for every qualification level. That increases the number of qualified skilled workers – a direct contribution against the shortage.

Conclusion

The skills shortage is a real burden – particularly in care and medicine. Staff leasing places suitable people at short notice and flexibly, makes transfers into permanent employment possible and actively trains people. That makes it an effective instrument for covering staffing needs.

Frequently asked questions

Can staff leasing solve the skills shortage?

It can substantially ease it: staff leasing places qualified people at every level at short notice and flexibly, and makes transfers into permanent employment possible.

Which qualifications does staff leasing offer?

From assistants through skilled workers and specialists to experts – staffing providers place people across every level of requirement.

How heavily does the skills shortage weigh on the economy?

The DIHK estimates the economic output held back at around €90 billion – about 2.5% of GDP.

Do staffing companies provide training?

Yes. Many staffing providers offer qualifications, supported by GVP seminars – that increases the supply of skilled workers.

PR
The Pactos editorial team
Market & knowledge

The Pactos team writes about the external workforce, AÜG compliance and vendor management, close to practice for procurement, HR and finance.

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