IVAM Executive Panel: Skills shortage not acute for microtechnology SMEs – temporary employment only a compromise

The much-discussed shortage of skilled workers is not an acute problem for many small and medium-sized microtechnology enterprises. Companies whose innovation efforts are thwarted because they do not find adequately qualified staff are the exception rather than the rule. This is a result of a short survey conducted by the IVAM Microtechnology Network. In the "IVAM Executive Panel”, 20 experts from the microtechnology industry gave their opinion on the topics of skills shortage and temporary employment.

According to the experts, small and medium-sized high-tech companies do have advantages on the highly competitive labour market: they are more attractive employers than the competing major companies because they offer interesting fields of work, a good working atmosphere and more opportunities for employee participation. Moreover, highly innovative SMEs are rarely looking for employees with work experience or specific skills – they prefer to hire graduates or unskilled workers and train them according to the individual demands of the company.

The experts say that a genuine skills shortage is likely to occur in the future due to the demographic trend. In order to counteract the expected shortage, small and medium-sized high-tech companies should plan their staff requirements in advance and seek contact with future employees through universities.

Temporary employment involves efforts and risks

During the economic upswing, even specialised high-tech companies hire temporary workers to fill vacancies on short notice. But most small and medium-sized microtechnology enterprises would only fill engineering positions with temporary workers if there was not enough time to recruit permanent employees – because of the efforts and risk involved.

Development processes in innovative SMEs are long and require specialized knowledge. To convey the necessary knowledge to temporarily employed workers takes too much time. The administration and coordination effort is too high for small businesses, too. Some have made the experience that even well-qualified temporary workers are not flexible enough to adapt to the changing requirements in small companies.

The high-tech companies also fear the risk that the temporary employee takes proprietary knowledge or confidential information along to his next employer.

The IVAM Executive Panel is the trend indicator for the microtechnology industry. Experts and opinion leaders from business and science give their opinion on current technology trends, business development or economic development. Therefore, the IVAM Microtechnology conducts a brief survey among selected managers in mostly small and medium-sized enterprises and leading scientists every three months. 20 experts from Germany and Switzerland took part in the first “IVAM Executive Panel” survey on skills shortage and temporary employment in March 2011.