Expected impact on operations due to skilled labor shortage

Looking at Figure 1, it becomes clear that agricultural businesses (45%) expect the shortage of skilled workers to have a significantly lower impact on their operations than participants from the industrial/trade/processing sectors, but also less than those from science and consulting. The reason for this is immediately apparent when looking at the figure: at 33%, the proportion of family businesses and sole proprietorships is relatively high, meaning that no skilled workers are needed apart from the farm manager and family workers. A similar situation, albeit not on the same scale, can be observed in consulting. Here, 60% expect the shortage of skilled workers to have an impact. 23% stated that they do not expect any impact, as they are sole proprietorships.

Effects depend on company size

A closer look at farms of different sizes shows that the assessment varies depending on the size of the farm.

While only 26% of respondents from small farms up to 50 ha expect to be affected, the figure rises to 46% for medium-sized farms, as shown in Figure 2. Just under half of farms with an area of up to 50 ha are run as sole proprietorships or family businesses. For farms between 51 and 300 ha, the proportion is still 36%. Larger farms with 301 ha or more assess the impact of the shortage of skilled workers on their business in a similar way to participants from the industry/trade/processing sector: around 70% of them expect to notice an impact. However, the proportion of those who do not expect any impact is higher at 25% than in industry (19%). The small businesses that participated in particular are structured as sole proprietorships or family businesses and are therefore not affected by the shortage of skilled workers.

Skills gap: not noticeable everywhere, but still real

Nevertheless, the issue is of great importance to agricultural businesses and the value chain of the agricultural and food industry. This is also demonstrated by numerous studies, such as the study published by the VDL entitled “Skilled and managerial staff requirements in the agricultural sector in 2024.” It clearly shows that the shortage of skilled workers in all relevant areas of green professions, with around 116,000 workers missing, poses a considerable challenge. This corresponds to almost 25% of the total shortage of skilled workers in Germany. 

Which solution strategies have potential?

Participants were also asked what strategies they see to address the shortage of skilled workers. Multiple answers were possible. 

Overall, respondents take a positive view of the issue. Only a small proportion believe that there are no options or that downsizing the business/company would be a suitable strategy to address the shortage of skilled workers (Figure 3).

Both farmers (51%) and representatives from industry and trade (61%) see training as the best way to address the shortage of skilled workers. Training new workers is therefore considered a key lever for securing the necessary personnel.

For farmers, retaining skilled workers through flexible working hours is the second most important factor. At 39%, saving on skilled workers through automation and the use of technology is also seen as having great potential. A further 36% see offering further training opportunities and transferring responsibility as important measures for retaining employees. 

In industry, trade, and processing, flexible working hours, further training, and the assumption of responsibility are each cited by around 50% of participants as equally important strategies for retaining skilled workers (see Figure 4).

Recruitment via network contacts and advertising play a greater role in industry than on farms. Team events are also cited more frequently as a retention tool in industry.

In contrast, outsourcing production activities, e.g., to contractors, plays a greater role for farmers (21%) than in industry as a means of addressing the shortage of skilled workers (Figure 3). 

Retaining skilled workers through wage incentive systems or benefits also plays an important role for respondents. Another key aspect is transparent communication, which is considered a strategy by 32% of the farmers surveyed (Figure 4). 

Good internal communication is considered a key factor for operational success: only when employees are aware of the company's goals and developments can they recognize and appreciate their contribution to its success.

Further articles on the topics of skilled worker retention and skilled worker shortages can be found here (German language only):

• Digitales Betriebsmanagement am Beispiel der Dörr-Agrar Pflanzenbau GmbH in der Rhön
• Aufmerksam und achtsam das Unternehmen führen
• Beschäftigungsrückgang in der Landwirtschaft weiter spürbar