Latest talent trends in HR: A focus on Germany and the Netherlands

Author Thomas Cloppenburg
August 29, 2024

Global HR landscape: Skill shifts and attrition

Before going into the specifics of Germany and the Netherlands, it’s crucial to understand the global context. According to recent data, the HR sector is experiencing notable changes in required skills and workforce stability.  

According to LinkedIn data, the attrition rate among HR talent stands at 13% globally. However, both Germany and the Netherlands are experiencing significantly higher rates, with Germany at 20% and the Netherlands at 19%. These figures suggest that HR professionals and HR teams in these European countries may be facing unique challenges or opportunities that are prompting more frequent job changes.  

LinkedIn’s global data reveals that the fastest-growing competencies within HR are centred around payroll and payroll software, HR technology, onboarding, retention and analytics. This skill set reflects a clear trend towards technological proficiency and data-driven decision-making in HR practices.  

Germany, known for its robust economy and strong industrial sector, is seeing its own unique developments in HR talent trends. The fastest-growing skills in Germany are HR technology, recruitment and payroll management. The emphasis on HR technology such as artificial intelligence and automation aligns with global trends, indicating a push towards digital transformation in HR processes. The focus on recruitment suggests a competitive job market fighting for top talent, potentially driven by Germany’s low unemployment rates and skills shortages in certain sectors.  

The Netherlands: Evolving HR landscape  

The Netherlands, with its reputation for innovative initiatives, work-life balance and workplace culture, presents its own set of trending HR skills. In the Dutch market, the fastest-growing skills are payroll software and management, HR technology and benefits. The Dutch trends closely mirror global patterns, particularly in the areas of payroll and HR technology. The inclusion of benefits management in the top skills suggests an increased focus on comprehensive employee compensation packages, possibly as a strategy to attract HR professionals with an enhanced employee experience and retain internal talent by increasing employee well-being in a competitive market.  

When comparing global trends to those in Germany and the Netherlands, several key observations emerge. First, the emphasis on payroll management and software is a consistent thread across global, German and Dutch HR trends. This suggests a universal need for efficient, accurate and potentially more complex payroll systems, possibly driven by changing work arrangements and evolving compensation structures. 

Secondly, HR technology features prominently in all three contexts, underscoring the sector’s ongoing digital transformation. This might include the adoption of AI-driven recruitment tools, advanced HRIS systems and metrics or data analytics platforms for workforce planning and people management.  

There is some divergence in specific skills as well. While global trends highlight onboarding and retention, these don’t appear as top skills in Germany or the Netherlands. Instead, in Germany the HR function shows a focus on recruitment, while the Netherlands emphasises benefits management for the overall work experience. These differences may reflect local labour market conditions and cultural priorities.  

Lastly, the significantly higher attrition rates in Germany and the Netherlands compared to the global average warrant attention. This could indicate a more dynamic job market for HR professionals in these countries, potentially driven by skill gaps, talent shortages, competitive compensation packages or a cultural shift towards more frequent career changes and more diverse career paths.  

Conclusion: Navigating the evolving HR landscape  

HR is clearly in a state of flux, with technology and data-driven practices reshaping the profession. Germany and the Netherlands, while broadly aligning with global trends, show distinct characteristics that reflect their unique economic and cultural landscapes.  

For HR professionals in these countries, staying abreast of these trends and continuously updating their skill sets will be crucial for their career development. For organisations, understanding these trends can inform talent management for more effective talent acquisition, retention and business strategies. 

As the HR landscape continues to evolve, it will be fascinating to see how these trends develop and what new skills will shape the future of work in the coming years. The consistent focus on payroll and HR technology across global and local contexts suggests that these areas will remain critical, but we may see new priorities emerge as the world of work continues to transform.  

ContacT

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