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- The financial services sector in Germany could account for over 25% of the total talent shortage.
- But the question is, why is there a deficit of Finance talent in Germany?
- We reached out to CA Vipin Arora, Program Management – Group Finance at Springer Nature to gain insights into this hot topic.
Germany’s Looming Shortage of Finance Talent
According to a Korn Ferry report – Germany is facing a shortage of skilled workers.
In 2020, it was predicted to have a deficit of 1.2 million workers, and this number is expected to increase to 2.5 million by 2030. The financial services sector in Germany will be particularly affected, accounting for over 25% of the total shortage.
The influx of finance professionals into Germany, particularly Chartered Accountants, has surged in the last three to four years.
Multinational companies like Deutsche Bank and consulting firms like PwC are actively hiring and expanding their workforce in Germany.
E-commerce companies, including Zalando, have also established strong operations in Germany, particularly in Berlin, offering abundant job opportunities for Indians.
Notably, it is common to find Indian-origin hiring managers or senior managers within these companies, many of whom hold a combination of qualifications like CA and MBA or MBA and CPA.
Germans are known for Biotech, Physics, and Manufacturing
Germany is not widely recognized as a finance hub.
The country is more renowned for fields like biotech, physics, and mechanical engineering.
Finance and Information Technology are not particularly emphasized in the basic education system, which makes professionals in these areas highly valued when imported from outside.
Introducing finance and IT into the education system would require a long period, approximately 20 years, for individuals to become employable in these fields.
While there are some financial institutions and universities in Germany, they are relatively limited compared to other disciplines. The emphasis is primarily on engineering rather than finance.
Digital Transformation of the Finance Sector
The finance sector has undergone a digital transformation.
In Germany, the focus has been more on traditional accounting rather than modern accounting practices.
While Germany is the creator of SAP and Oracle, they can be reluctant to step out of their comfort zone and embrace new learning opportunities.
That is why disciplines such as robotics, artificial intelligence, business intelligence tools, and Hyperion, which are introduced from different parts of the world, have yet to be entirely adopted by local talent.
On the other hand, India has taken significant strides in adopting digitalization and embracing changes in the finance and IT industries.
To keep up with global changes and stay competitive, Germany is starting to rely on expats and external talent to support businesses impacted by these transformations.
Also read: Indian CA in Germany: High Demand for Finance and Consulting Professionals with IT Skills
According to an article from Euronews in 2022, there were 1.3 million jobs on offer in Germany for skilled or qualified professionals. Around 630,000 of these – almost 50 percent – lacked workers to fill them.
Roles like these would usually be filled by workers from other EU member states. However, like Germany, many of these countries are facing aging and shrinking populations.
Germany is therefore looking to third countries to plug its gap in skilled labor, especially India.
E-commerce companies as well as startups are increasingly hiring Indian talent.
Vipin says, “In 2017, expats were primarily hired for high-value positions in Germany when local candidates were not available. However, the market has evolved significantly since then.
There is now a noticeable influx of both IT and non-IT professionals from India, as many startups have emerged and rapidly grown in the past few years.”
Finance Professionals with IT skills
You’d be wrong to think that you can secure a job in Germany with just a finance qualification.
While individuals with a CA, Certified Public Accountant (CPA), and Certified Management Accountant (CMA) qualifications are in huge demand, if you don’t possess IT skills, your chances of finding a job in Germany would be slim.
Expertise in the following software and tools is non-negotiable.
SAP:
- CAs with knowledge of SAP HANA are always required in companies. Any work experience in SAP implementation or modules is also valuable.
- If you have worked with Hana S4, SAP Business Intelligence (BI), and Business Warehouse (BW), then it would make for an interesting resume.
AI or digitalization or automation knowledge:
- If you are a CA with knowledge of Python or any other statistical tool, this will be a good selling point.
- Finance Professionals with IT qualifications are highly sought after, especially in the field of digital transformation.
Tableau:
- Expertise in data visualization tools like Tableau is also preferred.
Closing…
The German government is also taking measures to facilitate the inflow of skilled workers.
The introduction of a new points-based visa system is aimed at simplifying the relocation process for highly skilled individuals.
Additionally, there have been relaxations in visa and immigration laws, creating more favorable conditions and expanding opportunities for foreign professionals.
The combination of these factors, along with the growth prospects for finance professionals, should inspire you to move to Germany.
And the added benefit? Germany provides an excellent work-life balance, employee-friendly policies, and favorable weather conditions.
