Working as a recruiter in 2024 is both thrilling and demanding, particularly in the automotive and engineering industries.
If you’re an automotive or engineering recruiter, you have to:
- Take on the arduous task of finding the best candidate for the job in industries that are not only highly competitive but experience talent shortages.
- Continuously explore new recruitment channels to avoid hitting a snag trying to locate competent candidates.
- Work tirelessly to streamline the hiring process by implementing cutting-edge recruitment technology.
- Constantly keep up with developments in the job market and workforce trends that are always changing.
On one hand, we have the automotive industry - a powerhouse of innovation and economic growth; despite this, the automotive industry is experiencing some pretty tall speed bumps on the highway of recruitment, and the need for skilled, forward-thinking automotive recruiters is stronger than ever.
According to Wizehire, there will be a global talent shortage of 2.3 million skilled workers in the automotive industry by 2025, increasing to a staggering 4.3 million by 2035.
On the other hand, we have the engineering industry, where competition for engineering talent is steep; there are more unfilled computer science jobs than there are candidates, and it’s a gap that’s continuously growing as the need for developers surpasses the number of students graduating with a computer science degree.
Companies can’t hire tech and automotive talent fast enough.
However, because of common, underlying issues in supply and demand, employee retention, outdated recruitment processes, and skills gaps, the automotive and engineering industries desperately need skilled recruiters to tackle these challenges and transform the recruitment landscape altogether.
Automotive Recruiters - Challenges and Opportunities in Recruiting
The automotive industry is one of the most important and largest industries worldwide.
The sector gives jobs to millions of people and contributes billions of dollars to the global economy. It’s no wonder the automotive industry is both challenging and a hub of opportunities for recruiters.
Automotive recruitment refers to attracting, selecting, and onboarding qualified candidates for roles in the automotive industry.
This includes positions in manufacturing, engineering, sales, marketing, and other key areas that drive the automotive sector.
As the industry evolves and technology progresses, the demand for skilled professionals rises exponentially, making the need for competent and strategic automotive recruiters vital for success.
From the scarcity of skilled workers to handling regional variations and trying to boost employee retention rates, automotive recruiters face unique obstacles in their mission to build strong teams.
Here are some challenges automotive recruiters face and effective strategies to overcome them.
Talent Shortage and an Aging Workforce
One of the biggest challenges for automotive recruiters is the lack of skilled workers.
The industry constantly requires professionals with specialized knowledge in areas such as automotive engineering, manufacturing, and design.
Additionally, the automotive industry is undergoing a transformative period with the rise of electric and autonomous vehicles, requiring a workforce that is up-to-date with new technologies and adaptable to change.
However, this is rarely the case.
A report published by Manpower Group indicates that 69% of automotive employers find it difficult to fill positions due to a lack of candidates possessing the appropriate technical skills.
A survey by PwC also found that 94% of automotive CEOs are concerned about the availability of key skills in their workforce.
This isn’t the only challenge automotive recruiters face. An aging workforce also plagues the industry.
Automotive recruiters struggle to find, hire, and retain younger employees. Zippia reveals that the average age of automotive production workers is over the age of 40, representing almost half the population.
This leaves significant gaps in the automotive industry and requires automotive recruiters to be creative in pursuing younger workers.
To solve talent shortages, automotive recruiters should partner with technical schools and universities to establish apprenticeship programs and provide training opportunities.
This will allow automotive recruiters to nurture talent from an early stage and equip candidates with skills guaranteeing success in the automotive industry.
Similarly, to attract young workers, automotive companies should work on employer branding. Unlike the tech sector, manufacturing is an old, established industry that has yet to embrace continuous change.
To become an agile, tech-driven company and more appealing to younger workers, your company must market the automotive industry as innovative, progressive, and brimming with financial possibilities.
Low Employee Retention Rates
While employee retention is currently a concern for all industries, it is particularly overwhelming in the automotive sector.
According to a study by Korn Ferry, the demand for skilled automotive engineers will grow by 10% by 2025.
Because of talent shortages and skill gaps, competition for top talent is fierce, and skilled professionals are often targeted by rival companies offering better compensation packages and opportunities.
Automotive recruiters must strategically devise employee retention strategies that provide a positive working environment, competitive benefits, and career growth opportunities to keep employees motivated and satisfied.
By executing internal training and development programs, companies not only keep their employees engaged but also upskill them, helping them perform their jobs better.
Similarly, automotive recruiters who strike a balance between work and personal life through company policies and initiatives, such as adaptable working hours, telecommuting options, and wellness programs will boost employee retention rates.
A work environment that fosters teamwork, flexible working conditions, open communication, and recognition contributes to higher retention rates.
Regional Differences in Culture, Work Ethics, and Legalities Associated with Hiring
The automotive industry operates on a global scale and each region comes with its unique characteristics and challenges.
Automotive recruiters should tailor their recruitment strategies according to the regional variations in cultural norms, preferences, and work ethics to build a strong and diverse workforce.
This includes customizing job descriptions, interview processes, and even employee benefits to align with the cultural expectations of the region.
Additionally, in multinational companies, there may be language barriers. This could potentially hinder effective communication necessary to ensure smooth recruitment processes and maintain a positive work environment.
To bridge this gap, recruiters can provide language training programs or hire translators.
Another regional variation is the employment laws and regulations that vary from country to country, and even within different regions of the same country.
Automotive recruiters must stay up-to-date with the legal requirements associated with recruiting and hiring employees in each locality.
Economic conditions and market demand for automotive professionals also vary greatly from one region to another.
Automotive recruiters must stay informed on the trends and dynamics of each market by conducting market research and establishing local networks or partnerships.
This way, automotive recruiters can effectively source and attract qualified candidates.
Engineering Recruiters - Challenges and Opportunities in Recruiting
Engineers are pivotal in today’s increasingly technological world. They don’t just fill jobs; they lead significant innovations, make operations more efficient, and drive growth and stability.
The recent 2024 Engineering Job Market Report by the IET reveals that engineering jobs have risen by 20% every year, exceeding the expansion rates of other sectors.
This surge is driven by technological innovations and infrastructure modernization across various industries, from renewable energy to advanced robotics.
Engineering recruiters are highly sought after as engineering jobs and the demand for engineering skills increase.
However, like automotive recruiters, engineering recruiters also encounter several challenges and opportunities in recruiting.
Competing for Engineering Talent in an Evolving Market
The competition for skilled engineering candidates is fiercer than ever.
Organizations worldwide acknowledge the groundbreaking role engineers have in key projects as they strive to attract and retain these experts.
In the Global Engineering Services Outlook, engineering salaries have increased by approximately 15% in the past year, reflecting the value of engineering skills.
Similarly, data from the National Bureau of Economic Research shows that engineering positions are 35% less likely to be affected by economic downturns compared to other roles.
This stability, along with significant career advancement opportunities, makes engineering an exceedingly appealing sector.
Engineering recruiters find themselves competing with both large and small companies for engineering talent.
Thousands of smaller companies and startups dominate the tech circle; since they are willing to offer engineers valuable perks and benefits, including high salaries, a work-life balance, and rapid career growth, it makes it even more difficult to recruit them.
The war for engineering talent also causes high turnover rates. Because of the abundance of opportunities in the market and scarcity of talent, engineers jump ship as soon as they find a better opportunity.
To attract and retain engineers, engineering recruiters must give their 2 cents on ways to strengthen the employer brand, offer competitive salaries, ensure flexibility in the work environment, and provide learning and career growth opportunities.
Outdated Technical Testing and Interview Processes
The traditional hiring process requires both engineering recruiters and professionals to invest a significant amount of time.
A 2017 Glassdoor study revealed it takes approximately 40 days for a software development engineer to go through the interview process - 17 days longer than the other industries surveyed.
While interviews are a great way for candidates and engineering recruiters to see what it would be like to work on a daily basis, engineering interviews today are often about writing codes on the spot while simultaneously explaining your ideas to a stranger.
This can be uncomfortable and challenging for many otherwise talented engineers.
In addition, engineering recruiters usually ask candidates to complete a coding project that can take hours or even days.
To solve this, many engineering recruiters implement skills-based assessments for engineers by requesting candidates to complete coding tasks in a realistic development environment.
Engineering recruiters can set a scoring or percentage threshold and measure a candidate’s skills against a wider pool of candidates, setting an objective bar for moving forward in the recruiting process.
Lack of Workforce Diversity
The truth is the engineering industry is mostly dominated by men.
While this may not seem like a big deal, it implies businesses are cut off from an entire talent pool of women, which they will need to tap into if they want to stay ahead of the game.
Luckily, more and more women are pursuing STEM courses these days and have proven to be more competent than their male counterparts.
This gives engineering recruiters a whole talent reservoir to explore, leading to a variety of perspectives and ideas that could drive innovation and growth in the engineering industry.
Studies have proven that a diverse workforce brings more creativity and innovation to the table, and more organizations are keen on expanding diversity and inclusion within the workforce.
Conclusion
As Industry 4.0 gathers steam, tech skills are as much in demand in the automotive industry as they are in the engineering sector.
What we’re ultimately seeing is that both automotive and engineering recruiters are now fishing from the same talent pool, which has widened the skills gap even further.
If you’re looking for automotive or engineering recruiters who are not only well-equipped to tackle these challenges but have a wide pool of qualified candidates in each sector, sign up on Workfully - a verified, expert-driven recruitment platform for recruiters to collaborate with companies searching for skilled talent.