The Transformation of Work—Conducting and Aggregating Research on Human Resources in SMEs Facing Transformation Pressure

Abstract

Rarely do so many areas of society change as quickly as now. This study analyses the disruptive transformation of HR/qualification in small and medium-sized enterprises (SMEs) in the leading sectors of mechanical and plant engineering and the automotive industry in Lower Franconia, Bavaria. More precisely, this study is about the Mainfranken region. Administratively, it comprises the two independent cities of Würzburg and Schweinfurt as well as seven administrative districts. This paper researches the long-term transformation of the world of work in terms of skill shortages, procurement strategies and employee performance. This study is based on quantitative and qualitative findings from the funding project transform.RMF in the form of an overarching literature review, a commissioned online survey, stakeholder workshops to identify regional trends and self-conducted expert interviews. Unsurprisingly, the shortage of skilled labour is a serious problem for regional SMEs. Managing directors are aware of the need to act in the acquisition and retention of recruited specialists. This includes in-house benefits, New Work models and competitive acquisition strategies. We must overcome the biggest obstacle to transformation—a lack of qualified personnel—together, structurally. Based on our insights, we create recommendations for action and connecting the potential in the network. In the future, the aim will be to intensify cooperation between society, business, science and politics at the regional level—transform.RMF’s mission in the interests of its members.

1. Introduction

1.1. General Problems in the Industry

Industrial locations around the world are facing major challenges. Global trends such as digitalization, decarbonization, autonomous driving, e-mobility and alternative drive systems are having a particular impact on the mechanical engineering and automotive sectors, and companies in these industries are undergoing major transformation processes. Demographic change and the high level of employment in the vehicle and supplier industry are placing a particular burden on small and medium-sized companies, as they must compete with OEMs for a smaller pool of skilled workers. Additionally, there are impeding external factors such as high energy costs, record inflation and a weak global economy [1].

Personnel management is undergoing significant transformation due to the demographic shifts within the German population. It is anticipated that there will be a shortage of highly skilled workers in Germany in the foreseeable future. The demand for highly skilled workers is not only continuing to increase, but also, many individuals from the baby boomer generation, who are highly qualified, will exit the labour market [2]. The regional employment agency points out that the Mainfranken region is affected by demographic changes. The population of Germany is getting older and older, which means that the number of people in employment is continuously decreasing. Here, around 45,000 workers will leave the labour market in the next ten years, compared to just under 40,000 younger people living in the region. Even if all of the younger people enter the labour market (currently around 50%), there will still be a considerable gap.

It must also be noted that ecological transformation is a growth area of the future which will lead to new requirements for employees and specialists [3].

As part of the project, SMEs are supported in the digitalization of processes and the qualification of employees. An SME is classified by the Federal Statistical Office as having between 9 and 249 employees with an annual turnover of less than EUR 50 million [4].

In addition, a skills-based networking platform and training modules are being developed. The skill requirements of employees associated with change are analysed and training measures are derived from this. This is carried out by integrating the CRISP-DM process, to ensure a structured and methodical approach to analysing data and deriving measures and ultimately to effectively support the qualification of employees and the digitalisation of processes in SMEs. This makes it possible to derive qualification measures by first comprehensively understanding the business objectives and the relevant data, whereupon the data can be systematically prepared, modelled and evaluated to finally derive and implement targeted, precisely tailored learning nuggets for qualification [5].

1.2. Region Mainfranken and Its Problems

Based on calculations by the Bavarian State Office for Statistics, around 957,350 people (as of 30 September 2023) live within the dynamic business location of Mainfranken [6], which comprises the two independent cities of Würzburg and Schweinfurt as well as seven administrative districts. In the absence of an “official” definition for a fixed area, Fritz Knapp, Professor of Art History at the University of Würzburg, defines the term “Mainfranken” as an area that stretches from Bamberg via Würzburg to Aschaffenburg [7]. The broad spectrum of industries ranges from traditional businesses in the skilled trades to service companies and a strong healthcare sector, as well as hidden champions, global players, and SMEs.

The automotive and mechanical engineering sectors form the industrial backbone. Based on new statistics from the regional employment agency, a total of 409,211 employees were subject to social insurance contributions in Mainfranken on the recent recording date of 30 June 2023, with a high proportion of them in SMEs. Of particular interest for our project is the proportion of employees in the two agency districts in the lead sectors. In total, 7.5% or 30,696 employees work in mechanical engineering and 4.8% or 19,514 employees in vehicle construction [8].

On average, over 16,000 people were registered as unemployed in Mainfranken, which is over 1200 (exactly 1248) more than in the previous year. The unemployment rate rose by 0.3 percentage points to 3.0. This information comes from a personal communication with Thomas Stelzer, the head of the local employment agency, on 15 February 2024.

According to current labour market analyses, unemployment is almost stagnating at an all-time high, with trade and manufacturing in particular complaining of a decline in employment.

Overall, the situation for regional companies in the automotive, mechanical engineering and metal industries is challenging, according to press reports. The media coverage reflects a generally difficult situation, with companies facing increased costs, particularly for labour and energy, as well as a high level of government bureaucracy. Almost 43% of the regional companies surveyed are considering cutting jobs in the first half of 2024, according to a recent economic survey by the trade association bayme/vbm. Employee representatives fear that up to 2000 jobs will be cut at the global technology group ZF Friedrichshafen AG in the city of Schweinfurt alone. This is just the most prominent and striking example alongside further job cuts, relocating production abroad and plant closures [9].

Our research has shown that 89% of SMEs in the region are affected by the shortage of skilled workers.

A recent report by the regional employment agency (2024) points out that the region is already suffering from a shortage of skilled workers, which is set to worsen in the coming years. In some cases, this shortage is so severe that it can no longer be covered even by the company’s own trainees. In addition, it is pointed out that the region’s high degree of monostructure, due to the above-average number of automotive suppliers and mechanical engineering companies in the region, will trigger high pressure to adapt [5].

1.3. Transform.RMF as an Approach to a Solution

Our initiative aims to directly tackle the challenges based on the almost stagnating employment forecast in current labour market analyses in sectors that have traditionally characterised the region for decades.

Shaping change together. This is the task that we will be tackling over the next three years. In a joint initiative funded by the German Federal Ministry for Economic Affairs and Climate Protection, numerous measures will be implemented to promote SMEs in the leading “Mechanical Engineering and Automotive” sectors in Mainfranken, Bavaria. Together with other relevant players in the region (municipal economic development agencies, employment agencies, chambers of commerce, universities, companies from the key sectors concerned (mainly SMEs) and trade unions (DGB/IG Metall)), strategies for regional transformation are being developed in a participatory bottom-up process to successfully shape disruptive change in the region.

In the present context of our project, unemployment is seen as a central problem in the Mainfranken region. The stagnation in employment growth, accelerated demographic change and other factors such as the high proportion of family-run, specialised SMEs have led to a shortage of skilled workers and a gradual process of job losses. As a result, young people are emigrating, and the region is faced with a shortage of qualified labour.

1.4. Transition: Path to Vision 1.0

A key element of our project is the agile development of a regional vision for the mechanical engineering and automotive field of expertise. This should not be understood as a document carved in stone, but as a work in progress.

The vision for the future is based on a comprehensive situation analysis focusing on SMEs in the mechanical engineering and automotive sectors in the Mainfranken region.

Initially, a regional meta-analysis was carried out based on previous studies. An exclusive extract from the PROGNOS Future Atlas for the Mainfranken region was used as a guide. This was commissioned back in September 2022 and presented at the kick-off event on 18 October 2022, to illustrate key economic figures and an analysis of regional strengths and weaknesses [10].

This enabled the profile of the Mainfranken region to be presented in geographical, demographic, structural and economic terms. The latter includes the relevant existing regional areas of expertise: Mechanical Engineering and Automotive, IT and AI, and New Materials and Plastics, as well as a comprehensive profile of the region’s strengths and weaknesses.

The next step was to conduct our own surveys and enter direct dialogue with the companies to validate and deepen the previous analyses through guided interviews.

The requirements analysis focused on regional companies. To take their needs and opinions into account, a representative online survey was conducted between November 2022 and the end of January 2023 with a sample size of 68. In addition, the transformation coaches interviewed 36 companies in all sub-regions of Mainfranken about their individual situation in the form of personal, qualitative on-site interviews.

The project team succeeded in bringing 120 regional stakeholders together in a transformation dialogue. In an interactive format, the participants had the opportunity to raise their needs with the relevant addressees. To address relevant trends and topics relating to transformation in the region, a “Transformation Walk” was held as a moderated workshop.

Using established methods of futurology in the form of a moderated workshop, the team transferred previous findings into structured and forward-looking scenarios for the region in 2035. These represent a variety of aspects that directly or indirectly influence the region and the mechanical engineering and automotive sectors. Understanding these interactions and knowledge of the effects that uncertainties and trends can have on these factors is crucial for planning and preparing for the future. Within the transformation network, the aim will be to promote cooperation between society, business, science and politics at regional level.

2. Methodological Approach

2.1. Research Design

The methodological approach involves a combination of qualitative and quantitative studies to comprehensively analyse the transformation, employing a Mixed-Methods Research Design according to Tashakkori and Teddlie (2020) [11]. Interviews and surveys were conducted to record the perspectives and challenges faced by SMEs. The primary goal was to create a holistic picture of the transformation in the region, considering both socio-cultural and technological aspects. These analyses included a regional meta-analysis, which shows the relevant economic indicators as well as the strengths and weaknesses of the regions. In addition, the current literature and studies were used throughout to present the profile of the respective region in geographical, demographic, structural and economic terms.

2.2. Data Collection Methods

In the first year of the project, various quantitative and qualitative needs assessments were conducted in the form of surveys.

2.2.1. Quantitative Online Survey

In cooperation with the research institute Prognos AG, an online company survey (needs analysis) was conducted from 6 December 2022 to 1 February 2023. The basis for the development of the questions was a set of questions from the Labour Force Survey (LFS) Questionnaire Toolkit of the International Labour Organization (ILOSTAT) to ensure a standardised methodology and consistent data collection [12]. The chosen survey method allowed participants to choose from predefined response options as well as to formulate their own answers. The main aim of this survey was to collect representative data on trends and how regional SMEs are affected in the competence field of mechanical engineering.

The questionnaire was therefore divided into four thematic blocks: the challenges and impact of the transformation, development potential and key technologies of the future, networking and cooperation, and support requirements for the transformation offensive.

The survey was disseminated via various channels (newsletters and adverts in trade journals, communication via social media, direct contact with companies by post and mailing list). The link to the survey, mapped by the tool LimeSurvey, 6.0.0, was sent to more than 800 regional companies from the targeted sectors. Sixty-eight questionnaires were sent out in the above-mentioned period, forty-nine of which were completed in full. The responses from incomplete questionnaires that were cancelled during the survey were included in the evaluation of the survey until they were cancelled. The evaluation was carried out by the contracted service provider using cluster analysis. The respondents were categorised into clusters based on their response patterns, primarily by region, large companies vs. small companies, and by sector of activity, to identify homogeneous groups within the respondent population [13].

2.2.2. Qualitative Expert Interviews

The interview guidelines used were designed based on a statistical analysis of the online survey in accordance with general guidelines for questionnaire design and a statistical analysis of academic institutions and research institutes, e.g., those of the European Social Survey (ESS). This ensured the validation and consolidation of the online survey results and a standardised evaluation [14]. The aim of these interviews was to shed light on individual company situations and gain insights into the specific challenges and needs of the companies.

The interviews were conducted by the four transformation coaches in the team. Various acquisition strategies were used for this. Firstly, existing contacts were selected by the project partners for a targeted approach, followed by indirect contacts via other projects, and cold calling was also employed. Finally, it was always crucial that the selected managing directors fell within the focus of the project: the SMEs from Mainfranken in the mechanical engineering and automotive sector. The approach was preferably made in direct dialogue on the phone or, in case of doubt, via email or indirectly via the respective administration.

Since March 2023, the coaches have been able to conduct interviews with a total of 36 managing directors/executive employees in all sub-regions which were included in the analysis.

2.3. Analysis

The statistical analysis of the needs analysis questionnaires was outsourced to the service provider, who prepared a chart-based presentation of the results by question category.

Various statistical and qualitative techniques were used to ensure rigorous data processing and analysis. For the quantitative data from the questionnaires, descriptive statistics were used to summarise the data, while inferential statistics helped to identify significant trends and patterns. Charts and graphs were created to visually represent the distribution and key trends of responses across different categories to provide a better understanding of the data.

The renowned MaxQDA 24 software was used for the qualitative data from the interviews. This tool made it possible to categorise and code the interviewees’ responses according to the building blocks of the guidelines. Techniques such as thematic analysis were used to identify recurring themes and patterns in the transcripts. This systematic approach ensured that the qualitative data were analysed in a structured way, which enabled meaningful insights to be gained.

For the analysis and evaluation of the trends and developments identified, the STEEP system was used, according to Fisher et al. (2020) [15]. This widely used methodology in futurology and strategic planning comprises five dimensions: Society, Technology, Economy, Ecology and Politics. In addition to these categories, the areas of networking and cooperation and support requirements and suggestions were added to identify specific needs for future network activities. The use of the STEEP system enables the different dimensions to be linked with each other and thereby develop comprehensive future scenarios.

Avoiding potential bias was an important aspect of our analysis. For the quantitative data, efforts were made to ensure the representativeness of the sample by stratifying it according to relevant demographic variables. In the qualitative analysis, measures such as triangulation were used, where multiple data sources and methods of analysis were used to validate the results. In addition, reflexivity was maintained throughout the research process, with researchers constantly reflecting on their own biases and how these might influence the interpretation of the data.

For the further development of support, information and advisory services, the needs in the areas of networking, qualification and technology transfer as well as key technologies and future fields were analysed. This comprehensive approach ensured a well-founded analysis that provides a solid basis for strategic planning and decision-making.

Various analytical steps were combined for the purpose of synthesising and cohering the results from the meta-analysis and the quantitative and qualitative surveys. Firstly, the most important findings from the various data sources were summarised and differences and similarities identified. The percentage of significant similarities in trends and drivers were placed in a larger context and combined to gain more comprehensive insights. The chosen comparative methodology STEEP provided for an equal weighting of the factors. For each category, we focused on the two most striking trends in the further analysis. The integrated data were used to derive overarching conclusions and implications as well as recommendations for action that go beyond the individual findings.

3. Results

The content sources include results from the preceding regional meta-study, our very own online survey and interviews (N = 36), as well as the interactive Transformation Walk for trend identification outcomes of the resulting vision 1.0 and statements from activity screenings and company visits to regional SMEs conducted in the first quarter of 2024. The following chapter presents the most important results of our survey phase in relation to the employees in the company, divided into sub-sections. This applies to the socio-cultural category of STEEP, but also to the other categories on a selective basis.

Overall, after analysing the online needs analysis, it must be anticipated that there are strong discrepancies between the answers and the views and awareness of SMEs and large companies about transformation issues. The best example of this is the area of investments in innovation, where large companies see a greater need for action and have more room for manoeuvring due to their often better financial and time situation. This discrepancy should also be borne in mind regarding investments in regional SMEs in HR, training, etc., and is therefore presented in advance.

3.1. Shortage of Skilled Labour

The shortage of skilled labour is discussed as a challenge for many companies in the Mainfranken region. In total, 89% of the SMEs interviewed were affected by this. After rising energy and raw material prices, the shortage of skilled labour was the second most important trend for the companies surveyed online: 37% saw themselves as very strongly affected and 39% as strongly affected by the shortage of qualified workforce. Large and small companies were equally affected by this development.

Regional companies face major challenges when it comes to recruiting qualified workers with the necessary skills and expertise. This struggle to fill key positions was a recurring concern for business leaders from our surveys. Despite efforts to attract talent and offer them competitive salaries and benefits, the demand for skilled labour continues to outstrip the available supply in the region. Because of the high demand from entrepreneurs and the limited supply of potential employees, companies are increasingly compelled to recruit individuals offering attractive conditions. We are familiar with this transition from a labour market in which employers dominate to one in which employees have a stronger negotiating position, giving rise to a so-called “war for talent”.

As a result, companies are struggling with labour shortages that can affect their productivity, growth and competitiveness. Companies are faced with the task of meeting their demand for skilled labour in order to maintain and develop their business activities. Addressing this issue is critical to the economic development and sustainability of the region as it directly impacts the overall performance and success of companies in Mainfranken. This emphasises the urgency of creating attractive working conditions and positioning oneself as an employer of choice.

3.2. Attractive Working Conditions

As already mentioned in the previous point, companies worldwide and therefore also regional SMEs are increasingly having to find creative ways to retain existing employees and attract new ones due to the shortage of skilled labour.

For 16% of the entrepreneurs interviewed, factors such as free meals, interesting and varied activities, a positive working atmosphere and the structural advantages of SMEs were among the attractive working conditions that managers establish and strengthen in this context on a long-term basis. Innovative approaches such as the job wheel (11%) and the hotly debated 4-day week were also mentioned. There are also partial financial benefits, such as special employee cards onto which credit is loaded each month, which is freely available, or a health bonus for quarters without sick leave. Some more detailed information on these findings follows. In the common understanding between the project manager and the interviewee, free catering includes the provision of drinks such as water, juices, coffee and tea, as well as the usual fruit baskets or ice cream in the warmer months of the year. The category of varied and interesting activities includes the organisation of day-to-day work processes, but also the promotion of employees’ independent working methods. According to business psychologist Florian Becker, the active increase in employee motivation by managers is a decisive factor not only in favour of employee performance and satisfaction, but also for the long-term and sustainable promotion of a company’s success. The increased commitment of employees not only to fulfil their professional tasks, but also to think outside the box and proactively look for potential for improvements and points of contact in their field of activity can secure decisive competitive advantages for the company. The bundled concentration of the employee’s skills and their assigned tasks, the desire for further training (up- or reskilling) supported by management and the ongoing evaluation and, if necessary, optimisation of task design can result in high synergy effects between motivation and performance in the context of productivity [16]. Regular and targeted communication is the key here, and regional SMEs are also aware of this. Whether through fixed regular appointments (jour fixes, etc.) within the department and across interfaces in work, scheduled workshops or informal discussions at the workplace, managing directors and project managers show their employees that they value their work and are interested in their personal development. This is why they are also increasingly flexible when it comes to organising the working hours of their employees. More on this is discussed in the next section.

3.3. New Work Models

The implementation of New Work models is largely due to a global trend—demographic change. Such strategies, which are examined in more detail below, consider the longer working life cycle of employees, as the need for workers of advanced age is increasing in order to stabilise the labour market and combat the shortage of skilled workers. On the other hand, employers must adapt to the special needs and wishes of the new generation (millennials) in order to attract and retain them as employees [17].

The psychologist Carsten C. Schermuly emphasises that it should not just be about structural empowerment on paper for external impact. Democratised structures, for example, in the form of flat hierarchies, achieve the comparatively quick structural empowerment of a company, but are rarely oriented towards people and their needs, who in this example case have to take on more responsibility and fulfil tasks with a high degree of autonomy. Schermuly therefore argues in favour of the psychological empowerment approach in the New Work context. Employees should experience this feeling through the four dimensions of self-determination, significance, influence and competence, says Professor Gretchen Spreizer, to collectively bring about many positive developments in the company. Spreizer refers to numerous studies on the effect of psychological empowerment. For example, greater satisfaction with one’s own work often results in a stronger bond and identification with the company itself and its products. Employees are less likely to leave the company voluntarily and even stay with the company longer by postponing retirement. As far as personal development is concerned, scientists have observed that employees’ proactivity and innovative performance increase, while stress levels and even tendencies towards depression can be minimised [18].

In light of these impressive positive effects, it seems all the more important to address the topic of New Work—assuming that the focus is on people through psychological empowerment strategies.

New Work strategies range from political decisions in the education system to the increased inclusion of part-time work or flexible working time models (most prominent example: home office), or in particular the possibility for highly qualified women to combine work and family, through to the design of personnel development models [4].

Due to the increased input from employee representatives from the region on the future vision of the project, a workshop on the topic of “Good Work” was held in March 2024. It should be noted that the author Schermuly quoted above would probably have strongly criticised this choice of topic, as he communicates “good living instead of good work” within his New Work agency [18]. It should be said that we and the participants are aware that good working conditions are of course not enough when it comes to the workplace and immediate activities alone, due to the close connection between work and life. The premise should therefore be an overarching approach.

The results generated will be presented below using the categories of corporate culture, development aspects, social aspects and general additions already clustered in the workshop. The following workshop insights from the participants focus on the various facets of New Work, which aim to adapt working methods and environments to meet the changing needs and requirements of employees.

With regard to the main category of company culture, employees consider fairness and openness on the part of the employer to be important. The corporate culture should also be strongly characterised by situational leadership, the opportunity for active participation, further training opportunities and prospects, fair exchange and individual freedom.

Development aspects for employees are characterised by the opportunity and support from management for further training and an internal structure for further training.

Social interaction plays a major role for employees in companies. It is also important that the employer guarantees freedom for individual development outside of work. Equal opportunities also play a major role.

In addition, general aspects were identified in the workshop that should not be assigned to any specific category. Bureaucracy is a major challenge in various work processes; examples of this were the topic of collective agreements and funding conditions. Framework conditions were also addressed: public transport must also be provided in small towns and rural regions [19].

3.4. Channels for the Acquisition of Employees

The focus of HR management is changing, with the development of strategies now taking up more time than the processing of forms and other administrative tasks [4]. Companies must approach the recruitment of skilled labour as a central task and take appropriate measures to counteract the shortage of skilled workers. The acquisition of suitable skilled labour is a key challenge for companies due to the shortage of skilled workers. The content-related and creative options for attracting employees to a company through motivational effects have already been highlighted. The following section will therefore focus on the communication channels directly addressed by the responsible managers in our surveys.

Almost half of the respondents to the online needs analysis (48.4%) were aware of the personal need for action due to the structural change in the acquisition of skilled labour. The discrepancies between the responses of SMEs and large companies mentioned at the beginning are evident here. Large companies see a significantly greater need for action than SMEs, particularly when it comes to investing in innovations in this area.

As already stated, almost half of the companies surveyed see a great need for action in the acquisition of suitable skilled labour. The survey of companies in the Mainfranken region conducted by the four transformation coaches revealed that they use a range of strategies to attract new employees. These strategies cover a wide range of concepts tailored to the specific needs and challenges of talent acquisition in the region. The most cited strategies include immigration initiatives, with around 47% of companies utilising German immigration policies to attract foreign talent. Furthermore, at 42%, a significant proportion of organisations rely on internal referrals from the existing employee pool to find and attract new talent. Personal contacts can be utilised effectively, particularly in smaller companies or in small towns. In addition, the targeted use of social media platforms has proven to be another promising recruitment tool: around 37% of companies use these platforms to advertise vacancies, get in touch with potential candidates and establish their employer brand. Also, around 21% of the CEOs interviewed have entered partnerships and collaborations with universities and educational institutions to foster talent pipelines and gain access to a pool of qualified applicants. These different acquisition strategies emphasise the dynamic and multi-faceted nature of talent recruitment in the region. Companies are proactively looking for innovative approaches to meet labour needs and secure the skilled workers required for long-term growth, productivity, and competitiveness.

3.5. Contrast in Employee Loyalty

Our interviews and job screenings show that an almost family-like atmosphere is of crucial importance in small companies. A special bond throughout the company is achieved through company parties, summer or Christmas celebrations, which are often fully funded by the management. During our visits to the companies, we found that long-standing employees experienced the growth of the management firsthand—literally, as family businesses allow employees to accompany the next generation of management in their day-to-day work and introduction to the business. This personal experience of succession planning gives employees a sense of security and stability and takes away potential fears about the future of the company. In the particularly small companies (under 100 employees), the comparatively high average age of the workforce was striking. When we asked during the job observations, many of them had been with the company for decades (up to 40 years), had often completed their training there and had only changed departments or areas of responsibility. The four employees who had been with a company for several decades and with whom we were able to speak in a total of three SMEs agreed on the advantages. Due to the smaller number of employees compared to large companies, all employees know each other, which leads to a high level of trust. This basis of trust is seen as a long-term advantage that motivates employees to stay with the company for decades. The small number of employees and the proximity of the management to the employees emphasise the fast routes and decisions in day-to-day work. In addition, employees are often involved in changes in plans during the process. In one specific case, the workforce was involved in the further development of the app specifically programmed by the managing director for the SME. All these positive aspects lead to a high level of satisfaction for employees in SMEs, which can even outweigh the potential financial benefits of working for large companies. Similarly, in the more medium-sized companies at the upper limit of the SME definition, the following was observed: employee loyalty to the respective company was generally no longer as strong and decreased as the number of employees increased. The fluctuation rate of employees will significantly rely on their satisfaction within the company. Hence, it is crucial to assess the fit during the selection process as early as possible [4].

3.6. Training Measures

Companies are encouraged to develop strategies to meet the demand for skilled labour in the long term and thus secure their competitiveness. This can be achieved, for example, through targeted qualification measures, further training programmes and cooperation with educational institutions. The importance of skilled workers and qualified personnel is emphasised in terms of coping with current developments and trends in the industry. Companies must address the qualification, retraining and further training of their employees to meet the requirements of new technologies, processes and innovations [20]. This indicates that securing skilled labour and developing skills play an important role in maintaining the competitiveness of companies and securing jobs.

All of the companies surveyed in interviews and surveys utilised internal training measures for the qualification of employees and managers, i.e., they train their staff in-house. It was emphasised several times that experienced, often long-standing employees were happy to pass on their expertise to colleagues on their own initiative. Trial and error methods also increase the learning curve and reveal potential knowledge gaps. A total of 89% of respondents also made use of external, often regional training providers, mostly for official training courses (upskilling). This shows the endeavour to continuously develop the skills of the workforce and keep them up to date, if possible in-house, but also with the support of educational institutions if required.

Our surveys suggest that, in addition to the typical areas of further training (hard skills), soft skills are becoming increasingly important both in the application process and in everyday working life. With regard to the transformation processes taking place in the mechanical engineering and automotive sectors, we are talking in particular about the ability to learn and change, creativity, motivation for lifelong learning and language skills [4]. The first-mentioned adaptability was named as the most important soft skill by 45% of the entrepreneurs interviewed.

Overall, an optimistic 80% of the managing directors interviewed considered their employees to be well positioned in terms of the specialist skills required to transform the industry.

3.7. Selected Findings with Indirect Reference

The following are three selected findings with indirect reference.

The majority of SMEs implemented regular sustainability measures that take both environmental and social aspects into account. This shows a growing awareness of environmental responsibility and long-term business practices. The aspect of sustainability runs through the company’s day-to-day operations at management level, e.g., in the purchase of PV systems, LED lighting or electric cars, but also affects employees who have recently started cycling to work or attending environmental protection training courses.

In total, 42% of SMEs were affected by the electrification of the powertrain. This indicates that technological developments are more present in certain sectors and have an impact on business models.

Automation was present in all SMEs surveyed (100%). In addition, half of them relied on additive or hybrid manufacturing technologies, in particular 3D printing for the production of prototypes or small series. The use of robotics (32%) and AI (26% for monitoring/supervision) shows the endeavour to use modern technologies to increase efficiency and innovation [21].

This also changes the demands on individual employees—new skills must be learnt or what has been learnt must be developed further and adapted to the new requirements.

4. Conclusions: Key Findings and Future Directions

Following on from the previous chapter, in which socio-cultural findings and trends from regional surveys in SMEs were discussed, the following section will focus on key findings and recommendations for action developed from this for SMEs to mitigate risks, primarily the loss of employees, based on the content sources used, including the results of the regional meta-study, the online surveys, the interviews, the Transformation Walk and the resulting Vision 1.0.

To counteract challenges, strategically managed transformation measures are required to secure the future viability of the Mainfranken region and improve the employment situation.

Discrepancies in transformation awareness. It is important to emphasise the significant differences in perception of the challenges of transformation between SMEs and large companies. For example, while both face difficulties in investing in innovation, large companies often have more resources and flexibility. This underlines the need for customised strategies for regional SMEs, particularly in areas such as human resources and training, and validates our mission to sensitise SMEs specifically to industry transformation.

In order to remain competitive and meet changing requirements, it is advisable for small and medium-sized enterprises to invest in technologies in the fields of automation, artificial intelligence and digital tools. Through such investments, they can increase their operational efficiency, drive cost savings and optimise resource utilisation. Modern technologies offer opportunities to improve processes, develop new products and services and tap into new markets. An open attitude towards innovation can help companies remain flexible and successfully meet the challenges of the modern business environment.

Tackling the shortage of skilled labour. The shortage of skilled labour is a major, if not the biggest, problem for companies in the Mainfranken region in terms of productivity and growth. A holistic strategy aimed at creating attractive working conditions is needed to effectively meet the challenges posed by the shortage of skilled labour. This includes various measures such as the introduction of flexible working hours, the provision of further training opportunities and the promotion of a robust corporate culture that retains employees in the long term. As already outlined, the SMEs analysed in the region already show a high degree of creativity and commitment in developing such approaches. It is important to keep up with the times and act in close consultation with employees to meet their needs. Close cooperation with educational institutions is a crucial aspect of a sustainable and successful strategy. The creation of partnerships and the implementation of customised training programmes are of great importance here. However, the successful implementation of these initiatives requires support, whether through government funding or networking initiatives such as ours. Such cooperation not only enables the needs of companies and their employees to be better addressed, but also creates a win–win situation that strengthens the entire region and makes it fit for the future.

Promotion of regional and supra-regional networking. An aspect that has just been mentioned is the promotion of regional and supra-regional networking. Active participation in networks plays a key role in promoting the regional and supra-regional networking of companies and organisations. By participating in such networks, companies have the opportunity to exchange ideas with other players, share best practices and pursue common interests. Not only within-sector exchange, but also cross-sectoral exchange strengthens the spirit of innovation. This not only promotes cooperation and the exchange of knowledge, but also strengthens the competitiveness of the region as a whole. In addition, networking provides access to new information, key technologies and business models. By sharing knowledge and experience, companies can participate in the innovations of others and find new ways to improve and optimise their own business processes. Competitive thinking and secrecy are by no means beneficial.

Overall, active participation in networks is an important strategy for companies and organisations to expand their reach, tap into new opportunities and have a strong voice in political affairs. Through our networking project, for example, members are also networked with district leaders. Effective networking not only enables organisations to achieve their own goals, but also contributes to the development and strengthening of the entire region.

The introduction of new working models. The establishment of time- and generation-appropriate working models reflects global trends, which are driven in particular by demographic change and the changing expectations of young employees. Psychological empowerment strategies, flexible working arrangements and continuous development opportunities are crucial for accommodating different individual needs and improving organisational effectiveness.

Talent recruitment channels. With the workforce landscape changing in favour of employees, companies need to implement innovative acquisition strategies to address the skill shortage. Utilising national immigration policies, internal employee referrals, social media platforms [22] and partnerships with (inter)regional educational institutions are critical to building a robust talent pipeline and ensuring long-term competitiveness.

Dynamics of employee loyalty. The degree and dynamics of employee retention vary greatly between SMEs and larger companies. This underlines the importance of organisational culture and interpersonal relationships for satisfaction in everyday working life. In SMEs, a familiar atmosphere and opportunities for personal development contribute significantly to increased employee satisfaction and long-term loyalty.

Investing in training and development initiatives. To meet skill requirements and technological changes, companies need to invest in targeted training and development programmes. Both internal and external training programmes play a crucial role in improving employees’ skills and adapting to changes in the industry.

According to recent reports, the growth areas of the coming years will centre around ecological change [23]. The development of new “green” technologies and the expansion of “green” activities within individual professions will play a decisive role in this. While occupations and activities in “brown”, i.e., carbon-based, industries will continue to decline, “green” activities will continue to gain in importance. For the affected employees in “brown” occupations, this means an increased need for counselling and training in order to meet future requirements [5]. By implementing and publicly communicating long-term practices, SMEs strive not only to fulfil their environmental responsibilities, but also to realise potential market advantages [24]. This approach can lead to companies positioning themselves better and building a stronger bond with their customers by meeting their needs and expectations for environmentally conscious business practices [25]. Customer demand ranks alongside self-motivation as 60% of the motivation behind sustainability actions.

To summarise, the synthesis of these findings highlights the complexity of the challenges of change and the importance of proactive strategies to address them. To promote long-term growth and resilience in the Mainfranken region, effective collaboration between stakeholders, the development of innovative HR practices and investment in the development of skilled labour are essential.

Transform.RMF supports regional SMEs in their industrial transformation by familiarising them with upcoming changes and promoting their competitiveness. The “Transformation Talks” event series and the “Learning Nuggets” are key initiatives that provide informative talks, networking opportunities and flexible e-learning content on important topics such as cybersecurity, automation and additive manufacturing. These endeavours aim to equip SMEs with the essential knowledge and abilities to navigate and succeed in the evolving market landscape.