Context and Challenge
As industries across Germany face increasing skills shortages, particularly in technical fields, companies are pressured to find sustainable ways to upskill and reskill their workforces. This demand is intensified by digitalization, decarbonization, and demographic shifts.
Siemens, a global manufacturing and technology company, launched SiTecSkills Academy in 2022 to address these challenges and bridge the gap between industry needs and available skillsets. Targeting employees in production, service, and sales, SiTecSkills Academy aims to enhance future competencies in areas like IoT, AI, robotics, and sustainability, supporting Siemens and its external partners in becoming more digitally and environmentally sustainable.
Solution and Overall Approach
SiTecSkills Academy is more than an internal training academy; with an open ecosystem approach, the academy enables accessibility of technical training to Siemens workforce and its external partners. Siemens benefits from existing knowledge and many years of experience in vocational education learning. They partly re-package the content from their vocational education to up- and reskill the workforce in digitalization and sustainability. The academy offers upskilling and reskilling services to partners including qualification consultation to match training programs to industry standards, develop learning packages, and provide customized trainings. The portfolio provides varied formats of training options such as e-learning, virtual instructor-led training, hybrid, fully on-site, and competency-based application modules, from brief 15-minute digital “nuggets” to extended certification programs.
To effectively upskill and reskill the workforce, Siemens SiTecSkills Academy leverages a diverse and innovative financing mechanism that integrates public funding, private investment, and flexible cost-sharing arrangements.
Funding for Reskilling Models: SiTecSkills Academy’s core funding strategy involves collaboration with Germany’s Federal Employment Agency under the Qualification Opportunities Act (Qualifizierungschancengesetz). This act provides companies with access to co-financing for reskilling through AZAV (Akkreditierungs- und Zulassungsverordnung Arbeitsförderung) accreditation, which certifies training providers and trainings eligible for government subsidies. Through this framework, Siemens receives financial support from local employment agencies to cover a share of reskilling program cost. Due to the company size, co-funding is limited to 25%. In some cases, Siemens can also offset between 25-100% of base wages for specific positions at risk of unemployment. Collaborations with universities, chambers of commerce (IHK), and certification bodies ensure that the Academy's programs align with industry standards, allowing Siemens to provide training that meets specific sectoral demands.
Employer co-investment and cost-sharing for upskilling programs: For upskilling programs targeted at current employees, Siemens directly finances the entirety of these training costs. For academic and advanced vocational training, however, sometimes a cost-sharing approach is used where costs are divided among employers, individual learners, and sometimes government support. This tiered financing model enables Siemens to maintain the affordability of programs while engaging learners and employers in shared responsibility for skill development.
Digital Learning and Free Modules: SiTecSkills offers "digital learning nuggets" to improve digital literacy among entry-level and blue-collar workers. Many of these modules are available free of charge on the Siemens website, offering accessible skill-building opportunities also for those outside the organization. This open-access component allows Siemens to promote skill development in digital literacy widely, helping address industry skill shortages by reaching an audience beyond Siemens' immediate workforce.
Siemens is able to demonstrate the outcomes of SiTecSkills Academy’s investment in skills training through:
1. Workforce Transformation and Skill Development
Since its launch in 2022, the SiTecSkills Academy has reached over 24,000 participations, with a focus on building digital and green skills essential for Siemens and its partners. The program’s success is reflected in the substantial skills uplift observed among employees, equipping them with capabilities in IoT, AI, robotics, edge computing, and green technologies, where they can transfer their knowledge into practice. For instance, reskilling initiatives at the academy have led to the training over 100 participants in entirely new skill areas, of which approximately 90% of the participants were co-funded by the Employment Agency. This has enabled career transitions for workers such as René Grosse, who moved from electronics technician to a Charger Systems Specialist for Siemens’ e-mobility infrastructure. Such career shifts underscore the academy’s ability to bridge skills gaps and meet emerging industry needs.
2. High Retention and Reintegration Rates
SiTecSkills’ training model is designed not only to develop skills but also to support long-term employee retention and employability. Six-month post-training reviews reveal close to 100% success rate in reskilling programs, assessing both skill acquisition and job placement within social insurance-covered employment. This high reintegration rate highlights the academy’s impact in creating sustainable employment opportunities and retaining talent within Siemens and the broader labour market.
3. Equitable access to training for all
SiTecSkills Academy promotes inclusivity by catering to diverse learner backgrounds and career stages, with flexible learning formats (digital, self-paced, and in-person) and financial support mechanisms that reduce barriers for participants from varied socioeconomic backgrounds. Approximately 40% of participants in the academy’s initiatives are women, reflecting a commitment to gender inclusivity in technical fields traditionally dominated by men.
With 18 training centers across Germany and an extensive partner network including universities, external training partners and business partners, the academy maintains strong regional ties and proximity to learners, enhancing its reach and engagement. By aligning its offering with local industry demand while partnering with the local employment agencies, Siemens ensures that the programs are accessible to learners with diverse education from professional backgrounds, helping to address regional skills shortages effectively.
Critical Lessons Learned
By developing strong partnering relationships with governmental bodies under Germany’s Qualification Opportunities Act, Siemens benefits from a structured co-financing model. This approach reduces Siemens' direct costs while making high-quality training accessible to participants across different backgrounds. Additionally, SiTecSkills Academy’s close collaboration with academic and private sector entities ensures that training is relevant, certified, validated, and widely accessible.
