If you recently expanded into Germany and you’re thinking about bringing on local employees, you should understand the expectations of German employees. Employees around the world have very different expectations, largely based on their personal experiences, which are greatly influenced by the laws and regulations of their home country and their cultural norms. Germany boasts a highly skilled and talented employee pool, with similarly high employee expectations. Furthermore, Germany has one of the most highly regulated labor markets in the world, favoring the employee.
This article will focus on employee expectations and norms, rather than employment laws and regulations. Although you should keep in mind, they are often intertwined. You can learn more about German employment laws and regulations in the Globig Knowledge Base. Below are some of the most common expectations of German employees. If you offer something significantly less than these norms, it will put you at a competitive disadvantage in hiring employees in Germany.
Salaries
Salaries are laid out in the employment contract in Germany, generally in monthly terms. It is common for employees in Germany to receive 13 monthly payments per year, the extra month being considered a bonus. This thirteenth payment is usually paid at Christmas or split between Christmas and summer. Furthermore, some managers may receive 14 payments.
Work-life Balance
Most Germans expect a healthy work-life balance. Germans work hard and play hard. Today, German employees are increasingly looking for flexible working hours and conditions. Because German employees are efficient and work very hard during work hours, they are just as productive as employees who work more hours. The average workweek in Germany is 35-40 hours.
Along the same vein as work-life balance, Germans are afforded (legally and culturally) more paid vacation time than many other countries. In Germany, 25- 30 business days (5-6 weeks) is the norm. In Germany people typically take their vacations in July, August, and December. Many businesses are closed or run on lean staff during these times. Germany has more public holidays than most countries. So, in addition to paid vacation, there are several paid public holidays (ranging from 9-13 depending on the state) each year. Furthermore, the German government strictly regulates the hours in which businesses can be open and the number of hours employees can work.
Finally, many Germans expect that they will not receive emails and phone calls during nonworking hours and days. Many German companies (e.g. Volkswagen, BMW, Puma) have voluntarily created company policies that prohibit emails and calls after hours. For example, VW stops sending emails to employees from company servers 30 minutes after the working day ends. Many other companies have made it clear they do not expect employees to check or respond to emails during the weekends and their free time. Following suit, Germany’s employment ministry has banned emails and phone calls to its employees after hours except in the event of an emergency. Not all businesses follow this, especially startups, but it’s important to know what employees expect and to make sure your company and prospective employees are cultural fits.
Work Culture
As mentioned above, typically, Germans are very productive despite their shorter workweeks. That is because when Germans are at work they work, and they should not be doing other things. Most Germans do not check Facebook or personal email or troll the internet for hours or gossip with coworkers. In fact, Germans have a zero tolerance among colleagues for these frivolous, non work related activities.
Germans adhere to strict hierarchies at work and in the business world. To that end, each employee’s role and responsibilities are tightly defined and departments are often compartmentalized. Germans expect that their managers are highly skilled experts in their jobs, and thus, there is a level of earned respect that is inherent in the hierarchical working relationship. Disconnects happen when people are put in charge that don’t have the expertise, education, and credibility to manage other professionals. A lot of value is placed on education and experience in Germany, and is often required of people before they are promoted.
Germans don’t typically socialize with their co-workers during work hours and it’s not common for them to socialize after work hours with co-workers either. Don’t expect your co-workers or employees to become good friends. They might do that but it’s not an expectation in the workplace to make close friends there. People at companies with a lot of younger people, such as startups, will more likely bond around work and after-work activities.
Furthermore, Germans tend to be very direct, but very professional. Employees expect and appreciate that their managers will be direct, courteous, and respectful regarding their work, i.e., with directions and performance reviews.
In general, Germans don’t like ambiguity or lack of clarity in their business expectations. Make sure goals and expectations are clearly set, measurable, and that employees have the support needed to achieve those goals. Germans typically do not like goals that are unrealistically aggressive, because it is demotivating for them rather than motivating. This is especially true in sales, as compared to the U.S. Sales people are much more methodical in Germany and they expect to meet their realistically set sales goals.
Benefits
Many benefits that are considered fringe by U.S. standards are required by law in Germany, such as health insurance, sick leave, maternity leave. Fringe benefits in Germany vary greatly among companies, industries, and positions. Some common fringe benefits include company phones and computers, company cars (sometimes with fuel cards), meals (often lunch), public transit payment or reimbursement, savings and retirement contributions, stock and other equity options.
Adjusting your employment practices and expectations to the German labor market will make it easier for you to hire and keep good employees in Germany. With today’s competitive landscape, you really don’t have an option if you want to attract and retain the top talent. You should not be afraid to make these adjustments, because you can be sure your vetted German employees will be hardworking and efficient.
Globig is here to help you with your business expansion needs around the world, even the U.S. Join Globig today for free business resources and expertise, and, through our Marketplace, access to vetted attorneys and accountants around the world.
Related Articles And Content You Might Like:
Hiring and Visa Options in Germany
A Quick Guide to Business Etiquette in Germany
Globig Special Report – Doing Business in Munich