Comprehensive strategies and tips to employ foreign talent that successfully help you to drive business growth in Germany.
Recruiting the right talents is a critical issue for any company expanding into a new market/country such as Germany. Business development in Germany needs great talents for the branch or subsidiary to penetrate the existing market and establish the brand.
It should be given thorough thought, attention, planning and investment to generate long term value to the business. Taking the recruitment process lightly can have dire consequence to the start up process of the branch or subsidiary as well as incurring losses by hiring the wrong candidate and having to start the recruitment process again.
The German employment market is vast, decentralized and culturally diverse. There are 16 federal states and each has their own labor laws, educational systems and standards and other behaviors native to each region. To a company wishing to enter the market and hire local talents, the educational standards produce a different end result. Education, training and apprenticeship types vary as well as the duration of study that leaves an impact on the candidate’s age and experience level.
First Task to Recruitment in Developing Your Business
The first task to recruitment is knowledge of the region and locality of your sales office. If you need assistance in going through the labor laws, hiring regulations and taxation of employees, hire or partner with a recruitment agency that has vast knowledge of the region’s laws and regulations as well as the system of education and apprenticeship. Your partner can connect the dots on profiling the right talents for your job posts. Finding the right talents in the market the size of Germany can be overwhelming and challenging, and the recruitment agency can sift through the nitty-gritty details. Establish a structured recruitment system, nothing should be left to chance and making a wrong decision will cost you more money. Getting recruitment right the first time with strong and quality track records will impress those who follow as the business develops and grows; acting as magnet for other talents.
Knowing the Recruitment Climate to Better Develop a Business in Germany
Germany is a decentralized and heterogeneous market. There is no one major business center but rather a composite industry sector in diverse urban areas and regions. Because each state varies in educational and course standards, labor and legal systems - relocating and mobility is not advantageous as regulations and professional qualifications/licensing differ from one state to the other. It’s difficult to relocate from the Western regions to the Eastern states. Comparatively speaking, salaries in the Eastern states are lower than in the Western regions.
Each region is focused on different industries and this has a relatively direct relation to the type of talent found in the 16 different states. Education, training and apprenticeship have a direct correlation to the businesses and industries in each state. Here is a preview to what to expect in some key cities/regions:
- Berlin - The city and state are the new European hub for start-ups. The low standard of living ensures the cost of developing new technologies and innovations is lower compared to developing and starting a venture in other cities in Europe. It is the headquarters of different economic organizations. Other industries in the city and state are IT, Biotech, Med Tech, Advertising and Media.
- Thuringen - The region is home to manufacturing giants; Lufthansa Technik, Rolls Royce and Bertrandt. Its capital city Erfurt has been has been on the list of fastest growing cities in the country, with better facilities and transportation infrastructures. It’s an attractive location for large-scale manufacturing.
- Bavaria - Bavaria is home to High Tech Service, Pharmaceutical companies, and a high concentration of foreign companies mostly from the US. It’s the number 2 location for banking, local and foreign; as well as insurance companies. Its largest city, Munich, is home to Siemens, BMW, Man AG and Random House headquarters.
- Hessen - Hessen holds the largest consumer trade fairs. It’s the location for international investors such as P+G, GM, Motorola, Honeywell and ITT and ¼ of all foreign direct investors. Frankfurt, Hessen is the number 1 banking and financial services capital in the region and the rest of Europe.
- Baden-Wurttemberg - Baden-Wurttemberg is the prime location for R&D, IT and Communications Technology, Bio Tech and Environmental Technology. It’s home to traditional German industries such as Daimler, Mercedes-Benz and Porsche’s Headquarters; and industrial plant equipment such as Bosch and Mahle.
Knowing what the German market has to offer gives you the advantage of defining job specifications that are in line with what the business needs. Germany’s market for talent is almost unlimited, but that being said, it’s still important to evaluate and scale candidates coming from a different system. It’s crucial to understand the ways German talents deviate from candidates from the company’s home country.
Focused Job Specifications that Support the Development of Your Business in Germany
Generally speaking, the talent with winning salesmanship, quick into getting the business running and economical is the ideal candidate. It’s essential for you to find out where these characteristics came from. Educational background, work experiences and work ethics are essential elements in defining job specifications.
- Education - The ranking of full academic education and the benefit of speaking the “lingo” of the industry the company wants to break through frequently makes a fine-drawn but crucial difference. Tertiary level education is necessary; and a natural sales ability with a proclivity for opportunity can open doors but depending on the target market - background and image of the company representative can be strongly influenced by the title on the business card.
- Cross-Checking and Referencing - Fraud is not big problem in the employment market. Each employee is entitled to Zeugnis or a Letter of Reference from previous employers by law. The Letter of Reference is a summary of the nature and content of the role as well as the different aspects of the employee’s personality and development within the company. Zeugnis cannot be derogatory, limiting the chance of candidates to develop his or her career. Zeugnis uses a complex code to reflect the true character of the employee. Although writing and understanding the content can be difficult, it remains a convenient tool in checking the track record of the talent.
Business development in Germany by recruiting the right talent can be daunting but the results are rewarding as the right candidate will provide the helping hands in the goals of expanding the company’s range to the globally competitive European market.
Learn more about business development in Germany and recruitment of foreign employees or contact Counselhouse for more details about establishing a business office in Germany and other European countries.