Germans see themselves as modern, liberal and cultured, and working practices are formal and professional. The following outlines the working practices that you should be familiar with before investing in Germany:
Though long-term relationships are considered very important, friendships are usually not developed too quickly. It may take some time before personal names are used between non-familial parties.
German business culture has a well-defined and strictly observed hierarchy, with clear responsibilities and distinctions between roles and departments.
Professional rank and status in Germany is generally based on an individual’s achievement and expertise in a given field. Academic titles and backgrounds are important, conveying an individual’s expertise and thorough knowledge of their particular area of work.
An important aspect is Germany’s work ethic. Employees define themselves as part of the corporation they are working for and quickly identify themselves with its product and/ or services.
Rank is very important in business. Never set up a meeting for a lower ranked company employee to meet with a higher ranked person.
Notwithstanding what has been said previously, today over half of all university graduates are women. Female students are well represented in the professions; they lead in some fields such as medicine and law. The new availability of qualified female graduates is likely to bring great changes in the German workplace of the future.
Pay and power inequalities are still present however. Male employees tend to receive higher wages than their female counterparts. Jobs considered as being “women’s work” typically pay less than those deemed “men’s work”.
In more traditional companies, it is still generally true that everything is run by committees, things are discussed in great length and risk taking is not as common as in other countries.
There is one philosophy for almost everybody in German business: if someone says he is going to do something, he will do it. The same is expected of others as well. Never make a promise that you cannot keep or offer something that you cannot deliver. Germans dislike and do not trust unreliable people.
There is no legislated or administratively determined minimum wage. Collective bargaining agreements set minimum pay rates and are enforceable by law for an estimated 80 to 90 per cent of all wage and salary earners
Federal regulations limit the working week to a maximum of 48 hours, but collective bargaining agreements may supersede these. Contracts that directly or indirectly affect 80% of the working population regulate the number of hours of work per week.
The average working week is around 40 hours; rest periods for lunch are accepted practice. Provisions for overtime, holidays, and weekend pay vary depending upon the applicable collective bargaining agreement.
An extensive set of laws and regulations govern occupational health and safety. A comprehensive system of worker insurance enforces safety requirements in the workplace.
It is important that these issues are examined and understood before setting up a company and employing a workforce in Germany. These issues differ all over Europe but legal guidelines are set by the European Commission.
Germans see themselves as modern, liberal and cultured, and working practices are formal and professional. The following outlines the working practices that you should be familiar with before investing in Germany:
Though long-term relationships are considered very important, friendships are usually not developed too quickly. It may take some time before personal names are used between non-familial parties.
German business culture has a well-defined and strictly observed hierarchy, with clear responsibilities and distinctions between roles and departments.
Professional rank and status in Germany is generally based on an individual’s achievement and expertise in a given field. Academic titles and backgrounds are important, conveying an individual’s expertise and thorough knowledge of their particular area of work.
An important aspect is Germany’s work ethic. Employees define themselves as part of the corporation they are working for and quickly identify themselves with its product and/ or services.
Rank is very important in business. Never set up a meeting for a lower ranked company employee to meet with a higher ranked person.
Notwithstanding what has been said previously, today over half of all university graduates are women. Female students are well represented in the professions; they lead in some fields such as medicine and law. The new availability of qualified female graduates is likely to bring great changes in the German workplace of the future.
Pay and power inequalities are still present however. Male employees tend to receive higher wages than their female counterparts. Jobs considered as being “women’s work” typically pay less than those deemed “men’s work”.
In more traditional companies, it is still generally true that everything is run by committees, things are discussed in great length and risk taking is not as common as in other countries.
There is one philosophy for almost everybody in German business: if someone says he is going to do something, he will do it. The same is expected of others as well. Never make a promise that you cannot keep or offer something that you cannot deliver. Germans dislike and do not trust unreliable people.
There is no legislated or administratively determined minimum wage. Collective bargaining agreements set minimum pay rates and are enforceable by law for an estimated 80 to 90 per cent of all wage and salary earners
Federal regulations limit the working week to a maximum of 48 hours, but collective bargaining agreements may supersede these. Contracts that directly or indirectly affect 80% of the working population regulate the number of hours of work per week.
The average working week is around 40 hours; rest periods for lunch are accepted practice. Provisions for overtime, holidays, and weekend pay vary depending upon the applicable collective bargaining agreement.
An extensive set of laws and regulations govern occupational health and safety. A comprehensive system of worker insurance enforces safety requirements in the workplace.
It is important that these issues are examined and understood before setting up a company and employing a workforce in Germany. These issues differ all over Europe but legal guidelines are set by the European Commission.
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