In Germany, it’s common for employees to stay with a company for over 20 years, with some even spending their entire careers at the same place. For instance, at BMW factories, many workers have been with the company for around 40 years. High employee loyalty is a hallmark of German enterprises. So what’s the secret behind German companies’ ability to retain their employees firmly?
Valuing human resources
According to reports, many workers at BMW factories are under 60, but have already worked there for around 40 years. High loyalty among employees is a characteristic of German companies. Employees believe this is because their bosses treat them well first, as loyalty is a two-way street.
Respect for employees has become a distinctive feature of European companies, particularly in Germany. This respect is mainly reflected in the concern for ordinary employees’ physical and mental well-being.
In 2015, the German government began offering benefits, including a minimum wage of 1,557 euros starting January 2019. Additionally, if both parents are working and need to care for their children, one can apply for paid leave to stay home with the child, receiving 65 percent of their original salary. If one parent is unemployed, they can apply for a monthly subsidy of 300 euros. This benefit, known as “Elterngeld” (parental allowance), is unheard of in many other countries.
Generous German companies
Many German companies are generous when it comes to paying their workers. For example, frontline workers at the Hildesheim factory in Germany are paid hourly, ranging between 36 and 40 euros per hour. With a typical workweek of about 40 hours, a skilled technician’s monthly salary can be around 6,400 euros.
At BMW’s Dingolfing factory in Germany, special care is provided for older workers, from factory setup to medical care and even physiotherapy services.
For example, comfortable benches are everywhere to prevent workers from standing too long. Adjustable height shelves are installed to avoid back injuries, and lighting is enhanced for employees with poor eyesight. Workers can even nap on convenient beds during shift breaks in the factory’s rest areas.
Investing in employees’ future
Investment in employees goes beyond salaries. Many German companies’ key strategy for retaining their workforce is providing continuous learning and development opportunities.
Many top German companies did not lay off employees during the financial crisis. Instead, they adopted various measures to weather the storm, including reducing overtime, controlling costs, and more flexible personnel management. Avoiding layoffs during a financial crisis is entirely possible with the right strategies.
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