Download - Germany Hr Practices
-
7/30/2019 Germany Hr Practices
1/14
HRM GERMANY
-
7/30/2019 Germany Hr Practices
2/14
STRUCTURE
HRDepartment
TalentAcquisition &Management
Compensationand Benefits
HR ServicesPerformanceManagement
-
7/30/2019 Germany Hr Practices
3/14
-
7/30/2019 Germany Hr Practices
4/14
HR POLICIES IN GERMANY
To encourage the growth of both the employee andemployer - which are beneficial for the long run of thecompany
Strong Features of Labour Market:
1.Labour laws regarding retirement, redundancies andworking hours which set the framework for HR management
2. Secondly, strong labour unions exercise significantpolitical influence on companies and the workforce
RECRUITMENT Internal Referrals,Advertising,External Consultants
Preference of Women to their workforces for better work-lifebalance
-
7/30/2019 Germany Hr Practices
5/14
SELECTION
Screening Interview
Selection Test(Personality /IQ)
Selection Interview(Semior unstructured)
Assessment Center
Reference Checks
Verification
-
7/30/2019 Germany Hr Practices
6/14
TRAINING
Average -4 man days mandatory
Vocational training
On the Job training
-
7/30/2019 Germany Hr Practices
7/14
Conditions of Employment:
Individual employment
contract
Collective bargaining
agreement
Shop agreement
-
7/30/2019 Germany Hr Practices
8/14
PERFORMANCE APPRAISAL
Varies based on Industry /Employment types
Basic Pay & Variable linked to Performance Performance Based Pay
Linkage to compensation- seen as means to
put more pressure on employees
Internal promotion is more likely than external
promotion
-
7/30/2019 Germany Hr Practices
9/14
-
7/30/2019 Germany Hr Practices
10/14
Compensation and Benefits
Bonus- giving a bonus on a yearly basis. Bonus schemes can
encourage business objectives.
Absence policy- making absence policy in such a way that
both the party can make profit from absenteeism.
Pension plans
There is no legal obligation to provide for an additional
company pension scheme
Termination of employment-. If an employee resigns,
the law requires them to give four weeks' notice.
Paying overtime-ensures proper extra payments for
overtime.
-
7/30/2019 Germany Hr Practices
11/14
No overall minimum wage defined by law =minimum hourly
wage
maximum working day of eight hours - or 10 hours
usual German work week is 38.5 hours
18 working days of annual leave
Six weeks' leave at full pay prior to the child's birth and
eight weeks at full pay afterwards
In the case of a multiple birth, 12 weeks' paid leave is
allowed. Either parent in both cases is then allowed up to
three years of unpaid leave to stay at home with the child
-
7/30/2019 Germany Hr Practices
12/14
Largest employers
1. Deutsche Post, Germany - 502,545
2. Siemens Group, Germany - 461,000
3. Daimler Chrysler, Germany - 382,724
4. Volkswagen Group - 344,902
5. Metro AG - 204,076
6. Allianz Worldwide - 177,6257. BMW AG - 105,798
8. Bayer Group - 93,700
9. Deutsche Lufthansa - 92,303
10. RWE Group - 85,928
-
7/30/2019 Germany Hr Practices
13/14
Corporate Tax: Reduction in the tax burden for
businesses from 39.7% to 28.9%. Social Security :
Health insurance is 6-7% of taxable income
pensions insurance is 9.65 %
Unemployment insurance is 3.25 %
health/nursing care insurance is 0.85% of
taxable income.
In total-21% of taxable income.
-
7/30/2019 Germany Hr Practices
14/14