The German labour market has a number of particularities that differentiate it from other European environments. At Grupo Binternational we have identified several key aspects for companies looking for talent in Germany or planning to expand their presence in the country. From the demands of the candidates to the cultural and legal dynamics, knowing these realities will help you to be successful in attracting professionals.
A conservative but stable market
Germany stands out for the stability of its labour market, with one of the lowest unemployment rates in Europe. This is due to its strong industrial base, the importance of technical training and its dual training model in cooperation with many private companies.
What does this mean? Stability means that native candidates are less likely to consider job changes, especially if they have favourable conditions. This represents a challenge for southern European companies wishing to attract talent, as the salary expectations of professionals located in Germany are higher.
Sectors and occupations in high demand
Industry dominates the German economic landscape, with sectors such as automotive, aeronautics, logistics and technology leading the market. In terms of professional profiles, demand is concentrated on engineers, IT specialists, data analysts, automation, robotics and healthcare professionals, as well as experts in education and social services.
High salary expectations and attractive benefits
A highlight of the German market is the competitiveness of its salary bands. A recent graduate with a postgraduate degree can start at salaries of around €50,000 gross per year in cities such as Munich.
In addition, common benefits include flexible working hours and career development programmes, and it is very common for companies to offer 28-30 working days of holiday per year (the legal minimum is 24), along with parental leave to strengthen work-life balance.
Growth opportunities are highly valued, as well as flexible working hours, location and size of the company, working time, teleworking, paternity and maternity leave.
Here there is a big difference between Spain and Germany. For example: parents are entitled to Elternzeit, up to three years of (unpaid) parental leave for each child born or adopted, which can be divided between both parents and can be taken continuously or divided into periods until the child reaches the age of 8. During this time they are entitled to return to work.
In addition, during the first 14 months of parental leave, parents receive financial compensation (the Elterngeld, approximately 65-67% of their previous net salary, with limits), which makes it easier for families to maintain income while caring for their children.
On the other hand, the right to rest outside working hours is strongly protected. German labour laws regulate the number of working hours per week, and many companies discourage the culture of sending e-mails or making calls outside working hours.
Cultural and legal challenges
For foreign companies wishing to operate in Germany, it is important to understand the culture of formality and efficiency that characterises the German market. Recruitment processes need to be clear and structured to avoid making a bad impression on local talent. In addition, proficiency in German is often an essential requirement, although English is highly valued in certain sectors.
From a legal point of view, German labour policies guarantee a high level of protection for employees, including strict regulations on working hours and labour rights. For example, the minimum wage in 2024 has been set at 24,648 euros gross per year, which is significantly higher than in Spain (15,876 euros gross per year).
The most common notice period is 3 months. Permanent contracts are more common, although more and more temporary contracts are being offered.
Diversity and adaptability in the German market
Although companies tend to prefer local candidates, there is more demand for talent than supply, which has boosted the recruitment of international profiles, especially in sectors such as engineering, information technology and healthcare. This movement is supported by government policies designed to attract skilled workers in the face of an ageing population and talent shortages.
In any case, it should be borne in mind that, although Germans are attracted to the Spanish culture and language, Spanish companies must have a strong attraction strategy and a very strong employer brand to attract German candidates.
Lessons learned
At Grupo Binternational we have been looking for international talent since 2012. Our experience in Germany has confirmed the importance of understanding the working environment before starting any search. Factors such as long recruitment times, the importance of language and candidate expectations need to be carefully considered.
We have been helping business leaders for many years to understand the German culture, connect with local candidates’ expectations and establish well-structured recruitment processes because these are key elements in finding the right fit. Clarity, empathy and understanding of cultural differences are essential to position our clients as attractive employers.
What we most appreciated about the support that Grupo Binternational gave us in the selection of profiles in Germany was the proactivity and knowledge of the German market. Being able to consult any doubts, even to determine the conditions of a profile and to be attractive as a company, gave us an added value that we value a lot.
Agustín Jiménez, HRBP at Auxiliar Conservera. See case study.
In short, the German labour market is as robust as it demands. Adapting to its characteristics increases the chances of attracting talent and contributes to building sustainable and long-term employment relationships. At Grupo Binternational, we help companies find the right balance between the right team and their internationalisation strategy.
Are you looking for a recruitment provider for your subsidiaries in other countries? At Grupo Binternational we search for local and expatriate talent and centralise the management in Spain for your convenience. Contact us for more information.