Things You Should Know Before Starting Hiring In Germany

Germany is considered as one of the strongest economies present in the world, presently. Being located in the central region of Europe makes this country an ideal location for starting the business and thus, hiring an employee in Germany becomes a necessity.

In this article, we tell you in brief about certain things that need to be kept in mind before initiating hiring in Germany:

What You Should Know About German Recruitment?

When you consider recruitment in Germany, finding a highly skilled employee seems to be a rare possibility and is often seen as the biggest challenges the entrepreneurs face in Germany. Here are certain German recruitment trends the companies looking for German employees should be aware of:

• The active sourcing and candidates’ experience is very important in the recruitment of German employees.

• Social media recruitment has attained great momentum. The recruitment companies are often seen using their social media handles for getting the right person at the right job.

• Employer branding is very important when it is about hiring a professionally experienced German workforce.

• XING platform is used by Germans for making recruitment.

How German Employment Is Different From That Present In The Rest Part Of The World?

In Germany, ‘employment at will’ is not an option. In Germany, the companies are required to offer their employees either a fixed term or an unlimited employment contract. A fixed term contract is the one where the service of the employee ends on the specified contract date. All the important employment details such as gross annual salary, notice period, probation period and number of leaves offered are present in the employment contract. The number of mandatory leaves in Germany stands at 20 and the notice period in Germany stands at 6 months.

In German employment, the car is said to be an important aspect. In most of the German jobs, the employees receive either a lease car from the employer or a contribution from the company for covering the cost of the car.

It is said that the employment law of Germany is friendly towards the employees. There is law in the country which protects small businesses. For instance, if you are having a company in Germany which has 10 employees or even lesser than that on the payroll, it becomes easier for the employer to let go of these employees.

How Do German Payroll Functions?

The country Germany is known for having a good system of social security. The employers are required to regularly contribute to the pension as well as basic healthcare of all the employees. The employers are required to make certain registrations for social security, health insurance and tax authorities. The employees are required to be enrolled with the schemes as applicable to the employer they work with. The additional expenses, including reimbursements towards travel and meal or car allowance etc. are required to be processed through monthly payroll system. The employer is also liable for ensuring that regular and correct amount of tax is being paid.