The People Mobility Alliance hosted a second Global People Mobility Webinar session with experts who shared their insights on the compliance, compensation, and policy needed to be successful in expanding to Germany.
Here are the main insights:
- Germany is open to welcoming companies of all sizes.
- International talent is keen to move to Germany, especially in main hubs like Berlin, Munich, Cologne, and Hamburg.
- The German government recognises the talent shortage in critical infrastructure areas.
- Employers of record are vital to the recruitment of international talent.
- The transfer experience is one of the most important factors to consider when moving internationally.
- It is important to build company culture, even while using employers of record.
Speakers:
- Daniel Zinner: HR Consultant & Podcaster, People Mobility Alliance, CEO & Founder, Noah Mobility
- Katrin Ruland: Lawyer & Senior Associate, DWF Germany
- Thorsten Kühnel: Group Director Partners, Globalization Partners
- Lior Ashkenazi
#Expanding2Germany
Working from anywhere is no longer a distant dream for many employees. It’s a reality. It has given people freedom in what they do, where they do it, and how they do it. For employers, this presents a unique opportunity to fundamentally change their value proposition. It means they can now access new talent pools and drive big cultural change. Expanding to Germany seems attractive, but there are also wide-ranging implications and responsibilities to consider.
Main Findings
Legal Focus
There are five distinct types of companies seen expanding into Germany, each requiring different legal services. Large international corporations that are established in their home countries are looking to expand into Germany. Small international startups are also seeking fast global expansion. These organisations need corporate, employment, and commercial law advice.
Some international companies acquire a company with a pre-existing German presence. These organisations need post-merger integration and consolidation legal advice. Global companies in the professional services sector require advice on compliance with their business model and, once established, ongoing legal support across various fields. Additionally, global advisory companies help other international companies grow and expand globally. Although they often have a German subsidiary, they still need legal advice for client-specific issues.
When launching an international company in Germany, the first legal step is founding a German subsidiary in the form of a GmbH (limited liability company). The timeframe for this can vary, but an Employer of Record is often the fastest and easiest solution.
Corporate Focus
Expanding to Germany is an obvious move for many companies. Germany has the largest economy in Europe and continues to grow. Employers of Record are helpful from a corporate perspective because they provide local knowledge, which companies, especially those just beginning operations in Germany, often lack. Employers of Record can also help provide both blue-collar workers and high-end professionals.
The end-to-end launch process of an international company’s operations in Germany can take between 6-12 weeks under normal circumstances. Companies should be prepared for this process to take longer, especially under pandemic conditions. Additionally, it may take several months for a new employee to become fully operational in Germany.
Individual Focus
There is a clear desire among individuals to expand their career paths into Germany. The country is home to many growing business and cultural hubs, with cities like Berlin, Munich, Cologne, and Hamburg attracting large numbers of international talent.
While many people are moving to Germany, others, including Germans, are expanding their careers into other European countries such as Spain or Portugal. There is a passion for flexible working and the opportunity to explore new countries and climates. However, one of the biggest challenges individuals face when moving to a new country is the complexity of the process, especially for families moving with spouses, children, and even pets. The transfer experience is crucial for a successful international move.
Employers of Record play a key role in this process by providing relocation counselling, which can improve onboarding satisfaction. They can also provide local knowledge that the company may lack, especially if the company is international.
Positive news for employees is that the German government has recognised the talent shortage in critical infrastructure areas (e.g., healthcare and IT), highlighting the need for international talent to expand into Germany.
Event Sponsors: Noah Mobility, dwf, Globalization Partners
