In May 2021, the People Mobility Alliance brought together more industry experts for a second insightful Lunch & Learn session. This time, the focus was on businesses considering expanding operations into Germany. Our experts delved into the most critical aspects including compliance, compensation and policy, sharing valuable insights along the way. This article showcases the key findings and insights from the session.

Key Findings on Expanding to Germany:

Germany is a country of unique opportunities for businesses. And as the global workforce expands, so does the attraction of expanding your operations. But there are also other considerations. Here are the key findings on expanding to Germany from our Lunch & Learn session:

1. The Appeal of Germany:

Germany is a European powerhouse and therefore an attractive destination for companies of all sizes. It captures the hearts of many international workers looking to embark on cross-cultural mobility journeys, with thriving hubs like Berlin, Munich, Cologne and Hamburg are particular highlights for global expansion.

2. Talent Shortages in Critical Sectors:

It is no secret that Germany is suffering from a huge shortage of talent, especially in critical infrastructure sectors. The German government not only acknowledges this shortage but has also implemented an immigration law reform to make it easier for skilled workers from non-EU citizens to move to the country.

3. Role of Employers of Record:

Employers of Record play a pivotal role in the recruitment of international talent and ensuring a smooth transition. But even when using these services in the ever-expanding world, one truth remains: the essence of a strong company culture remains essential.

Legal Focus on Expanding to Germany:

When considering expansion to Germany, there are a myriad of diverse, complicated and intricate matters you must consider. In this section, we will take a look at the insights provided by our experts around the legal facets that underpin global expansion.

1. Diverse Company Types:

Every company in Germany requires legal services, including international corporations, startups and those with pre-existing German subsidiaries. From corporate law and employment advice to post-merger integration and consolidation legal advice, these legal services span a wide spectrum. But one thing is certain: this legal expertise is absolutely essential and serves as the compass that steers each company through the maze of German business regulations.

2. Founding a German Subsidiary:

Launching an international company in Germany often begins with establishing a German subsidiary. This is often in the form of a GmbH (Limited Liability Company). Employers of Record can also help here, offering a fast and efficient way to expedite your launch process. Their local knowledge and awareness can create a smooth path to a successful expansion.

Corporate Perspective:

From a corporate perspective, the appeal of Germany is obvious. Our experts share the strategic significance of Germany’s economy, the benefits of Employers of Record, and why you should always prepare for delays.

1. Germany’s Economic Appeal:

Germany is Europe’s largest economy and therefore a highly strategic move. With constant growth and a thriving business environment, it offers a number of opportunities for businesses seeking to broaden their operations.

2. Employers of Record Benefits:

Employers of Record provide valuable local knowledge, especially for companies who are venturing into Germany for the first time. Beyond insights and experience, Employers of Record also have access to a diverse talent pool, spanning blue-collar workers to high-end professionals.

3. Timeline Considerations:

As your expansion journey unfolds, it’s essential to be mindful of timelines. The end-to-end launch process of international operations in Germany typically takes between 6-12 weeks. However, in a period of time marked by consistent unprecedented circumstances like the COVID-19 pandemic, preparedness for potential delays becomes essential. Flexibility in planning is paramount.

Individual Perspective:

Expanding to Germany isn’t only something corporations do. From an individual perspective, Germany is also a land of opportunity. People move here on cross-cultural exchanges, expatriate programmes or simply because they themselves want to sample life in a new country and culture. Here are the key things that drive individuals to explore Germany.

1. Career Opportunities in Germany:

Simply put, people move to Germany because they want to expand their careers. They are drawn to Germany’s business and cultural hubs like Berlin, Munich, Cologne and Hamburg. It is this allure of cross-cultural mobility that often takes them on a journey of professional growth.

2. Mobility and Flexibility:

Many people, both internationals and German nationals, seek more and more flexibility in their careers. They want the opportunity to explore new countries and climates. Once again, Employers of Record come into play here, as they can ensure a smooth transfer experience, particularly for families who make the choice to relocate with their spouses, children and even pets.

3. Government Recognition:

The positive news for employees is that the German government actively recognizes talent shortages in critical infrastructure sectors and is pushing to make the immigration process easier for internationals who want to move here for work. The recent reform of the immigration law also brings emphasis to the desperation for international talent in Germany.

Summary:

Germany shines as a beacon of opportunity in the corporate world of global expansion. It presents significant opportunities, but also great complexities and nuances. Whether you are expanding business operations to Germany, or an international individual looking to move to Germany for work, it is clear that journey is multifaceted. With thanks to our experts during our second Lunch & Learn session, this article sheds some light on the essential considerations when venturing into Germany.