The COVID-19 pandemic has accelerated trends towards work-life balance and opened up new sources of global talent for organisations across the DACH region , argues Brett O ’ Connor , Client Director and Head of Implementation and Transformation at AMS .
According to research from Deutsche Bank , prior to the pandemic only 13 % of the workforce in Germany had ever worked from home , significantly behind other comparable economies . The impact of digitisation and forced remote working through the pandemic has changed that , but more needs to be done to change the perception that being fixed to an office location for a set period of time is a mark of loyalty to an employer .
Given the decentralised nature of centres of economic and business activity across the DACH region ( spanning Germany , Austria and Switzerland ), with no comparable city region to rival the influence Paris or London exert , this has opened up opportunities across cities and regions that once would have required a physical relocation .
Approach to the pandemic
The pandemic also generated a renewed focus on short-time work programmes and furlough schemes . Germany already had an excellent furlough scheme in Kurzarbeit ( a short-time working programme ), rated by the International Monetary Fund as the gold standard to support the workforce in an economic downturn .
The government paid 60 % of furloughed workers ’ salaries for hours not worked – with the system designed to help organisations avoid job losses . It has certainly helped many companies ( including AMS ) through the economic crisis to retain employees and deploy them to new opportunities during the recovery . It has helped employees feel secure and confident in the relationship with their employer .
The pandemic also generated a renewed focus on short-time work programmes and furlough schemes
Underpinning this approach is the stakeholder corporate governance model that predominates across the DACH region . In the English-speaking world , the shareholder corporate governance model dominates . Here , you have a stakeholder-based approach with a two-tier board system , with the traditional executive management board overseen by a supervisory board that makes decisions representing a balance of shareholders , employees , local communities and other key stakeholders .
For anyone who has proposed , implemented or operated an outsourcing solution in Germany , this also involves appreciating the role of the employee works councils and their governance roles .
Changing working culture
Germany has an extremely broad-based economy integrated at the heart of the European Union , and increasingly attracts an international workforce from around the globe . Think of Frankfurt – you can ’ t be an international financial centre without being global facing . Germany ’ s long reputation as a global export powerhouse is built on its ability to build relationships across the globe .
Traditionally , many organisations retained a more formal working culture , with low employee attrition rates and applicants who tended to be hesitant to move roles .
However , things are changing and Berlin – where our DACH hub is based – is a great example . Berlin is developing into a tech start-up hub with a real Silicon Valley vibe , attracting talent and investment from around the world . According to the Berlin city state , Berlin is home to 3,994 start-ups . It is also Europe ’ s fintech centre with the 2020 Global Fintech Index ranking it the best place in the EU to launch new financial businesses .
Berlin is increasingly Germany ’ s international city , with 35 % of the population either born overseas or with a family migrant background . The talent pools within which the Berlin technology start-ups operate are as likely to be in India or Kiev as they are in Munich or Dresden . Couple that with a growth in the education , arts and government sectors , and Berlin has a progressive global outlook that is attracting international workers . It ’ s a city more in sync with what people expect from a modern workforce .
Berlin has a progressive global outlook that is attracting international workers
AMS DACH expansion
AMS has been present in the DACH region since 2005 , with more than 80 colleagues based across the area . We opened our Berlin Digital Talent hub in 2019 to expand our capabilities and create a regional headquarters . By the end of quarter one in 2022 , we expect to have more than 120 employees on board .
We are currently experiencing three levels of rapid growth here across the DACH region . We have start-ups or service extensions in the region which engage with us on a Project RPO basis , with rapid deployment focused on attracting talent to achieve their growth . We have a fantastic portfolio of stable RPO clients across a range of international organisations with a recognised presence or headquarters in the region . The final element is clients who are going international . They need flexibility , but they also need our advisory support to look at international markets to either attract talent or help expand their business globally . For them , we ’ re an experienced international partner with considerable depth .