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WORKING IN GERMANY

‘Lack of diversity is a problem’: What it’s like to work at a Berlin tech startup

Many foreigners dream of finding a job in Germany's growing startup scene. But aside from promises of free pizza, what's the culture like, is the pay good - and do you need to speak German? We spoke to two foreigners working at tech startups in Berlin to find out.

The Berlin skyline.
The Berlin skyline. Photo: picture alliance/dpa/PwC Deutschland | RICOWde

With over €5.1 billion in venture capital fund investments raised last year, the startup industry in Germany’s capital is booming. Startups are the fastest-growing job sector in Berlin, and more than 78,000 people are now employed in the sector.

The sector attracts highly qualified, ambitious people from all over the globe. But what is it really like to work for a Berlin startup?

We spoke to two insiders to find out. Gabriela, 36, is originally from Poland and has been a Business-to-Business Manager in a tech startup in Berlin since October last year. Giuseppe, also 36, is originally from Italy and has been working as a Human Resources Manager in various tech startups for the last seven years. 

Most important question first – do you actually get free pizza and office table tennis?

Giuseppe: These kinds of benefits have become a bit of a cliche that doesn’t really reflect the reality anymore. Yoga, soft drinks, and fruit baskets are nothing special. The real benefits are now to do with remote working and flexible working schedules. 

Gabriela: We haven’t really had many of these kinds of ‘incentives’ because we’ve been mainly working from home since I started. Only in the last month or so we’ve been going to the office at least once a week, and we do get free pizza and drinks once a month when the CEO’s give us their monthly update on how the business is going.

READ ALSO: The German regions attracting startups

Would you say that your work environment is diverse?

Gabriela: My team is a complete mix of people from different European countries. But the number of BAME (Black, Asian and minority ethnic) people on board is not very high and there is definitely a problem with the lack of female leadership, which the company is trying to address. The CEOs are all white Germans.

Giuseppe: (Lack of) diversity is still a big problem. Most of the CEOs and the highest earners are white – usually German – guys. Women and BAME people tend to occupy lower-paid jobs. It’s a systemic issue – and there is competition among a lot of startups that are trying to show who is more diverse. 

How much German is spoken in your company?

Gabriela: Hardly any. We speak all the time in English with each other and all of our meetings are in English.

Giuseppe: It’s the same with us. I’m hearing German less and less. 

READ ALSO: How easy is it to get an English-speaking job in Germany?

Is there anything then that indicates that the company you’re working for is German?

Gabriela: I think the presence of a strong labour law reminds you that you’re in Germany. In our company, there’s an employees representation group and certain clear rules. You know that you won’t be suddenly dismissed once you’ve passed your probation time.

Giuseppe: Yes, the labour law is what I would point to. It’s not easy to get rid of employees in Germany – there is a more robust framework that affects the environment and culture. 

What is the salary like?

Gabriela: I think it’s competitive. My company does salary benchmarking every summer to see what the standard is across the industry and adjusts its pay accordingly.

Giuseppe: Salaries have gone up a lot in the last few years and you could even say they are booming now. A ‘normal’ engineer can expect to earn at least €85,000 per year, and if you are in a serious leadership position, you can expect to earn up to €180,000.

READ ALSO: Do internationals face discrimination in the workplace

A woman working from home throws money in the air. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

Would you say that it’s a high-pressure environment to work in?

Gabriela: For me, there isn’t the kind of pressure that if you don’t perform you won’t get the money you should be getting. Instead, my company is trying to get you to think that your own success is intertwined with the success of the company. There are good incentives to work hard and we have also a certain amount of shares in the company, so if it does well we benefit too.

Giuseppe: I personally feel pressure, but I love what I do, so for me it’s fine. But I have seen a lot of cases of people burning out – especially young people. I think because there are a lot of young managers, who get into leadership roles without having the tools or strength to resist the pressure.

How do you find the work-life balance? 

Giuseppe: I feel like I’m working all the time, but again, that’s because I love my job and I want to, it’s not necessarily the expectation, it’s not like in the US. In Berlin tech startups, there is a tendency to slow down around 6pm.

Gabriela: For me, the work-life balance compared to previous jobs is very good. Telecommuting is great, there are flexible starting times and last-minute holiday requests are usually approved. I think it’s very good for people with children and more complex schedules. 

How many days holiday do you get?

Gabriela: We get 28 days holiday per year.

Giuseppe: We get between 23 and 30 days holiday per year, depending on how long you’ve been working in the company.

What are the career progression opportunities like?

Gabriela: Very dynamic. For myself, I don’t see a clear career path at the moment, but I see a lot of movement happening and people moving to different roles. There is a feeling of being in a constant state of change. 

Giuseppe: If you join a startup at the right time, you can very easily become a manager very quickly.

READ ALSO: EXPLAINED: How to boost your career chances in Germany

What was different about working for a Berlin start-up than you expected?

Gabriela: I thought that working from home would be easier, because I hadn’t done that much before, but I find it much harder to be engaged than I expected. I think a lot of startups (in Berlin) are struggling now to find the right balance between the competing interests of their employees – some of whom want to be fully remote and others who want to come more regularly to the office.

Giuseppe: Before I started working for tech startups I had this romantic image that they were all led by geniuses with big ideas who started in their garages. But in reality, I’ve found this emotional, big-dreaming side to be lacking. There are a lot of people who work for startups who just see it like any other job.

A work team exchanging ideas with notes on a whiteboard.

A work team exchanging ideas with notes on a whiteboard. Photo: picture alliance/dpa/dpa-tmn | Christin Klose

What are the best things about working for a Berlin tech start-up?

Giuseppe: You can make an impact with what you do, to build a product and say it’s mine. There is also creativity and freshness in the team dynamics. I was deeply unhappy in the years I spent working for big corporations because I didn’t know what the goal was. In startups, the objectives are clear.

Gabriela: You can grow with the company, and there are a lot of positions opening all the time, and it’s very common for startups to promote internal talent.

READ ALSO: EXPLAINED: The German regions attracting startups

What are the worst things about working for a Berlin tech start-up?

Gabriela: Sometimes it can be hard to keep up with the pace of change. It sometimes feels like we are constantly onboarding new people or people are changing roles and there is a slightly chaotic feel to things. The buzzword “agility” is used and abused, and sometimes means staff is expected to go along with anything and everything.

Giuseppe: In the tech start-up world here there seem to be a lot of people who get into the top jobs because they speak a lot, not necessarily because they are the most competent. There is a lot of networking and self-promotion required to push yourself forward. It’s also not a good environment for people who don’t like change, because things change a lot. 

Do you think Berlin is a good place for foreigners to work?

Gabriela: Yes, definitely. You have a lot of choice when it comes to places to work – so it’s unlikely you’ll have to stick at a job which
you don’t like. It’s also a big help for foreigners that most startups in Berlin don’t require German language skills.

Giuseppe: Definitely. For me, the mix of cultures and ideas in the workplace is really inspiring and motivating. And, of course, the city of Berlin itself is full of cultural events and has a great night life – so it’s a great place to live for when you want to detach from work too.

Do you have any advice for anyone thinking about joining a tech start-up in Berlin?

Giuseppe: Try to develop an entrepreneurial mindset instead of an employee mindset as soon as possible. Always look for opportunities, don’t take things personally, don’t think about what happened yesterday, and focus on the now. 

Gabriela: Be open-minded and be prepared for change. 

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READER INSIGHTS

‘Prepare for lots of paperwork’: What it’s like to be self-employed in Germany

Being self-employed or freelance in Germany has lots of positives but it can also be costly and difficult - especially during an economic slump. The Local readers share what it's like working for yourself in Germany in 2024 along with their advice.

'Prepare for lots of paperwork': What it's like to be self-employed in Germany

Working for yourself in Germany can be a rewarding experience. But it’s fair to say that being self-employed is not for the faint-hearted.

With a lot of bureaucracy to wade through and high costs, those who decide to go it alone – whether through setting up a business or as a freelancer – can face hurdles.  

And it can get even more tricky during a cost of living crisis. A recent survey found that many self-employed people are facing difficulties finding assignments as Germany’s economy has slumped. 

READ ALSO: Almost half of freelancers in Germany struggling to find assignments

The Local asked readers to share their experience of being self-employed in Germany, what changes they’d like to see and their tips for others who are considering going down this path.  

‘Golden era is over’

There were mixed views on how the situation stands at the moment, although most said they had seen a dip in the market.

Freelance language teacher Joe, 54, based in Munich, said demand was still there “but less budget seems to be affecting some clients”. 

Andrew, 39, in Berlin, who is a freelance web developer, said “The tech market is tough right now, with the ‘golden era’ of the 2010s being over.

“I blame massive VC over-investment creating unrealistic demand in 2020 and now companies are cutting back.”

READ ALSO: Everything you need to know about becoming a freelancer in Germany 

Others said the slowdown was improving.

“I have a steady work stream for now and the market seems to be slowly improving, but there was a sharp downturn towards the end of 2021 and the market has been very noticeably harder since then,” said Michele, 33, who’s based in Berlin and is a freelance software engineer.

‘More difficult finding German clients’

Lots of people said they were looking for clients outside Germany.

Haylee, 34, a copywriter in Berlin, said competition was “super high” right now. 

“Luckily I can look for jobs in my home country (Australia) as well,” she said. 

Luc, 58, who’s based in Munich and works in business development for life sciences said it has been “more difficult to find German clients, but easier finding clients located in Asia that are looking for European entry and support”.

Self-employed or an employee? Being self-employed can be tricky but rewarding in Germany.

Self-employed or an employee? Being self-employed can be tricky but rewarding in Germany. Photo: picture alliance / dpa-tmn | Andrea Warnecke

For Erica, 40, looking outside Germany has also been a way for her to keep a steady stream of work.

The self-employed copywriter in Berlin said: “I have had a lot of prospects, new projects and clients in the past two years. I work across the US, UK and EU markets, among others, so I am not directly reliant on German clients. While other freelancers limited to the tech or generic marketing sectors have faced a downswing, my sector (corporate sustainability) is very active.”

Another respondent, Alex, 40, in Berlin, who works as a consultant for digital product development said it was harder to find assignments and that there was a higher expectation on creating content. 

Advances in technology are also a factor. A writer and journalist who has been freelancing for several years told us: “Several side gigs have been replaced by generative AI (blog posts and white papers).”

‘Everything falls on the freelancer’

When asked how Germany fares as a country to be self-employed in, respondents said it isn’t easy. 

“Compared to being a salaried employee it’s not that great,” said language teacher Joe in Munich. 

Most people mentioned the high cost of health insurance and other insurance contributions, as well as the extra paperwork. Others said it has become more difficult to find a tax advisor, and urged Germany to make processes around self-employed and freelance policies simpler. 

Gordon Barnes, 50, in Munich, who is an IT consultant said the biggest problem about being self-employed in Germany is “around pension and retirement planning”

“Everything is on the freelancer without any support,” he added. 

Jason Wright, 46, a freelance motorsport design engineer based in North Rhine-Westphalia said those going it alone need to be “prepared for a lot of paperwork and strict constraints on how you operate on a day-to-day basis”.

He said he’d like to see more support available in English “especially from the tax authorities”. 

READ ALSO: How to get a freelance visa for Germany from outside the EU

A woman working on her laptop.

A woman working on her laptop. Photo by Marcus Aurelius: https://www.pexels.com/photo/woman-using-macbook-pro-4063697/

Consultant Mike Moseley, 66, in Mülheim un der Ruhr, said he found the process of registering as self-employed and doing tax returns “intimidating”. 

Michele in Berlin said taking the first steps to becoming a freelancer in Germany is hard.

“This is not my first freelancing stint, so I’m quite accustomed to the processes, but the entry barrier is still fairly high,” said Michele.

Andrew in Berlin said, however, that once you get a tax advisor and fill in the correct registration forms, “it’s generally pretty straight-forward”.

Get a tax advisor, save and network

Many respondents advised getting professional advice on taxes. 

Alex in Berlin recommended networking to meet and talk with other freelancers, getting a separate bank account and trying to get a tax advisor “as soon as possible”. 

A few respondents to our survey recommended those who are eligible to apply for Germany’s artist social insurance fund, known as the Künstlersozialkasse (KSK), which provides artistic freelancers with an affordable way into the social insurance system.

“You can get copies of the application form in English if you need it, said a writer who wished to remain anonymous.

READ ALSO: KSK – How creative freelancers can pay less for German health insurance

The Local readers also recommended saving.

“Be sure to put something aside each month for retirement,” said Richard, 70, in Frankfurt.

Andrew in Berlin said people should set aside 25 percent of their income from the start for taxes, adding: “Another 20 percent will likely go to the Krankenkasse!”

Meanwhile, Erica in Berlin advised people to “think strategically through all aspects of business” when they venture into freelancing.

“Explore different pricing models beyond hourly, which doesn’t reward high experience or efficiency,” she said. “Connect with high-earning freelancers in your field and learn from them. Set boundaries with clients on timelines, scope, and service offers. Develop your own policies and processes to lead client engagements.”

Ultimately, the additional effort required to freelance makes some question if it’s worth it. Joe in Munich said: “Do whatever you can to avoid it…there is a lot of administration.”

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