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Which German companies want to hire foreigners?

Which kind of German companies hire foreigners? And which should you target for your next career move? Career coach Chris Pyak explains.

Which German companies want to hire foreigners?
Job applicants having an interview. Photo: depositphotos/adriaticphoto

Over the course of a usual week, I talk to 50 human resources specialists and managing directors. In my experience there are three kind of companies that will hire foreigners: “Can”, “Must” and “Want” companies.

'Can Companies'

“Can Companies' own the brands that we all know such as Adidas, Siemens and BMW. These are the multinational corporations with huge financial firepower. Very often they use English as their business language. They want the best people around the world – and they are willing to pay top money to get them. Even better: They also offer security and a real career.

SEE ALSO: What's it like for internationals working in Germany?

These “Top 40” companies are the ones where 80 percent of all candidates apply. Try to get in. But don’t focus on them exclusively.

Photo: DPA

'Must Companies'

“Must Companies” don’t really love you. They will open up for foreigners because they can’t find anyone on the local market. They begrudgingly  agree to give English-speaking candidates a try – because no one else applies. (And even then sometimes they don’t want you). They don't pay well and can’t offer you much of a career.

That is no accident: Their small profit margins are a direct result of their choices. They operate in a dying industry, have unattractive working conditions, are based in the countryside, and tend to be very small.

Often their bad finances are the direct result of their refusal to change with the times. This has led to to resist hiring foreigners for as long as they could get away with it. You can find work here – but do you really want to?

'Want Companies'

'Want Companies' – These are the companies that I love. They don’t need you. They want you. These company made a strategic decision (a term that a lot of HR departments would need to look up in the dictionary) on how they will satisfy their employment needs in the next five to ten years. Often they are startups who choose English as their business language from “Day One”.

As a result they don’t even know the German word “Fachkräftemangel”, or skilled worker shortage.

SEE ALSO: Why it's a myth you need to know German to get a job

A while ago I interviewed Zalando for the Immigrant Spirit Podcast: They receive over 100.000 job applications every year. They are looking for extraordinary professionals. (In the next column I will share with you how you become the number one in your category.)

A second type of these “Want Companies” might surprise you: These are the “hidden champions” of the German Mittelstand. You might never have heard of them – but their products are built into your iPhone, your car and your washing machine.

These companies are often family owned. Their managing directors cares deeply about their business – and their employees. And they want you to help them grow internationally.

Boxes with a logo from German retailer Zalando. Photo: DPA

I find that people who work in these companies are usually liberal: They are eager to learn, they trust in their employees and they are willing to give you a chance to prove yourself. Here you find a decent pay, a great career – and a team that really cares.

An opportunity for you: Most candidates apply for the “Top 40” – and forget the nearly three million small and medium sized companies in Germany. Look beyond the obvious – and you find great employers.

Why don’t you try it right now with the job search of THE LOCAL?

Chris Pyak is the Author of “How To Win Jobs & Influence Germans“. The managing director of Immigrant Spirit GmbH has worked in four different cultures and lived in five different countries.

Chris returned to Germany in 2011. His mission: Bring the Immigrant Spirit to his home country. Chris introduces international professionals to employers in Germany. You can contact him with your questions here.

On June 25th he will host a free webinar exclusively for The Local's readers. Find out how to sign up by clicking the banner below. 

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WORKING IN GERMANY

Five things to know about salaries in Germany

Finding a job is typically a top priority when planning a move to Germany. The country boasts the third largest economy in the world and a continuing need for skilled professionals. 

Five things to know about salaries in Germany

If you are moving to Germany, you might soon start looking for a job in the country. However, like many other aspects of living abroad, there are several cultural differences and specificities when it comes to job hunting in Germany – especially when it comes to salaries.

Here are five things to know about salaries in Germany.

There is a minimum wage in Germany

Germany’s minimum wage of €12.41 per hour, pre-tax came into effect at the start of this year. This amounts to a monthly salary of €2,054 which ranks ninth in the world. The minimum wage will rise again in 2025 to €12.82 per hour before tax deductions.

There have been calls recently to hike the salary up higher to €14 per hour.

READ ALSO: Millions of workers in Germany ‘earning less than €14 per hour’

Find out salary expectations

Germany does not require companies to list salary ranges for listed positions. But that may be changing soon. The EU parliament passed a wage transparency law to require companies to publish annual reports detailing wage and wage discrepancy information. The rules, which are set to go into effect in 2027, are intended to help close the gender pay gap. 

In the meantime, employees can utilise online resources to find industry averages and expectations for different roles:

  • Gehalt.de offers users access to salary information on more than 800 professions
  • Online platform, Kununu provides compensation information and employer reviews to users in the DACH region  
  • Berlin residents can utilise REDSOFA’s salary survey for an overview of salary averages in the country’s capital city

As of April 2023 the average gross monthly salary was €4,323 according to Germany’s Federal Statistical Office.

Two-thirds of full time workers make less than this average monthly salary and one-third of workers earn more than this average monthly salary.

While wages after deductions may be less than similar roles in other countries, it is also important to take into consideration what other benefits come with a salary. Paid holiday leave, pension contributions, long notice periods and annual bonuses can help make up some of that difference. 

READ ALSO: How much do employees in Germany typically earn?

Check your payment schedule

Internationals can usually expect their salary once a month when working in Germany. Many German companies choose to pay employees either on the 1st or 15th of the month. It is also important to note that most employees can expect to receive their first pay check within 30 or 45 days of starting. 

For positions that offer yearly bonuses, these payments are included in a 13th pay check which are subject to income tax.  

A person works on a laptop.

A person works on a laptop. Image by Bartek Zakrzewski from Pixabay

How many hours do you work?

When looking for a job, don’t forget to check how many hours you can expect. Job descriptions will include expectations for time commitments. 

Mini-jobs, as expected from the name, are limited in hours and pay. Employees can expect up to €538 per month. Mini-jobs do not provide social security because they do not require social security contributions. Employees are also not automatically covered by health and nursing care insurance. 

Teilzeit, or part time jobs, are defined as any job where working hours are less than a full time position.

A common misconception is that part-time work requires working 20 hours or less a week. But an employee working five days a week for 30 hours, at a position that is typically 40 hours when full time can also be defined as a part time worker. 

READ ALSO: The rules in Germany around ‘mini’ and ‘midi jobs’

In fact, Germany has a term for workers who work between 28 and 36 hours a week. Vollzeitnahe Teilzeit, or nearly full time part time workers, can be a popular choice for some people, including parents. These positions can give employees more flexibility to balance work and family responsibilities. It is important to note that these workers are paid according to their time worked, so it will still amount to less than full time.

Depending on the work schedule, part time employees can earn the same amount of vacation as their full-time counterparts. That’s because holiday leave is calculated based on days worked, not hours. If a part time worker comes in five days a week, they will be eligible for at least 20 days of holiday. If that same part time worker comes in three days a week, they will be legally entitled to twelve days of vacation, even if they worked the same hours as the other employee. 

In most companies, weekly working hours between 35 and 40 hours are considered full-time employment or Vollzeitbeschäftigung

Watch out for the gross v. net difference

Before you sign the dotted line, it will be important to check how much of your gross salary you’ll be able to keep come pay day. Companies that include salary expectations in descriptions include gross salary (Bruttoeinkommen) – not the net income after taxes and deductions (Nettoeinkommen). The amount deducted will depend on how much you earn, the tax class you’re in and on other factors such as how much you’re paying for healthcare but it is usually around 40 percent. 

Salaried employees can find information on the deductions on their pay slip. Some to expect to see include:

  • Taxes are deducted directly from the gross pay. The amount is based on the tax bracket your salary falls within 
  • A percentage of your gross salary is also deducted for your pension / retirement contributions
  • Church taxes between eight and nine percent of your salary will also be due if you are affiliated with a religion
  • Unemployment insurance amounts to a 2.5 percent deduction from your gross salary. It is important to note that the insurance covers a salary up to €90,600 
  • Health insurance contribution rates are typically split between employers and employees. The rate depends on the provider. In 2024, the TK contribution rate to health insurance is 15.8 percent of the gross income

READ ALSO: What you need to know about your payslip in Germany 

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