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HRM GERMANY

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STRUCTURE

HRDepartment

TalentAcquisition &Management

Compensationand Benefits

HR ServicesPerformanceManagement

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HR POLICIES IN GERMANY

To encourage the growth of both the employee andemployer - which are beneficial for the long run of thecompany

Strong Features of Labour Market:

1.Labour laws regarding retirement, redundancies andworking hours which set the framework for HR management

2. Secondly, strong labour unions exercise significantpolitical influence on companies and the workforce

RECRUITMENT Internal Referrals,Advertising,External Consultants

Preference of Women to their workforces for better work-lifebalance

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SELECTION

Screening Interview

Selection Test(Personality /IQ)

Selection Interview(Semior unstructured)

Assessment Center

Reference Checks

Verification

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TRAINING

Average -4 man days mandatory

Vocational training

On the Job training

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Conditions of Employment:

Individual employment

contract

Collective bargaining

agreement

Shop agreement

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PERFORMANCE APPRAISAL

Varies based on Industry /Employment types

Basic Pay & Variable linked to Performance Performance Based Pay

Linkage to compensation- seen as means to

put more pressure on employees

Internal promotion is more likely than external

promotion

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Compensation and Benefits

Bonus- giving a bonus on a yearly basis. Bonus schemes can

encourage business objectives.

Absence policy- making absence policy in such a way that

both the party can make profit from absenteeism.

Pension plans

There is no legal obligation to provide for an additional

company pension scheme

Termination of employment-. If an employee resigns,

the law requires them to give four weeks' notice.

Paying overtime-ensures proper extra payments for

overtime.

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No overall minimum wage defined by law =minimum hourly

wage

maximum working day of eight hours - or 10 hours

usual German work week is 38.5 hours

18 working days of annual leave

Six weeks' leave at full pay prior to the child's birth and

eight weeks at full pay afterwards

In the case of a multiple birth, 12 weeks' paid leave is

allowed. Either parent in both cases is then allowed up to

three years of unpaid leave to stay at home with the child

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Largest employers

1. Deutsche Post, Germany - 502,545

2. Siemens Group, Germany - 461,000

3. Daimler Chrysler, Germany - 382,724

4. Volkswagen Group - 344,902

5. Metro AG - 204,076

6. Allianz Worldwide - 177,6257. BMW AG - 105,798

8. Bayer Group - 93,700

9. Deutsche Lufthansa - 92,303

10. RWE Group - 85,928

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Corporate Tax: Reduction in the tax burden for

businesses from 39.7% to 28.9%. Social Security :

Health insurance is 6-7% of taxable income

pensions insurance is 9.65 %

Unemployment insurance is 3.25 %

health/nursing care insurance is 0.85% of

taxable income.

In total-21% of taxable income.

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