HR-Management for Japanese Companies in Germany. Seminar in cooperation with Invest in Bavaria

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1 consultants for integrated business services HR-Management for Japanese Companies in Germany Seminar in cooperation with Invest in Bavaria Date

2 Contents Introduction 1. Personnel planning 2. Job profiling 3. Search for new employees 4. Working conditions 5. First working days 6. Job training 2

3 Contents 7. Probationary period 8. Evaluation of the employee 9. Income adjustments 10. Dismissals 11. Labour court cases 12. Outplacement 3

4 Introduction 4

5 Introduction Human beings and law 5

6 1. Personnel planning 6

7 1. Personnel planning 1/3 When How many Who Which tasks 7

8 1. Personnel planning 2/3 Works council Integrate it Other employees could suffer from the changes 8

9 1. Personnel planning 3/3 Excursion: Works council In companies with more than 5 employees possible Elected for a period of 4 years Often set up when employees afraid/ unsatisfied 9

10 2. Job profiling 10

11 2. Job profiling Education Experience Tasks Gender (be careful! AGG) (German Anti-Discrimination Act) Age (be careful! AGG) (German Anti-Discrimination Act) Other aspects 11

12 2.1 Attractiveness of a company 12

13 2.1 Attractiveness of a company 1/5 In Germany Mainly for local employees 13

14 2.1 Attractiveness of a company 2/5 Germany-Ranking: Top companies for engineers 2011 (Source: Der Spiegel ( ) engineering edition) Ranking 2011 Ranking 2010 Company 1 1 Audi 2 2 BMW 3 3 Porsche 4 4 Siemens 5 7 Daimler 6 6 Volkswagen 7 5 Bosch 8 8 EADS 9 10 Fraunhofer Gesellschaft 14

15 2.1 Attractiveness of a company 3/5 Attractiveness for Japanese companies in Germany for local employees is inhomogeneous We were confronted with following questions 15

16 2.1 Attractiveness of a company 4/5 Do they hire and fire? What strategy do they follow? Will I be given budget responsibilities? I have heard from someone who had to leave... The job description is unclear A lot of responsibilities but no power to fulfill the assignment 16

17 2.1 Attractiveness of a company 5/5 Some of these criticisms are applicable for almost all companies There is a change from the very Japanese seniority principle and live long work to the more US- American short-term profit orientation In Germany, the employees are stronger profit-driven in sense of their income and benefits but this higher expectation also lasts in a higher output and profitability 17

18 2.2 Qualification criteria 18

19 2.2 Qualification criteria 1/4 Qualified persons are difficult to attract and retain In Germany a system exists which is devided in very small sections More specialists than generalists 19

20 2.2 Qualification criteria 2/4 20

21 2.2 Qualification criteria 3/4 Criticism on the education system Hundreds of different education possibilities The education in Germany is very specific 21

22 2.2 Qualification criteria 4/4 High demand on special educated persons, but on the other side we have more than 3,35 million (01/2011) unemployed people Concentrate more on potential and not on education like many local companies do Use your flexibility as Japanese company 22

23 3. Search for new employees 23

24 3. Search for new employees Internal Own HR-department External HR-consultants - Success orientation easy to find positions - Exclusive order 24

25 4. Working conditions 25

26 4. Working conditions Working place Equipment Salary Fringe benefits Company culture 26

27 5. First working days 27

28 5. First working days 1/3 Some HR-people say that the first working days are the most important for a new employee 28

29 5. First working days 2/3 Equipment of the working place Installing of computer ( , file system etc.) Issuing time card Record in the organisation chart Record in the telephone list 29

30 5. First working days 3/3 Information to all employees about the new employee (department, assignment, name, starting date etc.) Lunch with the newcomer Company tour including introduction to colleagues Handing out general information (e.g. company handbook) Training plan 30

31 6. Job training 31

32 6. Job training Training on the Job or Learning by Doing Success? 32

33 7. Probationary period 33

34 7. Probationary period 1/4 Time to get to know each other Maximum 6 months Notice time: two weeks possible 34

35 7. Probationary period 2/4 Stay in close touch with the employee Mid term talk End talk 4 weeks before 35

36 7. Probationary period 3/4 Content of talks Are you satisfied with your work? Did we meet your expectations (as we talked in the interview)? How do you feel in the team? 36

37 7. Probationary period 4/4 If necessary How can we work more efficient/ faster together? What kind of additional input/ support do you need? 37

38 8. Evaluation of the employee 38

39 8. Evaluation of the employee Corporate and local goals Every 6 to 12 months new goals 39

40 9. Income adjustments 40

41 9. Income adjustments 1/2 Yearly income round Japanese companies are aware of yearly income rounds The HR-department should be involved in income adjustments 41

42 9. Income adjustments 2/2 Negative income adjustments have a high potential for conflicts Tool to reduce incomes of employees who do not fulfill the tasks constantly 42

43 10. Dismissals 43

44 10. Dismissals 1/4 Employee must not stop working with beginning of the state pension plan Fix the ending of the employment contract Pension age is currently between years 44

45 10. Dismissals 2/4 Works council You have to ask the works council for approval Three possibilities to answer Acceptance Refusal No response 45

46 10. Dismissals 3/4 Ordinarily ( 622 BGB) or for exceptional reasons Period increases to up to 7 months to the end of a month after 20 seniority years Equal notice period 46

47 10. Dismissals 4/4 No dismissal period for exceptional reasons In the following three points you will see the usual dismissal causes 47

48 10.1 Dismissal for operational reasons 48

49 10.1 Dismissal for operational reasons 1/2 Dismissal within the company Organizational change, financial aspect or market driven reason Easiest way to reduce the headcount Not possible if there is a chance to offer an assignment to an employee in another section of the company 49

50 10.1 Dismissal for operational reasons 2/2 Social selection Compatible employees with a chance to fulfill each other s task if necessary with a training Protection Seniority Age Obligation to support other persons Keeping employees who are necessary for the survival of the company 50

51 10.2 Dismissal for person-related reasons 51

52 10.2 Dismissal for person-related reasons Personal problem which makes it impossible to work together in the future Requirements for contract cancellation Negative future prognosis Heavy negative impact to business interests Weighing of interests 52

53 10.3 Conduct-related dismissal 53

54 10.3 Conduct-related dismissal Warning letter Detailed explanation of the misconduct Request that the employee stops such conduct Statement that future misbehavior will end with a termination of the working contract 54

55 11. Labour court cases 55

56 11. Labour court cases 1/5 Employee can sue the company within 3 weeks More than 10 employees permanently First date within 6 8 weeks Invitation of the Managing Director usual 56

57 11. Labour court cases 2/5 Answer in written form late, the employee will have difficulties for new arguments Send somebody who knows how to react in front of the judge 57

58 11. Labour court cases 3/5 Just minutes No solution the court will fix a real court trial date Another 2 months will be necessary 58

59 11. Labour court cases 4/5 Judge will try again to find a compromise agreement Such court trials take around one year Continue this fight in front of court only when you are sure to win 59

60 11. Labour court cases 5/5 Typical difficulties Missing communication with employee Working contract in English Incomplete records Termination letter not delivered correctly Wrong explanation in the termination letter Unprofessional negotiation Attorneys want to continue the lawsuit 60

61 12. Outplacement 61

62 12. Outplacement Integrate an outsourcing program Specialised institutions work together with your employee Innovative tool Employee orientation 62

63 ご 清 聴 ありがとうございました Thank you for your attention! 63

64 compleo AG Am Knie Munich Germany Tel.: +49 (0)89 / Fax: +49 (0)89 / contact

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