Best German Companies to Work for

The Present State

If you’ve interested in moving to Europe (Germany in particular) to find work, you’re not alone. While not without it’s problems, Germany remains one of the most attractive places for foreigners to move and build their lives within Europe. Some of the reasons are the competitive pay, universal healthcare, lifestyle, and reasonable cost of living (even after inflation). Moreover, Germany’s location in central Europe makes it a beloved “hub” for lovers of travel and a more nomadic lifestyle. 

After the reunification of the country and the “Wirtschafts Wunder” (Economic Wonder), the middle class flourished, primarily due to what became called the “Mittelstand” (Working Class) companies. You already know many of them: BMW, Mercedes, Bosch, Porsche, SAP, and Haribo, just to name a few.

The German “Mittelstand”

While it is true that these companies account for an enormous amount of the exports coming from Germany which in aggregate employ hundreds of thousands; Germany is full of other lesser known Mittelstand companies. Companies like Krones, Körger/Hauni, Weinig, Webasto, and TetraWerke may be lesser known but these small and medium sized companies (SMEs) employ millions of people in aggregate. And while your chances as a foreigner might be better at the more well-known companies for their size, you should not underestimate how quickly you can find a job at the lesser known companies.

The German job maket

According to a 2023 August survey by IFO, a German Economics Research Institute, showed that from 9,000 firms, 43.1% reported shortages of qualified workers. This rate is up from 42.2% earlier that year in April.  IFO expert Stefan Sauer states that the sluggish increase should not be misunderstood as a positive, noting that the rate was at its recorded worst in July 2022 48.7%.  Among the industries worst hit at 75.3% are the service industry, legal, and accounting. Companies in transportation, architecture, and engineering, have reached an all time high, with up to a third of all companies surveyed reporting qualified labor shortages. Among the IT equipment manufacturers surveyed, 43.1% reported being affected by this crisis and manufacturers of machinery equipment (one of Germany’s historically highest exports) reported shortages of 40.9%. This logically has led to a decrease in output and complaints by just under a third of companies over shortages. 

This is cause for concern because it no longer refers to specific market sectors and includes professions like train drivers, controllers for traffic, and rail. Other affected sectors are education, social workers, pre-school teachers, as well as nurses and elderly care workers. Experts suspect that this might be due to the fact that when they look at the data, the qualifications of the unemployed do not match the qualifications that companies are looking for - the ongoing job paradox. 

Stefan Hardege, is an expert from the German Chamber of Commerce and Industry (DIHK). According to him, there is no correlation between the myths about people being poorly trained in the sectors or just “being lazy”; rather, he posits it is an employee market and they are in a position to ask for better working conditions and higher pay.

Sabine Köhne-Finster, co-author of the IW study and a consultant at the Competence Center for Skilled Workers (KOFA). She praises the efforts to encourage the immigration of qualified specialists but understands that it is a complex problem to be solved, stating attention must also be placed on strengthening professional orientations at university and even before.

Stefan Hardege believes it is also a matter of policy and requires cooperation from both the governmental sector regarding immigration laws as well as the private sector with attractive pay and working conditions. 

Who are the hidden champion companies and why are they important?

While almost everyone has heard of the household brand names we mentioned above, Germany is  home to hundreds of even smaller companies called the “hidden champions.” These companies are usually still family-owned and run, focus mainly on foreign markets, and are often industry leaders in their particular little slice of the market. An article by the Harvard Business Review, explains how this market mastery is a direct result of the intense focus and specialization demonstrated by most of these companies. Their focus on quality control is likewise one of the reasons for their staying-power and success. These companies will often send industry specialists to reside in the countries where the technology is being exported, keeping them in decision-making and oversight positions so they can ensure their sustained competitive advantage. Moreover, companies take care to be sensitive to the cultural variables within the markets they trade-in. One such example from the article shows how one German company stated their offering a “German product and Japanese service” as being the key to their success. A success, the company has experienced more in Japan than they have in their home market of Germany itself.

The Irony is that in some cases, the “Hidden Champions” might be the companies that are in most need of work (depending on the sector); however, they are at times notoriously difficult to find and apply to. An article by Deutschland.de reveals three of these hidden champions and their industries which we now share with you.

Wickert

It is a company that specializes in the production of hydraulic presses which are essential for various industries, including but not limited to aviation, sealing plugs, and clean room equipment production.

Mennekes

Produces type 2 connector now being used for electric vehicle charging stations. The European Parliament approved their model exclusively as the European standard and the company has seen consistent investment in the technology since 2008 when Elon Musk first launched the roadster. The firm remains in family hands and now makes more revenue from the type-2 connectors than it has from any other product.

Symrise

Symrise supplies fragrances and flavorings for over 30,000 products worldwide, largely based on natural and raw materials. With an annual turnover of 3.5 billion euros, an average annual growth rate of 5 to 7%, and a profit margin of over 20%, it is a classic example of a hidden champion since most people have never heard of it, despite it now being on the shortlist for joining the German Stock Exchange.

As you can see, there is plenty of room for you here in Germany. The market is in dire need of skilled,  resourceful, and passionate workers ready to build the next generation of German products and services. Most companies offer competitive pay, over 20 days of paid leave per year, and some even attractive retirement and insurance schemes. But depending on where you come from, the whole process can seem very intimidating. While it is changing, German bureaucracy can still scare away even the best of us. That is why the team at My Expat Life is trying to build a strong network of personal and professional resources to help you work, live, and thrive in Germany. The team is growing and we are currently preparing some great content to help you navigate your stay. Subscribe to be the first to receive what we’ve got in store!

FAQs