Successful start in Germany
Establishment of a subsidiary in Germany and implementation of a competitive benefits system in the highly competitive tech market
Initial situation.
An American IT company specialising in software development for complex data analysis expanded into the European market by opening a branch in Germany. The goal was to establish a comprehensive benefits system in under six weeks, including a digital administration platform, as well as individual counseling and job interviews for employees, to attract well-qualified individuals in the highly competitive software sector and successfully enter the European market. This task posed several challenges:
Harmonisation with US benefits.
During the strategic consultation, the benefits system used in the USA was analysed, with the goal of maintaining its “look & feel” as much as possible. The existing US system closely aligned with the company’s values. However, necessary adjustments had to be made to ensure competitiveness in the German labour market.
Fast realisation.
Setting up a comprehensive benefits system, including a digital administration platform and personalised advice for employees, within six weeks required highly efficient collaboration within the project team.
No experts.
In start-up scenarios, there is typically no local HR department with experienced HR staff. It’s crucial to educate the responsible parties in the USA on the legal requirements and design options, enabling them to make an informed decision about creating an appropriate benefits system for the company on short notice.
Digitalisation and employee communication
Tech companies expect a high level of professionalism in their processes. Employees should not only have a personal point of contact but also be able to access their benefits online at any time, including through an app. The client emphasized the importance of employees feeling valued and knowing they are well taken care of.
Challenge.
In addition to the tight timeline, the primary challenge was ensuring the client could make quick decisions despite the complexity of the issues. With our extensive experience, we were able to maintain focus despite the broad range of topics and help the client make fast, yet well-informed decisions through strategic consulting. It was crucial to understand the client’s perspective, the benefits they expected, and where deviations from the US market were necessary.
Procedure and solution.
The company partnered with an experienced, specialised consulting firm with extensive expertise in supporting start-ups expanding internationally. Drawing on years of experience and a keen understanding of client requirements, a tailored concept was quickly developed. The project team efficiently coordinated all necessary services, including digitalisation of processes, contract finalization and and effective communication strategies. This integrated approach ensured that the project met its challenging deadline.
Holistic analysis and strategic planning.
- Defining corporate values and business goals
- Comprehensive overview of German benefits systems
- Comparison with US systems
- Developing customised concepts and financing strategies
Efficient process management.
- Seamless coordination across departments (contracts, HR, management)
Managing intercultural issues.
- Different decision-making approaches
- Varied perceptions of time
- Distinct business expectations
Creation of a customised benefits concept
- Developed a competitive benefits model closely aligned with the US system. Thanks to our extensive knowledge of the US market, we successfully formulated a concept in collaboration with key decision-makers.
- The concept included an innovative matching system for pensions, factoring in employees’ deferred compensation options while maintaining balance sheet neutrality. The system offers different contribution levels based on job function.
- To meet high demands in health insurance, we introduced a supplementary company health insurance scheme with a budget, allowing employees to choose benefits tailored to their needs.
- Risk coverage for death and disability was one of the desired core elements. We were able to fully mirror the US system, offering a fourfold death benefit and occupational disability coverage of 60% until retirement. This benefit could be made available to all employees without requiring a health check.
- To accommodate the desire for more flexible working hours, we introduced a long-term working account system, enabling employees to take time off for further training or sabbaticals while still receiving their salary.
- Employees’ individual preferences, from gym memberships to job bikes, hardware leasing, or mobility on public transport, were met through a budget, giving them the flexibility to choose based on their needs.
- The benefits are managed digitally via English-language portals, empowering even non-experts to manage and analyse benefits with ease.
- Employees can access the portal or app to learn about their benefits and make changes if needed.
- All employees were briefed on the benefits during individual meetings and assigned a fixed contact person at TPC.
- The HR department and payroll provider were trained, with a dedicated TPC team available for ongoing support and guidance.
- Strong market impact in recruitment through a combination of core benefits and innovative solutions on digital platforms
- The recruitment process experienced a strong market impact due to the combination of core benefits and innovative solutions delivered through digital platforms.
Results.
Thanks to the customised approach, the benefits concept was successfully launched within six weeks.
Strong competitive advantage- Satisfied employees.
The benefits concept acts as a powerful recruitment tool, signaling to new employees that the employer values and invests in their well-being. The digitalised platform enhances employee identification with the company.
Outsourcing of personnel services.
TPC’s comprehensive services and high level of digitalisation significantly reduce the customer’s workload, allowing them to focus on their core business — building the company.
Legal and financial security.
Clear contracts, digital processes, and financial transparency shield customers from unexpected surprises.
Successful project management.
The experienced consultant carefully guides the customer through all essential process steps, ensuring efficiency, security, and resource optimization — particularly beneficial in the start-up phase.
Conclusion.
This practical example impressively demonstrates how important an integrated approach is for complex projects. Orchestrating all services from a single source made it possible not only to find the best individual solutions, but also to create an optimised overall solution. This approach offers companies a clear competitive advantage and shows how international employee mobility can be implemented efficiently, legally compliant and with maximum benefit for all parties involved.
This practical example highlights the importance of an integrated approach in complex projects. By orchestrating all services from a single source, companies can achieve not only the best individual solutions but also an optimised overall strategy. This approach provides companies with a distinct competitive advantage, demonstrating how international employee mobility can be implemented efficiently, in compliance with legal requirements, and with maximum benefit for all parties involved.
