HR Policy Challenges in the Crisis Year 2022 – What Measures are German HR Departments Taking? (Q2 2022)

In the second quarter, the Randstad-ifo Personnel Manager Survey looked at the impact of current events surrounding the war in Ukraine on HR policy and how companies are dealing with this situation. What measures are companies taking to counteract rising (energy) costs as well as inflation and thus create relief for the company itself, but also and above all for employees? Another focus was on wage-specific aspects: Have wages already been increased, and what about bonus payments? A further point is the integration of refugees from Ukraine into the labor market.

Relief for Employees through Working from Home and Fuel Vouchers

The results of the survey show that many companies are adopting more flexible working arrangements even after the acute phase of the coronavirus pandemic. During the coronavirus pandemic in 2020, around one-third of employees worked at least partly from home, according to the ifo Institute’s Business Survey. This proportion reduced to around one-quarter, according to the May 2022 data. In the Personnel Manager Survey, 62 percent of the companies surveyed reported offering remote working in cases of office work or comparable activities for an average of 6.7 days per month. Employees of service providers get the most days of working from home at 7.9 on average per month. The option of remote work in companies increases proportionally to the size of the company. The average number of days granted per month, on the other hand, decreases with ascending size class. While the option of working remotely is almost always available for office jobs in larger companies, smaller companies tend to be more generous in terms of the average number of days granted per month – although at the same time this option is less widespread. However, only 19 percent of the companies surveyed were in favor of a temporary expansion of arrangements for working from home, with an average increase of 8.5 days per month in these companies. Other support measures are most likely to take the form of fuel vouchers – not only the German government is trying to help drivers in this way, but also some of the companies surveyed. One-third of the companies surveyed are supporting their employees by providing monetary relief at the gas pump in the form of fuel vouchers. However, the majority of companies are not taking any special measures to support employees or reduce operating costs.

Infographic, employee support measures, randstad ifo personnel manager survey, 2 quarter 2022

Infographic, Proportion of companies offering remote work for an average of x days per month, randstad ifo personell Manager survey

One in Five Companies Pays Inflation Compensation

At the end of 2021, three out of four of the companies surveyed reported planned wage increases in 2022: 78 percent of respondents reported that wages would rise by an average of 4.7 percent overall in their workforce (see Randstad-ifo Personnel Manager Survey in Q4 2021). Meanwhile, economic conditions have changed significantly since the beginning of the year due to rising energy and production costs and higher inflation. Nevertheless, at the majority of companies, wage adjustments have already been made in the course of the first half of 2022 (37 percent) or are to be made as planned (47 percent). The majority have already paid out bonuses to employees or will do so in the course of the year. By contrast, only just under one-fifth of companies are considering compensating for inflation. Conversely, this means that one in four companies does not see this as relevant or will not implement it.

Infographic, development of ware-specific aspects for the current year, randstad ifo personnel manager survey, 2 quarter 2022

Integration of Refugees from Ukraine into the Labor Market

According to the survey participants, qualified specialists are likely to have the greatest opportunities on the labor market, especially in companies with a size of 250–499 employees. Broken down by economic sector, manufacturing companies are the most confident. Only 9 percent see no potential, while in trade and in the service sector the figure is as high as 14 percent in each case. However, more than half of the HR managers surveyed expect barriers to hiring refugees from Ukraine. By a clear margin, the lack of language skills is seen as the biggest obstacle, followed by bureaucratic hurdles and a lack of qualifications. In the case of the latter, the difficulty of obtaining recognition for Ukrainian degrees/certificates probably also plays a central role. The “other” category includes issues such as a lack of demand for labor, a shortage of appropriate applications, or other social aspects. Companies also cite concerns about the length of stay as a further reason. The companies surveyed tend to assume that these people will want to go back to their home country sooner or later.