BERLIN – More and more companies are offering bonuses to attract qualified workers. But why don't German employers simply pay higher wages?

Caregivers, medical staff, laboratory workers: the list of job advertisements at the Agaplesion hospital in Gießen is long. There, as in many sectors, qualified staff are being sought. Those who are selected receive not only a job, but also a solid bonus. It is 2,000 euros for a position in the cardiac catheter laboratory, for which an advertisement has just been published.

The idea behind it: to make the workplace more attractive. Jobs in healthcare have a bad reputation, says Ina Junga. She heads the human resources sector at Agaplesion hospital. “The working conditions here are not as unattractive as they are often portrayed in media reports.” That is why, she says, they also introduced bonuses.

Many German companies, like this clinic, are competing to attract the desired employees – and not only in the healthcare sector. From mechatronics technicians to kitchen installers, employers are trying to attract them by promising bonuses in amounts from 300 to 4,000 euros.

An analysis by the employment platform Indeed shows that bonuses when changing jobs have increased significantly. In 2019, out of one million job advertisements on this platform, a bonus was promised in 3,050 ads. In 2023, there were 7,129 such ads, which is more than double. Even if their share remains low, that trend can clearly be recognized.

This can be explained by insight into the labor market situation, which has continued to develop in favor of employees. According to data from the Institute for Labor Market and Occupational Research, there are currently around 1.7 million vacant jobs in Germany. And around 2.6 million people are looking for work.

That means there are 1.5 job seekers for every vacant position. Ten years ago, that ratio was approximately four people looking for work per open position. Competition among job seekers was significantly greater. Today, it is employers who have to make an effort to attract workers.

That bonuses are a good tool for attracting the desired workforce has proven true where the shortage of qualified workers is particularly great: at Frankfurt International Airport (Fraport). There, bonuses for new hires have been paid since 2022. Staff who take up service jobs on the ground receive a bonus of 1,000 euros.

The fact that this airport joined this trend so early is due to the specific situation in the aviation sector during the pandemic, says Fraport spokesperson Andreas Schopf. “Air traffic was the first to be affected by corona measures and the last sector to return to the normal framework of its operations.” Many employees left the company during that period and started working in other occupations.

According to the company, since introducing bonuses Fraport has managed to attract 4,000 new employees. Spokesperson Schopf emphasizes that bonuses, together with other benefits such as the Deutschlandticket (monthly train pass), are one of the factors in someone deciding in favor of this employer. But employers do not only want new employees to come, they also want them to stay in that job. So why are higher wages not paid in places where qualified workers are desperately needed?

The reason for this is economic calculation, says Michael Neugart, an economics expert from the University of Darmstadt. If companies were to increase the gross monthly salary by 100 or 200 euros, they would have to pay that amount throughout the entire period of employment. A one-time payment represents a financial incentive for employees, but employers do not commit themselves for the long term – and remain within their financial means.

Agaplesion hospital in Gießen could pay even more, says the head of human resources. In the care sector, however, that would mean that fewer staff could be employed overall. Namely, as she explains, health insurance funds pay hospitals flat rates for treating patients, and because of that financial resources are limited.

“It would help no one if we gave higher wages and because of that had to limit the number of staff to such an extent that we could no longer do our job,” says Junga.

Higher wages are therefore not a solution for the Gießen clinic. Nevertheless, like the previous one, 2024 remains a good year for employees. Especially those who are qualified for the most sought-after positions can hope for bonuses for changing employers and are in a good negotiating position.

Source: seebiz.eu