TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

TAX & LAW TELEGRAM

Let our experience be your guide 

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A few words about the employer’s organisational culture

There is no single, concrete definition of the employer’s organisational culture, but it is understood as a set of internal rules and values that employees should adhere to on a daily basis. It is also believed to be reflected in the employer’s internal procedures and instructions, as well as in the benefits provided to employees.

Dissatisfied employee = turnover?

The legislator has granted employers the unilateral right to terminate an employee’s obligation to work during the notice period. On the one hand, this protects the employer’s interests, as the employee loses access to important data during this period, but on the other hand, it also stops the daily conversations with colleagues about possible (often subjective) feelings about shortcomings on the part of superiors and the employer. Such behaviour can have a negative impact on the atmosphere and lead to further turnover.

It is worth noting that it is not only disgruntled employees who can lead to further turnover, but also the boast of a new job with significantly higher earnings, additional benefits or greater development opportunities. As a result, even the most loyal employees are beginning to assess what the current labour market has to offer.

Together or separately?

Implementing appropriate benefits, such as integration events and the opportunity to meet with management face-to-face, becomes a standard that gives employees a sense of belonging to the organisation.

It is important for employees to know that they can go to management if they experience undesirable behaviour from colleagues or superiors, whether it affects them directly (e.g. discrimination) or is related to the employer’s interests (e.g. financial abuse). A certain hierarchy then becomes a safety valve, provided that the employee actually trusts management. This trust gives employees the courage to speak out about discrimination, harassment or other abuses.

In other words, if an employer wants to be aware of what is happening in the workplace at different levels of the organisation, it should ensure that there is a procedure for reporting irregularities and it should value employees who have the courage to report abuses internally.

Once again, the soft skills of managers translate into legal issues. A well-written whistleblowing procedure may prove ineffective if the employer does not gain the trust of its employees. An alternative is to entrust this process to third parties, who are generally more objective and can report risks directly to senior management.

Speaking up – a flaw or a virtue?

Employees who loudly discuss optimisation ideas and are often dismissed with phrases like “I don’t have time” or “no, it’s never been done here” are unlikely to persist in approaching their superiors for years, even if their idea could lead to significant savings or minimise risks for the employer.

These employees should be seen by employers not only as initiators of change, but also as future whistleblowers, and they should be given the opportunity to talk to an independent person who may have more patience and time than their line manager.

Unfortunately, “fruitful Tuesdays” do not change anything

Employee turnover often inspires employers to introduce more and more benefits, regardless of whether they make sense and are meaningful to employees. Some companies even compete to introduce new, sometimes unconventional benefits.

However, it is important to remember that, for example, offering a foreign language learning application to an employee who has been working overtime for several days and whose child is already asleep is unlikely to improve his or her mood. Similarly, back pain in manual workers cannot be cured with an apple, and the trust of subordinates will not be gained by a long monologue about the successes achieved.

Listening is valuable

The purpose of employee benefits is fundamentally to satisfy employees and attract candidates, so they should be tailored to the specific organisation and adapted to the needs of employees. Analysing their usefulness will help focus on the real needs of subordinates. Rather than boasting about yet another elaborate benefit, consider a simple conversation with employees or internal, anonymous surveys.

Parting Ways with an Employee

Handing an employee a termination notice or terminating their contract on disciplinary grounds is not a pleasant moment and, as a rule, it is impossible to script for every situation. However, it is always necessary to respect the dignity of the employee.

Before parting ways with an employee, it is sometimes worthwhile to take a breath and consider the emotions it will evoke among other employees as well. Perhaps a faster and better solution for both parties in the employment relationship is to part ways by mutual agreement immediately? This way, the employer can avoid lengthy and costly disputes, while the employee will obtain a work certificate that will not act as a deterrent to potential employers.

In conclusion

Organisational culture can be discussed at length in the context of labour law, business strategies, as well as soft skills. However, it is important for organisational culture not to be merely an empty phrase or reduced to writing a few catchy social media posts, but to constitute concrete, effective actions.

It is worth considering whether the benefits offered are a response to the needs of employees, whether the irregularity reporting procedure ensures confidentiality, and whether the individuals handling these reports truly enjoy the trust of all employees. Even when parting ways with an employee, it is at least worthwhile to try and look at the situation from several perspectives and remember that former employees also shape the employer’s image.

For queries regarding the broadly understood organisational culture, employee benefits, or internal procedures, we invite you to contact our law firm.

Author:
Maria Aleksiejak, Trainee attorney-at-law (PL)

+49 30 88 03 59 0
berlin@vonzanthier.com
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