German workers feel the effects of increased labor costs
Posted: Tue Feb 11, 2025 5:26 am
We look at how companies can motivate their employees to come to the office, how they can reduce their labor costs and which software can help them do this.
How employees and companies should share labor costs
In this article
Job changes and reduced productivity are risks of excessive labor costs
German workers feel the effects of increased labor costs
Employees want more labor costs to be covered by companies
What labor costs should companies realistically bear in order to remain attractive as employers?
The consequences of paying too much to work on-site can have negative consequences for companies: 62% of employees surveyed in Germany would change jobs if the cost of getting to their place of work was too high. HR software can help companies analyze employee data, get feedback, and keep detailed records of staff, such as their office usage.
We surveyed 2,716 respondents from the US, Canada, Brazil, Mexico, the UK, France, Italy, Germany, Spain, Australia and Japan to learn more about the costs employees incur when working on-site or in the office and what labor costs they think companies should cover. 246 respondents from Germany were surveyed, and this article focuses on their responses. The results from the other countries are used for comparison. The full methodology is at the end of the article.
Job changes and reduced productivity are risks of excessive labor costs
Many employers want their employees to return to the office more often. However, they are now paying more attention to the expenses they incur for their commute and the day in the office. There is increasing questioning as to whether it is still justified for employees to have to bear all the costs of their presence at work alone.
The consequences of rising labor costs are detrimental: 62% say they would change jobs if they were faced with unreasonably high commuting costs. One in four employees say they would reduce their productivity if labor costs were too high.
What employees would do if commuting costs were too high
The global average of the countries surveyed is no different: 60% would ask for a salary increase, 59% would change jobs and 25% would reduce their productivity.
Keep an eye on employee sentiment when changing policies
It is important for companies to monitor the satisfaction of their employees to understand the difficulties they face, especially when this may affect their motivation to stay with the company.
Monitoring employee satisfaction can help leaders identify problematic trends before they become a problem for retention. For example, managers can proactively determine whether increased labor costs resulting from company policies are affecting staff.
For most of the workers surveyed, costs have increased in a number of areas over the past year. The biggest cost increases are grocery shopping, eating out, household bills and clothing expenses, but the costs of petrol, repairs, insurance and public transport have also increased significantly.
Labor costs and general expenses have increased for employees in 2024
Some of these costs, such as groceries, affect employees whether they work from netherlands telegram data home or not. Costs for gas, public transportation, eating out, and even clothing to comply with the workplace dress code are especially significant for employees who frequently have to work on-site.
Whether working remotely, in a hybrid system or fully on-site, German respondents have seen an increase in labor costs: 64% say their costs of labor have increased, while 63% say salary increases have not kept pace.
They also report that their highest commuting costs are for gasoline and public transportation.
The highest commuting costs for German employees
41% use their own vehicle to get to work, while 44% use public transport. 56% have to drive between 5 and 25 kilometers to get to work.
Financial well-being as a priority for staff
Supporting financial wellbeing is becoming increasingly important for employees in light of the cost of living crisis. It can be helpful to offer financial wellbeing programs to employees so they can receive support and better manage their money.
How employees and companies should share labor costs
In this article
Job changes and reduced productivity are risks of excessive labor costs
German workers feel the effects of increased labor costs
Employees want more labor costs to be covered by companies
What labor costs should companies realistically bear in order to remain attractive as employers?
The consequences of paying too much to work on-site can have negative consequences for companies: 62% of employees surveyed in Germany would change jobs if the cost of getting to their place of work was too high. HR software can help companies analyze employee data, get feedback, and keep detailed records of staff, such as their office usage.
We surveyed 2,716 respondents from the US, Canada, Brazil, Mexico, the UK, France, Italy, Germany, Spain, Australia and Japan to learn more about the costs employees incur when working on-site or in the office and what labor costs they think companies should cover. 246 respondents from Germany were surveyed, and this article focuses on their responses. The results from the other countries are used for comparison. The full methodology is at the end of the article.
Job changes and reduced productivity are risks of excessive labor costs
Many employers want their employees to return to the office more often. However, they are now paying more attention to the expenses they incur for their commute and the day in the office. There is increasing questioning as to whether it is still justified for employees to have to bear all the costs of their presence at work alone.
The consequences of rising labor costs are detrimental: 62% say they would change jobs if they were faced with unreasonably high commuting costs. One in four employees say they would reduce their productivity if labor costs were too high.
What employees would do if commuting costs were too high
The global average of the countries surveyed is no different: 60% would ask for a salary increase, 59% would change jobs and 25% would reduce their productivity.
Keep an eye on employee sentiment when changing policies
It is important for companies to monitor the satisfaction of their employees to understand the difficulties they face, especially when this may affect their motivation to stay with the company.
Monitoring employee satisfaction can help leaders identify problematic trends before they become a problem for retention. For example, managers can proactively determine whether increased labor costs resulting from company policies are affecting staff.
For most of the workers surveyed, costs have increased in a number of areas over the past year. The biggest cost increases are grocery shopping, eating out, household bills and clothing expenses, but the costs of petrol, repairs, insurance and public transport have also increased significantly.
Labor costs and general expenses have increased for employees in 2024
Some of these costs, such as groceries, affect employees whether they work from netherlands telegram data home or not. Costs for gas, public transportation, eating out, and even clothing to comply with the workplace dress code are especially significant for employees who frequently have to work on-site.
Whether working remotely, in a hybrid system or fully on-site, German respondents have seen an increase in labor costs: 64% say their costs of labor have increased, while 63% say salary increases have not kept pace.
They also report that their highest commuting costs are for gasoline and public transportation.
The highest commuting costs for German employees
41% use their own vehicle to get to work, while 44% use public transport. 56% have to drive between 5 and 25 kilometers to get to work.
Financial well-being as a priority for staff
Supporting financial wellbeing is becoming increasingly important for employees in light of the cost of living crisis. It can be helpful to offer financial wellbeing programs to employees so they can receive support and better manage their money.