Navigating Extended Workforce Compliance in DACH: Insights and Strategies

In a recent webinar panel discussion led by Dr. Thorsten Koletschka, General Manager for DACH at Magnit, industry experts explored the intricacies of managing extended workforce compliance in the DACH region. 

Alongside Dr. Thorsten, the conversation featured:

• Elisabeth Vock, Head of HR Switzerland at Syngenta
• Johannes Simon, Employment Law Partner at Taylor Wessing Germany
• Jürgen Kellner, Managing Director at HireMeta GmbH. 

The discussion covered challenges faced and strategies employed, with a particular emphasis on the role of technology and the future trends shaping extended workforce programs in the DACH region.

You can access the full replay of the webinar at the link below, or scroll down for the key takeaways from the discussion:

Turning Challenges into Success

Acknowledging the inherent challenges of managing an extended workforce, including legal complexities and the need for flexibility, the panel emphasized the importance of transparent communication. Syngenta’s Elisabeth Vock highlighted the necessity of a robust communication strategy, especially when working with works councils. Transparently communicating the strategy behind employing external talent builds trust among permanent staff. 

“A thought-through communication strategy is crucial, with a clear identification of the major stakeholder groups I needed to convince of the new ways of working, to ensure a good adoption.   For companies working with works councils – the recommendation is to work closely with your works council…If your permanent employees fear that their external colleagues are coming in as competition, they are going to be more hesitant to support their success.”

Johannes Simon elaborated on the concept of deemed employment in Germany, underscoring the risks associated with violations and potential liabilities for clients.

“Deemed employment means that for certain violations under German temp agency law, the law implies that there is an employment relationship between the client and the external workforce, meaning the client becomes liable for wages, social security and tax.” 

The Technological Edge

Transitioning to the pivotal role of technology, the discussion revealed insights into its effective implementation. 

Jürgen Kellner emphasized the need to plan for necessary individual adjustments in Austria, stressing that the technology should be tailored to specific local requirements, legal and tax regulations, and internal company compliance rules. He also pointed out the need to integrate all stakeholders in the process at an early stage and to train users intensively in order to achieve the best possible adoption of a new technology.

“I think the technology is crucial, but so is user behavior… Training and further education should therefore be included, from processes to legal issues. All stakeholders should be really into the deep detail”.

Elisabeth Vock shared her experiences with technology implementation, highlighting its role in automating processes, ensuring compliance, and aiding budget management.  

“I think technology helps you first to automate your processes.  From the demand creation until the recruitment of your temporary worker. If you strive to automate as much as you can for your line managers, you need to have technology that helps you remain compliant…You need to determine what KPIs you want to look at as a company, and how you want you to manage your budget. The more countries you bring into such a program, the more important the budget management becomes.”

Johannes Simon provided a cautionary note on data protection issues and emphasized involving works councils when implementing technology to maintain mutual trust.

“The works council may have a co-determination right or at least information right when implementing technology, and you’ll either need the works council's consent or at least you’ll need to inform the works council on a best practice basis.”

Future Trends and Strategies

Looking ahead, Johannes Simon predicted a continued high demand for specialized talent and flexibility in Germany and the broader DACH region. He underscored the challenge of legislative frameworks catching up with industry needs, citing conflicting regulations.

“I'd say firstly in Germany, but I say it also applies to the entire region, we will have a continued high demand for talent and specialized talent - IT, engineering etc. Also, I think that companies will be reluctant to build up a very big internal workforce in segments that are, let's say, more subject to market disruptions”.

Elisabeth Vock expressed optimism about the increase in qualified labor and the benefits of flexible work arrangements, especially for young talent seeking diverse experiences. 

“I think we will see an increase of qualified labor. With the new generation, there is an interest to take on various experiences for a limited time. So, I think there is an interest also from qualified young talent to pick up temporary work to really enhance their experience”.  

Jürgen Kellner emphasized the importance of a strong company brand to attract both internal and external talent.

“Be attractive as a company for internal and external talent, and also for the suppliers. So if you have a strong brand, everyone wants to work with you”.

Going further

Navigating compliance in extended workforces demands a multifaceted approach. A combination of legal acumen, transparent communication, and strategic technology adoption is essential.

As the DACH region anticipates a surge in demand for specialized talent, organizations must stay agile, customize their approaches, and leverage technology as a facilitator for compliance management. 

A strong commitment to transparent communication and a forward-thinking strategy will be pivotal in fostering successful extended workforce programs in the evolving landscape.

Access the full webinar replay by clicking the link: (LINK) 

Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of Magnit and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.