Since August 1, 2022, the new regulation in the Verification Act obliges German employers to record and archive further contractual terms in writing in addition to the information regulated in Section 2 (1) of the NachwG. And this in paper form. The new regulation leads to considerable additional bureaucratic work, and many companies have hardly been able to prepare for the new Verification Act due to the short transition period. Therefore, the question arises: How can medium-sized companies implement the requirements resulting from the Verification Act in a compliance-compliant and yet company-specific manner?
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It is increasingly important for medium-sized companies to meet sustainability criteria and to make this visible. In the overall economic structure, they are always part of a larger supply chain and thus bound by the sustainability requirements of other stakeholders. Demands on SMEs also come from banks and insurance companies. This is because the ESG criteria that a company implements are playing an increasingly important role in the financial sector against the backdrop of sustainable finance and are important when lending to an SME. In addition, the expectations of customers and employees are becoming increasingly concrete. But how specifically does an SME go about thinking, acting, and deciding in terms of sustainability? The topic of sustainability is complex. There are 20 important sustainability criteria, which include, for example, “innovation and product management”, “resource management” or “employee rights”. Therefore, the key question is: Where is the topic of sustainability relevant in the company at all?
Every company knows that it is no longer possible without digital tools – especially in HR management. But how do you implement such a digitization step in a medium-sized company? One of our customers, a medium-sized mechanical engineering company with its own production facilities and around 150 employees, decided to take the step forward with us and digitize its HR processes.
The particular challenge was that, at the start of the project, a lot of data and information was still in paper form and very little in Word or Excel. In addition, the company’s resources for this project were very limited. Despite the hurdles, the software was successfully implemented, and the entire company benefited greatly. Many processes have been automated since the system was introduced, which has freed up valuable personnel and financial capacities in the company. Managers, HR managers and employees benefit from greater transparency and 24/7 access to the data they need for their tasks.
Ever thought of setting up a “bank”? That can be a smart move for medium-sized companies, too! There is a long tradition of companies setting up their own “bank” in the form of a lump-sum funded provident fund (pdUK). Legally, of course, it is not a “bank” in this case, but from a business point of view it is. This is why the pdUK is also known as the “entrepreneur’s bank” and was initially an instrument of large-scale industry for company pension schemes. But this model can also make sense for SMEs with 10 or more employees. If a company decides to set up its “own bank”, this brings many advantages for the workforce – and for the company itself. That’s why it’s becoming increasingly popular among small and medium-sized businesses.
As hosts, we look back on a successful “Event & Dialogue” 2022 and on a varied evening with inspiring exchanges and exciting discussions. It was an all-around successful event last Wednesday, July 20, with owners of medium-sized companies and HR professionals. After getting to know each other and the opening speech by Martin Auer, Managing Partner of THE MAK`ED TEAM, on the topic of “HR: Digitalization in Practice”, Claudia Weber from Deinzerconsult moved on to the agile salon method.
The world of work is changing dramatically and is challenging HR managers. Whether it’s the shortage of skilled workers, succession management or digitalization: there’s a lack of personnel here, a lack of sufficient skills there. These dynamics have led to an increasing professionalization of HR management. State-of-the-art planning of personnel requirements forms an important and valid basis here.
It’s the combination that makes the difference! Different skills, practical experience and solid expertise are the basis for our business. As diverse as our team is, our common basis is our affinity for medium-sized businesses and for the people who shape them.
Our Consultant Jennifer Augustin
When „I“ is replaced by „We” even illness becomes wellness. – Malcolm X
Jennifer Augustin is a consultant at THE MAK`ED TEAM and at home in different cultures. Haiti, Canada, the United States of America and the cooperation with people from different countries of this world span a wide range of inter-national and intercultural experience.
She has a high level of expertise in building organizations with professional structures and processes. She also has a lot of experience in building teams and developing people. She also focuses on managing training organizations and business development in Africa. She is our contact person for projects on the African continent and brings with her strong language skills – she is fluent in English, French and Haitian Creole – and her high cultural competencies the best prerequisites for this.
She herself is at home in many worlds with a varied curriculum vitae: Jennifer Augustin was born in Haiti, grew up in Canada and completed her studies in the USA. With a Bachelor’s degree in Management & Supervision and a Bachelor’s degree in Organizational Communication, she was able to acquire a broad knowledge base. She then further enhanced her versatile skills with a Master of Science in Human Resource Management. After graduation, she pursued her passion for developing and organizing people in practice, and her career paths led her back to her home country. During this time she also became a partner of THE MAK’ED TEAM Haiti.
Today Jennifer Augustin lives in Florida. Her vast international experience and her hands-on, open nature make her a very valued team member and we look forward to many more international projects with her.
There is no doubt that the global economy is currently facing major challenges and upheavals. But no matter how global trade and economic relations develop: For all companies with plans for growth, internationalization is on the agenda sooner or later. Opening up new markets is as exciting as it is challenging. A smart approach is the key here. We have already supported many companies in their internationalization and know the enormous opportunities. And also the hurdles.
Succession is everything. Sooner or later, every company will have to face it. And for many SMEs in this country, in the not too distant future. According to estimates by the Bonn Institute for SME Research, around 190,000 company successions are due to take place between 2022 and 2026 because the management is leaving. The figures vary greatly from state to state – Bavaria, North Rhine-Westphalia and Baden-Württemberg are most affected. Due to demographic factors, the number of handovers per year tends to increase. Since most companies are family businesses, the internal family handover is the number one succession solution. But what happens if there are no competent descendants willing to lead the company? Then there are two options: Management buy-in (MBI) and management buy-out (MBO). What sounds complicated is actually quite simple: In an MBI, the company is sold to an external management, i.e. to a third party. And in the case of an MBO, the company is sold to management from within the company, for example to the management or employees. Whether the succession can be arranged within the family, within the company or outside the company, and which succession solution is best in each case, depends on the individual factors of the company.
Does HR management still handle a lot of time-consuming, administrative work? Then it’s high time to change that. Societal changes such as the shortage of skilled workers or digitalization are presenting human resources management (HRM) with a major change process. HR must continue to evolve – just like all other areas of business. And technologies make an important contribution to this development. Digitization makes many of the processes more consistent, transparent and error-free. It is a must for all companies that want to develop positively and ensure future-proof HR management. In the HR area, the right software can take away many administrative, time-consuming processes, so that HR managers can devote more time to their employees. And the employees themselves also benefit in many ways from digitized and individualized processes in their everyday work. But as often as one hears and reads about the need for digitalization, so little has actually happened in many companies.
