March 2020. Currently, the country has one of the lowest unemployment rates in Europe, hovering around 3-4%. Having one of the most diversified economies in the world, Germany offers jobs in almost any sector.
Salaries in Germany are also quite high for global standards. The average net salary in Frankfurt is 2700 EUR per month. In Berlin, the average net wage is 2500 EUR per month.
Some economic sectors in Germany have a greater demand for foreign workers than others. Notably, health care and tech are among the sectors with the highest demand for foreigners.
Do you want to pay your employees a bonus? Beware, this might not be a good idea: Studies show that extra money can hurt employee motivation and job satisfaction.
What is the ideal salary? Even if funds were unlimited, pinpointing the ideal salary would be difficult. The first intuition is: the higher the salary, the better the work results. But studies show that the connection between compensation, motivation and performance is much more complex. In fact, there is some evidence that people would not be happier in their jobs if they had control over their salary.
“I always thought after I graduated college and got my first job at corporate I thought finally got a job I could never lose. Boy was I wrong. I’ve seen some of the best coworkers I had get laid off because the company decided the department was no longer needed. You really need to take charge of your personal interests because no one else will.”
“You see, jobs are temporary, they come and they go. Your skills, personality and attitude stay. So smile, take a step forward, and do whatever you love. Thanks Matt! :)”
About his father being laid off from his “safe” desk job: “You can fail at what you don’t want, so why not take a chance on doing what you love?” – Commedian Jim Carrey
Many people are moving to Germany because the working conditions and salary are often much better than in their home country. See how much money you can expect to earn and get some insights from a German.
YouTube comments:
“After working in Germany for several years in different cities and PhD in STEM, I can tell you that salaries are not that high as people imagine. After considering expensive rents and high tax, your disposable income isn’t much. The benefits come from social benefits, usually nice working hours, paid holidays, healthcare, great cheap alcohol and peaceful country. If you seek making a lot of money, Germany isn’t your country. In Europe you probably have look north for higher salaries and Switzerland, in Asia, some highly developed countries like Singapore. If you have a high level of education and work for a good company in the USA and even sometimes in Latin America, are better places to make great money. But hey money isn’t everything, you need to evaluate pros- and cons.”
“While average income in Germany was relatively high in 2019 with ~€3500 as mentioned in the video, the median was much lower with just €2500 (gross income). That means that 50% of the German population earn less than €2500 (~€1700 after taxes and insurances). It’s also worth mentioning that you’re considered upper class with a net income of around €5500 gross income, but you have to pay the property tax with just a monthly income of around €4500 gross income. If you plan to buy real estate in Germany: Forget it.”
“I work in a big car company in Germany as Engineer… and I can tell you the salaries are not high compared to the very high rent (or apartment prices), taxes and high prices of Energy and Benzin in Germany. I really wonder how people here are able to live who get lower salaries. And at some point you have to save to buy a house or an apartment (with something like half a million Euro) because after geting retired, your income gets 60% lower and then you will not even afford the rent of your apartment. I saw retired people who had to move to smaller worse apartments or ask for social housing or shelters. I think life here is not as rosy as people in the third world think. What is worse is: I think the government and politicians in Germany do not care much about this problem, or act as if there is no poor people in Germany at all. Politicians in Germany are rather busy with saving the Earth, recycling and cutting CO2 as their main mission… helping the poor or the middle class in Germany comes as second priority.”
“From the US here and about to start my first job out of college in Germany. I’m going there for the quality of life, I don’t care that I can make more here — if I die tomorrow the extra savings means nothing, but a strong welfare/healthcare system, fewer stupid people, better infrastructure, lower crime rates, better work culture, decent politicians, beautiful nature and architecture, etc. will have made me enjoy my life every day. I want that peace of mind and I can’t get that here. Everything is fundamentally messed up here and nothing will change in a meaningful way anytime soon.”
“The old man used to always tell me that being afraid to talk about money was a great way to not have any.”
“This is spot on. Went from $70k per year to $100k then to $115k then to $147k then $170k and now to $230k over the span of 10 years. If I had that stupid “quitters never win” mindset, I probably wouldn’t be making over $100k today. Oh, and did I mention that I have a history degree?”
“I work as an advanced practice nurse practitioner making 140K in a medium sized-city in Texas. I started nursing making 60K 8 years ago, never stayed with a company more than 2 years, and always left for hospitals that offered better pay. I had hospital admin ask me to stay for the ‘patients, friends and staff’ because they could not afford to pay me another raise. I had a new job within 2 weeks with a 10% salary increase – it took them nearly 2 years to fill the position I left behind. Those ‘friends, staff, and patients’ don’t contribute a single thing to my salary and they do not pay my bills – no thank you. Do not blindly think your organization cares about you, know your worth, and leave for the organizations that can afford to pay you what you are really worth.”
Some graduates or applicants eventually reach the point where a decision has to be made: Am I looking for a job that is secure? Or one with a great salary?
It is said that a salary increase should have little effect on motivation at work. Appreciation and more responsibility are the key. But that’s not entirely true – because salary does play a role in employee satisfaction.
Money alone does not bring happiness – this is the result of countless job studies that have examined how the level of salary affects the motivation of employees. Sometimes experts are looking for the ideal salary that makes people happy. Time examines how salary increases affect employee engagement. The answers that these studies give to the salary questions are similar: salary increases only have a minimal effect that quickly fizzles out over time. If you want to motivate employees or keep them in the company, you should use other means as a boss.
All of this may be true, but it is not the whole truth. “Money does not necessarily generate motivation, but if the payment is not right, demotivation can arise,” says psychology professor Maika Rawolle from the University of Media, Communication and Economics in Berlin to the “Süddeutsche Zeitung”. The unclear expression of “incorrect salary” is very correct, because there are some salary constellations that reduce motivation. Everyone agrees: It’s about injustice, that is, about a comparison.
2018. American workers struggle with massive layoffs and the stress of an unknown future.
YouTube comments:
“$70k + Benefits? YOU MAKE ENOUGH MONEY. How can you not survive on that? They expect a job for life where they never have to save or plan or invest or learn any new skills. And they say millenials are entitled?”
“The US needs a union revival. This is disgusting to watch.”
“I you’re making 70 grand a year, you should be saving at least 20 thousand a year, but Americans like to buy their toys and squander their money like there’s no tomorrow. Just do the math: 20 thou/year over 15 years that’s 300 thou, house paid off plus compounded interest. just saying.”