A growing disparity in performance levels amongst German employees is creating a sense of disillusionment and a perceived lack of recognition, according to Britta Seeger, Member of the Board of Management of Mercedes-Benz. In an interview with “Handelsblatt”, Seeger expressed concern that a significant portion of the workforce feels their efforts are undervalued, prompting the automaker to reassess its performance evaluation and bonus structures, moving toward a more individualized approach.
The assessment comes amidst intense economic pressure facing the entire automotive industry, necessitating personnel reductions within Mercedes-Benz. Seeger highlighted a crucial imbalance: productivity gains have consistently lagged behind wage increases in recent years. She warned that this divergence will inevitably spark difficult conversations about the long-term viability of operations within Germany, particularly as autumn approaches and the next round of wage negotiations with labor unions looms.
Beyond performance concerns, Seeger addressed the persistent issue of sick leave within the company’s German operations, which remains markedly higher than in international counterparts. While improvements have been implemented, the frequency of absences continues to be a challenge. Extensive consultations involving tens of thousands of employees were undertaken to investigate the underlying causes, revealing a complex array of factors. Seeger suggested a perception of ease in obtaining sick leave in Germany, exacerbated by the legacy of the COVID-19 pandemic. She conceded that while cautiousness regarding health during the pandemic was justified, it may have fostered a tendency towards premature sick leave requests even for minor ailments.
To counteract these trends, Mercedes-Benz has mandated five days a week in-office attendance for its leadership team since the start of the year and Seeger is advocating for an increased physical presence across the wider workforce. She emphasized the importance of in-person collaboration as “the glue” that holds teams together, suggesting that remote work has led to the loss of individual employees. The company’s actions signal a strategic shift, attempting to rebalance economic realities with employee morale and productivity in a challenging macroeconomic landscape, setting the stage for potentially contentious negotiations with unions later this year.
