Article

The German economy is stagnating. In 2023, it recorded a decline of minus 0.3%, and a year later, its growth was pretty much 0%. Many see digitalization and artificial intelligence (AI) as the solution to getting back on track for growth.

But on closer inspection, this focus alone is insufficient: despite advancing digitalization, productivity continues to weaken. According to the Federal Statistical Office and Statista, it even declined between 2021 and 2023.

Although I too am convinced that digitalization and AI will make our economy more efficient, I advise against relying solely on these two factors. In my view, there is a third factor that is just as important if efficiency and productivity are to increase: people, who remain a company's most important asset

The numbers prove it: the more comfortable people feel, the higher the quality of their work

Our experience as a management consultancy shows time and again that employees are a powerful source of efficiency, productivity, and innovation. One thing is crucial here—they must feel comfortable. That's why we wholeheartedly recommend that you specifically consider employer branding in your collaboration and processes. When applied appropriately, it can increase employee engagement and emotional attachment.

There are figures that should sound like music to the ears of managers: according to Gallup, companies with highly engaged employees have 18% higher productivity and 23% higher profitability than those that have built only a weak emotional bond with their staff. If this attachment is high, the company can also enjoy fewer days of absence and higher quality of work (Gallup, State of the Global Workplace 2024).

Therefore: Complement your efficiency concepts with employer branding

It is simply a fact that employee engagement is fundamentally stronger when employees feel valued and involved. That is why employer branding is so important, because it helps you to keep the promises you communicate within the company. To ensure success, the Institute for Employment Studies and the market research company Gallup have identified several drivers. At BrandTrust, we have supplemented these with additional drivers that have proven to be particularly valuable in our practice.