Job, Security

Job Security Overtakes Salary as Top Priority for German Students, Surveys Show

09.06.2026 - 09:12:52 | boerse-global.de

EY survey shows student job expectations plummet; Gallup finds poor management overtakes low pay as top reason for quitting. Productivity linked to pay, not vice versa.

German Job Market Shift: Stability Trumps Pay, Poor Management Drives Quits
Job - Job Security Overtakes Salary as Top Priority for German Students, Surveys Show 09.06.2026 - Bild: über boerse-global.de

Only 39 percent of German university students now expect a quick transition into work—a steep 15-percentage-point drop from 2024, according to an EY survey of more than 2,000 undergraduates. The same poll found that job security has surged to the top of their wish list, cited by 52 percent, pushing base pay (43 percent) and flexible hours (41 percent) into second and third place. Experts describe the shift as a paradigm change: stability now matters more than chasing aggressive pay raises.

The pattern isn't limited to new graduates. For the broader workforce, poor management has overtaken low pay as the leading cause of quitting. Gallup’s Engagement Index Germany 2025 reports that just 10 percent of employees feel strongly emotionally attached to their employer. Recruitment firm Randstad confirms the trend: 36 percent of departures stem from a toxic leadership culture, nearly matching the 37 percent who leave for insufficient salary. Work-life balance dissatisfaction follows at 33 percent.

Patrick Löffler, a compensation specialist, argues that transparent pay structures are the remedy. A clear remuneration system builds trust and prevents resentment—and that responsibility sits squarely with executives.

Productivity Comes Before Pay Raises

Economists warn against assuming higher wages automatically drive greater productivity. Christian Dustmann of University College London insists the causal arrow points the other way: only productive firms can afford to pay more. An upcoming "Handwerkskompass 2026" study by IW Consult backs this up, showing that businesses with better compensation are also more productive, freeing resources for investment and employee perks.

Decision-making autonomy strengthens retention. Gallup data reveals that 79 percent of workers with strong emotional ties plan to stay with their current employer for at least another year.

Health Training and New Legal Benchmarks

Integrated well-being concepts are gaining traction. In Germany's care sector, AOK Bavaria and the University of Konstanz launched a "Healthy Onboarding" project in March 2025, aiming to cut turnover by improving social and health integration from day one. The results are expected by 2027.

Austria introduced a new "Weiterbildungszeit" (further training leave) yesterday, replacing the previous education sabbatical. It targets job-relevant qualifications; employers earning below certain thresholds contribute 15 percent of the training allowance.

Nationally, minimum wages for care workers rise in stages starting July 1, with skilled nurses receiving at least €21.03 per hour. Meanwhile, politicians debate mandatory company pensions. The DGB trade union federation plans to present concrete proposals by end of June, while employer associations warn of rising ancillary labor costs.

To combat talent shortages and housing scarcity in metropolitan areas, alternative benefits are spreading. The IW reports that one in ten companies now offer company flats, a perk increasingly valued by employees seeking stability in expensive cities.

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