Germany Boosts Federal Employee Benefits to Attract and Retain Talent
The Federal Ministry of the Interior (BMI) and the Federal Ministry of Finance (BMF) are collaborating to enhance federal employee benefits, aiming to boost loyalty and attractiveness. This initiative is part of the government's Modernization Agenda for the German federal administration.
The BMI is focusing on reducing processing times for employee benefits, including health and pension advantages. Meanwhile, the BMF is engaged in discussions about personnel strategy and employee welfare, particularly for customs officers. This effort is part of a broader project involving multiple federal authorities to modernize and improve personnel development and welfare benefits across the federal service.
A recent survey of 20,600 federal workers revealed that 68% of millennial and Gen Z employees were significantly influenced by paid parental leave when accepting a federal job. Additionally, 79% were unaware that FEHB plans cover prescription medications for treating obesity. The Federal Long Term Care Insurance Program, which helps with care costs for everyday activities, has seen its applications suspended since late 2022.
Health and retirement benefits play a crucial role in federal employment. Ninety percent or more of respondents rated TSP, retirement annuity, retiree health benefits, and FEHB as important or extremely important. More than three-quarters of employees reported that these benefits influenced their decision to stay in their government jobs. The BMI and BMF's efforts to improve these benefits are expected to further strengthen the federal government's appeal as an employer.
