November 2002 - Nr. 11
Investing in the Future:
The German Trainee System
TWIG - Auszubildende (trainees), or Azubis, as they’re commonly known, are an established part of the German working world. In 2000, some 781,000 young Germans chose the trainee track rather than an education at a university or technical college. The 16-year-olds who go this route typically have completed a basic high school education, then apply for a three-year apprenticeship - it might be with a local butcher or a German-based multinational conglomerate. As the Handelsblatt business daily reports, many businesses and trainees alike find the system a perfect fit.
A recent study conducted by the Federal Institute for Vocational Training (Bundesinstitut für Berufsbildung, BIBB) shows that trainees start to make positive contributions to the bottom line even while they consume resources learning new skills. The survey of more than 2,000 German companies also shows that Azubis save companies money in the long run: BIBB calculated that it costs an average 16,435 euros (US$16,270) to train an Azubi, but after deducting the value of the average trainee’s work, the cost is just 7,344 euros (US$7,270). Factor in the average 5,765 euros (US$5,707) that companies spend per position on external recruiting and the trainee program begins to look like a bargain - and a great long-term investment.
Günter Walden of the BIBB says that there are many secondary benefits to the trainee program: "The corporate image is improved, the risk of choosing the wrong person for the job is minimized and a company gets exactly the people it needs." Big German corporations have long known this. Technology giant Siemens AG is the country’s leading employer of trainees, with some 9,200 Azubis at present. Automaker DaimlerChrysler and national rail company Deutsche Bahn come in second and third, with 9,000 and 6,500 Azubis, respectively.
Günther Hohlweg, director of Siemens’ professional education division, says the number of trainees who quit during their apprenticeships at his company is just 1%. Even those trainees who leave to pursue academic studies "come back in half the cases." Siemens says this remarkable retention rate has much to do with the company’s hand-selection process. "It only works out if companies choose their apprentices carefully, organize the training sensibly and involve the up-and-coming employees in all processes," confirms BIBB’s Walden.
Heiner Finkbeiner, owner of the renowned Black Forest hotel Traube-Tonbach, says he has long relied on Azubis to help create the atmosphere of professionalism and attentive service that makes his hotel so beloved: "Out of some 300 employees, roughly 80 are trainees; that’s nearly a third of the staff. After just the first year, the [trainees] are so well integrated into the operations that they can be put into action like all the others. They are prepared to jump into any area in a pinch. The great advantage of trainees is that they pass through all 25 departments, from purchasing to cost controlling, to three different kitchens, the hotel bar, and floral shop."
The hotelier says that on average, 30% of the Azubis stay on for a few years, but that it is typical in the hospitality sector for trainees to change companies more often and go abroad or work on a cruise ship. But the training they learn in his hotel seldom goes to waste: "Airlines like Lufthansa, banks and even DaimlerChrysler have begun to employ hotel employees as counter clerks or salespeople… They are simply more helpful."
And what do Azubis get out of the system? Plenty. They learn a range of hard and soft skills - from how to use specialized software to enhancing customer relations. They often get the chance to put into practice languages, knowledge and theories their university counterparts won’t try out for another five years. At large corporations, the trainees may be offered courses in mathematics and economics or coaching in team-building and management skills. All this, plus a paycheck and bright prospects for specialized career.
