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German Employees Prioritize Leadership and Culture Over Pay

Employees are now more likely to leave a job due to toxic culture and lack of trust in management. Value-based leadership and flexible working models are key to retaining talent, warns Randstad Germany.

This is a paper. On this something is written.
This is a paper. On this something is written.

German Employees Prioritize Leadership and Culture Over Pay

German employees are increasingly prioritising leadership, google workspace culture, and flexibility over financial aspects when considering job changes. A significant shift in resignation reasons was observed in 2025, with toxic workplace culture and lack of trust in management emerging as major drivers. Verena Menne, Director Group HR at Randstad Germany, stresses the importance of value-based leadership and flexible working models for retaining talent.

In 2025, the top five reasons for quitting a job in Germany were too low pay, toxic workplace culture, lack of work-life balance, loss of trust in company management, and unfulfilled improvements in working conditions. Notably, a 16 percentage point increase in resignations due to toxic workplace culture was recorded compared to the previous year. More than one in three employees changed jobs due to insufficient pay. These trends highlight the growing importance of leadership and culture in employee retention.

Many companies underestimate the impact of a value-adding leadership culture on employee retention. Verena Menne, Director Group HR at Randstad Germany, emphasises the significance of value-based leadership and flexible working models in attracting and retaining talent. She warns that companies failing to address these factors risk losing valuable employees to competitors.

In 2025, German employees increasingly valued leadership, culture, and flexibility over financial aspects when deciding to change jobs. The top reasons for quitting included toxic workplace culture, lack of trust in management, and unfulfilled improvements in working conditions. Verena Menne, Director Group HR at Randstad Germany, underscores the importance of value-based leadership and flexible working models for retaining talent, urging companies to prioritise these factors to prevent high employee turnover.

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