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The English Variant of the S+R Blog.

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Data centres and mechanical engineering: the leaders the boom needs

Cooling pipes and a pump in front of a row of servers in a data centre

In 2025, German data centres had 2,980 megawatts of IT capacity. By 2030 the figure is set to exceed 5,000 megawatts, according to Bitkom, the German digital industry association. For mechanical engineering, meanwhile, the German machinery association VDMA expects 2026 to bring the fourth drop in production in a row. At first glance, the two numbers have nothing to do with each other.

In short: For many machinery and plant manufacturers, the data centre build-out is one of the few areas still growing, above all in cooling, power distribution, heat recovery and sensor technology. Winning orders there takes executives who can bring mechanics, electrical engineering and project business together. That profile is rare, and the job cuts across the industry do not automatically put it on the market.

Where does the data centre boom meet mechanical engineering?

From the outside, a data centre is a building full of servers. For mechanical engineering, the interesting part is everything else. According to Bitkom's market study from November 2025, around €12 billion went into IT hardware in 2025 and €3.5 billion into buildings and technical building services. Roughly €2.5 billion of that was spent on climate control, power and other building technology, more than ever before. This second figure is the market that matters to machinery manufacturers.

The driver is artificial intelligence. Bitkom expects AI capacity in German data centres to quadruple by 2030, from 530 to around 2,020 megawatts. Its share of total capacity would rise from about 15 to 40 per cent.

McKinsey partner Johan Rauer listed the areas that stand to benefit in an interview with the German trade magazine Produktion:

  • Cooling, including liquid cooling, pumps, valves and heat exchangers
  • Power supply with modular power units, switchgear and power distribution
  • Energy efficiency through heat recovery, variable-speed pumps and frequency converters
  • Automation, sensor technology and building automation, all the way to fire protection and predictive maintenance

What stands out about this list is how little of it is classic steel fabrication. Anyone supplying a pump to a data centre today is selling a controlled system with sensors, a link to the building management system and proof of efficiency. The housing is the smallest part of the offer. The value lies in the controls, the electronics and the software.

Why does the Energy Efficiency Act turn engineering know-how into a selling point?

Germany sets its own efficiency requirements for data centres through the Energy Efficiency Act (Energieeffizienzgesetz, EnEfG). The most important metric is Power Usage Effectiveness, or PUE. It puts a data centre's total energy consumption in relation to the consumption of its IT. A PUE of 1.2 means that for every kilowatt hour used by the servers, no more than 0.2 kilowatt hours may be added for cooling, power distribution and everything else.

Here it pays to separate the law as it stands from the planned amendment:

  • Under the current EnEfG, data centres that start operating on or after 1 July 2026 must achieve a PUE of 1.2. Less stringent values apply to existing facilities.
  • For new data centres, the act sets minimum shares of reused waste heat: 10 per cent for those starting operation from 1 July 2026, 15 per cent from 1 July 2027 and 20 per cent from 1 July 2028.
  • On 24 June 2026 the federal government adopted an amendment. Under it, the PUE of 1.2 remains for new builds, but they get four years instead of two to reach it as an annual average. Existing facilities would have to meet a PUE of 1.6 from July 2027 and 1.4 from July 2030. The requirement for 100 per cent green electricity would move from 2027 to 2030, and in many cases waste heat would only have to be used if a heating network is within reach.
  • This amendment is not yet in force. The Bundestag debated it at first reading on 24 September 2026, and the Committee on Economic Affairs held a public hearing on 5 October. It can still change before it is passed.

Even in the relaxed version, the 1.2 target stays in place for new facilities. No operator reaches that value with off-the-shelf technology. It takes efficient cooling, well-controlled pumps and waste heat recovery that pays for itself. For your sales team, this means the strongest argument is not the price per pump but the verifiable kilowatt hour a customer saves with it.

Which executives do machinery manufacturers need for the data centre business?

In our view, four positions decide whether a mid-sized machinery manufacturer gains a foothold in the data centre market:

  • Head of Sales or Key Account Manager Data Centres: knows operators, general contractors and building services engineering consultancies, and sells projects rather than catalogue products.
  • Technical Director or Head of R&D with genuine overlap between thermodynamics, electrical engineering and control engineering.
  • Head of Project Management and Commissioning, who works on site alongside electrical, construction and IT trades against fixed deadlines.
  • Head of Service, who turns maintenance contracts, remote monitoring and condition data from the sensors into a business of its own.

What all four roles have in common is that an understanding of electrical systems and software counts for more than in classic series machine building. The profile is shifting from “can weld and design” to “understands how mechanics, measurement technology and controls work together”.

These are exactly the people you are competing for with an industry that is currently doing better. In its economic survey for the third quarter of 2026, the VDMA notes that the electrical and electronics industry is benefiting from the heavy investment in artificial intelligence. An electrical engineer with leadership experience gets good offers there at the moment. You need to be able to explain why they should move to a pump or plant manufacturer instead.

Are the job cuts in mechanical engineering enough to fill these positions?

The figures from the same VDMA survey suggest a relaxed candidate market at first. More than 30 per cent of the companies surveyed say they have to cut jobs, while only 18 per cent plan to hire. According to VDMA chief economist Johannes Gernandt, around 100,000 jobs have disappeared from German machinery and plant engineering since 2019.

In our experience, this does little for the four roles above. Someone who has spent years in series machine building for the car industry brings a great deal of manufacturing knowledge. Project business with data centre operators, building services planning and the mix of control and electrical engineering are less often part of the package. A larger pool of candidates therefore does not mean the right profiles are in it. We have described the same pattern for executives in the construction industry: high unemployment across the board and a bottleneck at the top can exist side by side.

An example from our consulting practice, anonymised for illustration: An industrial pump manufacturer with around 250 employees wanted to enter the data centre business. The first idea was to move an experienced sales director from within the company into the role. He had known the buyers in the chemical industry for twenty years, but nobody at colocation providers or at the engineering consultancies that put cooling concepts out to tender. The position was eventually filled by an executive from refrigeration and air conditioning who had previously been responsible for projects for data centre operators. She had got to grips with her new employer's products within a few months. Going the other way, building that network would have taken years.

Moves across industry lines like this carry more risk than hiring someone from your own segment. That is why it is worth assessing career changers systematically, for example with structured management diagnostics, instead of relying on the CV alone.

What does the build-out mean for companies in Bavaria, North Rhine-Westphalia and Baden-Württemberg?

The market is heavily concentrated by region. According to Bitkom, Hesse, and the Frankfurt area in particular, accounts for more than a third of installed capacity at just over 1,100 megawatts. Bavaria has 420 megawatts, North Rhine-Westphalia 378 and Baden-Württemberg 233. Planned projects include more than 1,800 megawatts in Frankfurt, 888 megawatts in Brandenburg and 480 megawatts in Nierstein in Rhineland-Palatinate.

For suppliers from Munich, the Rhineland or the Ulm area, this means the customers are often not on the doorstep. Project managers and sales staff have to be prepared to travel regularly to Frankfurt or Brandenburg, and that belongs in the requirements profile from the start of the search. If you are a mid-sized company recruiting in the Ulm and Neu-Ulm region, we know the local market through our HR consultancy in Ulm.

What should you check now?

Before you advertise a position for the data centre business, five questions help:

  • Which of your products fit specifically into cooling, power distribution, waste heat recovery or monitoring?
  • Does anyone in your sales team already have access to operators, general contractors and building services planners?
  • Can your R&D team supply efficiency figures that an operator can use to make its case under the EnEfG?
  • Who in your company leads projects on other people's construction sites with fixed commissioning dates?
  • For which role would you be better off searching outside your own segment, for instance in refrigeration, air conditioning or electrical engineering?

If the honest answer to several of these is “nobody”, that is no reason to drop the subject. It tells you which position to fill first. How a search like this runs discreetly, without competitors or your own workforce finding out, is described in our article Headhunter for mechanical engineering: fill roles discreetly.

Frequently asked questions about data centres and mechanical engineering

Which areas of mechanical engineering benefit from new data centres?

Mainly cooling with pumps, valves and heat exchangers, power distribution with switchgear, heat recovery solutions, and sensor and building automation technology. According to Bitkom, around €2.5 billion went into climate control, power and other building technology for data centres in 2025.

What does a PUE of 1.2 mean?

Power Usage Effectiveness puts a data centre's total energy consumption in relation to its IT consumption. At 1.2, every kilowatt hour for the servers may be accompanied by no more than 0.2 kilowatt hours for cooling, power distribution and other technology. Under the Energy Efficiency Act, this value applies to data centres that start operating on or after 1 July 2026.

Is the waste heat obligation for data centres already in effect?

Yes. Under current law, new data centres starting operation on or after 1 July 2026 must reuse at least 10 per cent of their waste heat, rising later to 15 and then 20 per cent. An amendment to the Energy Efficiency Act that would tie this obligation to an accessible heating network is going through parliament but has not yet been passed.

Why do machinery manufacturers struggle to find suitable executives for this business despite job cuts?

Because the profile they need sits at an interface: mechanics, electrical and control engineering, plus experience in project business with data centre operators. People let go from series machine building rarely bring that combination. Targeted direct approach in neighbouring industries such as refrigeration and air conditioning usually has better prospects.

Talk to us about your next key position

Schlagheck + Radtke fills specialist and leadership positions in machinery and plant engineering, such as technical directors, heads of sales and project managers, from our offices in Düsseldorf, Munich and Ulm. If you are building up a data centre business and need the right executive to lead it, get in touch. A first conversation comes with no obligation.

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Headhunter for the construction industry: how construction companies find executives despite the shortage

Illustration: an executive walks across an unfinished bridge from an industrial plant to a construction site where a site manager is waiting

Headhunter for the construction industry: how construction companies find executives despite the shortage

At the end of 2025, an average of 58,392 people in engineering and IT occupations were registered as unemployed, more than at any time since the VDI/IW Engineering Monitor began in 2011. In the same quarter, there were 314 vacancies for every 100 unemployed people in civil engineering occupations. No other engineering field was as short of staff.

In short: A headhunter in the construction industry pays off when a leadership position cannot be filled through job advertisements or your own network. For site management, project controls and technical management, that is currently the rule rather than the exception. With the special infrastructure fund, demand continues to grow. Executives from industry and plant engineering can close part of the gap, but not every role.

Contents

Why is the construction industry short of executives right now?

Two developments are coming together. The first is political: under the Act Establishing a Special Fund for Infrastructure and Climate Neutrality of 30 September 2025, up to 500 billion euros are available for additional investment, including up to 100 billion euros for the federal states. In addition, the Public Procurement Acceleration Act has been in force since 1 July 2026 and is intended to get public contracts moving faster. The federal government, for example, may now award contracts directly up to a value of 50,000 euros.

The second development concerns people, and it was there even before the special fund. In September 2025, the German Economic Institute (IW) worked out who is actually supposed to turn those billions into construction. The findings of the IW study:

  • Even then, around 10,000 specialists for planning construction projects were missing.
  • For civil engineers, structural check engineers and site managers, 81 percent of vacancies could not be filled because there were no suitably qualified unemployed people anywhere in Germany.
  • In heavy civil engineering, capacity would have to grow by around 18 percent to renovate roads, railways and bridges. At the time of the study, more than 4,000 skilled workers were missing there, from tradespeople to engineers.
  • The number of first-year students in the relevant subjects is falling.

The development is slowly reaching order books, albeit with fluctuations. According to the Federal Statistical Office (Destatis), real incoming orders in the main construction trade were 11.3 percent higher in June 2026 than in the same month of the previous year, and as much as 17.8 percent higher in heavy civil engineering. July then saw a decline of 9.2 percent compared with the previous month. For workforce planning, the direction matters more than any single month: anyone who wants to deliver public infrastructure projects in 2027 and 2028 needs the project management for them now. Because of notice periods, an executive who signs today will usually not start until the new year.

On top of this comes an observation recorded by the German Construction Industry Federation (HDB) in its Labour Market Report 2026: construction companies continue to complain a great deal about poaching. In other words, the industry is pulling scarce people away from one another instead of attracting new ones.

Which positions are particularly hard to fill?

The statistics do not distinguish between hierarchy levels. From search practice, however, it is possible to say where mid-sized companies struggle most. It is almost always the roles that require technical expertise, contract law and people management at the same time:

  • Senior site management and project management in heavy civil engineering, road and bridge construction
  • Head of estimating and work preparation, because in public tenders the bidding phase decides the profitability of the entire project
  • Technical management in building services (MEP), i.e. heating, ventilation, plumbing and electrical
  • Branch management, when a company wants to grow regionally
  • Technical or commercial managing director, often in connection with a succession

For building services, the Engineering Monitor gives a clear indication: after civil engineers, engineering occupations in energy and electrical engineering are the second scarcest, with 246 vacancies per 100 unemployed. Anyone looking for a technical manager for electrical or energy projects is therefore competing not only with other construction firms, but also with grid operators, municipal utilities and plant engineering companies that need the same people.

The bottleneck at the top has knock-on effects further down. Without experienced senior site managers, young site managers can hardly be trained, and without a head of estimating, bids go out too late or too expensive. A construction company with ten engineers and one vacant leadership position therefore often has a bigger problem than one with three vacant specialist positions.

Career changers from automotive and mechanical engineering: where it works

This is where a second look at the Engineering Monitor 2025/IV pays off, which the IW published for the VDI in August 2026. Unemployment in civil engineering occupations rose by 5.8 percent within one year. In mechanical and automotive engineering occupations it was 34.0 percent, and in technical research and production control 32.9 percent. The figures rose most sharply in Bavaria and Baden-Württemberg, where vehicle manufacturing carries particular weight.

Two labour markets for engineers are therefore currently moving in opposite directions. Our assessment: construction companies that look for executives exclusively within their own industry miss out on the part of the market where things are currently moving. That does not mean a programme manager from an automotive supplier can run a major construction site. For each role, however, it is worth honestly examining which experience really has to come from construction and what can be learned in the first few months.

The following overview is an assessment based on consulting practice, not a statistic. It shows in which functions a move from industry is realistic:

Function Career change from industry What usually has to be learned
Site management, senior site management hardly realistic Construction workflow, VOB/B (German construction contract rules), managing subcontractors, authority on site
Project controls, head of work preparation quite possible Construction contract logic, change order management
Technical management MEP partly, from plant and electrical engineering Standards, acceptance inspections, interfaces between trades
Commercial management, controlling quite possible Construction accounting, joint ventures
Plant management for precast concrete or building materials quite possible Little, series production remains series production
Digitalisation, BIM coordination quite possible Hands-on experience on site

What executives from automotive and mechanical engineering bring with them is process discipline. Anyone who has been responsible for a production launch with suppliers from several countries knows schedules with a critical path, escalation rules and quality reviews. In many mid-sized construction companies, such routines are less established. What is missing is a feel for how a construction site works: the weather, changing subcontractors, a foreman with 30 years of experience who does not respond to slide decks. That can be learned, but not in four weeks.

An example from consulting practice

Anonymised and for illustration: an owner-managed civil engineering company in the Lower Rhine region wins several framework contracts for sewer and bridge rehabilitation. It is looking for a head of project controls to plan schedules, costs and staff deployment across more than a dozen parallel sites. The company's own job advertisement mainly attracts site managers who are a good technical fit but have never managed more than two projects at the same time. For the direct approach, the search radius is therefore deliberately widened: half of the target companies come from construction, the other half from plant engineering and automotive suppliers. The eventual appointee comes from programme management at a supplier. For the first year, the owner assigns her an experienced senior site manager as a permanent point of contact for all construction contract matters.

Without this tandem, the appointment would probably have failed during the probationary period. Anyone bringing in career changers should therefore plan the support before the first approach, not once things start to grind on site.

How does a headhunter in the construction industry work?

At its core, it is the same method as in any other industry: the consultant identifies people who already fill a comparable role today and approaches them personally and confidentially. Our article on the direct approach to candidates describes how this process works, from the target company list to the first conversation. In construction, three particularities come into play.

First, the market is regional. Many site managers and project managers only change jobs if their commute stays the same or gets shorter, because they already drive to changing sites every day. A good target company list therefore starts with a map, not with a list of industries.

Second, the type of construction matters. A project manager from turnkey building construction is not automatically right for bridge construction, and someone who has managed MEP projects in hospitals thinks differently from someone in residential construction. A headhunter has to know these differences, otherwise they present CVs that only fit on paper.

Third, the change of industry becomes an assessment task in its own right. With career changers, the CV says even less than usual. Structured management diagnostics help here, for example with semi-structured interviews and personality assessments, to judge whether someone can cope with the blunt communication on construction sites. And after the contract is signed, a planned onboarding for executives is needed so that the first 90 days are not lost idling between the office and the site.

Before you hire a headhunter or place a job advertisement, a few decisions will save a lot of time later:

  1. Which experience really has to come from construction? Write down for the role what someone must be able to do on day one and what they can acquire within six months. Only this distinction makes career changers assessable at all.
  2. Who will support the new executive? Especially with people switching industries, it should be clear before the contract is signed who will cover construction contract matters until the person has settled in.
  3. Does your salary band match the market? With 314 vacancies per 100 unemployed, experienced civil engineers negotiate from a strong position. A band that is consistent internally may be too low externally.
  4. How quickly do you decide? Good candidates usually have several conversations running in parallel. Block your management's calendars for the interview phase in advance.
  5. How far does your search radius extend? Decide whether relocation or a second home is an option, and whether candidates from neighbouring industries are explicitly welcome.

Clarifying these points in advance usually shortens the search more than any additional job advertisement. If you want to know why rising unemployment still does not make the search for key people easier, read our article on the executive labour market in Munich. The mechanism behind it applies to construction just as much.

Frequently asked questions about headhunters in the construction industry

How much does a headhunter for the construction industry cost?

The fee is always paid by the client company, never by the candidate. It is usually based on the target annual salary of the position and, for executive search mandates, is generally paid in instalments over the course of the project. Have the fee, payment schedule and any replacement guarantee confirmed in writing before you start.

How long does it take to fill a site management or project management position?

At Schlagheck + Radtke, the search itself, up to the first assessed candidates, usually takes four to six weeks. After that, the timeline depends mainly on your decision-making process and the notice period, which for executives is usually several months. For a project manager who is to take over a project in spring, the search should therefore start in autumn.

Can engineers from mechanical engineering take on leadership roles in construction?

In many roles, yes, especially in project controls, plant management, controlling or digitalisation. For direct site management, they usually lack experience with construction workflows, VOB/B and subcontractors. An experienced in-house point of contact for the first year significantly reduces the risk.

Is a headhunter also worthwhile for smaller construction companies?

For specialist positions, usually not. For the managing director, a branch manager or a key position on which contracts depend, often yes. Weigh this against the cost of a project that cannot be accepted, or can only be delivered late, without the right management.

Discuss your construction vacancy

Are you looking for a site manager, a head of project controls or a technical manager, and the usual channels are not bringing in the right people? Our headhunters for the construction sector, Anna Csuti and Christian Wolfrum, know the construction and MEP market and, on request, also search specifically in neighbouring industries. You can find out more about our work on our construction industry page. The first conversation is non-binding, and we give a guarantee of up to 24 months on every placement.

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Medical Technology: Filling Key Positions Ahead of the MDR Revision

A woman in a blazer talks to a man in a doctor's coat in a hospital corridor

Executive search in medical technology: filling key positions ahead of the MDR revision

According to the BVMed autumn survey 2026, more than 80 percent of medical technology companies are struggling to fill vacancies. The biggest gap is not in regulatory affairs, however, but in sales: 42 percent of companies name it as a bottleneck, compared with only 15 percent for regulatory affairs.

In short: If you fill a key position in medical technology now, you are filling it for the period after the MDR revision. The EU intends to revise the Medical Device Regulation by 2027, and rigid requirements such as the qualification criteria for the person responsible under Article 15 are set to be dropped. What is needed are executives who combine regulatory depth with an understanding of markets and sales, and a selection process that tests exactly that.

What does the BVMed autumn survey 2026 reveal about your staffing situation?

In August and September 2026, the German Medical Technology Association (BVMed) surveyed its members, and 120 of its 220 voting member companies responded. The results of the BVMed autumn survey 2026 show an industry that is growing while struggling under its costs. Revenue in Germany is expected to rise by 3.9 percent. Even so, 45 percent of companies expect falling profits.

For staffing decisions, these figures are the most relevant:

  • 37 percent of companies are adding staff, 38 percent are keeping headcount stable and 20 percent are reducing it.
  • Recruitment is focused above all on sales (78 percent), followed at a considerable distance by production (26 percent), marketing (25 percent) and research and development (22 percent).
  • Positions are hard to fill in sales (42 percent), quality management (18 percent), research and development (17 percent) and regulatory affairs (15 percent).
  • 60 percent name rising personnel costs as a cost driver. Only the bureaucratic burden ranks higher, at 63 percent.

One contradiction in the figures stands out. Only 34 percent count the skills shortage among the major problems of Germany as a business location, and yet more than four in five companies are struggling to fill positions. Our reading: in medical technology, the shortage has become the normal state of affairs. Companies have come to terms with it and factor it into their planning.

For you as a managing director or division head, this means one thing above all. Every bad hire becomes twice as expensive, because the position was already hard to fill the first time, and the second search starts from scratch while personnel costs keep rising.

Why does the MDR revision change the requirements profile for your executives?

On 16 December 2025, the European Commission presented its proposal to simplify the Medical Device Regulation (MDR) and the In Vitro Diagnostic Medical Devices Regulation (IVDR). The list of changes is long. Recertification every five years is to be abolished, unannounced audits are to take place less often, and binding deadlines are planned for conformity assessments by notified bodies. Reusable surgical instruments and medical software are in some cases to move into a lower risk class. Products with AI components are to undergo their assessment under the AI Act within the MDR procedures, so that no duplicate structures arise. The Commission puts the expected relief at 3.3 billion euros per year.

None of this has been adopted yet. The European Parliament's health committee has been debating the amendments proposed by rapporteur Oliver Schenk since July. The TÜV-Verband and other associations of testing and inspection organisations warn in an open letter that the plans would come at the expense of patient safety. There are two indications regarding the timetable: in July, the German medical journal Deutsches Ärzteblatt reported that the trilogue negotiations between the Commission, Parliament and Council were to be concluded by the end of 2027, so that the revision could enter into force at the beginning of 2028. In early October, the regulatory consultancy Emergo by UL named adoption in the second or third quarter of 2027 as the target. Until then, the MDR continues to apply unchanged.

For your workforce planning, this leads to an uncomfortable conclusion. If you hire a head of regulatory affairs or quality management today, you need someone who keeps two sets of rules in mind at the same time: the current one and the one to come. According to BVMed, one third of the surveyed companies' investment currently goes into meeting MDR requirements, and only 31 percent into genuine new developments. If the revision is adopted in its proposed form, part of this budget will be freed up. Where it then goes will not be decided by someone who sees their role as a mere documentation obligation.

The person responsible under Article 15: fewer requirements, more judgement

One detail of the proposal directly affects how you select personnel. Under Article 15 MDR, every manufacturer needs a person responsible for regulatory compliance, known in the industry as the PRRC. Among other things, this person ensures that products are checked for conformity before release and that the technical documentation is kept up to date. Today, the regulation specifies the required qualifications precisely: a relevant university degree and at least one year of professional experience in regulatory affairs or quality management, or alternatively four years of professional experience. Micro and small enterprises may outsource the role, provided the person is permanently available.

The Commission wants to delete these detailed criteria. As the VDE points out in its overview of roles and liability for medical device manufacturers, authorities and notified bodies are nevertheless likely to expect comparable evidence. In practice, this shifts the responsibility to you. Where a degree and a number of years used to be enough of a check, you will in future have to judge for yourself whether someone is up to the task. Structured interviews and sound management diagnostics therefore gain in importance, especially as the PRRC in smaller organisations is often also responsible for quality and risk management.

Which positions are hardest to fill in medical technology?

For years, the public debate has revolved around regulatory affairs. BVMed's figures show that sales is the real bottleneck. The reasons go beyond the general skills shortage.

Sales managers in medical technology negotiate with group purchasing organisations and hospital chains, whose price pressure 52 percent of companies describe as a burden. They need to know the reimbursement pathways, because 55 percent feel the cost-cutting measures of the statutory health insurance funds. And increasingly, they need experience outside Europe. 62 percent of the companies surveyed now prefer the FDA's US approval system, up from 56 percent the previous year. Only 9 percent still prefer the MDR, and 9 percent are shifting investment to the USA.

These figures add up to profiles the labour market can hardly supply:

  • Heads of sales who bring together clinical understanding, experience with group purchasing organisations and international markets
  • Heads of regulatory affairs who know EU and FDA procedures and treat approval strategy as part of product planning
  • Heads of quality who can steer a QM system according to ISO 13485 through changed audit and inspection cycles
  • Heads of development with software and AI experience, especially as 20 percent of BVMed companies already develop their own AI products

How tight the market for such profiles is can be seen from a project we describe in anonymised form on our industry page. A family business with 800 employees, a manufacturer of medical packaging, was looking for a head of sales for South-East Asia. Besides industry experience, the brief called for either someone from Western Europe living in the region or a local executive with experience in German companies. We solved the search together with our network partner in Thailand. The position was filled by a German who lives in Malaysia.

How do you fill a position whose responsibilities will shift by 2028?

The obvious response to so much uncertainty would be to wait until the revision is settled. We advise against this. As things stand, it may take up to a year and a half until the revision is adopted and applies. An executive you only start looking for at that point will often not be able to start until months later because of their notice period. The transition itself also needs someone to lead it. It makes more sense to align the appointment with the transition from the outset.

Four considerations help:

  1. Write the requirements profile with 2028 in mind. What must the role deliver once recertifications are dropped, deadlines apply to notified bodies and budget is freed up from compliance?
  2. Assess judgement as thoroughly as qualifications. When formal criteria such as those for the PRRC disappear, what counts is a proven ability to weigh up regulatory risks and defend that assessment to management and authorities.
  3. Cast the target company list wider. Suitable candidates also work in diagnostics, in laboratory companies, in the pharmaceutical industry or at suppliers with their own QM system. How a systematic direct candidate approach is structured is described in a separate article.
  4. Plan the first months as well. Anyone starting in the middle of a regulatory reform needs fast access to decision-making channels and clear goals for the first 90 days. What matters in onboarding executives is covered in our article on the subject.

How broad a search sometimes has to be is shown by a second project from our industry page. A highly regulated medical technology laboratory company with annual revenue of around 8 million euros and the goal of growing by 15 percent a year needed a new managing director. The brief called for a personality who thinks like an entrepreneur and understands laboratory processes in detail. After a market analysis, we approached more than 100 decision-makers from 70 target companies directly before the right candidate was found.

Frequently asked questions about executives in medical technology

What makes executive search in medical technology different from other industries?

Here, regulation shapes almost every leadership role, including in sales and development. Besides their own specialist field, candidates must understand the logic of the MDR, notified bodies and reimbursement. On top of that, the market is small: 93 percent of medical technology companies are small and medium-sized enterprises, and many specialists know one another. Candidates therefore have to be approached with particular discretion.

Does every medical technology company need its own PRRC?

Every manufacturer needs a person responsible under Article 15 MDR. Micro and small enterprises may engage an external person for this, provided that person is permanently and continuously available. Larger manufacturers must fill the role within their own organisation. The Commission's proposal would above all delete the detailed qualification criteria.

When will the MDR revision enter into force?

That has not yet been decided. The Commission's proposal of 16 December 2025 is currently being debated in the European Parliament and the Council. Adoption is targeted for the course of 2027, and early 2028 has been named as the target date for entry into force. Until then, the MDR applies in its current version.

Should you wait for the revision before filling a head of RA or QM position?

In most cases, no. The current obligations continue to apply until the revision enters into force, and the transition itself has to be managed. A better

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Succession planning: External managing director instead of sale or closure

Empty managing director's office with keys and blueprints on the desk, symbolising succession

Succession planning: external managing director instead of sale or closure

Between 2026 and 2030, around 186,000 family businesses in Germany are due to be handed over because their owners are leaving management for reasons of age or health. That is the estimate of the Institute for SME Research (IfM) Bonn. Over the same period, according to KfW, around 114,000 SMEs per year want to close their business once the owner steps down. For the first time, slightly more owners have closure plans than concrete succession plans.

In short: Succession does not have to mean that a buyer turns up or that a son or daughter takes over. If the family wants to remain the owner but nobody can take on operational management, an external managing director is a third option. This person runs the company without holding any shares. For it to work, you need a clear mandate, a joint handover phase and around three years of lead time.

Where does SME succession stand in 2026?

Three sources shape the debate, and they count different things. The IfM Bonn only looks at family businesses whose profits make a takeover economically viable. Of 3.2 million family businesses in total, 733,000 meet this condition, and 186,000 of them face a handover in the next five years. The KfW Succession Monitoring for SMEs from January 2026, by contrast, covers all 3.87 million small and medium-sized enterprises, including sole traders. There, around 545,000 owners want a successor by the end of 2029. Finally, the DIHK Business Succession Report 2025 analyses the advisory meetings held by the German Chambers of Industry and Commerce (IHK): in 2024, there were almost 10,000 meetings with owners looking to hand over, more than ever before.

For an industrial mid-sized company with its own management level, the IfM figure is the more realistic reference. The findings shared by all three sources are nonetheless clear:

  • 69 percent of SMEs see finding a suitable successor as the biggest hurdle (KfW).
  • 92 percent of IHK-advised companies considering closure cannot find a suitable successor (DIHK).
  • For 47 percent of companies with closure plans, a lack of interest within the family is a decisive factor (KfW).
  • 38 percent of outgoing owners prepare the handover too late, often only one to two years in advance (DIHK).
  • Owners who want to settle their succession by the end of 2026 are already 66.5 years old on average (KfW).

Why does succession fail because of people more often than money?

In public, succession is usually discussed as a financial issue: purchase price, bank loans, inheritance tax. The figures put the emphasis elsewhere. Only 18 percent of SMEs see financing by the successor as a hurdle, while almost four times as many fail on the question of who should take over at all.

In industry, this problem becomes more acute. The DIHK points out that running an industrial company often requires in-depth technical knowledge, from machinery and standards to quality assurance, which significantly narrows the circle of suitable candidates. In addition, structures in many companies are strongly tailored to the previous owner.

From our perspective, there is a flawed assumption behind this. Many owners are looking for one person who brings capital, knows the industry, has leadership experience and is willing to carry the entrepreneurial risk. Such people exist, but they are rare. The IfM calculates that a takeover only pays off for a rational successor if the profit yields more than permanent employment plus a return on capital. An experienced plant manager or commercial director earns well as an employee and has little reason to put their own assets into someone else's company. KfW confirms the trend: in 2024, only 17 percent of founders took over an existing business, a share that has more than halved since 2002.

Anyone who thinks of ownership and management separately will find considerably more candidates. For the management role, people come into question who would never buy the company.

What is an external managing director, and when is it the right succession solution?

An external managing director runs a GmbH (German limited liability company) without holding a stake in it. The shareholders appoint them, and they manage the business on the basis of an employment contract. Ownership stays with the family, which retains influence through the shareholders' meeting and often through an advisory board.

There are no separate statistics on how widespread this model is. The IfM meta-analysis only shows to whom family businesses transfer ownership: 54 percent within the family, 17 percent to employees and 29 percent to external parties. In studies since 2010, the family share is 51 percent, compared with 55 percent before that. Family succession therefore remains the most common solution, but it is losing ground.

An external managing director is particularly worth considering when:

  • the family wants to remain the owner, but nobody in the next generation wants or is able to manage the business,
  • a son or daughter is meant to take over later but is still too young or is currently gaining experience at another company,
  • a sale is planned, but not for several years, and the company should become less dependent on the founder in the meantime,
  • several shareholders want a say, but none of them wants to work in day-to-day operations.

The model is less suitable if the senior owner does not want to let go and continues to make every decision personally. An experienced managing director recognises this quickly in conversation and declines, or joins and leaves again after a year and a half. Profitability also has to be right: external management costs a market-rate salary. If the company cannot carry this cost, a sale is usually the more honest solution.

How does the search for an external managing director work?

The search itself is rarely the hardest part. What is harder is that the family and the senior owner first have to clarify what the new managing director will actually be allowed to do. The following sequence has proven effective:

  1. Define the role and powers in writing. Which decisions will the managing director take alone in future, and which require the shareholders' approval? Will there be an advisory board, and what role will the previous owner play?
  2. Plan the timeline backwards. The DIHK recommends starting concrete planning and the search at least three years before the intended handover. Bear in mind that good candidates are in permanent employment, and notice periods for executives are typically three to six months.
  3. Approach candidates directly instead of advertising. For managing a family business, candidates often come from the second management level of comparable companies and are looking for their next step. They don't read job advertisements. How discreet direct candidate approach works is described in a separate article.
  4. Assess suitability beyond the CV. Besides industry knowledge, what matters is how someone deals with shareholders who are handing over their life's work. Structured interviews and management diagnostics make leadership behaviour visible before the decision is made.
  5. Plan the handover as a phase of its own. The senior owner and the successor should work in parallel for a period, with fixed dates on which responsibility passes over. What matters in an executive's first 90 days is covered in our article on onboarding.

An example from consulting practice

Anonymised and for illustration: a family-run machine builder with around 180 employees, whose owner is 67. His two children work in other industries and do not want to run the company. The first plan is a sale. However, the serious bidders are two competitors who are mainly after the customer list and would move production to their own sites. The family decides differently: it remains the owner and looks for an external managing director. The position is filled by the former plant manager of a supplier, who already knows the customers from his time on the supplier side. After a joint phase, the senior owner moves to the newly created advisory board.

"Many owners look for a buyer first. When we take a closer look, what they usually lack is someone who will take responsibility for 150 people the next morning. Capital is rarely the problem," says a consultant at Schlagheck + Radtke (quoted for illustration; name withheld for reasons of discretion).

In technical industries, the candidate market is small and the suitable people know each other. Our page on executive search in mechanical and plant engineering shows which positions we fill in this environment.

Which mistakes should you avoid in succession planning?

These five oversights cost time or good candidates in succession processes particularly often:

  • Starting too late. Anyone who starts the search a year before retiring has no time for a handover phase and negotiates under pressure.
  • Freezing investment until the succession is settled. According to KfW, annual investment volume falls by around 32 percent in companies with short-term succession plans. An investment backlog makes the company less attractive to any successor, buyer and managing director alike.
  • Giving the external managing director the title but not the decisions. If they still need sign-off for every order above 10,000 euros, they will soon realise they are really the senior owner's assistant.
  • Searching only within your own network. The tax adviser, the bank's relationship manager and the golf partner rarely know anyone who has already held exactly this role.
  • Involving the workforce too late. The IHKs also advise communicating early and openly, so that rumours don't drive away key people before the successor arrives.

Frequently asked questions about succession planning

What does succession planning mean?

Succession planning determines who will run a company once the owner leaves, and who will own it in future. Both can lie with one person, for example in a sale to a buyer who also manages the business. But they can also be separated: the family keeps ownership, and an external managing director takes over management.

How long does succession planning take?

The DIHK recommends planning concretely and starting the search at least three years before the intended handover. The search for an external managing director alone often takes several months including the candidate's notice period, followed by the joint handover phase.

Who appoints an external managing director?

In a GmbH, the shareholders appoint the managing director, usually by resolution of the shareholders' meeting (Section 46 No. 5 of the German Limited Liability Companies Act, GmbHG). Separately, an employment contract is concluded that governs pay, term and powers. Have this contract reviewed by a lawyer.

Can an external managing director acquire shares later?

Yes, this is possible and is sometimes agreed from the outset, for example as a gradual stake after several years. A purely management-based solution can then later become a management buy-in. Clarify the terms in advance with your tax adviser and lawyer.

Your next step

If succession is due in your company in the coming years, and the family wants to remain the owner but no longer wants to manage the business itself, an early conversation is worthwhile. Schlagheck + Radtke fills management and leadership positions in technical mid-sized companies through executive search, from clarifying the role and a discreet search to support during the first months. Contact us in Düsseldorf, Munich or Ulm.

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Headhunter Munich: Why more applicants don’t make the search easier

Commuters waiting on a train platform in Munich at dawn

Headhunter Munich: why more applicants don't make the search easier

In September 2026, companies in the Munich employment agency district reported 10,452 vacancies, a good quarter more than a year earlier. In the same month, 61,124 people were registered as unemployed there, and the unemployment rate of 5.3 percent was slightly above the previous year's figure. Anyone who concludes that key positions in Munich are currently easier to fill will probably be disappointed during their next search for a plant manager or a sales director.

In short: A headhunter in Munich pays off not despite the current situation, but because of it. The pool of applicants has become broader, but the people who already lead successfully in the technical mid-market are rarely registered as unemployed. They are in permanent jobs, often at competitors in the surrounding region, and have to be approached in a targeted and discreet way.

More unemployed and more vacancies: what is happening in the Munich labour market?

The September figures come from the Rathaus Umschau of the City of Munich and refer to the employment agency district, meaning the city and the district of Munich together. In the city alone, the unemployment rate in September 2026 was 5.7 percent. The city describes the autumn recovery as weak once again, while demand for labour is developing positively at the same time.

A detail analysed by the Munich Statistical Office is more revealing: in September 2025, 28.1 percent of the unemployed in Munich held a university degree. Four years earlier, the figure was 19.1 percent. The office concludes that a degree is no longer a guarantee of employment in Munich.

For HR managers in mid-sized companies, this is good and bad news at the same time. For broadly deployable profiles, for example in controlling, project management or IT administration, the choice has indeed become larger. For a plant manager with injection moulding experience, a head of purchasing with a supplier background or a commercial managing director to support the succession in a family business, this hardly applies. People who fill such roles well are rarely let go, and if they are, they have several offers within a few weeks.

Where the market for executives in Upper Bavaria remains tight

In the medium term, the balance shifts back. The study "Regionale Arbeitslandschaften", prepared by Prognos AG on behalf of the vbw – Bavarian Business Association, puts the skills shortage in Upper Bavaria at 68,350 people for 2025. By 2035, it will grow to 80,250. According to the vbw, this makes Upper Bavaria the most affected region in Bavaria, and the study expects bottlenecks in 25 of 36 main occupational groups. In the metropolitan centres, the supply of labour is rising, but the study sees no real oversupply anywhere in Bavaria.

On top of this comes a Munich peculiarity: the candidate market does not end at the city limits. According to the Statistical Office, 464,210 employees subject to social insurance contributions commuted into Munich for work as of 30 June 2025. For comparison, around 973,000 employees had their place of work in Munich at the end of 2025. Almost half of the jobs in the city are therefore held by people who live outside it. For the search, this means that anyone who only looks in Munich overlooks a large share of the people who are suitable for the position.

This is particularly evident in the industries that shape the Munich region:

  • Automotive suppliers that are currently restructuring product portfolios and plants and need executives with transformation experience (more on our page Executive search in automotive)
  • Mechanical and plant engineering and automation, from sensor manufacturers to system integrators
  • Replacement hires that have to be handled confidentially because the current post holder is still in office

How does a headhunter in Munich work when a job advertisement is not enough?

The core is direct approach: the consultant identifies people who already hold a comparable role today and contacts them personally. How this process works step by step, from the target company list to the first conversation, is described in our article on the direct approach of candidates. In the Munich area, two particular factors come into play.

First, a mid-sized company here competes for the same people as large corporations with well-known names and high salary levels. A headhunter therefore has to work out early in the conversation what the position offers a candidate that a corporation would not: shorter decision-making paths, more responsibility per person, and often a shorter commute.

Second, the pace on the client side is decisive. In its 2026 market study, the Federal Association of German Management Consultants (BDU) names uncertainty, budget constraints, postponed mandates and longer decision-making processes at clients as the main reasons why existing hiring needs are often implemented with delays. A good candidate who waits six weeks for feedback between two interviews will often have signed elsewhere in the meantime. If you engage a headhunter, plan your management's interview dates from the start.

An example from consulting practice

Anonymised and for illustration: an automotive supplier from the Munich area with around 600 employees is looking for a new head of purchasing. Its own job advertisement attracts more than 80 applications, many from well-qualified people from corporations that are currently cutting jobs. However, none of the applicants has developed suppliers in a mid-sized company or conducted price negotiations without a large purchasing department behind them. The direct approach therefore focuses on purchasing managers at suppliers of similar size between Augsburg and Rosenheim. The person eventually hired comes from a company that was not even on the client's original wish list.

"Many companies are currently getting noticeably more applications per advert than before. The problem isn't the volume. It's that hardly any of these applicants have ever done exactly this job," says a consultant at the Munich office of Schlagheck + Radtke (quoted for illustration; name withheld for reasons of discretion).

How do you recognise the right headhunter in Munich?

The executive search market is currently reorganising itself. According to the BDU, the number of executive search firms in Germany fell by around 200 to 1,975 in 2025, and executive search still accounts for 79 percent of the industry's revenue. The differences between providers are correspondingly large. Before you engage one, check the following points in particular:

  • Does the consultant know your industry? Ask for comparable mandates, anonymised if need be, and check whether they understand the technical requirements of the role without having to ask.
  • Is there an agreed target company list before the first approach? It shows where the search takes place and whether the search radius extends beyond Munich.
  • Are all presented candidates interviewed personally before you see their documents?
  • Are the fee, payment instalments and any replacement guarantee agreed in writing in advance?
  • Do you have one fixed contact person who supports the mandate from briefing to contract signature?

How executive search is structured methodically at Schlagheck + Radtke is shown on our Executive Search page.

Frequently asked questions about headhunters in Munich

What does a headhunter in Munich cost?

The fee is always paid by the hiring company, never by the candidate. It is usually based on the annual target salary of the position and, in executive search mandates, is generally paid in instalments over the course of the project. According to the BDU, the industry focuses on positions with a target income between 100,000 and 250,000 euros. Our article What is a headhunter? explains the usual fee models in more detail.

How quickly does a headhunter deliver suitable candidates?

At Schlagheck + Radtke, the key candidate profiles are usually available after four to six weeks. After that, the timeline depends mainly on your own decision-making process and on the candidate's notice period. Factor that notice period into your schedule from the start.

Does a headhunter in Munich only search within the city?

No. Almost half of the employees who work in Munich commute in from outside, so the relevant market covers at least the entire surrounding region. For highly specialised profiles, the search extends nationwide or internationally, at Schlagheck + Radtke also via the international network Praxi Alliance.

Is a headhunter worthwhile if my job advertisement attracts plenty of applications?

That depends on the position. If the applicants include people who have already held the role at a comparable company, you probably don't need a headhunter. If they are mainly career changers or candidates from completely different company sizes, it is worth looking into the part of the market that doesn't apply at all.

Discuss your vacancy in Munich

Do you have a key position to fill in the Munich area, and the usual channels are not bringing in the right people? Our office at Prinzregentenstraße 54 supports companies in automotive and mechanical engineering, with one fixed contact person and a 24-month guarantee on every placement. Speak to Sebastian Radtke on +49 89 45 20 57 80, or get in touch via our HR consulting Munich page. The first conversation is non-binding.

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Pay Transparency Directive in recruiting

Executive hands a document across the table during a salary discussion in a job interview

Pay Transparency Directive in recruiting

"What are you earning at the moment?" Hardly any question comes up as naturally in conversations with executives. The EU Pay Transparency Directive prohibits it, and Germany let the deadline for transposing it into national law pass on 7 June 2026. For employers, this creates an uncomfortable interim period.

In short: There is no German implementing law yet. Private employers are formally still subject to the Pay Transparency Act (Entgelttransparenzgesetz) of 2017. However, the directive will entitle applicants to know the starting salary or a salary range, and it prohibits asking about their previous pay. Anyone filling leadership positions should adjust their selection process now.

Contents

What has actually applied since 7 June 2026?

Directive (EU) 2023/970 has been in force since June 2023. Under Article 34, member states were required to adapt their rules by 7 June 2026. Germany did not manage this. A cabinet discussion was initially planned for 24 June 2026 but, according to Personalwirtschaft, was postponed to August. In July, the federal government replied to a parliamentary question that the Federal Ministry for Family Affairs had prepared a draft bill and was still clarifying individual points. Only after that would the legislative process begin (heute im bundestag, 16 July 2026). Up to our editorial deadline at the end of September 2026, we found no draft approved by the cabinet.

Because dates in the debate constantly get mixed up, it is worth separating three levels:

  • Deadline for the legislator: 7 June 2026. It has expired. This concerns the state in the first instance, not your company.
  • Obligations for private employers: In principle, these only arise once the German implementing law is in place. Until then, the Pay Transparency Act of 2017 applies, with its right to information in companies with more than 200 employees. However, courts must interpret existing law in line with the directive; more on this in the next section.
  • Gender pay gap reporting: The directive staggers this obligation by company size. Employers with 250 or more employees report for the first time by 7 June 2027 and annually thereafter. Those with 150 to 249 employees also report by 7 June 2027, then every three years. For 100 to 149 employees, the first deadline is 7 June 2031. It is not yet certain whether the German legislator will adopt these dates unchanged.

For personnel selection, the middle level is the most interesting. The directive's rules on recruiting are worded so clearly that there is little room for a different implementation.

What the directive requires in recruiting

Article 5 governs "pay transparency prior to employment". It explicitly applies to job applicants, in other words to people who do not yet work for you. The following requirements are relevant to your selection process:

  • Applicants are entitled to information about the starting salary or its range, based on objective, gender-neutral criteria, and where applicable about the collective agreement that applies. The directive names the job advertisement, the time before the interview or "otherwise" as possible channels.
  • The employer may not ask applicants about their pay history in current or previous employment. According to Recital 33, the employer should also not actively seek this information by other means.
  • Job advertisements and job titles must be gender-neutral, and the process must be non-discriminatory.

The real bite lies in Article 18. If an employer breaches these transparency obligations and a dispute about pay discrimination arises, the employer must prove that there was no discrimination. The only exceptions are breaches that were obviously unintentional and minor. Anyone who routinely asks about salary therefore weakens their own position in any later proceedings.

Does this already apply today? According to the Personalwirtschaft article linked above, labour lawyers at the law firm Görg consider it possible that courts could already derive the ban on asking about pay and the duty to disclose salary from pre-contractual obligations under the German Civil Code (Sections 311(2) and 241(2) BGB). Individual judges at the Federal Labour Court share this view, but it is disputed in legal literature. So it is not certain. But if you hire an executive today, they will still be working for you long after the law has come into force.

Why executive search is particularly affected

Little changes for positions paid under collective agreements, where salaries are already set out in pay tables. For positions outside collective agreements, the picture is different. Anyone looking for a plant manager, a commercial managing director or a Head of Engineering usually negotiates freely. Until now, the most convenient anchor for this negotiation has been the candidate's current salary, often supplemented by bonus, company car and pension provision.

These are exactly the components the directive covers. Besides base salary, "pay" explicitly includes supplementary and variable components; Recital 21 mentions bonuses and occupational pensions, among others. In our reading, the ban therefore also covers the familiar question about target bonus and company car.

The background: according to the Federal Statistical Office (Destatis), women earned on average 16 percent less per hour than men in 2025, and 17 percent less in the private sector. Once differences in occupation, industry, part-time work and level of requirements are factored out, 6 percent remains that the statistical model does not explain. Anyone who bases every new position on the previous salary carries an existing gap from one employer to the next.

An example from consulting practice, anonymised and for illustration: A mid-sized machine builder is looking for a head of design. Two candidates reach the final round, professionally on a par. The female candidate works at a smaller family business with noticeably lower salary levels, the male candidate at a supplier belonging to a large group. If the offer is based on the previous salary, several tens of thousands of euros can quickly separate two offers for the same role. Under the new rules, exactly this difference becomes a risk as soon as someone asks for the average pay of comparable positions.

Our position on this is clear. Salary history has always been a weak anchor. It says a lot about the previous employer's pay policy and little about the value of the role you want to fill. The directive forces companies to answer a question they should have asked first anyway: what is this position worth to us?

That leaves the question of whether an executive search consultant may still ask about salary when the employer no longer may. The directive is addressed to the employer, but through Recital 33 it also obliges the employer not to actively seek information about pay history. A search via third parties in which exactly this information is collected and passed on is therefore, in our view, not a safe workaround. A binding answer will only come from the German law or from case law.

How does a salary negotiation work without salary history?

The process moves forward. Pay is no longer derived from the CV at the end; it is defined before the first contact. In practice, this means:

  1. Evaluate the position. Article 4 names four criteria for the value of work: skills, effort, responsibility and working conditions. Document in writing how the position is classified against them.
  2. Define the range. Derive a salary band from this and compare it with market data. Internal benchmarks are often missing for executive roles outside collective agreements in mid-sized companies; external salary benchmarks help here.
  3. State the range early. Many leadership positions are filled discreetly and without a public advertisement. In that case, the range belongs in the first qualified conversation at the latest, before the interview with the company.
  4. Ask about expectations. The directive prohibits asking about pay history in previous employment. It does not prohibit asking about salary expectations.
  5. Justify deviations. According to Recital 32, a salary outside the stated range can still be negotiated. Document why: rare specialist knowledge, additional responsibility, relocation.

For direct approach, this has a welcome side effect. Anyone approaching passive candidates is competing with their secure current position. A clear salary range in the first conversation saves both sides weeks if expectations are far apart.

What you should prepare now

This is not a major project. Most adjustments concern forms, interview guides and habits. Check these points before you fill your next leadership position:

  • Remove fields such as "current salary" or "last bonus" from application forms and your applicant tracking system
  • Adapt interview guides and replace the salary question with a question about expectations
  • Create a documented job evaluation and a salary band for every position outside collective agreements
  • Check job advertisements and job titles for gender-neutral wording
  • Inform external service providers, from executive search consultancies to assessment providers, about the new rules
  • Document in writing the reasons for pay differences between comparable positions

The last point goes beyond recruiting. Once the law applies, employees can request information under Article 7 about the average pay of comparable colleagues, broken down by gender. The answer must be given within two months. Any hire you negotiate today without a traceable justification may then become the subject of such a request.

How a structured search runs from job evaluation to contract is described in our article Executive search consultancy: what it does and when it pays off.

Note: This article reflects the state of legislation at the end of September 2026 and does not replace legal advice.

Frequently asked questions

Does the Pay Transparency Directive already apply to my company?

For private employers, new obligations in principle only arise with the German implementing law. Until then, the Pay Transparency Act of 2017 applies. However, courts interpret existing law in light of the directive, and some voices already derive obligations in the application process from the German Civil Code today. Preparing now is therefore sensible.

May I ask applicants about their salary expectations?

The directive prohibits asking about pay in current or previous employment. It does not prohibit asking about salary expectations. Ideally, ask after you have stated the range for the position yourself.

Does the salary range have to appear in the job advertisement?

Not necessarily. The directive names the job advertisement as one option but also allows the information to be provided before the interview or in another way. What matters is that applicants know the range before pay is negotiated. How exactly Germany regulates this will only become clear with the implementing law.

Does the ban on asking about pay also apply to headhunters?

The directive is addressed to the employer. However, it also prohibits the employer from actively seeking information about pay history. Using an executive search consultancy as a workaround is therefore legally risky. Reputable consultants adapt their process to salary ranges and expectations.

When do mid-sized companies have to report on the gender pay gap?

Under the directive, employers with 150 to 249 employees report for the first time by 7 June 2027, and those with 100 to 149 employees by 7 June 2031, each every three years thereafter. Below 100 employees, reporting is voluntary unless the German legislator decides otherwise. The final dates for Germany will be set by the implementing law.

Fill leadership positions transparently and precisely

Are you planning to fill a key position and want to align pay and the selection process with the new rules from the outset? Schlagheck + Radtke supports companies with executive search, from job evaluation to contract signature, and prepares salary benchmarks for your position as part of our HR consulting. Talk to us in Düsseldorf, Munich or Ulm: get in touch.

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What is a headhunter? Definition and meaning

Graphic: red question mark with crosshair on the topic “What is a headhunter?”

What is a headhunter? Definition and meaning

There are currently 1,975 search and recruitment consultancies in Germany, according to the Federal Association of German Management Consultants (BDU). Roughly three quarters of their revenue comes from a single discipline: executive search, usually called headhunting in everyday speech.

The short answer: a headhunter is a search consultant who, on behalf of a company, approaches individual specialists or executives who are not looking for a job at all. They are paid by the company, not by the candidate. In casual use the term is often treated as a synonym for a placement agency, but in practice it describes a narrower mandate: direct approach instead of an applicant database.

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What is a headhunter? Definition and meaning

Translated literally, headhunter means exactly what it says, and the image captures the way of working rather well. Instead of waiting for applications, a headhunter actively looks for people who could already fill a given position today, usually at another employer. Formally, "headhunter" is not a protected job title but a colloquial name for search consultants who specialise in direct approach. In job ads, on LinkedIn profiles and in everyday speech the term is used inconsistently, which adds to the confusion about where it ends and placement or executive search begins.

The BDU divides the sector by revenue: the top 25 firms with more than 7.5 million euros in annual revenue, mid-sized consultancies between 1 and 7.5 million, and boutiques below 1 million. Of the 1,975 consultancies in Germany, the great majority belong to that last group: small, often sector-specialised teams, which is where most owner-managed executive search firms serving mid-sized industry sit. The number of providers has fallen by around 200 against the previous year, and employment in the sector stands at roughly 14,225. That suggests the market is consolidating more strongly now than it was a few years ago.

What does a headhunter actually do?

The core of the work is research, not selling. Before a headhunter approaches anyone, they map the relevant market: who works in a comparable role at which competitor, who has been promoted recently, who fits professionally and in terms of span of control. Only then does the approach itself begin. In larger consultancies the work is usually split between a consultant, who owns the mandate, and a researcher, who handles the market mapping. In smaller specialised firms both often sit in one pair of hands.

  • Working out the requirements profile together with the client, usually through a detailed briefing conversation covering the role, the company culture and the span of control
  • Market mapping and identification of potential candidates, often across sectors via networks, professional associations and platforms such as LinkedIn
  • A discreet first approach by phone or in person, combined with an initial suitability screening
  • In-depth interviews, sometimes supplemented by management diagnostics or structured reference conversations
  • Presentation of a shortlist to the client and support through to the signing of the contract

How little German companies have so far made of this channel shows up in a 2023 survey by CleverConnect, reported by the trade journal Personalwirtschaft: only 20 per cent of working people surveyed in Germany said they had ever been contacted through active sourcing. In France the figure was 27 per cent, in Italy 24. Direct approach here is therefore still a channel with plenty of room to grow, not a mass phenomenon. For companies that means the reverse is also true: search deliberately and you will run into candidates who have already been approached several times less often than in countries with a more intensive sourcing culture.

Headhunter, placement agency or executive search: where is the difference?

In job ads and everyday speech all three terms get thrown around interchangeably. Set out cleanly, it looks like this:

Term Who searches? Who pays? Typical target roles
Placement agency Candidates mostly come forward themselves; the agency matches them against open roles Usually the company, sometimes only on a successful placement Specialists, administrative roles, middle levels
Headhunter / direct approach Active, targeted approach to individual people in the market The commissioning company only Specialists, experts and executives
Executive search As a headhunter, with a structured method and usually management diagnostics The commissioning company only Managing directors, senior executives

In practice headhunting and executive search overlap heavily. Many consultancies, Schlagheck + Radtke among them, with sector focuses in automotive, mechanical engineering, medical technology, construction, plastics and chemicals, and IT, use the terms interchangeably depending on the audience. The BDU records that executive search, at 79 per cent of revenue, remains by far the sector's most important business, well ahead of classic placement. The practical difference from placement shows up above all at the starting point of the search. A placement agency usually works from a pool of candidates who have already signalled interest. A headhunter starts from zero, with a list of names built backwards from the target role rather than forwards from an existing pool.

How does a headhunting mandate run?

  1. First conversation and briefing: the requirements profile, company culture, salary range and timetable are agreed together
  2. Market analysis and creation of a longlist of potential candidates based on the requirements profile
  3. Discreet direct approach and a first screening by phone, usually outside the working hours of the person being approached
  4. Interviews in person, where appropriate supplemented by management diagnostics or technical tests
  5. Presentation of a shortlist, usually of three to five people, including an assessment of fit and motivation
  6. Interviews at the client and support through the contract negotiation
  7. Support during the onboarding phase, often combined with a contractual guarantee to search again should the appointment fail within an agreed period

An example from practice, anonymised and given for illustration: a mid-sized mechanical engineering company is looking for a new head of production, the current post-holder is retiring and the internal posting produces nothing. The headhunter identifies candidates in the market with a comparable span of control at competitors and suppliers, makes the first approach discreetly outside working hours, and presents a shortlist of four people after a few weeks. The company had not heard of two of them, even though both worked in the same region. A conventional job ad rarely produces a hit like that, because neither person was looking at the time they were approached.

"Most mid-sized companies do not come to us as a precaution. They come once the position has been open for several weeks and the usual channels have stopped producing anything." An executive search consultant at Schlagheck + Radtke (name anonymised for reasons of discretion).

What does a headhunter cost?

If you are looking for a new role yourself and a headhunter has approached you, the answer is simple: you pay nothing. The fee is paid, without exception, by the commissioning company. Two models are essentially in use in the sector: a pure contingency fee, due only when the candidate signs, or a retainer model with instalments across the course of the project. For executive search mandates the retainer is the rule, often split into three instalments: on commissioning, on presentation of the shortlist and on signature. The reason lies in the nature of the work. Market mapping, discreet approach and diagnostics take effort regardless of whether the search ends successfully, and so they have to be financed regardless of the outcome too.

A look at how the market is actually positioned helps you judge which roles justify such a mandate in the first place. According to the BDU, the sector's core business concentrates on annual salaries between 100,000 and 250,000 euros; mandates below 100,000 play only a minor role. If you want to fill an administrative position, you are more likely to end up with a classic placement agency than with an executive search mandate.

When is a headhunter worth it for a mid-sized company?

Not every open role needs a direct approach. Before commissioning one, check whether one or more of the following applies to your vacancy:

  • The position is so specialised, professionally or in its span of control, that the active candidate market produces hardly any suitable profiles
  • The replacement has to be handled discreetly, for instance because the current post-holder is still in office
  • Your own postings and job portals have produced nothing for weeks
  • Sector knowledge and an existing network in the target industry matter more than the sheer number of applications
  • The role sits in the salary segment where, according to the BDU, most of the sector's mandates are anyway, meaning above roughly 100,000 euros a year

For smaller roles that the labour market can fill readily, the effort of an executive search mandate is rarely justified. Look first at your own candidate pool and at the usual job portals before you consider a direct approach. What a search consultancy can do beyond that, and when commissioning one pays off at all, depends heavily on the individual case, from how urgent the vacancy is to how much discretion you need towards your own team.

Frequently asked questions about headhunters

Do I have to pay anything as a candidate if a headhunter contacts me?
No. The fee is borne in every case by the company that issued the mandate. Reputable headhunters ask candidates for no payment, neither for the approach nor for the placement.

How do I recognise a reputable headhunter?
By transparency about the client, by a concrete requirements profile rather than vague promises, and by the fact that they never ask the person approached for money. How they handle confidential information about your current employer also says a lot.

How long does a typical executive search take?
That depends heavily on the position, the sector and the demands of discretion. Blanket figures in weeks are best treated with caution; a more realistic picture comes from looking at your own starting position in a first conversation with the consultancy.

Do headhunters only work for large corporations?
No. The majority of Germany's 1,975 search consultancies are smaller, specialised firms whose mandates frequently come from mid-sized industry rather than from listed corporations.

What is the difference between active sourcing and headhunting?
Active sourcing is the technique of searching for candidates actively, through networks or databases. Headhunting describes the whole consulting mandate, of which active sourcing is one element alongside diagnostics and support.

Are you filling a specialist or leadership position where the usual channels are not getting you anywhere? Schlagheck + Radtke supports mid-sized companies in automotive, mechanical engineering, medical technology, construction, plastics and chemicals, and IT, from the first market analysis through to the signed contract. Get in touch with one of our offices in Düsseldorf/Meerbusch, Munich or Ulm and talk through your open position with no obligation.

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Termination during the probationary period: Deadlines, rights & mistakes

Businesswoman reviewing documents at her desk

Termination During the Probationary Period: Deadlines, Rights & Mistakes


Termination during the probationary period is one of those employment law procedures where employers quickly stumble. Short deadlines, formal hurdles, special cases. Much of it looks simpler than it is. Anyone terminating during the probationary period does have more room to manoeuvre than afterwards, but that room isn't unlimited. A formal mistake can render the termination invalid and create costs. This article sets out the key rules, names the most common mistakes, and shows what still needs handling after the separation. Factual, compact, from the employer's perspective.

Termination during the probationary period: what employers need to know

During the first six months of an employment relationship, a relaxed right of termination applies. The general Dismissal Protection Act (Kündigungsschutzgesetz) doesn't yet apply during this phase. That means: the employer can terminate during the probationary period without giving a reason and doesn't have to provide social justification.

That's exactly the difference from termination after the probationary period. After that, a recognised reason for termination is needed, for example operational, personal, or conduct-related. During the probationary period, that hurdle falls away. The separation is legally easier to carry out.

Easier, however, doesn't mean informal. Anyone who breaches the written form requirement, miscalculates the deadline, or overlooks a special case risks an invalid termination. The employment relationship then continues, even though it was meant to end.

More than just administrative effort is at stake. A failed termination costs time, ties up resources, and strains relationships within the team. It's therefore worth taking a close look at the details.

Termination deadlines during the probationary period: statutory rules at a glance

The statutory basic deadline is clearly regulated. Under Section 622(3) BGB, the notice period during an agreed probationary period is two weeks. This deadline applies to both sides, for employers as well as employees.

The difference from the regular deadline matters. Without a probationary period agreement, the longer basic deadlines under Section 622 BGB apply, usually four weeks to the 15th of the month or to the end of the month. The shortened two-week deadline therefore requires a validly agreed probationary period.

Calculating it is simpler than many assume. The two-week deadline isn't tied to a specific calendar date. It runs from the day the notice of termination reaches the employee.

An example: if the notice reaches the employee on a Monday, the employment relationship ends fourteen days later. What matters is receipt, not the date it was sent. Employers should therefore always document receipt, for example through personal handover with a witness.

A common mistake concerns the end of the deadline. The termination itself must still be issued within the probationary period. Receipt must occur before the six months are up. The end of the notice period itself may fall after that.

What applies if the employment contract sets shorter or longer deadlines?

Contractual deviations are possible, but not in every direction. A longer deadline than two weeks can be set out in the employment contract without further ado. Many companies agree, for example, on four weeks even during the probationary period.

With a shorter deadline, caution is needed. The two-week deadline cannot be undercut by individual contract. Shortening it is generally only permissible via collective bargaining agreement, and only within the framework set there.

A special case applies to short casual employment relationships. Here, the law allows deviating rules under certain conditions. For classic permanent or specialist positions, however, the two-week limit remains in place.

For employers, that means: checking the specific contract and any applicable collective agreement is essential. Where a longer deadline applies, that one is decisive. Anyone using the wrong deadline risks a dispute over the end date. Details can be looked up in an overview of termination deadlines.

How long can the probationary period last at most?

The statutory maximum is six months. A probationary period, for the purposes of the shortened notice period under Section 622(3) BGB, cannot be agreed for longer than that. This limit is deliberately set and cannot be extended by the employment contract.

What happens if too long a probationary period is set? If, say, an eight-month probationary period is agreed, the shortened notice period only applies for the first six months. After that, the regular deadlines apply.

A second deadline runs in parallel. General protection against dismissal under the KSchG kicks in from the seventh month of employment, regardless of what the contract says about the probationary period. Anyone terminating after six months is, legally speaking, no longer terminating "during the probationary period".

Termination by the employer: requirements and common mistakes

Even the simplified termination follows fixed formal requirements. The most important point: written form under Section 623 BGB. The termination must be on paper and personally signed. A termination by email, WhatsApp or text message is invalid.

The second critical point is receipt. The termination only becomes effective once it actually reaches the employee. With personal handover, receipt applies immediately. By post, what counts is when it's placed in the letterbox, not when it's collected.

Typical mistakes cost employers validity. These include:

  • Termination without a handwritten signature, or only as a scanned file
  • Signature by a person without authorisation, and no proof of power of attorney
  • No proof of receipt by the employee
  • Receipt only after the six-month limit has passed

The termination letter itself stays lean. It names the parties to the contract, clearly states the termination, and specifies the end date or refers to the applicable deadline. Wording such as "alternatively, ordinary termination at the earliest possible date" creates certainty if the deadline calculation is later disputed.

Care is needed with the signature. If an authorised signatory or HR manager issues the termination, their authority to represent the company should be evident. Otherwise, the employee can reject the termination. A template for a termination letter can rule out formal mistakes from the outset.

Does the employer have to state a reason for termination?

No. During the probationary period, the employer does not have to give a reason for termination. Since the general Dismissal Protection Act doesn't yet apply, there's no obligation to provide social justification. A brief termination letter without explanation is sufficient.

There are limits, though. The termination must not be immoral or in bad faith. Nor may it violate the anti-discrimination provisions of the AGG. Termination because of origin, gender, religion, age or disability is impermissible, even during the probationary period.

On top of that come cases of special protection against dismissal. These apply regardless of the probationary period and can block a termination even where no reason needs to be given. More on that in the next section.

Special cases: when protection against dismissal applies even during the probationary period

Special protection against dismissal knows no probationary period. Certain groups of people are protected from day one. Anyone who overlooks this terminates into thin air and risks significant consequences.

Pregnancy and maternity protection. Under the Maternity Protection Act, terminating a pregnant employee is generally impermissible. This protection also applies during the probationary period. Termination is only possible with prior approval from the responsible authority. If the employer didn't know about the pregnancy, it can still be reported retrospectively within a certain deadline.

Severe disability. For severely disabled people, special protection against dismissal under SGB IX applies. This protection, however, only takes effect after six months of continuous employment. In the first six months, termination without the integration office's consent is still possible.

Parental leave. Anyone on parental leave, or who has validly requested it, enjoys special protection against dismissal. Here too, termination is only permissible with official approval, again regardless of the probationary period.

The consequences of a breach are clear. A termination issued without the required approval is invalid. The employment relationship continues, and claims for pay due to delayed acceptance of work can arise. Employers are well advised to briefly check for a special case before every probationary-period termination. Legal advice on employment law protection against dismissal is worthwhile if in doubt.

Summary dismissal during the probationary period: when is it permitted?

Even during the probationary period, an extraordinary, summary dismissal is possible. It's based on Section 626 BGB. It requires good cause that makes it unreasonable to continue the employment relationship even until the end of the two-week notice period.

The requirements are strict. Good cause only exists in the case of serious breaches of duty. In many cases, a prior warning is also required, unless the misconduct is so severe that a warning becomes unnecessary.

Typical examples from practice:

  • Theft or embezzlement at the employer's expense
  • Physical assault or serious insults in the workplace
  • Persistent refusal to work despite being asked to do so
  • Feigning incapacity to work

The two-week deadline under Section 626(2) BGB must be observed. The summary dismissal must be issued within two weeks of the employer learning of the grounds for dismissal. Anyone who hesitates loses the right to dismiss summarily.

In practice, summary dismissal during the probationary period is rarely needed. In most cases, ordinary termination with the short two-week notice period is sufficient. The extraordinary variant remains reserved for exceptional cases.

What employers need to settle after the termination

Once the termination has been issued, the work isn't done. Several points belong to a clean close. A short checklist helps make sure nothing is overlooked.

Reference letter. The employee is entitled to a reference letter even after a short period of employment. More on that below in the FAQ.

Remaining holiday. The pro-rata holiday entitlement must be calculated and either granted or paid out. One twelfth of the annual holiday entitlement per full month of employment is the rule of thumb.

Garden leave. Releasing the employee from work for the remaining time is often sensible. It should be done in writing and specify whether it's offset against remaining holiday.

Return of work equipment. Laptop, company phone, keys, access cards and company car need to be reclaimed. A handover list creates clarity.

Social insurance and pay. The employee must be deregistered from social insurance. The final payslip, the income tax certificate, and the employment certificate for the employment agency need to be issued.

A structured offboarding process saves time and avoids later claims. Much of it can be standardised, so that every separation follows the same pattern.

Avoiding bad hires: what the probationary period can really achieve

The probationary period is a testing tool, not a repair tool. It shows whether the professional and cultural fit is right. But it can't fix a weak initial selection. Anyone who has to terminate during the probationary period has often made the real mistake earlier.

A bad hire is expensive. Lost onboarding time, another search, lost productivity. For a key position, the costs add up quickly. For the Mittelstand, competing for specialists without a big brand name, that weighs especially heavily.

Two levers reduce the risk. The first is proper shortlisting. When professional requirements and cultural fit are cleanly checked before hiring, the likelihood of a separation drops. This is exactly where management diagnostics comes in: structured procedures instead of gut feeling in the interview.

The second lever is onboarding. Clear expectations, defined goals for the first months, regular feedback conversations. Anyone who actively supports the probationary period spots friction early and can course-correct before a termination becomes necessary. A separate article shows which phases onboarding involves.

For hard-to-fill key positions in a picked-clean market, a precise placement is decisive. Schlagheck + Radtke combines executive search with management diagnostics and onboarding support, at our locations in Dusseldorf, Munich and Ulm, with industry focus areas in mechanical engineering, automotive and IT. Direct approach instead of job boards, discreet and precise. The goal: a placement that works both professionally and culturally, and that lasts. More on the Executive Search service page.

Frequently asked questions about termination during the probationary period (FAQ)

Can the employer terminate during the probationary period without giving reasons?

Yes, during the probationary period the employer can generally terminate without giving reasons, because the general Dismissal Protection Act only applies after six months. Exceptions exist for discrimination under the AGG, and for special protection against dismissal, for example during pregnancy or parental leave.

How much notice applies during the probationary period?

During the probationary period, a statutory notice period of two weeks applies under Section 622(3) BGB. The employment contract or a collective bargaining agreement may provide for a longer deadline; a shorter one than two weeks is only permissible via collective bargaining agreement.

What happens to holiday entitlement on termination during the probationary period?

On termination during the probationary period, a pro-rata holiday entitlement of one twelfth of the annual holiday applies per full month of employment. Untaken pro-rata holiday must be paid out. Holiday already granted beyond the pro-rata entitlement generally cannot be reclaimed.

Does general protection against dismissal already apply during the probationary period?

No, general protection against dismissal under the KSchG only applies after six months of uninterrupted employment. For employers, that means: in the first six months, termination is possible without social justification, but form and deadline must still be observed.

Does the employer have to issue a reference letter when terminating during the probationary period?

Yes, the employee is entitled to a reference letter even after a short period of employment. On request, a qualified reference with an assessment of performance and conduct must be issued; otherwise, a simple reference covering the type and duration of employment is sufficient.

Next step: placements that last

A termination during the probationary period can be handled in a legally sound way. It's better not to need one at all. Anyone who fills key positions precisely saves themselves costly separations and doesn't start from scratch every few months.

Are you filling a business-critical position and not finding suitable candidates through the usual channels? Talk to Schlagheck + Radtke. Executive search, management diagnostics, onboarding support. For clients and candidates, we are partners. Get in touch.

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Ulm: City, history & tips 2026

Blick auf die Donaustadt Ulm mit Münster und historischer Altstadt am Flussufer

Ulm: city, history & tips 2026

Ulm packs an unusual amount of history, science and industry into a small space. The city sits on the Danube in the south-east of Baden-Württemberg, right on the Bavarian border. Most people think first of the Minster with the tallest church spire in the world. But there is more to it. A centre for research. An industrial hub. And for specialists and executives, a place with a high quality of life. This article sets out the facts about Ulm, walks through its history, names the sights that are worth your time and looks at the city as a business location. Compact, practical and up to date for 2026.

If you want to understand why Ulm matters professionally and economically rather than simply visit it, this overview gives you the orientation you need.

Ulm at a glance: figures, location and character

Ulm lies in the south-east of Baden-Württemberg, on the left bank of the Danube. On the other side of the river Bavaria begins, and with it the independent town of Neu-Ulm. The two form one continuous urban area, but they are administratively separate and belong to different federal states.

The population of Ulm is around 130,000, officially 130,288 as of 31 December 2025. Together with Neu-Ulm, the conurbation is considerably larger. That makes Ulm a regional centre serving a wide catchment area between Stuttgart and Augsburg.

The geography is an advantage. Ulm sits at the meeting point of two large economic regions: greater Stuttgart to the west and greater Munich to the east. Both are easy to reach. That makes the city interesting for companies and commuters alike.

What sets Ulm apart comes down to a few points:

  • The Danube shapes the townscape. Ulm counts as one of Germany's most important Danube cities. The river separates Ulm from Neu-Ulm and historically connects the city with the whole Danube region as far as Vienna and Budapest.
  • Ulm Minster is the landmark. Its spire holds a world record and is visible from far away.
  • The status as a city of science rests on Ulm University, several other higher education institutions and one of the significant research locations in southern Germany.

Ulm combines tradition and modernity. Former Free Imperial City, young research location. That mixture runs through the entire history of the place.

The history of Ulm: from Imperial City to modern research location

Ulm goes back a long way. The first documentary mention dates from 854, when King Louis the German confirmed a royal palace on the site. That early palace was where it all started.

Over the centuries Ulm grew into one of the wealthiest cities of the Holy Roman Empire. The rise to Free Imperial City laid the foundation. Trade, craft and shrewd politics made Ulm powerful. Work on the Minster from 1377 onwards gave that self-confidence a visible form.

Then came the breaks. The loss of imperial immediacy, the transfer to Bavaria and later to Württemberg, industrialisation and finally the heavy destruction of the Second World War. After 1945 Ulm rebuilt itself. Out of the ruined city grew a modern location for science and industry. The sections below set out that development.

The Middle Ages and the years as a Free Imperial City

Ulm received its town charter in 1181. From then on things moved upwards. The town lay on important trade routes and profited from long-distance commerce. Trade in fustian, a mixed fabric of cotton and linen, brought particular wealth. Merchants from Ulm were active across Europe.

In 1274 King Rudolf of Habsburg confirmed the town's privileges. Ulm became a Free Imperial City, answering directly to the emperor rather than to a territorial ruler. That independence was the basis for a long period of prosperity. The territory controlled by Ulm grew into one of the largest city domains in the empire.

Economic success showed in the architecture. In 1377 the citizens laid the foundation stone of Ulm Minster. Worth noting: the town financed the building itself, without a bishop or a prince. The Minster was a citizens' project. Pride and prosperity, in stone.

Ulm reached the height of its power in the 15th and early 16th centuries. It was among the largest and richest towns in southern Germany. Art and craft flourished. Sculptors and painters such as Hans Multscher shaped a distinct Ulm school.

With the Reformation, Ulm adopted the Protestant faith in 1530. The religious and political conflicts of the following decades weakened the town, however. The Thirty Years' War hit Ulm hard in the 17th century. Trade declined, the population shrank. The great era as a leading Imperial City slowly came to an end.

The 19th and 20th centuries: industry, war and reconstruction

In 1802 Ulm lost its status as a Free Imperial City and passed first to Bavaria. In 1810 the part of the city on the left bank of the Danube went to the Kingdom of Württemberg. Neu-Ulm on the right bank stayed Bavarian. That division still has effects today: two cities, two federal states, one conurbation.

From the 1840s onwards Ulm was expanded into a federal fortress. The extensive fortifications were meant to secure the German Confederation against France. Parts of them still shape the townscape and some are open to visitors.

Industrialisation reached Ulm with the railway. The rail connection came in 1850. Factories were built. The city grew. Mechanical engineering, vehicle construction and metalworking settled here. Ulm developed into an industrial centre on the Danube.

The Second World War marked a caesura. On 17 December 1944 a heavy air raid destroyed large parts of the old town. Much of the historic building stock was lost. The Minster survived largely intact, but the city around it lay in ruins.

Reconstruction began after 1945. Ulm opted for a modern redesign while keeping important buildings and quarters. The Fischerviertel was restored. New residential districts and industrial estates were built. In 1967 the state founded Ulm University. That step laid the ground for today's research city. The ruined Imperial City became a location for research, technology and industry.

Sights in Ulm: what you really should have seen

Ulm has more sights than a day trip can hold. But a few belong on every list. What follows is a selection with a clear benefit for visitors rather than a catalogue.

Four destinations stand out. Ulm Minster as the landmark. The Fischerviertel as the historic heart. The city wall along the Danube. And the Kunsthalle Weishaupt for modern art.

The four combine well into a single day. They lie close together in the old town. First-time visitors cover the essentials with them: history, architecture, atmosphere and culture.

The next two sections go into detail on the two most important of them. The Minster and the Fischerviertel are worth a closer look.

Ulm Minster: the tallest church spire in the world

At 161.53 metres, Ulm Minster has the tallest church spire in the world. That figure is undisputed and makes the Minster the best-known building in the city. Construction started in 1377 and was only completed in 1890, more than 500 years later.

Anyone climbing the tower can expect a panorama. 768 steps lead to the highest accessible platform at around 143 metres. In clear weather the view reaches the Alps. The climb is demanding but manageable. Sturdy shoes and a head for heights help.

The Minster is a Protestant church. Despite its size it is occasionally called a cathedral, which is strictly speaking wrong. A cathedral is the seat of a bishop, and Ulm Minster never was one. It was and remains a citizens' church.

Fischerviertel and the Crooked House: Ulm off the tourist trail

The Fischerviertel lies south-west of the Minster, right on the water. The small river Blau and a network of channels run through narrow lanes. Half-timbered houses, cobblestones and old mills define the picture. After the monumental Minster, this is the intimate counterpoint.

The best-known building is the Schiefes Haus, the Crooked House. It is considered one of the most tilted hotels in the world and is well documented as such. The half-timbered building from the 14th century leans noticeably towards the Blau. Today it is run as a hotel. From the outside it is a popular photo subject.

Historically the Fischerviertel was the quarter of the fishermen, tanners and boatmen. Proximity to the water determined the trades. Restaurants, cafés and small shops shape the district today. The food ranges from Swabian cooking to modern kitchens.

Visitors do best to walk without a fixed destination. The nicest corners turn up while strolling. Good spots for photographs are the bridges over the Blau, the view of the Crooked House and the old half-timbered façades along the water. In the evening the quarter is at its most atmospheric.

One aside: from here it is a short walk to the city wall and the Danube. Combine the Fischerviertel with a walk along the river and you see Ulm at its quietest.

Business and companies in Ulm: why the location matters

Ulm is a strong business location. That is often underestimated. Anyone who only knows the sights misses the industrial and technological base of the city. For companies and skilled professionals it is precisely this side that counts.

The location benefits from its position between Stuttgart and Munich. Both regions are closely tied to the automotive and mechanical engineering industries. Ulm sits in the middle. Suppliers, technology companies and research institutions shape the region.

Several sectors define the economic profile:

  • Automotive and mechanical engineering: The region is closely interlinked with the southern German vehicle and supplier industry. Numerous mid-sized firms manufacture components and systems for carmakers. Wieland-Werke AG, headquartered in Ulm since 1820, is one example. The copper specialist employs around 9,600 people at more than 80 sites worldwide, according to its own figures, and supplies heat exchangers, plain bearings and connector materials to the car industry and e-mobility.
  • Medical technology and life sciences: Ulm is a centre for medical technology. University, university hospital and companies form a dense network. The sector counts as one of the fastest growing in the region.
  • IT, electronics and defence: Companies from information technology and defence electronics are based in and around Ulm. Sensor technology, communications engineering and software development play a large part. HENSOLDT is the clearest example. At its Ulm site the MDAX-listed sensor group develops and produces radars, electronic warfare systems and high-frequency electronics with around 3,000 staff, most of them engineers, as the company states. The site traces its roots back to Telefunken and AEG.
  • Research and science: Ulm University and non-university institutes drive innovation. The research campus connects basic research with industrial application, for example in battery and energy research.

This mix makes the location resilient. Ulm does not depend on a single industry. Automotive, medical technology, IT and research complement one another. That cushions economic swings and creates a broad range of jobs.

Ulm University is more than a teaching institution. It is an engine for innovation and a source of talent at the same time. Spin-offs and industrial partnerships are everyday business. For technology-driven companies, being close to that research is a tangible advantage.

For anyone responsible for hiring in industry and technology this profile has a concrete consequence. Competition for qualified specialists and executives in Ulm is intense. Many strong employers compete for the same people. An empty market for certain senior positions is not the exception here, it is everyday reality.

This is where professional recruitment consultancy comes in. When a senior position in mechanical engineering, in IT or in the SAP environment stays vacant for months because the usual channels produce no suitable applicants, there is little way around executive search and targeted direct approach. The right candidates are usually in permanent employment already and are not actively looking. You reach them only discreetly and directly.

Schlagheck + Radtke is rooted in the region with an office of its own in Ulm. Being close to the industrial and technology companies of the region is deliberate, not coincidence. Knowing the local market means filling positions more precisely.

Working and living in Ulm: what makes the city attractive for specialists and executives

Ulm scores as a place to live, not only as a business location. For specialists and executives considering a move, the soft factors often weigh as heavily as the salary. And here the city has arguments.

The quality of housing is high. Ulm offers a manageable size with an urban range of options. Culture, restaurants and shopping are all there without the city feeling anonymous. The surrounding countryside is green. The Swabian Alb, the Danube valley and the Blautopf near Blaubeuren are on the doorstep. For families that counts.

Property prices are below the level of Munich or Stuttgart. That applies to renting as well as buying. Anyone moving to Ulm from a large metropolitan area gains noticeably in living space and quality of life. ImmoScout24 puts the average asking rent in Ulm at 12.08 euros per square metre in the second quarter of 2026. Stuttgart stands at 15.00 euros, Munich at 20.28 euros. For flats to buy, the same source gives roughly 4,200 euros per square metre in Ulm, about 4,700 in Stuttgart and close to 7,900 in Munich. In recruiting, that argument often tips the decision.

Commuting is relaxed compared with the big metropolitan areas. Journeys within the city are short. People living in the surrounding area reach Ulm via well-developed roads and public transport. Traffic jams of the kind familiar from greater Stuttgart or Munich are the exception.

Salary levels are attractive for a mid-sized location. The strong industrial base pays competitive wages, particularly in automotive, mechanical engineering and medical technology. Figures from the Federal Employment Agency for 2025 put the median full-time gross pay in Baden-Württemberg at 4,546 euros a month. The city of Ulm ranks above that state median. Stuttgart leads the state with 5,551 euros. A city-level figure for executives alone is not published. Combined with lower living costs, the ratio of income to spending works out well.

The higher education landscape attracts talent. Alongside Ulm University there is Ulm University of Applied Sciences and further institutions. They produce a large number of graduates every year, especially in technical and scientific subjects. For companies that is a reservoir of young professionals.

For HR decision-makers this produces a double message. Ulm is a strong argument in the competition for candidates. At the same time the market for experienced specialists is fiercely contested. The graduates are there. The experienced managers for senior positions are scarce and usually already committed elsewhere.

For a mid-sized company without a big brand name, convincing top candidates is particularly hard. The well-known corporations pull talent away. Many HR managers know this starting position from experience. It calls for a credible, well-prepared approach that works out the real strengths of the employer. That is what structured executive search combined with management diagnostics delivers: it identifies candidates who fit culturally, not only professionally. And it lowers the risk of a wrong appointment.

Transport and access: getting to and around Ulm

Ulm is well placed for travel. The city is easy to reach by rail, by car and via nearby Stuttgart Airport. That makes it attractive for visitors, commuters and companies.

By rail: Ulm is an important ICE hub. The main station is central, a few minutes on foot from the old town. Since the Wendlingen–Ulm high-speed line opened, journey times towards Stuttgart have become considerably shorter. Long-distance trains connect Ulm directly with Stuttgart, Munich, Frankfurt and other cities.

By car: Ulm lies where two motorways meet. The A8 connects the city with Stuttgart to the west and Munich to the east. The A7 runs north to south, towards Würzburg and Kempten. That position makes Ulm a junction in the southern German motorway network.

By air: The nearest international airport is Stuttgart, about an hour away via the A8. Munich Airport is further off but also reachable. For international business travel Ulm is well connected.

Within the city: Public transport in Ulm and Neu-Ulm is well developed. Tram and bus lines link the districts with the centre. Two tram lines form the backbone of the system. The old town is easy to explore on foot, since the main destinations lie close together.

For Neu-Ulm residents and commuters the crossings over the Danube are decisive. Several bridges connect Ulm and Neu-Ulm. Despite the state border the conurbation works as one unit. Anyone working in Ulm and living in Neu-Ulm crosses that border every day, often without noticing.

Ulm is easy to reach from every direction. That connectivity is a substantial reason why companies settle here and skilled professionals like working here. For executives operating across regions, the central position is a real advantage.

Frequently asked questions about Ulm (FAQ)

These are the questions that come up most often when people research Ulm. Short, direct answers below.

Which federal state is Ulm in?

Ulm is in the federal state of Baden-Württemberg, in the south-east of the state on the Danube. Directly opposite, on the Bavarian side of the river, lies the independent town of Neu-Ulm. Together they form one conurbation across the state border.

What is Ulm famous for?

Ulm is best known for Ulm Minster with the tallest church spire in the world. It is also the birthplace of Albert Einstein. Beyond that the city has a reputation as a research location with a renowned university and as one of Germany's important Danube cities.

How many inhabitants does Ulm have?

Ulm has around 130,000 inhabitants, officially 130,288 as of 31 December 2025. Together with the neighbouring Bavarian town of Neu-Ulm, the joint conurbation is considerably larger.

How far is Ulm from Stuttgart and Munich?

Ulm is about 90 kilometres from Stuttgart and around 150 kilometres from Munich. By rail you reach Stuttgart via the high-speed line in roughly 40 minutes on the fastest ICE services and Munich in roughly 1 hour 10 minutes on the fastest direct ICE. By car on the A8, allow around one to one and a half hours in either direction, depending on traffic.

What can you do in Ulm in one day?

In a day in Ulm you can visit the Minster with an optional climb up the tower, wander through the Fischerviertel and walk along the Danube and the old city wall. A good sequence: the Minster in the morning, lunch in the Fischerviertel, then the Kunsthalle Weishaupt or a walk by the river in the afternoon. With time to spare, add a detour to Neu-Ulm on the other side of the Danube.

Understanding Ulm means using the location

Ulm is more than a city for a weekend trip. Imperial City, Danube city, city of science. And a strong location for industry and technology between Stuttgart and Munich. Get to know the city and its economic weight becomes obvious.

For companies that means Ulm offers an attractive environment along with a contested labour market. Strong employers compete for the same specialists. For senior positions in mechanical engineering, automotive, IT or medical technology, a conventional job advert is often no longer enough.

If you want to fill a demanding position in the region, it pays to talk to a recruitment consultancy that knows the local market. Schlagheck + Radtke has its own office in Ulm and specialises in executive search for industrial and technology companies. Precise. Discreet. Based on partnership.

Do you have a senior position open that the usual channels are not filling? Talk to us about your specific search.

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Onboarding: Definition, phases and mistakes

Neue Kollegin wird vom Team am Laptop eingearbeitet

Onboarding: what it is and how to get it right

Onboarding decides whether a new appointment works out or falls apart after a few months. Especially for senior positions in mid-sized companies. You have finally filled the vacancy, found the right candidate, signed the contract. And then? Then comes the part many companies underestimate. This article explains what onboarding is, why it determines retention and productivity, and what a structured process looks like in practice. For specialists, for executives, for your company.

What is onboarding?

Onboarding is the structured process by which a company integrates new employees professionally, socially and organisationally. It does not start on the first day at work but as soon as the contract is signed. And it does not end after the first week.

The image behind the word is a ship: someone is brought on board. What is meant goes well beyond handing over a set of tasks. Onboarding covers the induction into the job, the integration into the team and getting familiar with the company culture. Which is why it cannot be reduced to a checklist on day one.

Good onboarding gets new employees productive quickly. And it makes them stay. Bad onboarding does the opposite.

Why onboarding determines retention and productivity

The first weeks shape how a new employee sees the company. Anyone who feels lost starts doubting their own decision. Early turnover is the expensive result.

A wrong appointment costs money. The lost induction time, a second search, delayed projects and the strain on the colleagues who have to cover. Studies also put the cost of replacing someone at several times their annual salary. The Center for American Progress reviewed 30 case studies on this question: the median cost of replacing an employee came to 21 per cent of annual salary, and for roles with very specific requirements the figure was considerably higher (Boushey/Glynn, Center for American Progress 2012).

The problem is rarely a lack of professional ability. The candidate fitted the job but not the culture. Once the probation period was over, they were gone. This is where structured onboarding comes in: it closes the cultural gap before it turns into a reason to resign.

Employees who are inducted in a structured way also reach full performance noticeably sooner. That takes pressure off the team. And it justifies the investment in the process.

The three levels of a good onboarding process

Many companies reduce onboarding to professional induction. That falls short. Good onboarding works on three levels at the same time.

The professional level covers tasks, processes, tools and responsibilities. The new employee learns what to do and how to do it. A written induction plan, clear goals and a named contact belong here.

The social level integrates the person into the team. Who are the colleagues? Who decides what? This level often determines whether someone stays or leaves, and it is the one most likely to be neglected.

The organisational level conveys culture, values and the unwritten rules. It answers the question: how do things work around here? For experienced hires this level is sensitive, because they bring habits from earlier employers with them.

Onboarding is only complete once all three levels are covered. Leave one out and a gap opens up that comes back later.

Onboarding phases at a glance: from preboarding to 90 days

Onboarding is not a single event but a process across several phases. A clear schedule helps you to forget nothing and to pick the new employee up step by step.

Preboarding: what counts before the first day

Preboarding covers everything that happens between signing the contract and the first day at work. This phase is often ignored. A mistake.

Weeks or months often pass between the offer and the start date. During that time the new employee may well be looking at other offers. Staying in touch lowers the risk of a cancellation shortly before the start. Early engagement also shows appreciation.

What preboarding looks like in practice:

  • Prepare the workplace, hardware and system access so that everything is ready on day one
  • Send a welcome message or first information about how the start will run
  • Tell the team that a new colleague is joining
  • Clarify practical matters such as directions and who to ask on arrival

These signals reduce uncertainty on both sides.

The first day and the first week

A first impression cannot be repeated. Day one is about orientation and arriving, not about immediate output.

A well-planned first day includes a personal welcome, an introduction round in the team and a workstation that actually works. A prepared schedule also avoids the awkward empty hours.

In the first week, social integration comes first. A named contact, often called a buddy or mentor, accompanies the new person. They answer the small questions nobody wants to book a meeting for. That is how a sense of belonging develops early.

The first 90 days: building productivity and giving feedback

The first 90 days determine whether the induction succeeds. In this phase the new employee builds up expertise and takes on responsibility step by step.

Clear goals give orientation. What should be achieved after 30, 60 and 90 days? These milestones make progress visible. Structured feedback matters just as much. A review meeting after the first few weeks brings problems to light before they escalate. Shortly before the end of the probation period, that conversation is decisive.

What changes when you onboard specialists and executives

Onboarding an experienced executive follows different rules from onboarding a graduate. Ignore the difference and you risk exactly the wrong appointment you set out to avoid.

Specialists and executives bring experience, standing of their own and clear expectations. They do not need to be taught the basics of the job. They need access to decision-making channels, to networks and to the culture. The organisational level weighs heaviest for them.

On top of that, executives are watched from day one. By the team, by their peers, by the management board. A stumbling start damages authority that is hard to rebuild later.

This is where a structured process pays off beyond the appointment itself. As an executive search consultancy, Schlagheck + Radtke supports the placement of senior positions into the induction phase as well. Our onboarding support starts exactly where professional ability and cultural fit have to come together.

Alongside this, management diagnostics provides a solid assessment of how an executive fits the company and the existing team. That reduces the risk of a cultural mismatch before it arises.

It is also worth looking at the executive search process to see how appointment and onboarding interlock.

The German Federal Ministry of Labour and Social Affairs has documented in its guide "Fachkräftesicherung" (in German) which retention measures demonstrably work in practice. The findings confirm it: structured onboarding is among the most effective instruments available.

Common onboarding mistakes and how to avoid them

Most failed onboardings follow the same patterns. Knowing them lets you react early.

No structure. Without a plan, the first day is left to chance. The answer is a written onboarding plan with milestones and clear responsibilities.

No named contact. Anyone with nobody to ask feels lost. A designated buddy or mentor closes that gap.

No feedback loop. Without regular conversations, problems stay hidden until the resignation letter arrives. Fixed review dates after 30, 60 and 90 days are therefore non-negotiable.

Focus on the professional side alone. Training someone without integrating them loses candidates who were perfectly capable. The social and cultural levels belong in from the start.

Too much too soon. Handing over too much responsibility early overwhelms people. Building up in stages protects both sides from early frustration.

Every one of these mistakes is avoidable. Provided onboarding is planned as a process instead of treated as an afterthought.

Frequently asked questions about onboarding (FAQ)

How long does good onboarding take?

Good onboarding usually takes three to six months. For specialists and executives, often longer. What matters is not the exact duration but a structured sequence of clear phases.

What belongs in an onboarding plan?

An onboarding plan contains a schedule for the first day, professional milestones, a named contact as well as goals and feedback dates for the first 90 days. Organisational points such as system access, hardware and the team introduction belong in it too.

What is the difference between onboarding and induction?

Induction is the professional transfer of tasks and processes. It is one part of onboarding. Onboarding is the wider process, which also covers social integration and getting familiar with the company culture.

How does onboarding work remotely or from home?

Remote onboarding works through clear communication, digital tools and planned virtual touchpoints. Because chance encounters are missing, social elements have to be scheduled deliberately. A named contact is therefore even more important in a remote setup.

How do you recognise that onboarding has failed?

Warning signs are an early resignation, no real integration into the team and performance well below expectations. Frequent questions about basics and visible withdrawal point in the same direction. Take those signals seriously early enough and in many cases you can still turn things around.

Your next step

Onboarding is not an end in itself. It is the last step of a successful appointment. And the first of a long-term working relationship.

If you are filling a senior position and want to be sure the new employee fits professionally as well as culturally and stays, talk to us. Partners, advisers, a source of new impulses. Get in touch and we will discuss what a well-matched onboarding process for your vacancy could look like.