German recession: What does workplace wellbeing have to do with it?

So, Germany’s central bank, the Deutsche Bundesbank, recently pointed to weak external demand, cautious consumers, and high interest rates as signs that we might already be in a recession.

But here’s the twist: it’s not just about the big economic picture. It’s also the impact of the workplace environment on professionals.

According to Gallup, 19% of employees here in Germany are actively disengaged – the highest since 2012.

And sick leave? It has been on the rise since 2022, with nearly an extra week per person compared to before. That’s a significant 160 million days lost, according to the recruiment platform Stepstone.

Plus, burnout cases, the work-related stress, increased by 20% in 2023 at the German health insurance company Pronova.

Altogether, this is not great for productivity, agree? All in all, the cost to the German economy due to lost productivity is estimated to be up to 167.2 billion euros in 2023.

The risk for Europe’s largest economy could represent real ripple effects globally. Pretty scary stuff!

But the good news is that there’s room for positive change!

Studies show that organizations that focus on improving management and creating healthier workplaces can boost employee engagement to around 40%, with some even hitting an impressive 63%!

And here’s the real deal: investing in workplace wellbeing isn't just about increasing employee engagement and employer branding. It leads to real improvements in competitiveness and performance for both companies and the economy.