1. Home
  2. Studies
  3. Performance Management in the Covid 19 Crisis: Findings from the IW Personnel Panel
Oliver Stettes IW-Report No. 15 10. May 2021 Performance Management in the Covid 19 Crisis: Findings from the IW Personnel Panel

Empirical evidence based on the IW Personnel Survey reveals that around half of the companies in Germany reported negative economic effects of the Covid-19-pandemic.

Download PDF
Findings from the IW Personnel Panel
Oliver Stettes IW-Report No. 15 10. May 2021

Performance Management in the Covid 19 Crisis: Findings from the IW Personnel Panel

Download PDF Quote

Copy the information

The link was added to your clipboard!

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

Empirical evidence based on the IW Personnel Survey reveals that around half of the companies in Germany reported negative economic effects of the Covid-19-pandemic.

An adversial impact was frequently accompanied by a reduction in the workforce. However, if a profit sharing scheme exists the likelihood of job losses has significantly been reduced by 16 percentage points. Thus, the empirical evidence supports the hypothesis that profit-sharing may be beneficial for securing employment, at least at the company-level.

The existence of profit sharing – implemented in roughly one in four companies – correlates significantly positively with the distribution of special bonus payments in 2020. The latter, however, are much more prevalent. One in two companies (51 %) paid a premium last year. Special payments have also been made in many companies negatively affected by the Corona pandemic.  The probability of a payout under such circumstances increases with a higher proportion of skilled workers and academic professionals. This evidence suggests that due to the competition for skilled workers firms stick to bonus payments despite an unfavourable development in order to reduce the risk of an impending brain drain to competitors.

The widespread use of short-time working schemes was not able to prevent but, at least, mitigated job losses at the company-level. Furthermore, the risk remains that workers who currently are protected by short-time working schemes may become unemployed when the legally extended reference period (up to 24 months) will eventually expire on 31 December 2021. 

Many firms stock up the short-time working allowances that the workers receive by the employment agencies. The suspension of originally planned or regular pending salary increases as well as wage cuts are only applied by a minority of companies. Thus, the evidence indicates that the bulk of firms triesto shield employees from incomes losses due the covid-19-crisis.

Download PDF
Findings from the IW Personnel Panel
Oliver Stettes IW-Report No. 15 10. May 2021

Performance Management in the Covid 19 Crisis: Findings from the IW Personnel Panel

Download PDF Quote

Copy the information

The link was added to your clipboard!

German Economic Institute (IW) German Economic Institute (IW)

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
Businesses in the transformation process
Annette Dietz / Andrea Hammermann / Oliver Stettes IW-Report No. 33 10. June 2022

Behind the scenes of upheaval and change: Businesses in the transformation process

The pressure on companies and their employees to change and adapt is enormous against the background of megatrends such as digital and ecological change.

IW

Read the article
Andrea Hammermann / Judith Lehr / Alexander Burstedde IW-Report No. 28 23. May 2022

HR Analytics: Fields of application and success factors

In this study, the term HR analytics is used to describe data-based decision-making in HR, whereby the transitions from classic HR controlling to HR analytics, in which various data sources are combined to identify interdependencies and make predictions, are ...

IW

More about this topic

Content element with id 8880 Content element with id 9713