D. A. Graf von Reischach, Managing Partner, Interconsult

© Interconsult

Count Reischach, who are the top performers in this year's Interconsult Salary Report and why?
D. A. Graf von Reischach: These are the areas of active components with 4.4% plus and ASICs with 4.6%. The rest is between 2.8 % and 3.8 % plus. The basis for the increased salaries is the good economic situation; 2018 was a very, very successful year for the companies. Especially in automation and medical electronics, companies earned well. The only difficulties were not getting enough qualified people. One or two of our customers had recently stopped accepting orders because they could no longer process and deliver them. At the moment, however, people have become a little more cautious.

More cautious with recruitment?
D. A. Graf von Reischach: Yes.

In which areas do you notice this?
D. A. Graf von Reischach: Largely in all areas. The turbulence between the USA and China, the customs fears in the automotive industry, the Brexit chaos: where last year optimism was still flourishing, today caution is the order of the day.

Yet it is precisely in such quieter phases that good candidates could be secured. After all, the need remains in the long term.
D. A. Graf von Reischach: But that's not likely to happen. Incidentally, applicants are also more cautious about changing jobs in such economically uncertain times, they fear "last in, first out".

Even highly qualified engineers?
D. A. Graf von Reischach: Yes, that can certainly be the case. Be it that the candidate has perhaps sold himself a little too well. Or, conversely, the company doesn't deliver what it promised. Both happen again and again.

Will Brexit and Trump's tariff threats against Germany affect salaries? A. Graf von Reischach: We prepare for such a scenario, not pessimistically, but cautiously optimistically, taking a long-term view. We are planning carefully and keeping a very close eye on costs. In concrete terms, this means postponing major investments and avoiding costs. Tariffs on German cars would not only affect manufacturers, but also the supply chain, as well as providers of test systems, for example.

Do you also notice this caution in your consulting business?
D. A. Graf von Reischach: Yes, definitely. Customers are currently holding back on hiring new staff. Last year it was the other way around, costs played practically no role. But I don't see a hiring freeze yet. The restraint is not yet having an impact on salaries either. There is a simple reason for this: the existing team needs to be maintained, especially if you slow down on new hires and leave positions unfilled.

Are there nevertheless candidates that you could place immediately?
Technically competent sales engineers who can go out to customers on their own without the help of an application engineer. Because the trend towards customer-specific solutions is continuing, the demands on employees' technical expertise have increased considerably. For example, in the areas of automation or security.

Your forecast?
D. A. Graf von Reischach: The global situation, including Brexit, is very opaque at the moment, so forecasts are difficult. Let's hope that we can maintain our cautious optimism.

Will my employer's economic situation and caution affect my chances of a salary increase? What if my boss argues with this?

D. A. Graf von Reischach: Generally speaking, no. Especially as income is no longer the absolute priority.

But what?
D. A. Graf von Reischach: Am I taken seriously? Do I have a say? Working from home is becoming more important and is increasingly playing a role in negotiations. At the same time, you shouldn't allow yourself to be fobbed off with things that you can't influence yourself. Instead, argue well: I'd like to earn a bit more because I've done a good job. Companies can also do the math and know what it costs when a top performer leaves. You don't get a replacement quickly, you have search costs and the induction period on top of that.

Is there a risk of overdoing it in salary poker?
D. A. Graf von Reischach: If you frequently and grossly exaggerate your salary demands, it's better to let you go when in doubt. Of course, it depends on the position, but between 7 and 10 % is not too much.

The interview was conducted by Corinne Schindlbeck