Commentary: Courage for tough selection: Germany should learn from Trade Republic
The Berlin neobank is shedding weaker employees faster than is usual here. Why criticism of the bank is too short-sighted.
The Berlin neobank Trade Republic sorts its approximately 750 employees twice a year into green, gray and red boxes. Those who land in the red are highly likely to leave the company soon, according to research by "Tagesspiegel". The outrage over this tough selection process is swift, but it misses the point. While one might be incensed by Wild West methods, a look at the figures reveals a more nuanced story.
Last year, the bank was deemed Germany's most valuable start-up with a valuation of 12.5 billion euros. This success can be attributed to the company's app that handles securities transactions, as well as the highly skilled team behind it.
Trade Republic's leadership is not alone in standing by this approach. Renowned economists like Clemens Fuest argue that Germany's labor market is missing out on significant potential. "Employment protection is a hurdle for economic dynamism," stresses Fuest.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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