Bureaucracy eats time: Employees fight with over 20 percent loss!

Bureaucracy eats time: Employees fight with over 20 percent loss!

In Germany, employed alarming 22 percent of their working hours with bureaucratic tasks, as a current survey by the IFO Institute shows. This survey among 450 managers illustrates that the growing personnel cost to comply with new legal regulations is a significant challenge. The managers express sharp criticism of the complexity of the current legal regulations that have increased significantly in the past ten years. In particular, the excessive reporting, information, documentation and reporting obligations require immense time resources, which has a negative impact on the competitiveness of companies and restricts entrepreneurial freedom, reported the IFO researcher Ramona Schmid.

additional financial burdens

The call for debureaucratization becomes louder, because in order to meet the growing requirements, around 80 percent of the companies surveyed have to fall back on external service providers. This leads to an overall high financial burden, since the costs caused by bureaucracy make up an average of six percent of sales. This is an alarm sign for many companies that want to use their resources more effectively. Despite these challenges, around 75 percent of the managers surveyed rate the feasibility and practicality of existing laws to be bad to very bad. As a result of these bureaucratic hurdles, companies could be hindered, which is why urgent reforms seem essential to ensure innovative strength and competitiveness, after all, it is about survival in an increasingly competitive market.