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Leadership & HR
20.07.2026 Sabrina Ludwig 1612

Promoting Job Crafting as a Manager in 5 Steps

Layoff numbers are rising, and with them, uncertainty among employees. Through job crafting, managers can transform fears of layoffs into energy for growth and increase engagement and productivity within their teams. Leadership coach Karoline Weber explains in five steps how you can systematically introduce job crafting to your team.

Text: Karoline Weber, Career and Leadership Coach | Editor: Sabrina Ludwig

What does "job crafting" mean?

The term "job crafting" comes from occupational psychology and refers to actively shaping one's own tasks without changing jobs or positions. Instead of waiting for changes to happen, you take control of your own development.

Read more in this article:

Studies show that more and more companies are cutting jobs

Reports of restructuring and job cuts in the German economy are on the rise. As early as the end of 2025, the ifo Employment Barometer clearly showed that an increasing number of companies are planning to cut jobs or adjust their workforce structures.

Reports of significant job cuts in the industrial sector alone underscored this trend in 2025 and painted a challenging picture for 2026 as well.

Concerns about job security are growing

For employees, this means, above all, a great deal of uncertainty. Concerns about job security are growing, and the question “Do my skills still make me a good fit?” is becoming increasingly urgent.

As a manager, how can I foster stability within my team?

In this environment, your role as a leader is changing. It’s no longer just about managing performance, but about actively creating stability and pointing the way forward.

This is exactly where job crafting can be used as a leadership tool. Instead of passively reacting to changes, you can work with your team members to proactively shape their roles and responsibilities.

Would you like to foster psychological safety in your team? Read the article: 10 Tips for Psychological Safety in Teams

Job Crafting as a Leadership Tool

Job crafting is a way to adapt valuable skills to new requirements, retain employees within the company, and give them an active role in shaping change. In this way, uncertainty is transformed into an opportunity for growth.

The 3 Dimensions of Job Crafting

Job crafting means that employees proactively tailor their work to their strengths, interests, and values.

This occurs along three dimensions:

1. Task Crafting (Designing Tasks)

Employees change the scope or nature of their duties. 

For example, they take on new responsibilities that align with their strengths and/or passions, or delegate tasks that others on the team can handle better.

2. Relational Crafting (Building Relationships)

The way we collaborate is being adjusted. For example, responsibilities for specific points of contact may be reassigned because a colleague gets along better with Person X from Marketing than you do, so you take on a different point of contact instead ; or communication within the team is being structured more deliberately, for example through regular retrospectives.

3. Cognitive Crafting (Shaping Perception)

This shifts the perspective on one’s own work. By explaining the broader context, employees come to recognize the greater purpose of their work and their contribution to the company’s success, which can greatly enhance their sense of purpose: “I’m not just a call center agent—I’m also a problem-solver and a customer satisfaction representative. The quality of my work has a direct impact on our company’s image.”
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The business case for job crafting is compelling

The business case for job crafting is compelling: Companies and leaders who promote it benefit from:

  • greater motivation and a better work environment, since employees enjoy their work more.
  • Greater performance and innovation, as employees’ sense of self-efficacy is strengthened, enabling them to approach their daily work with more energy and enthusiasm.
  • greater employee retention through opportunities for professional development.
  • Personal growth and career opportunities by recognizing and leveraging your strengths and managing your weaknesses.
  • Personal growth and career opportunities by recognizing and leveraging your strengths and managing your weaknesses.

Practical Checklist: How to Actively Promote Job Crafting in Your Team

The role of leaders, therefore, is not to dictate ready-made solutions, but to create a framework in which team members can become “job crafters” themselves. The goal is to strike a balance between the company’s objectives and the legitimate interests of individuals.

The role of the manager here is that of a coach who recognizes potential and facilitates its development in a way that promotes personal growth.

5 Steps: How to Turn Your Employees into “Job Crafters”

1. Raise awareness of “job crafting”

Actively discuss job crafting with your team if you notice any uncertainty or dissatisfaction, or if you see that individual team members are already taking steps to make proactive changes.

Make it clear that you’re open to working together to further develop roles and responsibilities. Let them know: “Your job isn’t set in stone.”

2. Listening and Observing

Have regular, open conversations. Ask questions that encourage reflection: “Which of your tasks give you energy, and which ones drain it?”, “Where do you see untapped potential in your role?”, or “What problem within the team would you like to solve?”

3. Create space

Whenever possible, allow for autonomy in performing tasks or collaborating with other departments.

Support employees who want to try out new approaches or launch small, independent projects that contribute to team or company goals.

4. Delegate with a Focus on Resources

When assigning tasks, consider not only capacity but also strengths and interests. A thoughtful approach to task assignment can boost motivation across the entire team and increase efficiency, even when resources are limited.

5. Convey Meaning

Establish a clear connection between daily tasks and the company’s overarching purpose. Help your team recognize the important contribution each individual makes to the bigger picture.


 

Job Crafting as a Challenge for Companies

Especially during times of change, it is unrealistic to redesign each employee’s workspace individually. 

However, it is possible to introduce all employees to the concept of job crafting. To this end, it is essential to recognize job crafting as a corporate resource and to integrate it conceptually into corporate policy. 

Similarly, HR and talent development should support managers in guiding the process using specific guidelines and tools. 

Conclusion: Job crafting helps support teams through change

Job crafting is an extremely effective tool for ensuring motivation, employee engagement, development, and performance during times of change.
By encouraging and empowering your team to actively shape their own work, you are directly investing in the resilience and future viability of your department.

FAQ: Frequently Asked Questions About Job Crafting

1. What is job crafting?

Job crafting means that employees proactively tailor their tasks, collaboration, and perspective on their work to their strengths, interests, and values—within the context of their existing job.

2. Why is job crafting particularly important during periods of job cuts?

During restructuring and workforce reductions, job crafting creates stability: Employees continue to develop their skills, feel they have more influence over their work, and are more likely to remain with the company.

3. What are the three types of job crafting?

Task Crafting: Adjust the scope and type of tasks (more of what’s manageable, less of what drains your energy).

Relational Crafting: Redesigning Collaboration, Interfaces, and Communication Channels.

Cognitive Crafting: Seeing your own role in the broader corporate context in a new light and experiencing it as meaningful.

4. As a manager, what can I do to encourage job crafting?

  • Openly discuss job crafting within the team.
  • Listen regularly and ask reflective questions.
  • Allow for flexibility and autonomy in carrying out tasks.
  • Assign tasks based on strengths and interests.
  • Highlight the significance and contribution of each role to the company's success.

5. How does job crafting benefit companies?

Job crafting boosts motivation, innovation, performance, employee retention, and team resilience—especially during change processes.

6. What role does HR play in job crafting?

HR should recognize job crafting as a resource, integrate it into policies and processes, and support managers with appropriate tools, training, and coaching.

 

zero 8 alternatives to a salary increase: benefits for employee retention

Benefits for employees - a group of people standing smiling under an umbrella
Leadership & HR
13.09.2022 Sabrina Ludwig 35826

8 alternatives to a salary increase: benefits for employee retention

Benefits in kind, recreational allowances, social funds: employerscan support their employees financially with benefits without increasing their salary. This has advantages for both sides.

From employee retention to employer branding: employers can only benefit if they offer their employees benefits. Employees feel appreciated, save on bus tickets, for example, and thus also save themselves from having to reach into their own wallets. Young professionals in particular attach great importance to an attractive benefits package when looking for a job.

Study: The most important employee benefits

In view of drastically rising energy prices and the cost of living, benefits are becoming even more important and form an important building block for retaining and supporting employees - especially those on low incomes.

 

"People on low incomes generally don't have economical electrical appliances either, often have draughty windows, old gas boilers and poorly insulated homes, which exacerbates the whole problem."

Caritas spokesperson, report by RedaktionsNetzwerk Deutschland (rnd)

 

Alternatives to a salary increase

 

Note

The content of our information and service materials is compiled with the greatest care and checked regularly. However, no liability can be accepted for the completeness and topicality of the information. Any legal notices, recommendations or information contained herein are non-binding. The pme Familienservice accepts no liability for this.

 

1. social fund in financial emergencies

The company's own social fund is a financial subsidy in emergency situations or acute emergencies that can be paid out to employees who find themselves in financial difficulties through no fault of their own, e.g. due to serious illness, death of a partner, accident, imminent loss of housing, etc.

The amount paid out from the fund does not have to be repaid by the employee. The amount available each year is determined by the company itself.

Important: The company must conclude a company agreement and define the criteria according to which the social fund is paid out to the applicant(s).

In addition, an autonomous and trustworthy body is needed to manage the social fund, check the applications and pay out the amount to the employee - such as the works council or, alternatively, the employee representative body.

You should clarify the details in advance with your own legal and tax department.

When is the social fund paid out?

Approval and payment usually take place in 3 steps:

  1. Employees in an emergency situation submit an application in which they describe their emergency situation and state what the money from the fund is needed for.
  2. The application is reviewed by an independent body (works council, employee representative body), taking into account income and family circumstances.
  3. If the application meets the internally defined criteria and the legal requirements, the amount is transferred once, in addition to the salary.

The employer is not informed of any of this: neither the amount, nor who the applicant is, nor the reasons given.

 

"If someone obviously gets into an emergency situation through their own fault, which could have been avoided, for example, by taking personal precautions, then we are not allowed to pay out anything. However, if there is a sudden threat of losing your home due to flooding, death or serious illness, for example, then this is an acute emergency situation that the person has got into through no fault of their own. With the social fund, we can help quickly, discreetly and unbureaucratically in serious emergencies."

Peter Fischer, employee representative, pme Familienservice

Would you like to find out more about the Social Fund?

If you are interested in setting up a social fund in your company, please contact Peter Fischer for further information.

2. employer loan

The employer loan can also be an alternative to the usual bank loan and help employees in financial difficulties out of trouble.

A loan can be granted in emergencies or crisis situations, but not as regular financial support.

The loan is a voluntary benefit provided by the employer. If the company is prepared to grant loans, this can be agreed in a loan agreement .

In justified emergencies, a loan must be distinguished from remuneration, advances and deductions from remuneration and is not directly related to the employee's work and employment contract. It therefore does not constitute consideration for the work performed.

When is the employer loan paid out?

Three steps to an employer loan:

  1. Employees submit an application, which is then submitted to the HR department together with the manager.
  2. The HR department will review the application together with the applicant and the manager.
  3. If the loan is approved, payment is made via the accounting department. The amount is paid out independently of the salary.
Please note:

A loan should not be granted if wages have already been garnished, if there are long-term financial problems or if consumer insolvency is to be expected.

The loan can generally be granted interest-free up to an amount of € 2,600. In addition, the prescribed calculation of interest is required.

 

If employers wish to grant a loan with interest , this must be expressly agreed in the contract. If no interest is agreed in the contract, the loan must be repaid without interest.

"The company must of course check whether it has the means to offer its employees an interest-free loan. The main effort involved is talking to the HR department and the manager to check the application."
- Nils Hofert, Head of Human Resources, pme Familienservice

Further information: Hasselbach law firm

3. tax-free recreation allowance

Recreation allowances are voluntary financial benefits that employees can receive from their employer.

The maximum amount and frequency of payment of this benefit is defined by law.

A company is free to decide whether to pay out the maximum amount of currently 156 euros for the employee and 104 euros for partners and 52 euros for each child - or less.

How the employee in question spends their vacation is irrelevant. The employer can also subsidize a vacation stay at home for its employees.

How is the recovery allowance paid out?

Whether working student, mini-jobber or permanent employee: all employees are entitled to a recreational allowance.

  • The recovery allowance is tied to a calendar year and cannot be transferred.
  • The allowance may only be paid within three months before or after the start of the leave.
  • The money from the recreation allowance may only be spent for the purpose of recreation.

Further links:

www.impulse.de/recht-steuern/rechtsratgeber/erholungsbeihilfe

www.haufe.de/erholungsbeihilfen

4. non-cash benefit value of 50 euros per month

Another alternative to a taxable salary increase are benefits in kind.

Every company can give employees up to 50 euros a month free of tax and social security contributions . If the amount is exceeded, income tax and social security contributions are payable.

The benefit in kind may only be granted once per employee per month.

Benefits in kind are, for example:

  • Employer's contribution to accommodation costs
  • Meals
  • Work clothes
  • Petrol or other vouchers (no marketplace vouchers, e.g. from Amazon and Kaufland)
  • Admission tickets

Gifts for personal occasions

Gifts for birthdays, anniversaries or a personal occasion can be given by an employer in addition to benefits in kind . The maximum tax-free amount for gifts is €60 per personal occasion.

Further information:

www.edenred.de/sachbezug-2022

www.smartsteuer.de/online/lexikon/s/sachbezuege

5. job tickets & monthly passes

In view of the current very high gasoline and diesel prices, this topic is likely to be of particular interest to many employees.

The job ticket category includes monthly or annual tickets that companies purchase from public transport companies and then pass on to their employees free of charge or for an additional payment.

The job ticket must be provided in addition to the salary already owed.

The tax exemption has applied to both the job ticket and the employer subsidy for journeys on public transport since 01.01.2019.

6. leasing bike

There are now many providers of leasing company bikes. Employers can lease bicycles from them for a predefined period of time.

Such contracts usually run for 36 months. At the end of the contract, the leased bike must be returned - or can be purchased by the employee. It is also possible to extend the contract, return the old leased bike and get a new model.

This also pays off for the employer: According to a study, employees who cycle to work all year round are sick around 1.4 days less per year and also feel better.

How does the employee receive the leased bike?

The employer leases the bike. The employee rides it whenever he or she wants, whether for work or leisure. The employee pays the monthly leasing rate by converting his or her salary.

This means that the employee's gross salary is reduced by the leasing installment. This benefits both sides: Both employees and employers pay less social security contributions thanks to the employee's lower gross salary. Journeys between home and work must be accounted for in the same way as a company car.

"Administrative work arises above all when the leasing contract is interrupted by employees, for example due to a long illness, pregnancy or if the team member leaves before the 36-month leasing period expires."

Anke Bechler, Human Resources, pme Familienservice

Further links:

www.impulse.de/recht-steuern/dienstfahrrad

7. private insurance at special conditions

The company pension scheme is great, but having the additional opportunity as an employee to take out further discounted insurance makes this offer even more attractive.

At pme Familienservice , team members can use an insurance service to take out the most important private insurance policies, such as liability, accident, residential buildings, household contents, motor vehicle and more.

On request, employees can receive individual offers for additional insurance (e.g. Riester pension, supplementary health or long-term care insurance).

How does the employee get the insurance?

Employees can access all the relevant documents for concluding a contract via a dedicated insurance website for your company. A special bonus: spouses or life partners can also benefit from the special conditions.

Please note:

The employer does not receive any cash benefits or commission from the insurer, but also assumes no liability for the benefits and contracts.

 

"We pre-selected the insurance companies. And then the biggest effort was to inform our team members about it - via flyers, the intranet and the employee magazine, for example."
- Nils Hofert, Head of Human Resources, pme Familienservice

8. lunch and drinks

To help employees with their living expenses, employers can provide their employees with lunch and drinks free of charge.

The company can tax the non-cash benefit at a flat rate of 25 percent. The big advantage of this is that no social security contributions are due for flat-rate taxation.

 

"At the Berlin headquarters, we get lunch delivered by a caterer and the team members also eat here in the office. The work consists of accepting the food, preparing it, clearing and washing the dishes and keeping the kitchen clean. The team members also get fresh salad, which I chop and prepare every day. I spend 4 to 5 hours a day doing this."

Anke Brennecke, housekeeper, pme Familienservice

 

Further information:

Meal allowance tax-free - All information 2024

 

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