Pepper Story

The first ideas for founding HRpepper date back to 2012.

On a cold winter’s day in 2012, five men and women moved into a sparsely heated Kreuzberg shed. The furniture came from the boardroom of the insolvent mail-order company Neckermann. There was no internet and no telephone, a lot of unresolved issues, never-ending bureaucratic procedures, but also a lot of desire for the future. But the team dared to make a new start: we wanted to organise consulting in a different, fresher, more experience-oriented way.

Although we started receiving small and medium-sized projects from clients early on, we were not an established consulting firm. We didn’t want to be one, but instead wanted to remain a genuine start-up that was forging its own path. That is still the case today: Anyone who gets to know HRpepper, takes advice from us or starts working here quickly realises that the Peppers are somehow different. The DNA of a start-up has remained despite all the growth. The almost 60 employees think and act as entrepreneurs – they are also de facto entrepreneurs via an equity investment. There is no silo thinking or insistence on adhering to rigid processes. Their actions are characterised by customer centricity and respectful cooperation.

This idea was already reflected in the choice of legal form and articles of association of the still young company when it was founded. We agreed on a legal form of which our current company lawyer says smugly: ‘It’s like an old English car. Nice to look at and drive, but very expensive to maintain.’ The choice fell on the GmbH & Co. KGaA. This is a composite structure in which the limited liability company acts as the general partner (full partner) of the limited partnership and the limited partners (partial partners) are shareholders. The main arguments in favour of this form were that the shares are easily transferable in order to facilitate future employee participation and to ensure that the founders have a good opportunity to influence the company.

The focus has changed

Back then, the five of us still saw ourselves purely as HR consultants. Today, Peppers are no longer just active in the field of HR management; our customers are all those in companies who want to change something and have a desire for the future – whether management, sales or HR management. First and foremost, customers are not functions, but people. People who are courageous and want to make a difference. And the office in Kreuzberg’s backyard has also evolved: now heated in winter, it is not just any commercial space, but a true joy and part of the Pepper identity. The listed coach house exudes a special flair and hosts the now legendary HRpepper-Hoffest once a year. Quite a few people fall in love with the unique courtyard ambience from the very first moment. More recently, we have also opened a location in Frankfurt am Main. There we are experimenting with working from a co-working space.

Ongoing organisational development remains important

A company can only be successful in the long term if its employees identify with it and feel responsible for its overall success.

As an organisational consultancy, HRpepper not only accompanies the transformations of its clients, but also continuously develops itself. This is the only way we can be authentic and credible in our work. Then as now, we firmly believe in the personal responsibility of the individual, their desire for creativity and autonomy, their passions and their longing for meaningful fulfilment. In particular, it is our collaboration and organisational model that makes HRpepper so successful. It provides all Peppers with the framework for actually being entrepreneurial. It describes which person is responsible for what, how we arrive at good decisions and how we provide each other with guidance so that we can act quickly and effectively. Above all, the model strengthens individual employees in their roles as those who create real value – for our customers, owners and not least for the employees themselves. To this end, we have created roles and mechanisms for how the roles are filled and how they coordinate with each other. In addition, areas of responsibility are bundled in the form of roles and committees that have replaced a conventional management model. It has been replaced by steering groups (people group, market group, governance group, strategy and budget group and functional group) and roles that interact to ensure that there is the best possible fit between task and individual for all organisational fields of action. In these circles, experienced and less experienced Peppers discuss with each other as equals. In addition to the best possible fit, the objectives also include promoting self-direction and the development of each individual.

Our structural empowerment mechanisms create a working environment that gives all employees the opportunity to be the creators of their own work.

These structural empowerment mechanisms include nomination rounds for the allocation of roles, the consensus procedure for company decisions, transparent salary structures, collective profit distribution and participation in the company. In addition, there is the option of equity participation for each:n Pepper: After passing the probationary period, shares can be acquired. On the one hand, this promotes ‘ownership thinking’, the attitude of every Pepper to act and make decisions as if the company belongs to us, because the long-term success of the company is important to us. Secondly, it recognises our work. 50% of the profit is paid out to the shareholders in this way. The remaining 50% is distributed as variable remuneration in a collective model. Such a high proportion for all employees is unusual, especially in the consulting industry, and is seen by Peppers as a strong signal of employee orientation and appreciation of their work.