A German company lets its employees hire other employees.

Team members decide what jobs they want to fill and write job descriptions for them.

The team conducts interviews themselves.

If an employee gets along with the team, they come to the company on a trial basis.

How does it feel to be a founder and managing director who doesn’t know or influence when someone is being hired in your own company?

This was the burning question we had for Tim Mois of the German telephone provider Sipgate.

Based in Dusseldorf, Germany, Sipgate has 120 employees, and uses peer recruiting to hire employees.

"It feels fantastic," Mois said. "The notion that I would be someone and opening the door on a team and saying, here, you don't know them, but here’s your new colleague, is kind of absurd."

There is no classic HR department

"Employees hire employees," Mois said. "Sipgate does not have a typical HR department."

Two employees, Thu and Carina, coordinate all personnel matters, but they have virtually no influence on the decision whether someone is hired or fired at Sipgate.

Teams decide freely on their own personnel requirements

The teams decide for themselves whether they need reinforcements.

Then, they simply write a job ad and post it. A team member is assigned to the "Recruitment Task Force," and together with the personnel team, they look at the incoming applications daily.

A Düsseldorf artist draws an ink portrait of every Sipgate employee. Oliver Tjaden/Sipgate Applicants are always informed of the exact reason for rejection. Mois says that this is only fair, because it gives people the chance to learn and improve. Sipgate has never been sued for it.

The teams conduct introductory interviews themselves, with management having absolutely nothing to do with it. The candidates meet three to four of their potential future teammates and either Carina or Thu. The idea is to really find out if the candidate is in harmony with the team.

Afterward, they briefly discuss whether the applicant will be invited to take a step forward and work on a trial project.

The new colleagues will join the company on contract and enter into a probationary period where they receive two rounds of feedback from the team — after one month and after four months.

There's a catch

There is a catch: Whoever has responsibility for the hiring process must also take responsibility for dismissing someone.

"Of course, it's unpleasant to have to tell someone that they're not being hired after the probationary period, for example," Mois said. "But there is always a good reason for this and if you have looked after someone, you want to tell them that personally. You can't be the point of contact and then send someone else to say it didn't fit."

There have been a few instances of permanent employees not working well with their team, despite the vetting process. In such cases, the team addresses the problems and searches for a solution together. If the team does not succeed in their attempts, they inform the colleague that they have to start looking for a new position.

People prepare for firings with the help of Sipgate's personnel team, which can participate in the process if desired.

"You grow in such situations," Mois said.