Take a simple example. There is only one /l/ phoneme in English, but in RP (at least) there are two major varieties (velarized ('dark') and non-velarized ('clear')) plus other distinctions (voiced and voiceless). However, because all these differences are predictable from context, a phonemic transcription would render them all the same: /l/. A non-phonemic (i.e. phonetic) transcription would distinguish the varieties in more or less detail as the occasion demanded.
In the present case, there's no certainly phonemic distinction between the two sounds in German, and I doubt they both occur anyway. This being the case, the normal practice would be to use the symbol which is most widely used internationally, and indicate (if required, and if true) that the German sound is more palatalized than the English one. (I notice that the Wordreference transcription is given in square brackets, which by convention indicates a phonetic, not a phonemic, transcription.)