Hays Poland 2020 report suggests the employees' market might be weakening

The situation of the Polish labor market remains complicated: the demand for employees with appropriate competencies is growing, and the unemployment rate remains low. 

According to the Payroll Report 2020 prepared by Hays Poland, despite the fact that employers are looking a little more cautiously at the labor market and employment growth rate, most companies are still planning high activity in areas related to human resources.

Recruitment plans for 2020 are mainly related to rotation, as well as the need to find a replacement for employees who have decided to leave.

Although it will be difficult to maintain the dynamic pace of business development, the potential is still very large. The condition is, however, to increase productivity, investment, expenditure on innovation, as well as improve the labor market and provide companies with favorable conditions for doing business. And this is where employers will go.

Marc Burrage, Managing Director, Hays Poland

Does this mean the end of the current employee-centric market? In a way, although the "employee market" from the very beginning did not apply to all. Those with competences and skills tailored to modern needs had a strong position. Experts of specific specializations will still be able to choose from interesting job offers and negotiate employment conditions.

The hiring of new employees is included in the plans for 84% of companies. This is still a high percentage, although the number of recruitments in 2020 should be lower than last year. As in 2019, employers foresee the greatest demand for IT, sales, production, finance and engineering specialists for the coming months. In addition, they indicate that people related to engineering, logistics, and customer service will be particularly sought-after.

A GROWING COMPETENCE

In addition to plans to maintain or increase the level of employment, recruitment challenges are growing. The main culprit is the shortage of suitable candidates on the market and excessive financial expectations, dictated even by people making their first steps in their careers.

The challenge for employers is even greater because currently less than half of companies are confident that they have the necessary competency resources to achieve their business goals. In most companies, competence needs are met only partially. According to employers, the biggest gap is in the areas of retail, customer service, education and production areas. 

Competences that companies most often look for are the same as those that are the most difficult to acquire on today's labor market. Technical and digital skills as well as managerial and sales skills are included in the price. Every year, employers also emphasize the growing demand for soft skills. They mention the ability to cooperate - communication skills and creativity among them. Specific merits are also sought - the ability to analyze, draw conclusions, and knowledge of legal issues.

In response to the widening competence gap, companies undertake a number of activities supporting the recruitment of new employees. Employers are focusing on strengthening their brand and activities promoting an attractive image. More and more companies are increasing the training budget and are deciding to transfer employees to departments facing competency shortages.

WAGE STABILIZATION

A year of increases is behind us - up to 80% of employers increased salaries, usually by several percent. Although employers are less and less willing to solicit new and current employees with an attractive salary level, they will also offer slightly higher wages in 2020. Three out of four employers have such a plan and most often make a pay rise of 2.5-5%.

As Agnieszka Pietrasik, Director at Hays Poland, notes, despite the fact that wage increases in many industries remain necessary to retain key employees, the trend of slowing salary growth is slowly becoming apparent.

"However, this does not mean that increases will not be possible. The best specialists in their fields will maintain their negotiating advantage and will still be able to count on a higher salary every year," she emphasizes.

HR CHALLENGES

According to the Hays 2020 payroll report and observation of labor market experts, one of the major challenges for companies will be to secure in their structures competences and knowledge necessary to achieve business goals. In practice, this means the need to take action that will limit the departure of experienced employees and at the same time effectively support the talent acquisition process.

"The key activities undertaken by the companies will relate to broadly understood employment increase, both by acquiring temporary or contract employees, as well as organizing internships enabling young people to join the organization," explains Kolenda. "At the same time, many companies will focus on strengthening the employer's brand on the market and conscious investing in employer branding activities."

In addition to the need to find a solution to the problem of shortage of qualified employees and increased rotation, the HR industry will also have to confront the effects of demographic trends and progressive work automation. Therefore, 2020 should be used by organizations to tailor the offer to the needs of older generations of employees, build diverse teams, and prepare employees for upcoming technological changes.