Hays Poland reports a strong showing for the IT talent industry

March 4, 2020
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The IT industry in Poland is not slowing down - companies want to grow and increase employment. But while the demand for IT specialists remains at a consistently high level, employers are becoming more and more stiff on wage pressure. 

This year's Hays Salary Report for the IT Contracting industry shows that rising labor and employment costs as well as price competition between companies in terms of products and services offered translate into stabilization of wages, regardless of the pressure exerted by employees and candidates.

Almost all companies on the IT market plan to hire new employees in the coming months. The same number of employers also expect difficulties in carrying out this task. In their opinion, the challenges are dictated by the shortage of suitable candidates, too high financial expectations of IT experts, and growing competition among employers.

How do employers deal with recruitment difficulties and a shortage of competences and relevant candidates in the IT area? 

"Most often they seek cooperation with contractors and experts employed for the duration of the project - explains Arkadiusz Wargin, director of the IT Contracting division at Hays Poland. "For employers, it is increasingly important to be able to acquire unique competencies that are necessary in an organization to complete a given task. Companies are also opening up to young people, even those without IT experience. They increase the recruitment and training budget, focus on strengthening the employer's brand and memorable marketing activities. Increasingly, they also establish close relationships with recruitment agencies and join forces with them in the process of reaching candidates."

In addition to challenges with attracting candidates, additional efforts also apply to retaining existing employees. However, employers no longer want to compete on salary offers and are becoming more and more stiff on wage pressures from the market. However, they emphasize other advantages of their work: interesting projects, development opportunities, flexibility, work environment, location, company recognition, and adequate non-wage supplements.

OPTIMISM FOR IT EMPLOYEES

In addition to the challenges currently faced by employers, optimism of IT sector employees is growing. In the Hays Poland survey as much as 74 percent employed in the industry positively assessed the prospect of their professional career in 2020. Almost everyone is also convinced that they have a full set of competences needed to work in the position held.

STABLE REMUNERATION

The trend of dynamic growth of remuneration for IT specialists - both contractors and full-time employees - has slowed down. The stabilization of rates applies to both the amounts expected by the candidates and those that are able to be accepted by companies using IT contracting services. And while wage stabilization is a trend throughout the industry, the situation will not be exactly the same in every area of ​​new technologies and for all employees.

"Employers also do not save on future specializations and key areas of knowledge," emphasizes Arkadiusz Wargin. "Expert knowledge is and will be in the price, so specialists with niche technologies or solutions that are just appearing on the Polish market can count on increasingly attractive rates."

IT CONTRACTING FOR EVERYONE?

Despite the observed stabilization of wages, the IT services contracting market will develop very dynamically. Trend analysis also suggests that the number of companies interested in IT contracting and specialists choosing the B2B model will increase every year.

For IT experts, cooperation with companies in the B2B model means above all the possibility of obtaining higher earnings, because contractors on average earn 20-25% more than if they performed the same job based on an employment contract. Contractors also appreciate the flexibility of working times and the opportunity to choose interesting projects and remote work, which is increasingly appearing in B2B contracts.

"The benefits of contracting and the growing demand of companies for specialized skills in modern technologies mean that talented programmers, testers and developers are increasingly willing to take up contract work, which will have an impact on the IT job market in the long run," says Arkadiusz Wargin from Hays Poland.

March 4, 2020

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