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Challenges in labor market

Zaktualizowano: 6 maj 2019

Polish labour market keeps getting more and more demanding. Knowledge and skills gain relevance in all sectors, as the competition between employers increases due to the lack of a qualified workforce.

The main challenges considering the Polish labour market, according to Hays’ Payroll Report (2019) are:

- “the deficit in talents” – every fully qualified candidate is worth fighting for, as most of the actual employees do not demonstrate all the required skills and experience. This problem leads to diluting the salary capital to fill all the needs. When dealing with this issue, the most effective methods are outsourcing and internal internships that let young people gain the needed expertise.

- retaining current employees – in the battle for competence, it is a common practice to pick the employees from your business rivals. Every bigger company sooner or later have to face the risk of losing human resources, on whose training there already has been spent a significant amount of money. To avoid such situations, it is recommended to maintain high morale among employees and invest in employer branding so that the financial factor would

not seem to be overly alluring.

- hiring becomes more expensive – over 83% of companies gave their employees a pay rise in 2018 and this trend is to be maintained in the following years. When facing growth in financial expectations, it is necessary to provide fringe benefits, such as language courses, medical insurance or flexible working hours.

Dealing with all the mentioned factors, it is clear that every company should observe trends on the market to acquire a qualified and loyal workforce. In a nutshell, the labour market in Poland has tendencies to:

  • be more demanding in terms of the recruitment process,

  • fill the candidates with optimism about their future working prospects,

  • be lacking qualified employees, mostly in terms of technical skills,

  • generate more costs when losing an employee,

  • reveal higher financial expectations of the candidates,

  • increase the meaning of the benefits in kind,

  • require higher flexibility from the employer when it comes to setting up the working hours and work-life balance.

Those trends lead to the point stated at the very beginning of this article – knowledge and skills are currently worth their weight in gold, which influences both the companies seeking for employees as well as those who care to retain their workforce. Following trends and predicting their future consequences will undoubtedly let the company gain competitive advantage and become not only a trusted and desirable employer, but also secure its financial stability in the future.

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