Navigating the Unpredictable: Insights from Poland’s Labor Market

How would you describe the current economic situation and the labor market in your country? Looking ahead to 2025, which of the things that concern us today will be much more or less present in your view?

Iwona Cekal: If we were to describe the market in one word, I think "unpredictability" or "inconsistency" would be the most appropriate. On the one hand, we still hear about restructuring in large corporations that have been "flattening structures" for some time; on the other hand, most organizations complain about problems with recruiting new employees, especially in highly specialized positions. While we talk a lot about benefits for employees, their happiness, and "work-life balance," at the same time, I often hear about people being overloaded. Our candidates say that they work too much and that they do not cope well with stress and demands.

In the recruitment processes we conduct, for some time now, the last stage (i.e., making a decision by both parties) has turned out to be critical. Clients are making decisions more and more carefully, involving more people in the recruitment process. We broke a record when searching for candidates for a middle managerial role, where the last two candidates had 10 interviews with different representatives of our client.

It is worth noting that candidates are also making decisions more carefully and are increasingly accepting counteroffers from their current employers. Just 5 years ago, counteroffers occurred in 5-10% of cases. Leaders knew that if an employee was considering leaving, it was probably for more than just financial reasons, and they would most likely want to leave again. Research has confirmed that an employee who has given notice, even if he or she is stopped by a salary raise or promotion, will leave within 6-9 months. Today, in virtually every recruitment process, current employers try to keep the candidate in his or her old job.

My colleagues from other countries talk about similar experiences. It seems that top managers and HR specialists everywhere are wondering how to increase employee engagement. They are trying to outdo each other in coming up with new benefits for employees, they are "racing" with inflation, and they are all complaining about skyrocketing salaries, which often do not go hand in hand with efficiency.

What are the characteristics of the labor market in your country?

Iwona Cekal: According to the data provided by the Polish Statistic Office, employment flexibility and labor efficiency are the main factors that Polish entrepreneurs emphasize. However, the COVID-19 pandemic greatly impacted changes in the labor market. The economic lockdown, job freezes, and layoffs were the main negative factors affecting the market. Accelerated digitalization and the introduction of remote work have certainly contributed to the positives.

In recent years, Poland's labor market has faced a new challenge: labor shortages. This problem was only slightly alleviated by an influx of labor migrants and refugees from Ukraine. Another challenge is high inflation, which pressures employers to raise wages and encourages workers to look for new jobs.

The unemployment rate remains low at 5.4% in January 2024. It is one of the lowest in Europe.

If I should compare our competencies with other neighboring EU countries – we stand out for our commercial skills. There are also many Poles who hold regional, international roles. I think we deal well with multicultural teams.

For which sectors and specialisms do you currently see the most interesting opportunities in your country?

Iwona Cekal: At HILL Poland, we work with organizations representing different sectors. However, it is worth mentioning that the majority of our projects in recent years have come from the following fields: health care (pharma and medical devices), manufacturing, and consumer goods. Interestingly, more and more exciting assignments are coming from agriculture. That is an interesting area.

In which sectors or regions do you currently see the greatest threats/difficulties?

Iwona Cekal: I think that all organizations are currently experiencing huge challenges in finding high-class specialists. Additionally, skyrocketing wages that exceed inflation are a major challenge. Personnel costs usually constitute a large part of the budget – how can we ensure the organization's profits when salaries are rising so uncontrollably?

There is more and more pressure on efficiency, and I have the impression that more and more people face mental health issues. Last year, I saw some research from the British market showing a strong upward trend in long-term sick leave. Attention was drawn to mental health problems. Recent studies also show this problem in Poland. I think organizations will have to deal with this trend as well.

It is also worth mentioning the so-called "silvers." The topic of people in their fifties has been coming up quite often lately. I think this is an important issue, and companies will have to focus on this topic. Currently, there is a lot of talk about it, but as the candidates themselves claim, in many places, it ends with declarations. There are exceptions, of course! I must mention our recent recruitment – the replacement of an 84-year-old woman. Her retirement was a big surprise for her team, who always emphasized her inspiration and bright mind.

How are employers responding to a shortage of employees with the right skills and qualifications? What is your advice to companies, or what measures are companies already taking themselves?

Iwona Cekal: Over the last 2 years, more and more employers have experienced difficulties in recruiting new qualified employees. The problem is getting worse. I think everyone has already understood that it is better to take care of the current employee than to look for a new one. Hence, as mentioned before, the phenomenon of counteroffers in almost every recruitment process.

But if the situation forces us to do so, it is better to reach for a professional recruiter. Of course, it is worth using your own network of contacts, but if that does not work – in my opinion, a more effective and ultimately cheaper solution will be cooperation with professionals. Talent acquisition's internal teams do not always function efficiently. And this is not a problem of people, but of the process – when a candidate is contacted directly by a potential new employer, he or she usually greatly overestimates their expectations. We, as consultants, can react when exaggerated expectations are clearly visible.

How do you currently view labor mobility regarding people in your country? Which regions in the country do you see facing challenges?

Iwona Cekal: The younger generation is ready for international relocations, but less so within the country. The situation is also different in manufacturing companies – especially for lower positions, we notice less candidate mobility. They usually look for a job close to their place of residence.

What trends characterize working conditions and corporate culture in Poland? What will be expected of an attractive employer, including the next generation of managers?

Iwona Cekal: Each person probably expects something different from an employer, but we can try to identify a few trends. First of all, the pandemic showed us that many tasks can be performed outside the company. Candidates want to have the freedom to decide where they will work. They expect hybrid work, and in the case of some roles, pure "home-office." Companies are trying to meet these expectations. Most of our clients offer a hybrid work system. The exceptions are manufacturing companies – for obvious reasons.

Organizations are also trying to increase people's engagement. Nowadays, more and more people want to feel that their company's activities are consistent with their values and interests.

Thank you for the interview!

Contact: Our Team - Inspiring People (hill-international.com)