From Turbulence to Opportunity: Serbia's Labor Market and HR Trends

How would you describe the economic situation and the labour market in Serbia?

Mina Jokic: In Serbia we are facing a turbulent and completely unpredictable economic situation impacted, among other, by a complex political environment. Furthermore, in the past years we have been witnessing a new wave of business migrations from Serbia to the EU and other countries, which has significantly affected the labour market and the availability of candidates from different branches and for different position levels. The labour market in general is quite dynamic and is mirroring a wider global economic situation. The demand for experts in the IT industry, along with experts for Sales, HR and Finance, Accounting and Administration, and Technical experts was extremely high in the post-Covid period. This trend has affected other less prospective and popular industries in which companies had a difficult task of finding their way to keep employees and match their expectations with the high standards the IT industry and different outsourcing companies have set in the labour market. On the other hand, in 2023 many layoffs and downsizing activities are being recorded in different branches including start-up IT companies. What we see now is a new movement and rebalancing of the workforce across different branches and a significant turn to lower demand for new employment in the labour market.

What motivates employees to keep their job or move forward to the next company?

Mina Jokic: From our extensive experience in working with candidates, they are primarily interested in a company culture that nurtures and encourages good interpersonal relations and appreciation of each employee's efforts, commitment, and contribution to common goals, along with employees' development and advancement opportunities and flexible working conditions. Of course, remuneration packages remain one of the main motivators, as we see the rising trend of private medical insurance policies becoming a very desirable, even expected, benefit from current or future employers.

What does the HR development look like today?

Natasa Savic: As it is already a fact that the recruitment of new employees is getting more and more challenging in the last years, employers have increased the attention they are paying to employees’ engagement and development. That way they are trying to keep the employees, reduce the need for new hires, and, of course, capitalize on the potential of the individuals already onboard.

International companies operating in Serbia already have a strong culture of development, which was visible since they came in larger numbers to the local market at the beginning of the century. However, they are continuously improving their plans as they face stronger competition from local, privately owned companies. Private companies in Serbia have also recognized not only the need, but the necessity of investment in the development of both their leadership teams and other structures, i.e. different positions and levels. In the last 3-5 years there has been a notably higher focus on specific needs and targeted development, as it was proved that „just a training“, without carefully tailoring it to fit the needs of the company and the participants, does not produce the intended results - on the contrary, it diminishes the motivation, both for the company itself and for training as a development tool in general.

Skills development has become a regular part of the annual progress plan, while individual coaching, talent development, succession planning, and assessments are strongly paving the road to becoming a standard in HR planning i.e. development. Even though it should always start from the top, in many cases organizations start from the middle, investing in their mid-management and specialists. Changes on this level are, however, in many cases, hindered by exactly the missing support, skills, and mindsets at the very top of the organizations.

Where to start when talking about top management development?

Natasa Savic: Serbian leaders are excellent in many areas, but they still have things to learn or re-learn in a few areas. Gathering insights directly from the companies we work with, we clearly see the highest need is in understanding the importance of transparency, especially when it comes to the decisions they make, but also in provoking constructive and managing destructive conflicts. Their communication and practice must also improve in the areas of running regular and quality dialogue and mutual feedback with the employees as well as in practicing real coaching conversations that enable development.

Only when these areas are improved, leaders will be able to create real high-performing teams, that are joining efforts in reaching common goals, while feeling great and with the motivation that comes from within.

How do you think the use of AI and new technologies/media will continue to change personnel search and selection processes?

Mina Jokic: I see AI and new technologies as useful tools for automation and facilitation of some parts of recruitment processes, especially in the search part. Still, the human factor and approach will always be, I would say, necessary for performing in-depth assessment processes and for summing up findings and recommendations.

As HILL International in your country, what is your contribution to making companies more successful?

Mina Jokic: We at HILL always go the extra mile in understanding and supporting our clients, being committed to bringing the best possible results and overcoming every obstacle in the process. Good business relations and mutual understanding with our partners in combination with our profound knowledge and experience in HR consulting are key elements of our formula for success.

Thank you for the interview!

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