The quickly maturing Polish labor market
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Ten years ago, the Polish entry into the European Union opened the country up to Europe. Today, Poland is one of the most rapidly growing labor markets in Europe. However, it is full of internal paradoxes; it is unstable, as if it were a teenager with roaring hormones
By Sergiusz Prokurat
After the Polish EU accession in 2004, Poles started their mass exodus abroad. The crisis and the uncertain situation in Ukraine have not slowed this process down. Dropping unemployment and €41 billion of capital, which according to NBP estimates has been sent by our workers from abroad, are some of the benefits brought about by the emigration of our countrymen. Some Poles made some money and returned, and others, after having tasted a better life, want to stay for good and send for their families. And the Polish labor market itself, although it has gone through a metamorphosis, has not gained stability. There is an increasing number of foreigners present – especially Ukrainians and Belarusians, who imigrate from the East; Spaniards, who don’t want to stay in their crisis-ridden country; and Vietnamese. At the same time, there are fewer Poles as they’re opting to go to Germany, the UK or Scandinavia en masse.
Poles returning from the old EU countries have higher expectations, e.g. concerning the authorities and their new employers. After returning to the country, they are more productive because they have experienced work in more technologically advanced companies. They start businesses, as many prefer their own start-up rather than having a nine-to-five job. One of these companies is Isivi.pl. Its co-founder Jan Radzikowski noticed, after visiting Australia, that Poland lacks tools for the successful pairing of employers with employees. Together with a group of colleagues from the Warsaw School of Economics, he decided to change this, creating an intelligent recruitment platform. “Poland is amidst a transformation and many Western tools are starting to find their use here,” he said. Co-founder of the company Tomasz Grzechnik added, “There is a lot of work in Poland. But because of the lack of adequate technology, searching for work is very ineffective.”
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The employer still dictates the terms
Poland is an attractive place for business and employers need an increasing number of workers. But unemployment in Poland is still at high levels. These two sentences should be mutually exclusive. This paradox on the labor market is caused by talent mismatch. It is clear from Manpower reports that this is a serious problem for the entire economy. Employers need electricians, carpenters, bricklayers, plumbers and welders; meanwhile, young people have been told by their parents that higher education is a must. Poland, together with Denmark and Sweden, dedicates to education one of the highest percentages of GDP in the EU. As a result, studying has become a mass phenomenon. An MA degree is worthless to employers. The older generation, which was educated during the communist times, doesn’t have the appropriate skills and does not match requirements. They use outdated technologies and work methods. They block the path for young and ambitious people. Hence young people often emigrate, as they don’t see any other option.
The Polish labor market is catching up with the West at a record pace in sectors such as IT, engineering and production, where standards not far from Western norms have been developed. Training is commonplace, as is knowledge that investing in human capital is worthwhile. A quickly maturing industry in Poland is outsourcing and customer service, for which Poland is becoming famous. The authorities stress that the country has competitive labor costs, but this often leads to the popularization of the simplest work in call centers and telemarketing.
[negative]“the Polish labor market is characterized by high levels of distrust.[/negative]
Technology in the Polish labor market varies depending on firm size. Most large corporations have their own dedicated systems, while some medium-sized and even large corporations don’t have a specialized HR department, operating only payroll management department. These companies often lack an intranet, skills management systems, training or worker assessment. “The difference between the Polish and the Western labor market is significant in terms of the technology that firms use, but it is smaller in terms of worker knowledge,” said Paweł Leks, Director at Grupa Pracuj (Pracuj.pl). “Poles are well educated and know foreign languages.” When comparing the level of development of Western markets, you have to be careful because for years there have been no institutions which could compare remuneration, and the data acquired from the Central Statistical Office haven’t always been reliable.
“In Poland, we see employers’ resistance to pay brackets, which are popular in the West. There is also little awareness about the use of salary reports, which would allow the comparison of remuneration. Besides, every company has different guidelines for paying its workers, which results in large differences. Because of a lack of transparency, this may lead to employee frustration,” Leks added. This is especially important because the Polish labor market is characterized by high levels of distrust. Slowly, the acceptance of networking is also sinking in, which for many years has been seen as a negative. Meanwhile, large corporations can pay a lot of money for recommending the right person, with whom the team would like to work.
Opportunities for foreigners
The crisis has changed work opportunities for foreigners in Poland. On one hand, due to cost reductions at companies, foreigners in Poland were worst hit, because firms could easily replace them with cheaper Polish workers. On the other hand, after a much stronger crisis in the West, there is an increasing number of foreigners in Poland. They earn less, but they also have much lower costs of living than in their native countries. This is true for specialist workers and physical laborers. And yet, there is demand for managers. “Together with the expansion of Western companies, we are seeing growing interest in foreigners on the managerial level,” Leks observed. Poland remains a country with the lowest percentage of foreigners in the EU. This is because of the adaptation problem, both to the different culture of Poles, who don’t know what to expect from foreigners at work, and assimilation in Poland. Not without importance are the problems newcomers have with learning the difficult Polish language. It is not a coincidence that it reminds some of the rustle of leaves.
Expats in demand By Magdalena Błaszczyk-Moryń, Permanent Recruitment Manager at Randstad Polska Poland’s openness to international cooperation matters, and the fact that the country is situated right in the center of Europe comes as a great advantage. With all these factors at play, we can definitely see an increased presence of foreigners in Poland, compared to what we had even two years ago. This is particularly true for larger urban areas where companies locate, for example, their shared service centers. Day-to-day work with clients also shows that companies are more likely to accept candidates with foreign languages but otherwise poorer command of Polish. Also, more exciting relocation packages for candidates are now popping up. What is important, they are available not only for the C-level but also for lower-ranking employees at companies which value unique skills and competences. Notably, it is not only the emerging countries that are starting to find Poland an interesting market; more candidates from Germany, the Czech Republic or, indeed, Spain apply as well. The latter often feel compelled to change their job location by the toughening conditions at home. Some years ago, it was Poland that would send its employees from Poznań to Spain, and now Poznań is frequently visited by both Spanish companies and Spanish expats.
Expats in demand By Magdalena Błaszczyk-Moryń, Permanent Recruitment Manager at Randstad Polska Poland’s openness to international cooperation matters, and the fact that the country is situated right in the center of Europe comes as a great advantage. With all these factors at play, we can definitely see an increased presence of foreigners in Poland, compared to what we had even two years ago. This is particularly true for larger urban areas where companies locate, for example, their shared service centers. Day-to-day work with clients also shows that companies are more likely to accept candidates with foreign languages but otherwise poorer command of Polish. Also, more exciting relocation packages for candidates are now popping up. What is important, they are available not only for the C-level but also for lower-ranking employees at companies which value unique skills and competences. Notably, it is not only the emerging countries that are starting to find Poland an interesting market; more candidates from Germany, the Czech Republic or, indeed, Spain apply as well. The latter often feel compelled to change their job location by the toughening conditions at home. Some years ago, it was Poland that would send its employees from Poznań to Spain, and now Poznań is frequently visited by both Spanish companies and Spanish expats.
