2020 Summary and Predictions for 2021 in the Recruitment Industry
The pandemic causing the global economic crisis has also taken its toll on the labor market. Last year, we had to deal with the suspension of recruitment processes, blocking vacancies in companies, mass layoffs of employees, or restrictions on the number of full-time jobs. What is the year 2021 like?
To what extent are companies prepared for the continuation of the epidemic?
The Covid-19 pandemic has affected almost every sector of the economy. Although initially employers were forced to make quick and often unpopular personnel decisions, LeasingTeam’s analyses and observations show that currently 100% of customers are prepared for the next stages of the pandemic. This is due to the fact that in the third and fourth quarters of 2020 they adapted their workplace management to the guidelines and implemented new solutions and procedures to maintain the continuity of their businesses at a fairly fast pace. Where possible, the remote or hybrid work model was used, which has now become a standard in many companies. Although the whole process required time, good organization and unplanned costs, it certainly helped to minimize the risk of illness.
In the production or logistics industry, which could not work remotely due to their specificity, the rotational work model was mainly used.
– Employees have been divided into individual teams that have no contact with each other. Preventive and personal protective measures were applied. An example is a body temperature test before entering the workplace. Masks, gloves and disinfectants were used. In the canteen-type rooms, common areas are divided by plexiglass panels. Employers and employees emphasize that self-discipline is very important, without which the above-mentioned measures would not make sense – points out Katarzyna Dąderewicz, Director of the North-West Region at LeasingTeam.
The year 2021 promises to be a year of stability and caution. The teams that need to be built to be able to develop the business are created, but these are mainly employees needed here and now, immediately, and not hired as an investment.
Marta Pilipowicz, Director of the South Region at LeasingTeam adds: – For some industries in the production area, 2020 has shown that process automation is essential and only this will secure production. In my opinion, companies that were already ready and slowly implemented new technologies in the field of automation may decide to implement them much earlier. Entrepreneurs will plan new investments with great caution, but they will not give them up if they want to return to the pre-pandemic state or make up for the backlog created in 2020.
Specific situation in the IT industry
The IT market, in terms of sought-after specialists and the way they work, currently remains similar to what we observed at the beginning of the pandemic.
– The processes we conduct are 99% recruitment based on remote work. At the same time, there is no time limit as before: remote work until the end of the pandemic, but permanently. The trend of acquiring independent specialists with well-established experience is becoming more and more noticeable. The problems generated by remote work in the area of “on-boarding” make it practically impossible to employ beginners who are just entering the profession. Online tools significantly facilitate communication within the team, but they also have their limitations, which in the long run affect the so-called “team spirit” and work in a company with not fully systematized processes. In addition, remote work requires the specialist to be independent and focus on the task. Not everyone can cope with it, which translates into problems with meeting deadlines and the quality of the work performed. In addition, we have observed increasing concerns among employers about data security and company secrets. Remote work brings with it potential freedom as to the place and time of its performance, at the same time significantly increases the requirements for the department to ensure IT security in the area of securing equipment and connection, but also managing IT systems – explains Anita Dąbrowska, member of the management board of IT LeasingTeam.
Can employees count on pay rises in 2021?
The Covid-19 situation has slowed down wage growth in almost every industry. Although the amount of the national minimum wage has increased by almost 8%, this will not translate into widespread increases. – Employers count every penny and think hard before spending it. The market has also experienced greater availability of candidates, who are further lowering their financial expectations. Thus, current employees rarely have the opportunity to receive raises. We even hear voices that the increase is to maintain full-time jobs. The greatest chance of receiving a higher salary is for people in specialist positions, which are difficult to find on the market – says Anna Jurkiewicz, Regional Outsourcing Manager at LeasingTeam Professional.
Statistically, the e-commerce and retail (food) sectors did not suffer from the pandemic, but even gained. – Although in the first of them we are recording wage increases, the retail sector is much more restrained. Employers first reduced or completely froze previously planned salary increases and resigned from paying bonuses or other salary allowances. This trend is likely to continue through the first half of 2021. The lack of wage increases in trade, especially in Q1 2021, will also be largely related to the burdens imposed on entrepreneurs, the so-called trade and sugar tax. If there are raises, it will be insignificant in order to maintain the current staff. There are also no large hiring plans planned, and seasonal or one-off personnel needs will be supplemented by temporary workers. Thanks to this solution, entrepreneurs can flexibly approach the execution of orders and seasonal peaks, while maintaining permanent staff. It is also worth noting that there has been a very large automation of the sales process on the market, i.e. many companies have purchased self-service checkouts, which allows for the optimization of employment – says Katarzyna Dąderewicz.
When considering the issue of wages, it is worth referring to the NBP report on inflation. According to him, in the second half of 2021, it is possible to gradually unfreeze wage growth. The dynamics of work and the related stimulation of the market will affect the economic situation, which will enable employers to gradually restore non-wage benefits as well as return to the planned salary increases. In this year’s report, average salary increases y/y are expected at the level of 3.4% in Q1 to 5.9% in Q4.
3 observed trends in the labor market in 2021
Recruitment and remote work
The year 2021 is primarily a time of calm determination of the rules of remote work. Most employees have appreciated this form of performing their duties, and employers increasingly see it as an opportunity to reduce costs.
– The coming year will certainly be a year of working in a hybrid model, strongly focused on combining work from home and from the office. It will also cause changes and improvements when it comes to digital tools used for daily communication, recruitment activities or online onboarding. Flexibility – this is certainly a skill that companies have practiced perfectly in 2020 and will continue to practice through, for example, greater openness to external forms of employment such as outsourcing or temporary work, flexible working schedules, high mobility of workstations and online cooperation – notes Anna Jurkiewicz.
Agnieszka Kaczmarek, project manager, also notes that a big challenge in 2020 was to reorganize the recruitment system from stationary to online: – Before the pandemic, recruitment was largely carried out on-site, so it was possible to verify the candidate primarily in terms of qualifications, and he could get acquainted with the company and the job position. The year 2020 forced both parties to switch to remote recruitment. On the one hand, this had its advantages, such as greater availability of appointments, time optimization, but on the other hand, not every candidate had the opportunity to meet online, especially in the case of recruitment for entry-level positions, in less urbanized towns. Over time, this has changed and such situations are now less and less frequent.
Rebranding among employees
LeasingTeam Group’s observations show that many candidates from various industries, especially those most affected by Covid-related restrictions, declare their willingness to change careers permanently and ensure a better chance of stable employment. This applies mainly to employees in the fitness, restaurant, event, entertainment and retail industries. Such a trend has consequences.
– We are already seeing an increasing, even massive influx of applications for various types of lower-level positions for which there are no specialized requirements. On the one hand, this significantly extends the work of recruiters, who have to open hundreds of CVs, on the other hand – these people often lower their financial expectations in order to get any job, which creates a real probability that the average salary in individual industries may decrease. It will also be more difficult to raise prices – comments Katarzyna Leśniewska, acting recruitment director at LeasingTeam Professional.
The situation is slightly different in specialized industries, such as IT. The demand for specialists there is still not decreasing. – There were more offers than a year ago for financial analysts, e-commerce specialists or cybersecurity specialists Taking into account the last year, only the IT industry showed stability ,” adds Katarzyna Leśniewska.
On the one hand, we have an increase in the number of job seekers willing to change the career of lower-level employees, and on the other hand, there is a constant demand for specialists. Both of these aspects mean that companies will increasingly use the services of professional recruitment companies to save time, but also to save time, but also to be convenient.
Headhunting still demanding
Since the second quarter of 2020, the work of headhunters has become even more demanding and time-consuming. Employees who are not actively looking for a job approach the proposed offers with a great deal of caution, fearing the loss of stability, choosing the wrong company for them or not proving themselves in a new position and having to look for employment in the difficult covid market. Employers should be aware that in 2021 it will be more difficult to acquire talents and often the help of a professional headhunting agency will be indispensable.
– Lack of stability in the labour market results in great caution and even reluctance of passive candidates to change jobs. This can be felt in everyday conversations with candidates, who regularly ask, for m.in, about the financial condition of the company, its stability, plans for the future, employers’ behavior towards employees in the new situation, the level of implementation of the remote/hybrid work model, etc. The process of recruiting such people has become longer and much more demanding. Employees do not want to take risks and only a thoroughbred recruiter, who can properly talk to candidates, can convince them to change their minds – says Katarzyna Leśniewska, acting recruitment director at LeasingTeam Professional, which specialises in headhunting recruitment.
Foreigners in Poland – will they come to work in 2021?
For a long time, Ukraine has been the most frequently chosen destination for acquiring foreign workers. This has not changed in 2020 either. It can even be said that this nation has gained popularity due to the cautious approach of companies to running businesses. A new, previously unemployed nation would involve the need to introduce required and costly changes to adapt the workplace and the employee management model. In general, however, in 2020, employers strongly preferred cooperation with employees from Poland. This should not change this year.
– The recruitment of foreign employees is longer, and in the case of some countries, significantly longer than the recruitment of an employee with Polish citizenship. Currently, it is also associated with the risk that the process, which has been conducted for months, will be abruptly halted by legal restrictions that are impossible to predict at the initial stage. Already in January, we are observing how more and more faculties, previously conditionally released from quarantine, are absolutely covered by it. Therefore, we can expect that the need to isolate foreign workers after arriving in Polish will be maintained in 2021. When it comes to interest in job offers in Poland, we are still a country eagerly chosen by candidates. However, we must take into account the fact that each country from which we acquire employees also introduces its own restrictions, which have a direct impact on the effect of recruitment – says Aneta Sztompka, Regional Director at LeasingTeam.
Germany is still an attractive destination for Poles to work
In the spring, we experienced a sudden slowdown both in terms of customer demand and the willingness of Polish employees to work in Germany. Especially the closure of borders has resulted in a large number of job resignations. The summer has already brought a huge improvement on both sides and despite the changing circumstances of the pandemic, this trend continues in 2021 as well.
– We continue to see a lot of interest in temporary work in Germany. Of course, candidates are sometimes discouraged by the need to take a coronavirus test and mandatory quarantine in Germany, but taking into account the increasing cost of living in Poland with reduced income or even losing their jobs, our citizens will continue to go to Germany for work. Germans are usually willing to hire foreign staff, and in this area, Poles are valued for their skills and commitment, so they have become a permanent part of the German temporary employment market – said Anna Macheta, Business Development Director at CPC Consulting Group, an employment agency specializing in delegating Polish employees to work in Germany.
2021 in the HR industry under the sign of stability and caution
2020 was a year marked by the COVID-19 pandemic. The rapid spread of the coronavirus and the resulting great economic crisis have given an impulse to many changes that are visible in the employment sector. At the beginning of the pandemic, we experienced a sudden slowdown and a reduction in employment, only to slowly return to a more stable labor market after a few months, which we will most likely observe in 2021. HR departments will continue to play a very important role in organizations, and even this role is likely to increase given the changing economic conditions in which proper human capital management is crucial. Hiring or using the services of specialized HR Business Partners will be indispensable in the current market reality.
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