Poles do not want to work physically. Will employees be attracted by non-wage benefits?
Despite the significant increase in the minimum wage, almost all of Poland is starting to lack people willing to perform basic physical work. In addition, according to experts, the flattening of salaries results in a decrease in efficiency and increased staff turnover. Entrepreneurs who cannot afford another wage increase compete for employees with a number of benefits that have so far been reserved for specialists. Staff gaps can be filled by foreigners from distant countries of Eastern Europe and Asia.
According to the estimates of the Ministry of Family and Social Policy, in July the registered unemployment rate in Poland amounted to 5 per cent. This means that virtually everyone who wants to work is employed somewhere. The insufficient number of employees is directly related to demographic indicators, which clearly show that our society is aging. Although the current minimum wage in Poland is PLN 3,600 gross, and in the case of the hourly rate – PLN 23.50 gross, there is a shortage of basic workers in almost every industry. Companies that cannot automate processes to reduce the human factor or compete for employees with higher salaries introduce a whole range of benefits and bonuses.
– Despite the difficulties in recruiting blue-collar workers, most employers are not able to bear even higher employment costs and try to keep the basic salary at a minimum level. Instead, they try to encourage employees in other ways. They offer them non-wage benefits, which can mitigate the effects of inflation to some extent – says Wojciech Rybicki, Director of Centre Region Development at LeasingTeam Group.
Non-wage benefits for blue-collar workers
Non-wage benefits, such as gym memberships, medical care packages or life insurance, are no longer reserved only for specialists and managers. According to experts, they may soon become the new standard also among less qualified employees. Such solutions are often cheaper for the employer than an increase in the basic salary for work, and they bring the desired effect. Provided, however, that the offer of non-wage benefits is properly profiled.
– In the era of rising costs of living, non-wage benefits that really relieve the household budget are the most desirable. In production positions, meal subsidies or lunches for one zloty in company canteens work very well. Such solutions are also beneficial for the employer, because the subsidy of meals in the amount of up to PLN 300 per month is exempt from social security contributions,” says Marta Pilipowicz, Director of the Southern Region at LeasingTeam Group. – Our observations also show that employees attach great importance to the issue of commuting – whether it is organized by the employer or subsidized and at what distance from the place of residence the workplace is located – adds Marta Pilipowicz.
The fact that commuting to the place of employment is important was already shown in the June report of LeasingTeam Group “Poles on commuting to work”. The survey shows that for the vast majority of
of Poles (81 per cent) is even of key importance, because it influences the decision to accept a job offer.
High turnover and low quality of work
One of the consequences of the rapid increase in the minimum wage is the flattening of wages, and thus a drastic decrease in motivation to work and an unprecedented turnover of staff on such a scale. According to experts, it is currently difficult to recruit an employee, but it is even more difficult to retain them.
“Blue-collar workers are much more aware of the possibility of changing jobs than they were a few years ago and are much more willing to take the associated risks,” says Wojciech Rybicki, Centre Region Development Director at LeasingTeam Group. – Unfortunately, we are also observing a decrease in commitment to the implementation of the tasks entrusted to us. In a situation where wage conditions are becoming more and more similar, blue-collar workers, especially the least qualified ones, are looking for a lighter and easier job that they can do for similar money – notes Wojciech Rybicki.
Workers from Ukraine are not enough
Almost all over the country, there is a shortage of workers for production positions and warehouses, as well as people to perform basic jobs in industry, construction, trade and logistics.
– The situation with shortages in blue collar areas has returned to the pre-pandemic time. There are a lot of job offers and we certainly cannot talk about the end of the employee market – says Marta Pilipowicz, Director of the Southern Region at LeasingTeam Group.
The staff gaps were only partially filled by employees from Ukraine. According to the data of the Office for Foreigners, as many as 77 percent of adults who came to Polish within a year of the outbreak of the war are women. On the other hand, men of working age, able to perform heavier physical work, were very quickly absorbed into the market.
– According to our estimates, there are currently about 1.2-1.7 million Ukrainian citizens in Poland, which turns out to be insufficient for the needs of the labor market. The situation is not improved by the fact that more and more Ukrainian citizens are returning to their country or leaving Poland for the West, where wages are even higher. Employers, including temporary employment agencies, are therefore looking for employees in distant countries of Eastern Europe and Asia. Georgia, Azerbaijan, Kazakhstan, Uzbekistan, India, Nepal, Bangladesh and the Philippines – these are the directions from which the acquisition of employees will grow in the coming years – sums up Wojciech Rybicki, Director of Centre Region Development at LeasingTeam Group.
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