Employee or employer market? About the extremes in the labor market.
The situation on the labour market is diverse and dynamic. Currently, many industries are in the peak season, which means that it is necessary to increase human resources in organizations. Meanwhile, entrepreneurs are afraid of the second wave of the pandemic in the autumn, so they are very cautious about increasing fixed costs, more and more often opting for temporary workers or outsourcing services.
Lower level, temporary workers – not too bad, but without euphoria
Blue collar employees, especially temporary ones, felt the consequences of the March lockdown the most. July brought the long-awaited return of the PMI index for Polish industry above the key level of 50 points. According to the latest survey, Poland recorded a result of 52.8 points compared to 47.2 points in June.
– The increase in the PMI index directly translates into the demand for employees. Since June, we have been recording a regular increase in orders in most manufacturing industries. Although they are largely due to the ongoing season, it is pleasing that our regular, year-round customers are also already expanding their teams with temporary workers, returning to full production capacity. We continue to observe the most difficult situation in the automotive industry – says Agnieszka Haponik, Business Development and Marketing Director at LeasingTeam Group
The unfreezing and acceleration of the economy stimulated the labour market – average employment in the enterprise sector in Poland increased by 12k FTEs in June compared to May. Although this result is pleasing, there is a long way to go to rebuild the number of jobs from before the pandemic. Despite the higher unemployment among Poles, many companies have a real problem with completing teams.
In Poland, many companies rely on employees from Ukraine. When the lockdown was introduced, most of them left for their home country because the government announced too late that work permits would be automatically extended. Currently, Ukrainians want to return to the Polish labor market, but the extended waiting time for statements or the forced 14-day quarantine mean that the return process is not as fast as to meet the recruitment needs of companies.
– Currently, a large number of Poles are looking for employment, but most of them do not want to take up certain jobs, e.g. repetitive and monotonous, in shift systems, 12 hours a day, etc. Rates also play a major role – citizens from Ukraine are still willing to take up employment for lower wages than Poles. In the era of savings, this is a key factor for many employers – says Agnieszka Haponik, and then adds “We recommend companies that cannot wait for people from Ukraine to open up to employees from Nepal, Ethiopia or Moldova, a large group of whom already live in Poland and are willing to take up work. However, it is worth remembering that these people usually speak only their mother tongue and English.
White collar and IT specialists – greater interest of employers in outsourcing
While a large part of blue collar temporary workers lost their jobs as a result of the March lockdown, the white collar staff mostly came out of this situation unscathed. The negative consequences in their case were mainly limited to a reduction in the number of full-time jobs or the elimination of some non-wage benefits.
“Although we have not yet recorded significant layoffs among white collar employees, we observe that employers are afraid of a second wave of the pandemic in the autumn and winter, calculate costs, develop forecasts and analyse the state of employment. As a result, we receive an increased number of inquiries about white collar outsourcing – companies want to plan fixed costs in relation to variable costs with even greater awareness – says Anna Jurkiewicz, Regional Outsourcing Manager at LeasingTeam Professional.
Among the areas that suffered the least in the pandemic, IT is the most noted, although this industry is also feeling the effects of the crisis.
– Employers have limited development activities, leaving mainly those related to the maintenance of existing or previously started projects. In addition, foreign capital has begun to support its own economy, as a result of which projects implemented in Poland are suspended or taken over by the headquarters – says Anita Dąbrowska, Member of the Management Board of IT LeasingTeam.
IT specialists looking for employment are already appearing on the market. Accustomed to high salaries in recent years, they will now have to face greater requirements of the employer, and perhaps even reduce their financial expectations a bit. However, they do not have to worry about finding a job. In the era of digitization, process automation and preparation of infrastructure for remote work, employment should not be lacking for them.
As with the blue collar, the IT industry is also showing increasing interest in outsourcing. – Companies strive to reduce fixed costs and do not want to make long-term commitments, hence they more and more often keep key employees on a full-time basis and employ other team members in the form of outsourcing – explains Anita Dąbrowska.
Managerial staff – a difficult exam
Although the negative consequences of Covid-19 in the context of lower positions are mainly discussed, it is important to be aware that the management has also felt the effects of the pandemic in many aspects, both those related to adapting the business to the current reality and those related to personnel policy. Crisis management means the need to quickly respond to market volatility, remodel the work of many people, develop new procedures, make and implement decisions that are not always popular.
The time of the pandemic was and still is a difficult test for the managerial staff, often revealing competence gaps in crisis management. Regardless of this, in the era of declining turnover and an uncertain future, many companies are forced to tighten their belts: reduce fixed costs, suspend investments, changes in the structure and functioning of the company, e.g. by merging departments or moving some processes abroad. All this has resulted in the reduction of jobs at the highest levels, which are recovering very slowly.
– The first months after the lockdown saw the blocking of most permanent recruitment, in particular for higher and highest positions. The first symptoms of unfreezing budgets appeared in May-June, although the number of open recruitment processes for senior management is still much lower than at the beginning of the year. Meanwhile, the flow of CVs for these positions is twice as high – says Katarzyna Leśniewska, acting director of the recruitment department at LeasingTeam Professional.
Undoubtedly, the crisis caused by the pandemic and the forecasted unemployment have changed the approach of employers and employees. The requirements for candidates for the most important positions are already and will be higher and higher.
Doświadczony analityk rynku pracy, specjalizuje się w badaniach nad trendami zatrudnienia i zmianami w strukturze zawodowej. Jego artykuły, publikowane w renomowanych czasopismach branżowych, pomagają czytelnikom zrozumieć dynamikę rynku pracy.
