Rising inflation, price hikes and asynchronous communication. Antal presents the top 10 trends on the labor market in 2023.
Table of contents
Rising inflation, a significant economic slowdown and geopolitical uncertainty – despite this, the labor market in Poland is still strong. Wage growth for specialists and managers was at a record high in 2022 and is expected to remain so in 2023, but still below inflation.
#1 Employers will not compensate employees for high inflation
During conversations with specialists and managers, it is heard that they will demand sharp increases in 2023. Some organizations are aware of this and talk about the need to equalize employees' salaries. This applies to every industry. However, most employers will not compensate employees for high inflation by raising wages.
Over the past few months, inflation has been rising due to rising production costs, raw material prices and relatively high demand, which allowed companies to pass on the costs to consumers. In 2023, inflation is expected to remain elevated in most countries, including Poland, mainly due to the increase in energy prices. According to the NBP Inflation Report, salary increases year on year in 2023 will amount to 12.8% in the first quarter and 10.3% in the last quarter - comments Michał Borkowski, Sector Manager, Antal Finance & HR.
#2 More people willing to work
There is a direct relationship between satisfaction with the current professional situation and activity on the labor market. Among those who believe that their situation on the market has definitely improved in the last year, only 23% are actively looking for a job. Among those who claim that it has rather improved - 49% already browse the offers, and among those who definitely do not see the advantages - 76%.
The future will show whether the increase related to the number of people looking for a job is a temporary trend, aimed rather at checking how the market looks at the moment, or whether the phenomenon of Great Resignation will reach us from across the ocean. The trend so far associated mainly with the labor market in the United States concerns a wave of layoffs at the initiative of employees, which can be associated with the lack of support from the state and unsatisfactory working conditions. On the other hand, deteriorating economic indicators may increase the importance of stability and security, which will translate into a reduction in the number of termination notices, comments Anika Jabłońska, Senior Consultant, Antal IT Services.
#3 Rotation as a result of poor management
The economic slowdown is definitely not conducive to an increase in the activity of specialists and managers on the labor market. But at the same time, it arouses their curiosity and openness to talks about interesting positions and establishing potential cooperation with a new employer. Final decisions, however, are made much more carefully and are thoroughly analyzed.
To a large extent, the level of employee turnover in the organization and thus their activity on the labor market will depend on employers, their maturity and competence. According to the research results presented in the Antal report "Activity of specialists and managers on the labor market", 53% of employees leave due to poor management in the organization. The decisive factor in the current situation is the managerial and leadership competences of people managing teams in difficult, unstable situations, with high dynamics of change, influenced by the pandemic, war, energy crisis, ever-growing inflation, etc. - says Katarzyna Sławińska, Team Manager, Antal Engineering & Operations.
#4 Changes in the scope of remote work
The Sejm is working on changes in the field of remote work. The Act provides for both full and hybrid remote work, depending on the needs of a specific employee and employer, as well as the possibility of instructing an employee to work remotely in specific cases.
In the context of the new regulations, the provisions indicating the need to pay an equivalent or a lump sum for remote work seem to be of great interest. Since the beginning of the epidemic in Poland and the transition of employees to the so-called home office, some companies made individual decisions regarding the granting of additional funds to employees to cover the costs related to working at home. Such voluntary support was an excellent element of the employer branding strategy. When the changes in the labor law enter into force, the payment of a lump sum or equivalent will be the obligation of every employer. Determining the rules for determining the lump sum may be an organizational and procedural challenge for many enterprises - adds Edyta Markiewicz, Team Leader, Antal SSC/BPO.
#5 Giggers
At the heart of the business is the concept of challenging traditional recruitment models and revolutionizing by unleashing community power and democratizing recruitment processes. Worldwide, there are over 50 million people registered on platforms offering work in the GIG formula, i.e. flexibly, with high autonomy of the work performed. In 2023, we will notice an active entry of the candidate into the market in search of not only better sources of income, but also additional activities that bring financial gratification. In the face of the state of the economy, a drastic drop in the purchasing value of money, there will be more giggers than ever.
Work-life balance, which has evolved into work-life integrity, will now pupate into work-holism. In a situation of threat to the well-being to which we are accustomed, we can try to renounce well-being in order to maintain the standard of living. Those who do not give up will work overtime not only for themselves but also for their loved ones. Different generations will react to this change in different ways, however, we can expect an increase in economic emigration - physical or remote. International cooperation is hindered by different guidelines and labor law regulations, while independent entrepreneurs do not have such fiscal or legislative restrictions. Giggers will strengthen and redefine the labor market - comments Karolina Korzeniewska, ReX Project Manager.
#6 Asynchronous communication is the key to effective cooperation
In times of so many distractions and time-wasters, asynchronous communication will count for candidates. It is the key to productive teamwork and the future of collaboration. However, in order for its popularity to grow, managers will change both the way they think and act.
Asynchronous communication allows the team to work in blocks of uninterrupted time, guarantees a record of everything said and shared, while synchronous communication is not always logged. In addition, it gives you a chance to think before answering and allows you to communicate with your team regardless of the time zone. It's about considering what needs to be done and doing it right, while respecting other people's time, attention and focus, as well as reducing the number of unproductive meetings - explains Joanna Cieślik, Senior Consultant, Antal Finance & HR.
#7 Increasing the competitiveness of employers through innovation
On a macroeconomic scale, innovations are considered one of the main factors of economic growth. From the microeconomic perspective, the introduction of innovations allows, among others, reduce production costs, improve its quality, expand the range of products offered, better meet the needs of consumers, react faster to changes in buyers' expectations, reduce the consumption of raw materials and energy, reduce the ecological harmfulness of production, increase work safety.
The Antal and Sodexo report “Innovative work environment” shows that as many as 70% of specialists and managers believe that the innovativeness of a company when choosing an employer is important. 30% of employers support innovation by investing in the implementation of innovative solutions, automation of simple processes and technologies facilitating communication. It is also worth noting that innovation is highly appreciated by employees who assess their company as innovative. The expectations of job candidates regarding innovation are reflected in the number of employees who work in innovative companies and choose those that can boast about it - adds Marta Stańczak, CEO of Corporate Services, Sodexo Polska.
#8 Metaversum as a new communication channel
According to Antal's "Recruitment Trends" report, almost ⅓ of respondents believe that metaversum will play a significant role in recruitment, and almost 40% see potential in virtual reality, while emphasizing that in their opinion it will not be a ubiquitous phenomenon.
Over the next year, we will witness further development of new technologies in HR. This fuels the metauniverse while creating new recruiting needs. Already, most departments responsible for the area of human capital in companies actively use available technologies. This also translates into a significant acceleration and shortening of the processes. Companies are looking for a way to optimize their activities while increasing the success rate and remaining competitive on the labor market - comments Karolina Bucka, Team Leader, Antal IT Services.
#9 Recruitment Process Outsourcing as a safe solution for difficult times
RPO (Recruitment Process Outsourcing), or in its Polish counterpart Outsourcing of Recruitment Processes, is a comprehensive sourcing of candidates for work for a client, performed by external recruitment companies. Often this service is used not only by "sharks", but also by small enterprises. Mainly due to the fact that they do not have enough staff to be able to conduct recruitment from start to finish on their own.
In the next year, we expect not only a large increase in interest in the RPO service, but also in its use by companies. Nowadays, companies will transfer processes from abroad to Poland, the implementation of which in Poland will be safe and effective in terms of quality and cost, and will use resources in the outsourcing formula, instead of creating new jobs. Already, every fourth respondent participating in Antal's "Recruitment Trends" survey declares using the RPO service, and all this proves that I would treat business in Poland in a mature way - adds Dominik Kalinowski, Head of Outsourcing Antal.
#10 Technical, soft skills and languages, i.e. the must have of an ideal employee
Among the most desirable competences, apart from strictly technical ones, experts of the World Economic Forum also mention soft ones, e.g. emotional intelligence, critical thinking, problem solving, and the ability to teach yourself and others. With the progressing robotization, the demand for soft skills will increase.
Attracting and retaining employees with the right set of knowledge and skills is probably the biggest challenge faced by employers today. Trends in the labor market clearly indicate which skill areas will also matter in the near future - including computer science, mathematics and economics, but also banking, marketing and online sales. Don't forget foreign languages either. The labor market suffers from a shortage of people with at least B2 or C1 knowledge. The most frequently requested language is still English, followed by German, French, Dutch, Italian and Spanish. Scandinavian languages are also gaining in importance, and due to the migration situation, also Ukrainian - comments Maryla Aftanasiuk Lisiecka, Business Unit Director, Antal Sales & Marketing.