The year 2024 is now behind us, leaving a legacy of heated debates on reducing working hours, the growing influence of Generation Z, and other developments that captured the attention of employers and employees alike. Magda Pietkiewicz, a labor market expert and creator of the Enpulse platform for measuring employee engagement, reflects on the trends and discussions that defined the year.
â2024 will long be remembered by labor market professionalsânot just because of the lowest unemployment rate in 30 years. The discussions of the past year mark the beginning of long-term changes in how we perceive work and workers,â says Pietkiewicz.
Shortening Working Hours
Throughout 2024, policymakers debated whether working hours in Poland should be reduced to 35 hours per week or even to a four-day workweek. These discussions were driven by studies suggesting shorter working hours improve productivityâa challenge Poland struggles withâand by examples from countries like France, Belgium, and Germany that have already implemented such policies.
Although no legislative action was taken, some Polish employers have started testing shorter work schedules. Companies such as Herbapol PoznaĆ and Deloitte are leading the way, experimenting with reduced hours to enhance productivity and employee satisfaction.
âPolandâs productivity was at 66% of the EU average in 2023, according to Eurostat. Clearly, we have room for improvement. Whether shorter hours will solve this issue remains uncertain, but it seems inevitable in the long term. Employers should begin preparing for this shift gradually, carefully balancing costs and benefits,â Pietkiewicz emphasizes.
Employee Appreciation
Acknowledging and appreciating employees gained prominence in 2024, as it was highlighted as a critical factor in boosting engagement. Despite its importance, only half of Polish employees feel they are adequately rewarded for their professional achievements, despite 75% emphasizing the value of recognition from their direct supervisors.
âIn todayâs challenging business environment, employee engagement is crucial to organizational success. Simple gestures like a heartfelt âthank you,â public praise, or meaningful conversations can significantly boost morale. Many Polish employers lack a âculture of appreciation,â but fostering one is essential for long-term success,â Pietkiewicz notes.
Record-Low Unemployment
One of the most striking labor market stories of 2024 was Polandâs exceptionally low unemployment rate, averaging 5%âthe lowest in over three decades. Cities like Katowice, PoznaĆ, and Warsaw recorded unemployment rates near 1%. According to Eurostat, Poland remains one of the EU leaders in low unemployment.
âLow unemployment is a double-edged sword. While it stimulates economic growth, it also creates significant challenges for employers struggling to find workers. Companies must adapt to these conditions and meet employeesâ rising expectations. Failing to do so may slow growth for both businesses and the Polish economy,â Pietkiewicz explains.
“Active Parent” Program
In May 2024, the government introduced the “Active Parent” program to encourage mothers of children aged 12â35 months to return to the workforce. The initiative offers three options: subsidies for childcare in nurseries, financial support for non-working parents, and the so-called “grandparent allowance.” By November, the program had disbursed PLN 317.5 million.
âThe most popular option, chosen by 60% of applicants, is nursery funding. This choice aligns well with labor market goals, as it promotes workforce participation, increases tax revenue, and stimulates demand for childcare services, creating additional jobs,â Pietkiewicz observes.
Generation Z
Generation Z, born between 1995 and 2010, now makes up about 20% of Polandâs workforce. This tech-savvy generation values work-life balance, a good working environment, and opportunities for professional growth. While often labeled as “lazy” or “entitled,” their openness and innovation are increasingly recognized as strengths.
âMultigenerational teams are an asset, combining youthful energy with the wisdom of experience. According to the World Economic Forum, 80% of employers agree that diverse age teams are key to success. Organizations should adapt to Generation Z’s needs, which often align with universal desires like fair pay and recognition,â Pietkiewicz points out.
Work-Life Balance and Well-Being
Work-life balance remained a hot topic in 2024, driven by Generation Zâs strong advocacy and broader discussions on burnout and overwork. The EU directive 2019/1158, promoting work-life balance for parents and caregivers, also brought the issue to the forefront.
âTo address well-being, companies are offering flexible schedules, hybrid work options, free psychological consultations, and even unlimited vacation policies. Overregulation could stifle these innovations, so policymakers should tread carefully and allow the market to self-regulate where possible,â Pietkiewicz advises.
“Free Christmas Eve” Debate
The end of 2024 saw a push for making Christmas Eve a public holiday, with a petition reaching the Senate in August and legislative action initiated by October. By December, the proposal awaited the presidentâs approval.
âPoland already has a high number of public holidays compared to other EU countries, and our productivity needs improvement. Before adding more holidays, we must ensure our work efficiency justifies the economic impact,â Pietkiewicz warns.
Diversity
Discussions about workplace diversity extended beyond gender to include age, neurodiversity, and religious backgrounds. Diverse teams were shown to outperform homogeneous ones in creativity and innovation.
âDiversity fosters innovation and competitiveness. According to McKinsey, diverse organizations are 39% more likely to achieve above-average financial performance. While 97% of HR leaders say theyâve implemented diversity initiatives, over 60% of employees disagree, showing thereâs still much work to be done,â Pietkiewicz concludes.
Source: CEO.com.pl