Poland’s Labour Market Enters a Phase of Caution as Hiring Freezes Fuel “Job Hugging”

CAREERSPoland’s Labour Market Enters a Phase of Caution as Hiring Freezes Fuel “Job Hugging”
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The effects of geopolitical instability, which the Polish economy must navigate on an ongoing basis, are already visible in the labour market. Companies are increasingly freezing recruitment and cutting the least efficient positions, while at the same time accelerating process automation. As a result, the phenomenon of “job hugging” is on the rise. On the surface, this appears to increase team stability and reduce turnover, but it does not translate into productivity or genuine loyalty. So what can employers do? The results of a Trenkwalder survey show which measures truly bind employees to an organisation.

Geopolitical disruption, global stagnation and creeping inflation have pushed Polish companies into optimisation mode as they wait for better times, trying to improve productivity through automation and hiring freezes. In February this year, the unemployment rate rose to 6.1% for the first time since September 2021, while the number of job offers reported to labour offices was 40% lower than a year earlier, amounting to just 31,700. This was the lowest level in 15 years. Meanwhile, according to data from the Element recruitment system for Grant Thornton, 7% fewer job advertisements were published across the 50 largest recruitment portals than in the same period last year.

FROM AN EMPLOYEE’S MARKET TO A MARKET OF CAUTION

The decline in job offers and the more cautious approach companies are taking to recruitment are creating a new reality in which employees are increasingly abandoning thoughts of changing jobs. The phenomenon of so-called “job hugging” is becoming more visible — employees clinging tightly to their current positions despite lacking job satisfaction. According to the latest Barometer of the Polish Labour Market, as many as 22% of Poles declare that nothing could persuade them to leave their current employer — not even higher pay. Employees are choosing a strategy of safety, and this should not be confused with loyalty.

In the Trenkwalder report Employers’ Challenges: Strategies for Building Employee Loyalty, conducted among 500 employers and 500 employees, both employers (52.4%) and employees (69.4%) indicated that high-quality work and commitment to professional duties are the two most important signs of true employee loyalty. Genuine engagement, initiative and a willingness to take on additional responsibility therefore help distinguish a loyal employee from a job hugger.

APPARENT EMPLOYEE LOYALTY, REAL EMPLOYER PROBLEMS

According to the Trenkwalder report, as many as 44.6% of employers currently perceive their staff as moderately loyal — in other words, somewhat detached and not fully engaged in the life of the organisation. As a result, organisations are operating under conditions of apparent stability: teams are not changing, but their effectiveness and development momentum may gradually weaken.

“The phenomenon of job hugging should be analysed not as a sign of stability, but as a warning signal. This is the moment when companies should take a closer look at employee loyalty and engagement and assess whether it is authentic or merely a temporary survival strategy,” stresses Ewelina Glińska-Kołodziej, CEO of the employment agency Trenkwalder and Management Board Member of the Polish HR Forum.

THE SECRETS OF BUILDING LOYALTY — WHAT DO EMPLOYEES EXPECT?

In this situation, the key question becomes what actually builds genuine employee loyalty — the kind that translates into commitment and effectiveness. The Trenkwalder study shows that for 53% of respondents, stable pay and financial security play the most important role.

This means that HR strategies, ideas and actions should be measured against Maslow’s hierarchy of needs in order to understand what works — or why something does not work. According to Abraham Maslow, the American psychologist and creator of the theory of needs, higher-level needs are activated only once lower-level ones have already been satisfied.

“In organisations, this means that an employee will neither develop nor become fully engaged if they do not feel secure. In practice, if an employee’s pay is below market standards, then non-wage benefits, training or development workshops will not bind them to the organisation — and may even have the opposite effect,” notes Ewelina Glińska-Kołodziej. “An employee who is provided with stable working conditions and predictability — that is, a sense of security — receives a foundation that allows them to focus their energy on growth rather than on fear,” she adds.

Nearly 47% of respondents point to maintaining a work-life balance, while 38% highlight flexible working hours. Employees are therefore speaking ever more clearly: we want to work well, but not at the expense of ourselves.

“This shows a profound change in paradigm. Today, work no longer defines a person’s entire life; it is one part of it — important, but not the only one, and equal to other spheres,” says Ewelina Glińska-Kołodziej.

EMPLOYEES WANT BENEFITS AND RECOGNITION RATHER THAN PROMOTIONS

According to the Trenkwalder report, 35% of respondents asked which employer actions most effectively increase loyalty point to the diversity of non-wage benefits, 34% value health programmes and medical packages, and 32% highlight respect for employees’ experience and competencies.

One interesting conclusion is the relatively low importance of promotions or development programmes in the context of loyalty, with only 27% of responses. This signals that many employees have already had their fill of titles. It is therefore not about adding more perks, but about genuine care for wellbeing — balance, recognition and a culture of cooperation.

“For employees, the need for belonging, acceptance, cooperation, open communication and a sense of being part of a team are very important. It is precisely then that an authentic bond with the company begins to grow. When, at the next stage, the organisation consistently strengthens the need for recognition through respect and appreciation, gives the employee a sense of influence over decisions, and offers opportunities to develop competencies and build authority, the employee begins to see it as a place where they can grow,” argues Ewelina Glińska-Kołodziej, CEO of the employment agency Trenkwalder and Management Board Member of the Polish HR Forum.

GENERATIONS AND THE EFFECTIVENESS OF LOYALTY STRATEGIES

The Trenkwalder survey showed that employees largely confirm employers’ intuitions. For Generation Z, flexibility and work-life balance are the most important factors, with stable pay coming only in third place. Older generations — Millennials, Generation X and Baby Boomers — place the greatest value on stable pay and financial security, but also on respect for their professional experience and competencies.

“Companies that can appreciate this gain not only loyalty, but also employer brand ambassadors. In the face of an ageing society and a shrinking number of candidates on the labour market, this ability is taking on strategic importance,” stresses Ewelina Glińska-Kołodziej.

According to Statistics Poland, the natural increase rate in Poland from January to September 2025 stood at -4.3%, confirming that a time is coming when retaining experienced employees will become one of the key HR challenges. That is why the future of loyalty will not belong to those who offer the most benefits, but to those who best understand the needs of their people — regardless of age, experience or stage of professional life.

As the CEO of Trenkwalder points out, the most enduring loyalty can be built at the top of Maslow’s hierarchy — where creativity, a sense of purpose and self-fulfilment appear. If an employee sees that their work matters and that the company’s goals are aligned with their own values, loyalty becomes a natural consequence rather than an enforced strategy.

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