The Polish labor market is facing an unprecedented decrease in the number of workers. By 2035, there may be as many as 2.1 million fewer employees. Faced with an increasing skills gap and high recruitment costs, companies should focus on the development of existing employees, which requires a modern approach to team management.
According to the latest report by the Polish Economic Institute “Demographic changes and their consequences for labor supply in Poland”, by 2035, the number of employed people could reduce by 2.1 million, which accounts for 12.6% of the current employment status. Visible trends point towards a shrinking population of working-age individuals, while the number of post-working-age people is increasing.
There is a shortage of workers, particularly qualified ones, hindering the development of Polish companies. At the same time, the cost of recruitment is rising: it now costs the equivalent of a worker’s annual salary to replace them. Targeted training could alleviate the shortage of specialist workers.
“We are observing a growing competency gap in the Polish labor market. On one hand, there is a rapid change in the needs of firms regarding digital transformation. On the other hand, the pace of employee qualification improvement is inadequate,” says Szymon Lisowski, CEO of Socjomania, a consulting and training company which joined the Altkom group in November. Following this move, both companies can feasibly assist Polish enterprises in digital transformation and boosting employee skills.
High Recruitment Costs
Data from Eurobarometer suggests having trouble finding qualified workers affects as many as 82% of small and medium-sized Polish businesses. The situation is exacerbated by increasing recruitment costs – according to British company Apifonica, the average expense associated with employee recruitment is nearly PLN 5,000. In the case of unsuccessful recruitment, the costs are three times higher. Sedlak&Sedlak and PwC report indicates even higher costs, with experts estimating the total cost of replacing a departing employee to be the equivalent of their annual salary.
Natalia Gozdowska, Business Development Director at Altkom Academy highlights, “This staff gap is particularly severe in sectors requiring high qualifications. Therefore, companies should already be investing in the development of the skills of current employees, especially in areas related to technology and digital aspects.”
Modern Management is the Key to Success
Effective employee skill development requires an innovative approach to team management. Natalia Gozdowska emphasizes, “What’s important today is for managers to know their employees and their strengths well and to support their talents. Instead of controlling, it’s better to trust and unleash employee creativity.”
The urgent need for accelerating digitalization and automation in Polish enterprises is also highlighted in the latest World Bank report. Polish businesses continue to significantly lag behind the EU average when it comes to utilizing advanced digital technologies. Only 40% of Polish companies reach the basic level of digital intensity, compared to the EU average of 55%.
Joanna Mihułka-Petru, CEO of Altkom Academy, sums up, “Specialized employee training is not a cost, but an investment. Our experiences show that companies which regularly raise the skills of teams see a productivity increase of even several percent. This is particularly evident in the areas of digital transformation.”
Source: https://managerplus.pl/21-mln-pracownikow-mniej-w-ciagu-dekady-firmy-musza-postawic-na-rozwoj-wlasnych-kadr-63882
