Business leaders plan to combat the talent shortage in the labor market by increasing the employment of people in the 35+ age group and foreigners, according to the “Modern Business Services Sector in Poland 2024” report by ABSL. In addition, in the long term, work-from-home and remote work, along with the development of technology and artificial intelligence, are expected to reduce the severity of the talent shortage.

Despite the unfavorable demographic prognosis, the situation on the Polish labor market gives more and more reasons for optimism every year. In the “World Talent Ranking 2024” by IMD World Competitiveness Center, we are already ranked 36th, up 8 positions from 2023 and 14 places from 2022.

The unknown of AI

According to Randstad's “Workmonitor 2024” report, 72 percent of employees show a desire to develop skills that are useful at work. 34 percent of those surveyed would resign from a job that does not offer the opportunity to develop future skills, and 36 percent would not accept a job offer that does not include this benefit. Employees in the market recognize the transformative nature of artificial intelligence as much as business leaders. Awareness of the need for upskilling and reskilling has been growing significantly in recent years, and using AI is at the top of the list of skills that employees want to develop. Respondents believe that responsibility for training should be distributed in partnership between employees and employers.

As noted by Bartosz Poździk, ABSL's vice president Talent: “The dynamics of change associated with the integration of modern technologies, including artificial intelligence, is having a significant impact on the structure of the labor market. In the short term, however, the effects of this impact are ambiguous – despite the ongoing transformation, many companies are still in the planning stages of implementing these technologies. In the longer term, the effects will be more pronounced, especially in occupations characterized by homogeneous, reproductive and repetitive work, where automation will reduce the demand for workers. At the same time, there is a growing demand for technological competence, both in the IT industry, but also in other sectors of the economy, where the ability to exploit the potential of technology at a utilitarian level will be able to contribute to increased efficiency and improved work performance.”

Work-life balance increasingly important

In the list of the most desirable employee benefits in the report “Business Services Sector in Poland 2024” flexible working hours ranked second (90 percent of indications), just behind private health care. Mental health programs also ranked relatively high with 65.2 percent of indications. These figures are in line with the current trend of focusing on work-life balance. This is also confirmed by Randstad's “Workmonitor 2024” survey, in which 60 percent of respondents answered that personal life is more important than work life, and the ability to maintain work-life balance was at the top of the list of priorities for employees on par with adequate compensation (93 percent of indications).

“When planning the next career step, work-life balance has become more important even than a higher salary.” – observes Edyta Janas, Senior Client Partner, Randstad Sourceright EMEA – “Work-life balance, flexibility and equal opportunities based on the different needs of employees are now priorities. Employees want to grow and acquire new skills, but at the same time they expect an understanding of the nuances of their motivations and effective communication from employers. In short, they want to become partners with the companies they work for.”

Employees want a hybrid work model

According to data compiled by Colliers for the “Hybrid & Beyond 2024” report, 60 percent of companies are encouraging employees to return to the office, but 88 percent of them are dealing with employee resistance (up 22 p.p. from 2022). Employees are still accustomed to working remotely, which the COVID-19 pandemic forced them to do 4 years ago. Remote work also gives them benefits such as the ability to work at companies significantly far from their place of residence and saving time and money on transportation between work and home. In order to secure the best talent in the labor market, employers must offer the benefit of hybrid work.

Dorota Osiecka, Partner at Colliers Define, adds: “Hybrid work is already the norm and is sure to stay with us for a long time, and the impact of its presence in the company on attracting talent in the labor market is clear. In this situation, organizations should focus on measures to effectively manage remote teams. To combat the risks posed by the hybrid work model, it is worth implementing solutions that monitor workloads or ensure efficient communication within teams and entire organizations. The best strategy is to diagnose the areas where hybrid risks may manifest themselves, using tools such as Hybrid Barometer and then take targeted corrective and preventive actions.

Full report is available here