Poles are no longer so willing to do physical work when the minimum wage increases. Companies that cannot raise wages now compete with benefits offered to lower-level employees, previously available to professionals. The gap can be filled by foreigners from other Eastern European countries and Asia.
The Ministry of Family and Social Policy in Poland reported that in July the registered unemployment rate amounted to 5 percent. This means that virtually everyone who is ready to work already has a job. The insufficient number of workers is a direct result of the demographic decline in the population, and the ageing population only confirms this.
Minimum wage for work increased
Despite the current minimum wage in Poland amounting to PLN 3,600 gross [PLN 23.50 gross in the case of an hourly rate – ed.], a shortage of employees is beginning to appear in almost every industry. Faced with this problem, companies that cannot automate workstations and processes, or compete by increasing salaries, try to attract employees by providing various types of bonuses and benefits.
– Although we encounter difficulties in recruiting blue-collar workers, most employers still cannot afford to further increase employment costs. Instead, they try to encourage employees by offering non-wage benefits that to some extent mitigate the effects of inflation – says Wojciech Rybicki, director of development of the centre region at the LeasingTeam Group employment agency.
A better deal for manual workers
Non-wage benefits as a solution for manual workers are becoming more and more common. Gym memberships, medical care packages or life insurance are no longer limited to executives only.
Analysts predict that they may soon become a new standard also for less qualified employees. It turns out that offering these types of benefits can be cheaper for employers than increasing the salary itself. In addition, non-wage benefits can be personalised depending on the preferences of employees.
– In the face of the rising cost of living, employees most appreciate the financial support that directly affects their home budget. Co-financing meals or organising cheap lunches in company canteens are perfect for workplaces that require physical activity – emphasises Marta Pilipowicz, director of the southern region at LeasingTeam Group.
The issue of commuting to work has also become extremely important. According to the report “Poles on commuting to work” prepared by the LeasingTeam Group, 81 percent. Poles, this is an important element affecting the decision to accept a job offer.
Foreigners can be a salvation
The increase in the minimum wage has also led to a flattening of the pay gap, resulting in reduced motivation and increased staff turnover.
– Manual workers are more aware of the possibility of changing jobs than ever before, and the current conditions make them willing to take the risk of changing jobs. We also observe a decrease in engagement in performing tasks. Employees are increasingly looking for lighter jobs that offer comparable earnings – comments Wojciech Rybicki.
Although the presence of employees from Ukraine partially filled the staffing gap, it is still an insufficient solution. As more and more Ukrainians return to their home country or head west, where wages are even higher, employers are looking for employees in other regions of Eastern Europe and Asia.
“ The prospects for the coming years indicate an increase in the acquisition of employees from countries such as Georgia, Azerbaijan, Kazakhstan, Uzbekistan, India, Nepal, Bangladesh and the Philippines,” sums up Wojciech Rybicki, Center Region Development Director at LeasingTeam Group.
Source: 300gospodarka
