7 disturbing changes in the Polish labor market

The Polish labor market, like other European markets, is subject to dynamic changes that may negatively affect the economic stability and efficiency of our economy. Observations and research conducted by government institutions, research institutions, and universities indicate several disturbing trends. How do we adapt team management to them so that effectiveness is not affected? 

Without getting dramatic, it must be stated clearly that various phenomena are on the rise in the Polish labor market simultaneously, affecting employee commitment, efficiency, and retention. This is manifested by a shortening of the average length of employment, a decrease in the level of job satisfaction, and an increase in the number of days of sickness absence. There is no shortage of remedies, but without experience and developed know-how, it is difficult to choose and implement the most appropriate ones. Every organization simply has deficits in different areas, says Agnieszka Kolanowska, General Manager of the Smart Solutions HR employment agency. 

1.Long-term increase in unemployment among young people 

One of the most clear symptoms of negative changes in the labor market is growing unemployment among young people. Data from the Central Statistical Office (GUS) show that the unemployment rate in the 15-24 age group was 12.8% at the end of 2023, which means that it has increased significantly compared to the situation 2 years ago. This may result from the mismatch of skills and qualifications to the needs of the labor market, which is highlighted, among others, by the report of the Educational Research Institute (IBE). 

2. Low employee involvement 

Another significant problem is the decline in employee engagement. Research conducted by the Gallup Institute shows that only 14% of employees in Poland feel engaged in their work. Low levels of engagement can lead to decreased productivity, increased turnover, and a deteriorated atmosphere in the workplace.

3. Increase in the number of short-term contracts 

More and more often, employers in Poland prefer to employ employees based on short-term contracts, and these employees increasingly frequently change their place of employment. The report of the Polish Economic Institute (PIE) indicates that the percentage of employees employed on temporary contracts increased to 26% in 2023. These types of contracts are often associated with less employment stability and fewer social benefits, which negatively affects motivation. 

4. Pay gap 

Wage inequalities, especially between genders, are another problem in the Polish labor market. Eurostat data shows that women in Poland earn on average 12.2% less than men in the same positions. This is the value of the so-called “raw pay gap”, which does not take into account differences in the employment structure of women and men. After correcting it for these parameters, the value of this indicator oscillates between 12 and 20%. These inequalities can lead to frustration and dissatisfaction among employees, which in turn negatively affects their engagement and performance. 

5. Work overload and burnout 

More and more employees complain about work overload and symptoms of burnout. Research conducted by Mindgram shows that as many as 40% of them experience symptoms of burnout. Burnout leads to decreased work quality, increased absenteeism, and health problems. 

6. Lack of work-life balance 

Lack of work-life balance is another problem affecting employees. The report of the Polish Economic Institute (PIE) shows that in our country we work on average 40.4 hours a week, which places us among the busiest nations in Europe. Excessive work hurts the health and well-being of employees, which may lead to a decline in their effectiveness. 

7. Low level of training and professional development 

Last, but not least, the problem is the low level of training and professional development opportunities. According to Eurostat research, only 8.7 percent of adult Poles participated in any form of education in 2023, and employers’ support in this area leaves much to be desired. Lack of professional development opportunities can lead to skills stagnation and employee discouragement. 

So how do we maintain and strengthen teams? 

Faced with the above-mentioned problems, employers can take several actions to maintain and strengthen their teams. Here are some recommendations: 

1. Increasing employment stability 

Employment stability is crucial to maintaining employee motivation and engagement. Employers should strive to minimize the number of short-term contracts and offer more stable forms of employment, and where possible, use the support of employment agencies. 

2. Supporting work-life balance

Employers should promote work-life balance through flexible working hours, remote working options, and programs that support employee health and well-being. If they have the opportunity to reconcile work and private life, they are less stressed and more motivated, and they also feel appreciated and engaged in work, which translates into higher efficiency. 

3. Creating a friendly organizational culture

Building a friendly organizational culture that promotes openness, cooperation, and mutual respect can help increase employee engagement and improve the atmosphere in the workplace. Open communication, building trust, and a friendly work environment lead to better team cooperation and innovation, and therefore higher efficiency. 

4. Transparency and fairness of wages

Employers should strive to ensure transparency and fairness in the remuneration of their employees. Salary transparency builds trust in the company and its pay policy. At the same time, it is perceived as honest, which improves its image and attractiveness in the labor market. The introduction of pay transparency will also help to adapt to upcoming EU regulations and avoid penalties for non-compliance. 

5. Increasing awareness of burnout symptoms

Introducing educational programs about burnout and regularly monitoring workload can help prevent this phenomenon. Employers can also offer psychological support for employees and support various forms of non-professional activities, including sports. 

6. Investing in promoting physical activity

Stress and burnout are important risk factors for mental and physical health. Employers are increasingly aware of the benefits of promoting physical activity among employees. This can bring numerous benefits, such as reducing sickness absence, improving efficiency and creativity, and building a positive organizational culture. 

7. Investment in professional development

Employers should also invest in the training and professional development of their employees. Providing employees with the opportunity to improve their qualifications and acquire new skills can increase their commitment and motivation to work because they feel appreciated by the employer. Moreover, a highly qualified and constantly improving staff is a key factor in building the company’s competitive advantage in the market. 

Negative changes in the Polish labor market are a challenge for both employers and employees. Understanding these issues and putting the right strategies in place can help you retain and strengthen your teams, which is crucial to the long-term success of any organization. Investing in professional development, promoting work-life balance, and creating a fair and friendly organizational culture are just some of the actions that can bring positive results before the end of the year.