Only the flexible - companies and people alike - will succeed

ZUZANA RUMIZ, GENERAL MANAGER OF MANPOWERGROUP SLOVAKIA, TALKS ABOUT THE CHANGES.

In regards to the labour market, what trends do you currently see? How did requirements of employers change over the last 12 months when it comes to recruiting new people?

The needs and requirements of our clients - Slovak employers - change very quickly. This is related to events in Slovakia and in the world. After the pandemic, we all expected that the economic situation would gradually stabilize, but the war in Ukraine and its consequences hit businesses and households alike. In addition to inflation, sharp increases in energy prices, rising prices of services and goods with shortages of certain goods due to disrupted supply chains, companies also have had to deal with the dynamically changing demands of their customers. Thus, their recruitment plans are also changing accordingly. As a staffing agency, we cater to their needs as much as possible and provide flexible solutions allowing them to adapt more quickly to changing demands. Requirements of employees and their skill set are also evolving rapidly. Finding the right people is all the more challenging now. In this regard, we too are constantly looking for solutions for employers, including providing our expertise in education and retraining.

What about employees? Have their expectations changed as well?

Yes, they have, as evidenced by our personal experience and surveys that we regularly carry out. As many as 81 percent of employees report that the pandemic has affected how they view work. Nowadays, people regardless of age and gender look for employers who recognize and actively support a healthier work-life balance. This trend is even more pronounced among Generation Z, which will make up almost 30 percent of the workforce by 2025. The majority of people want to be able to decide where they work from, and some companies already offer their employees, for example, the option of a workation - to work remotely from another country for a while and thus combine work with a vacation and exploration. This is also a way to prevent burnout and break the working stereotype that a person can slip into over time.

However, after the pandemic some companies have announced they will try to get people back to offices at least partially. How are they doing in this regard?

It is significantly more difficult to find and retain quality employees for companies that do not offer either the option of working from home or flexible working hours. In the ManpowerGroup’s New Human Age report, about two-thirds of employees said they would consider changing jobs if they had to return to the office fully. Companies are aware of this and, according to our data, about half of them provide employees with flexible working hours. Of course, for some positions, the nature of the work does not allow this. However, the range of positions in which flexibility is possible is gradually expanding. On the other hand, personal meetings at work are meaningful, so managers and other employees prefer a hybrid mode - a combination of working from home and at the workplace. Almost a third of employees and employers believe that they have lower chances of promotion when working remotely. A lack of social contact and more effective cooperation are also factors.

IT has long been considered one of the most promising fields. Major lay-offs at US companies tech giants have shaken this belief to some degree. Is it possible that IT companies in Slovakia will also opt to downsize?

We do not foresee such a development in Slovakia. The primary reason for lay-offs in the tech giants was that during the pandemic they were very heavily recruiting people, mostly experienced IT professionals with high salaries. With much of work and private life moving online – from work, shopping, food delivery, to entertainment – the demand skyrocketed. Tech companies grew as well, responding to increased demand by hiring people. At the same time, they assumed that it would remain this way to a greater extent even once the pandemic ended. However, its end and subsequent inflation and price hikes have brought about a drop in demand in the field. In addition to tech companies, the entire e-commerce sector was affected as well. Costs rose, and companies needed to reduce them because the demand simultaneously declined. However, it is still true both in Slovakia and the world that it is very difficult to fill IT positions due to the lack of qualified people.

What other fields have a shortage of people?

Currently, this concerns mainly communication services, transport, logistics and the automotive sector. People in the energy and utilities sector will be needed as well, and this is tied to the production of energy from renewable sources. It is very difficult to find people with technical and engineering education and experience, but it is even a big challenge to fill lower positions where experience is not necessary.

How do companies solve this problem?

For lower positions, companies entice employees with a starting bonus, or provide transport and accommodation. Over thirty percent of employers in our Talent Shortage survey said they raise wages when pressured by lack of people. This applies to both lower and higher positions. They also invest in employee education, retraining and upskilling. Last but not least, companies turn to us as a personnel agency with many years of experience. They realize that without quality people, the company cannot progress, and our knowledge of the labour market, as well as the data and analyses available to us, provide a significant benefit. We offer our clients only those candidates who have already passed our professional interview or testing and meet the required criteria. Thanks to this, clients save time and resources and get access to better people thanks to our extensive database of applicants.

Is it possible to find some positives in the situation of a worker shortage? In your opinion, what can be an opportunity for positive change for companies and employees?

One positive is that working conditions are gradually improving and groups that used to be traditionally disadvantaged are getting more opportunities. For example, employers have begun to reach out to people over 55 or women with children. Improving access to education can also be seen as positive. Thanks to online education, people can acquire new skills in a short time, and the potential in this regard is constantly growing.

This article has been brought to you by ManpowerGroup.