It would seem obvious, that the pace the inflation in Poland is growing, will influence Polish labour market. We would expect increase requests for raises in salaries, employees changing jobs for higher paid ones.
While both of these occurrences are happening, one other path is being chosen by Polish citizens – They are looking for gigs.
According to data from Polish biggest small-adverts platform, OLX.pl, the amount of searches for additional work have grown by 54%, and it surpassed the number of 13 million!
While this trend in Poland is mainly fuelled by the need of additional income, it coincidentally aligns with a global trend, and may hasten Poland’s transformation into a “gig economy”.
Why, you may ask? Let’s take a look at current situation, and upcoming changes, that will take place in Poland from the start of 2023.
The highest inflation in a quarter of a century
The inflation is currently at a two digit value – highest in a quarter of a century – and is nearly 18%. However commodities value went up by 19,5% Y2Y. Prognosis for 2023 are not much better.
That means, that if anybody wants to keep their living style, they have to bring home around 20% more money. Salaries will not increase this fast, better paid job offers will not be available to everybody.
What is left is additional work. The majority of positions, that are being currently sought out, are mostly physical work – warehousing, merchandising, small construction and renovation.
And, at the verge of Christmas, everything related – from packing of presents bought on the internet, to performing as Santa’s and their long-eared helpers.
The increase of Polish minimum wage
But from 1st of January there will come a major change – the increase of Polish minimum wage (+14%) will start a trend of looking for increase in income by employees, that are already earning more, but will not be satisfied by this amount when the difference between their salary and a minimum wage will decrease.
And just wait for 1st of July – when the minimum wage will increase by additional 3%!
As mentioned above, it will not be achievable by “simple” raises and migration between jobs – Poles will have to sacrifice their time in order to accommodate more resources.
They will have to find additional jobs.
Mayor change for Polish workers and employers
Polish labour market has its history – our parents and grandparents often worked at the same place their entire life. It is still perceived as safe to find one, steady job, rather than concentrate on multiple sources of money. Even small, self-employed entrepreneurs are often engaged with one business partner.
But being forced by current circumstances, Poles may adapt their philosophy and become more open to becoming freelancers, working in their own time, catching a gig after gig.
This change – however fast it will happen – will be major not only for workers, but for employers as well.
Should you be worried?
It can be easily imagined, that this form of employment may bring some benefits to employers. It will be more flexible, therefore more cost-effective, and that will influence employers to use this form at a larger scale.
This will mean however, that employers will face new challenges and risks with managing gig-oriented freelancers. Recruiting, onboarding, hiring, work-time management, time-sheeting, payrolling, to name the obvious ones.
And all this while HR still struggles with changes in our working habits created by pandemic and lockdowns, remote work and well-being of current employees.
This will create a vacuum, that will need to be filled by contingent workforce management providers.
How CXC can help?
Employers of record, temporary work agencies and managed service providers will be asked to take over these processes, allowing employers to focus on their core businesses, without investing a ton of money trying to solve these issues themselves.
If you would like to know more on how we perform these functions, contact us. We would love to help your business make this transition and embrace the changes as easy as possible.
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