Optimism of employers is a fact

16 September 2014
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29% of surveyed companies admitted that in the next six months they plan to increase employment. This is 3 percentage points’ growth compared to the previous quarter and the best result in nearly five-year history of the survey.

Results of the 23rd Survey made by Research Institute Randstad and TNS Poland was presented at the conference which took place on 10 September  in PAIiIZ.

Research shows that the improvement of economic situation is expected by 28% of 1,000 surveyed entrepreneurs. At the same time, a group of companies whose representatives expect economic stagnation in the next six months is strengthening (47%). The largest decrease in optimism was noted in the eastern and central parts of the country. However, majority of surveyed are satisfied with their current economic performance. 62% of surveyed entrepreneurs confirm that now financial situation of their companies is good or very good. It is companies representing financial sector that predominate in describing their situation as positive (82%).

Positive condition of companies impacts on the improvement of employment plans. Currently, already 29% of the respondents admitted that in the next six months they plan to increase employment. This is a growth of 3 percentage points compared to the previous quarter, as well as the highest level of this indication since 2009.

“A record percentage of employers who plan to employ new people in the nearest future is the reason to believe that companies see the improvement of the economic situation. Moreover, new job creation means that companies have a long-term vision of development. Also PAIiIZ observes the optimism among investors supported by the Agency. The Agency currently works on 170 projects that can create almost 37,000 new jobs. It is about 5,000 new jobs more than in the same period last year”, says Monika Piątkowska, PAIiIZ deputy president.

The increase of employment is most frequently projected by larger companies, employing at least 250 people (34%).That means that the tendency to expand staff is proportional to the number of currently employed.

“The revival in the labor market is a fact” - said the Minister of Labour and Social Policy Władysław Kosiniak - Kamysz. The decision to extend the operation of SEZ has been mentioned by him as one of the reasons for recovery in the labor market. “It is worth to consider the time limitation only of support for enterprises rather than functioning of SEZ”, he argues.
Optimistic plans should not be effected by changes in labour regulatory announced by the government. In the current report "Employers' Plans”, Randstad Research Institute examined the attitude of companies to intention of establishing a time limit of the maximum allowable length of term contracts as well the extension of the periods of notice.

According to the vast majority of the surveyed companies, proposed changes should not affect the level of employment in companies (respectively: 86% to a maximum period of term contracts and 92% to the change notice periods). “Nearly one-third of the representatives of the companies declare that after the planned changes in law regulatory more than 90% of staff employed under a term contracts after the end of them automatically will receive contracts of indefinite duration, says Katarzyna Gurszyńska, director of the Research Institute Randstad. However, the process will not always be automatic. “One-fourth of the companies will consider finishing the cooperation with those staff members with whom they will no longer be able to extend the contract for a specified period” – she added.

“We are delighted that governmental project has gain such a positive opinion among companies” – argues minister Kosiniak- Kamysz. He also added that employers more and more often see the importance of investing in the employee and provide him with work stability, which in turn impacts on the development of the company. “It is very important for Polish families which need a sense of security. This is one of the key factors determining the desire to have children”- he added.

Results of the survey also show that employers believe that planned changes in law strenthen the of flexible forms of employment by companies. 21% of respondents claim that will be easer thanks to prolonging the period of term contracts while 15% mentions the changes in the periods of notice.

(PAIiIZ / Randstadt)

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