Companies are hungry for workers. Workers are in demand just like programmers

After the covid downturn, domestic companies want to spin production wheels with vigor to catch up with the profits that the pandemic took from them. The desire to start their business to the fullest can be seen in their recruitment plans, which were ascertained by the recruitment and consulting company ManpowerGroup CR.

The survey, which involved 750 employers in the Czech Republic of various sizes and specializations across the country, shows that 16 percent of employers expect an increase in the number of employees, six percent predict a decrease, 77 percent do not expect any changes and the rest do not know.

The net labor index, which shows the difference between the share of companies that intend to hire new employees and those that intend to lay off workers, thus ended very optimistically for the fourth quarter of 2021 – at ten percent.

The speed with which companies intend to hire new employees is similar to the speed with which they prepared before the pandemic. However, the recruitment group ManpowerGroup, which has been conducting research in the Czech Republic since 2008 and in the world for 55 years, points out that the plans of companies can be thwarted by the tense situation on the labor market, which shows that people are missing.

Companies are optimistic about the further development of the economy. The net labor index is based on 10 percent.

“Most sectors plan to pick up at a similarly high rate at the end of the year as they were in 2018. Currently, there is a historically record number of vacancies. However, the pandemic has frozen the labor market and it is recovering only very slowly. People do not want to change jobs voluntarily and go into insecurity. This is particularly evident in unskilled jobs in manufacturing and logistics. Finding more workers or warehouse workers is as challenging as recruiting programmers, ”says Jaroslava Rezlerová, CEO of ManpowerGroup Czech Republic.

According to her, the recruitment of employees with technical education at all levels from craftsmen to mechanical and IT engineers remains very difficult and it is extremely difficult for employers to lure employees back to gastronomy, accommodation and personal services. They mostly found employment in other fields and out of fear of further waves of the pandemic, they do not want to return to the fields that were closed in the pandemic.

According to Gabriela Hrbáčková, director of the personnel agency Hofmann Personal, which conducted a survey in August among 240 HR professionals from manufacturing, wholesale and logistics companies, more than two-thirds of companies are missing employees. The greatest demand is for skilled workers for lower positions in production or operation – they are missing in more than half of the companies, most often in engineering.

The manufacturing industry wants to recruit the most of all industries.

“Companies are constantly in demand, for example, electricians, welders, machine tools, blacksmiths, CNC machine operators and similar positions. Unfortunately, these people are not and will not be on the market. Only a minimum of these graduates come out of schools and vocational schools, “says Hrbáčková.

The disparity between supply and demand for skilled workers will thus persist in the labor market in the future. At present, according to statistics from the Ministry of Labor, there are on average only 0.2 to 0.3 applicants per vacancy for a skilled worker.

And how, according to ManpowerGroup, are recruitment plans evolving according to the location or focus of the companies? In terms of industries, it intends to increase the number of employees in all seven basic industries by the end of the year. The strongest recruitment environment is reported by the manufacturing industry, which is also the largest Czech employer. In this sector, 28 percent will gain and six percent will lay off, and the net index is 22 percent. Employers in the construction industry report high optimism with an index of 18 percent and accommodation and food services of 13 percent.

It also plans to recruit business, finance and services. The smallest recruitment optimism is shown by companies from other production sectors, such as agriculture, hunting or mining, but even here the net labor index is in the plus of one percent.

Regionally, companies are the most optimistic in Prague, where the labor index reaches the level of 17 percent. The index in Moravia and Silesia, as well as in the Czech Republic, reaches a value of seven percent. Compared to the previous quarter, the Index strengthened by eight percentage points in Prague and by two percentage points in the Czech Republic. It weakened by two percentage points in Moravia and Silesia.

All companies have the desire to hire new employees, even if they are divided by size. The strongest recruitment plans are reported by large organizations with more than 250 employees with an index of 21 percent. Medium-sized organizations with 50-250 employees report an index of nine percent. Small organizations record an index of eight percent and micro organizations three percent.

From a global perspective, employers 41 out of 43 see the future favorably and only two expect negative recruitment activities. Compared to the previous quarter, recruitment plans strengthened in 31 of 43 countries, weakened in 10 and remained unchanged in two. Employers in the United States, India, Canada, the Netherlands, Mexico and France expect the strongest labor market next quarter, while Panama, South Africa, Singapore, Croatia and Argentina report the weakest recruitment activity. The Czech Republic is moving with its expectations in the last third of the ranking.

And what can companies do to fulfill their business plans and hire as many people as they need? In general, people pay money, ie higher salaries (according to Hofmann Personal, 52 percent of companies surveyed raised their people). But, for example, gastronomy must do more to attract former employees, according to Jiří Halbrštát.

“They have to start behaving like any other employer and comply with the Labor Code – providing paid leave, not paying money on hand, dealing with the maximum number of hours worked per month and the associated greater employee substitutability,” says ManpowerGroup’s recruitment and marketing manager.

According to Hofmann Personal, the recommendations from existing employees can help. In production, for example, the contribution for referrals most often ranges from 12,000 to 40,000 crowns. However, the company must offer employees a pleasant working environment, otherwise the investment will not pay off.

“The recommendations are closely related to the company’s reputation. Many companies motivate employees to refer financially, which costs them a lot of money. But sometimes they forget that without a good working environment and a good reputation of the company, even the best reference program cannot work in the long run, “points out Gabriela Hrbáčková from Hofmann Personal.

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