Employee's market or employer's market? New differences on the labor market

A lot has been said about the end of employee’s market in relation with the pandemic. Some employers felt relieved and deliberately provided this information to ‘motivate’ employees to work. There were many publications about the employer's market, and at the same time one could follow information about new layoffs, which fueled fear and aroused anxiety among people. However, delving into this topic, it turns out that it is much more complex. It cannot be unequivocally argued that this is the employers time only. Lots of new questions and unknowns keeps appearing.

Black and white

Looking carefully at the crisis and the layoffs related to it, there are many reasons that make it  difficult to think of the labor market as an employer market in general. In the crisis, the strengths and weaknesses of employees and the differences between the best and average employees were particularly visible. Not every employee in crisis is at risk. The best people stayed in the companies and continue to fight for themselves and the employer. Thanks to their hard work, companies emerge from the crisis and their confidence and position are strengthened. Does this group of people still belong to the employee's market then? After the crisis, they will certainly be able to negotiate new working conditions with employers, if the company's condition is good. There have been promotions on the labor market, so nothing has changed in this respect. Despite the crisis, the best people are constantly being appreciated.

COVID caused many people to lose their jobs, but it was often just an excuse to dismiss the less promising employees. The companies laid off employees who, for example, had not met their business goals for a long time, but were still in the organization to maintain a good atmosphere in the team. Did employees with a below-average grade, who returned to the labor market, jumped into the employer's market?

The results from pracuj.pl show that many dismissed people are willing to change industries or take a job below their qualifications, and even lower their financial expectations in order to find employment. There is certainly an even greater disproportion that appears between the best specialists and people with much lower qualifications and abilities.

The third group is the one where entire departments, including great experts, entered the labor market because the crisis caused companies to close branches or liquidate entire departments.

The question is how to verify job applicants that have returned to the labor market? Which group do they represent?

First of all, it is necessary to focus even more on a professional, multi-stage recruitment process, during which recruiters will very carefully verify the potential of employees. Check references and reasons for leaving the previous employer, use Assessment Center and give tasks during which they will be able to assess qualifications in practice, but also verify candidates in terms of their suitability to the organization. The fact that someone has failed in the other company does not mean that things will be similar in the new organization. A lot depends on recruitment, if mistakes are made at the beginning, it will be difficult to fix them.

Highlighted postovid disproportions

Another, glaring disproportion that we can see in the current situation concerns gender, but also people with children as well as those without children. During the lockdown, however, most of the women worked at home while looking after the children. Their professional productivity was therefore lower compared to men, who at that time could work longer and devote all their time to the company. Regardless of the professional qualifications of both parties, men could be rated higher due to better work results. Women who divided their time between caring for children and working can now earn significantly less in the same position than men. Therefore, the question arises, is this fair?

From a human and women's rights perspective, not really. On the other hand, there is no reason why the employer should be fully responsible for it. After all, the employer cannot go into the private life of the employee, because it is sensitive data. The supervisor may only evaluate the qualifications and effects of work. Thus, when comparing several people in the same position, without entering the private life of these people, employer has the right to evaluate these employees in a different way, proportional to their work input, the number of hours worked and the results, and to distinguish the best in their opinion.

The uniqueness of this situation makes opinions ambiguous. It is not known whether the state should help, whether the employer should adopt different rules during the pandemic, or whether, for example, employees should reorganize their working time by dividing it more effectively into home and private duties.

In the COVID atmosphere, the issues related to contracts also became even more important. Recently, people employed for a fixed period or under civil law contracts have lost their jobs more often. Therefore, now the employment contract will be even more desirable by employees, because it gives a greater sense of security.

The virus also made a clear division when it comes to the labor market in individual industries. Today, one can observe industries that are doing great, where there is an even greater demand for employees. This includes the IT sector and broadly understood modern technologies, as well as logistics, warehouse and construction industries and the segment related to renewable energy. There is also a greater demand for specialists providing consulting services related to process improvement. Companies need analysis to be able to optimize and adapt the way they operate to the new conditions.

Companies related to various types of services and the production industry, where automation is being implemented, have suffered the most from COVID. Many salespeople, recruitment and HR departments, and broadly understood marketing have also lost their jobs.

Uncertainty on both sides

According to a study by pracuj.pl, approximately 77 per cent of employees would still be willing to change the company if they received a better financial offer, and 44-60 per cent of people are afraid of losing benefits or losing their current job. On the one hand, employees are clearly anxious and, on the other hand, there are grounds for fear and a feeling of instability with such a large number of employees who will go for better paid jobs. So how to combine the interests of both parties? Build a safe work environment and a sense of team belonging to the brand? Is a raise a way to increase employee’s motivation?

On the one hand, this is the fastest solution and always desired by employees, but not entirely effective, and certainly not in the longer term. Currently, it is also impossible in many cases, due to a large economic slowdown with higher costs of maintaining enterprises. Many companies simply cannot afford a raise. The process, however, is very complex. Entrepreneurs should focus on conscious management of their organization, process improvement, education of management staff, as well as recruitment based on analysis. So that the company does not hire random people, but those who will fit perfectly and cooperate with the rest of the team.

Adjusting to the organization will have a very strong influence on the motivation and willingness to develop in a specific company. Caring for the team, respecting  people, keeping promises, but most of all honest and mature conversations and involving employees in making corporate decisions or implementing joint projects will give them a sense of agency, and thus motivate them to work in such a team.

On the other hand, employees, instead of immediately fleeing to another company, at the time of encountering difficulties or dissatisfaction with the role or salary, should trust the current employer and give both parties a chance to analyze their work and current position and find common solutions that will be satisfactory for both parties. Because we often do not see the opportunities we have in the current organization.

During a crisis, everyone needs support, appreciation and praise. This rule also applies to managers. Employees want to be appreciated, expect respect, but do they remember to appreciate their bosses? Can they thank them for their dedication and support?

This is our time together

It is time for both sides to think in a similar way. Both sides should think about the other person, respect each other, understand and appreciate each other’s hard work. It is now that both employers and employees should reach out to each other and show that they are one team. Only together it is possible to create the best initiatives, great projects and rebuild the economy, so that we all live better, work with a smile and experience professional fulfillment.

Magdalena Zagrodnik is responsible for recruitment, human resources, Employer Branding and broadly understood marketing in Walter Herz consulting company. She supports business by combining the company's goals with interpersonal relations.

About Walter Herz

Walter Herz company is a leading Polish entity which has been operating in the commercial real estate sector across the country. For eight years, the company has been providing comprehensive and strategic investment consulting services for tenants, investors and real estate owners. It provides extensive support for both public and private sector. Walter Herz experts assist clients in finding and leasing space, and give advice when it comes to investment and hotel projects.

In addition to its headquarters in Warsaw, the company operates in Cracow, Wrocław, the Tri-City and Łódź. Walter Herz has created Tenant Academy, first project in the country, supporting and educating commercial real estate tenants across Poland, with on-site courses held in the largest cities in the country. In order to ensure the highest ethical level of services provided, the agency introduced the Code of Good Practice.