Unveiling Poland's investment potential

In the dynamic landscape of the investment environment Poland continues to be a magnet for investors. Joanna Kubik, Senior Strategic Business Development Manager at Randstad Polska, provides valuable insights into what sets Poland apart. She also addresses the challenges faced by investors and the pivotal role played by recruitment agencies in driving business growth.

FOCUS ON Business: Despite the uncertain economic situation, increasing wage pressures and complicated tax regulations, investors still perceive Poland as an attractive market. What is primarily responsible for this perception?

Joanna Kubik, Randstad Polska: Undoubtedly, a great and constant advantage of Poland is its location in Europe and the size of its population. In recent years, this population has been strengthened by the influx of foreigners, especially from Ukraine, due to the political situation in their country. This group constitutes a huge part of our society and has a positive impact on demographic indicators, which are still a very important aspect of choosing a location by a foreign investor. So the demographic factor, the size of the population and the location of our country will be our advantage for many years to come.

Estimated data show that up to 1.5 million migrants from Ukraine, who came here after Russia’s invasion, have decided to stay in Poland. To this number should be added employees from Ukraine who have been staying in Poland for several years. Although in the coming years the number of new employees from this country will be lower than in the previous ones, the forecasts indicate a steady increase of approx. 80,000 people. The Randstad study[1] shows that these employees are often highly qualified (46% graduated from a university) and with extensive professional experience (67% have more than 5 years of experience).

Poland is of interest to investors looking to shorten the supply chain, as well as those looking for technological development and process optimization. The high level of education and our deep tradition of focusing on the broadening of competencies is the reason why a number of companies locate their R&D departments here or transfer accounting, HR, marketing, customer service and IT processes.

What challenges do investors face when seeking a location for their company in Poland?

From the point of view of the labor market, first of all, investors are paying very close attention to the unemployment rate, and this remains low in most of our provinces. Regions that have an unemployment rate higher than others and can actually benefit from this group of candidates are usually not yet prepared to receive an investor in terms of infrastructure. A low unemployment rate often raises concerns, especially as we talk about high-volume investments.

However, we believe that our country’s greatest asset is precisely the group of actively working people rather than the unemployed. Poles are very open to professional development, and being part of building a new company, a new workplace is always met with great interest, often an honor for many. Our latest Randstad Employer Brand Research[2] shows how important professional development is among other factors in employer attractiveness. 75% of workers and candidates claim that upskilling is an important aspect of employment and at the same time 64% of respondents believe that employers should provide reskilling opportunities for employees.

Foreign investors are often surprised by the fact that a significant part of the salary is also non-salary benefits such as the standard of office appearance. On the other hand, such a structure of remuneration gives them a chance to build a remuneration package that not only suits the candidate, but strongly blends into the culture and philosophy of the company globally. Such an example is team-building events, which are not at all an obvious element offered by employers in Poland, but are highly appreciated by employees.

In addition to finding the best candidates for employment, what do companies planning to expand their operations in Poland, expect from a recruitment agency?

Cooperation with a recruitment agency is not only about attracting suitable candidates. At the stage of building new structures, a very important element is to build a recruitment strategy, which will also result in the construction of an appropriate employer brand.

Very often foreign investors decide to delegate expats to work on a project for a while, thus taking responsibility for the first, very important phase of the project. From our observations, it takes a while to build trust among candidates or employees, the bridge to which is cooperation with a recruitment agency.

Recruitment agencies also take care of many other areas such as temporary employment, employee compensation settlement or outsourcing services. A holistic approach to cooperation benefits, especially when there is a lot going on at the beginning, the project is multi-level and working according to established deadlines. In such situations we take an advisory role and help with our experience to anticipate and control the situation.

What sources of market knowledge and data does Randstad rely on when advising its clients on aspects unrelated to recruitment?

Randstad not only provides its services, but also contributes to the creation of the labor market. Our Randstad Research Institute is designed to track trends on both the employer and employee side. We share the latest information periodically, several times a year. Our publications help us in conversations with investors, but we also prepare tailor-made presentations from a given labor market, backed by analysis of internal data on candidate availability, recruitment opportunities as well as salary and benefit package.

We are aware that the local labor market, employee qualifications, but also the attractiveness of the location from the point of view of the needs and expectations of residents, and the effectiveness in attracting staff from other regions of Poland and the world, are among the most important factors checked by potential investors. That is why we prepared comprehensive reports for all regions of the country[3], which allow organizations unfamiliar with local conditions to find the most important information during the process of planning the new investments. This is an excellent starting point for detailed advice and support that investors who establish cooperation with us can count on.

How do you assess the potential of individual regions in Poland in terms of attracting investment and supporting business growth?

Poland is a large country in Europe with diverse development, with each region presenting both advantages and disadvantages for a given investment project.

The North, with its firmly established presence of companies from the FMCG, electrical, heavy industry and marine industries, offers opportunities to find the right components for a company from this sector. The South is a strong automotive and R&D sector. The central area with the city of Łódź is often in the area of interest, due to its very attractive location. It is also worth mentioning about the Business Services Sector that has been dynamically growing over the last years in each large urban agglomeration, thanks to access to strong competence resources and university graduates.

Ultimately, the choice of location matters to the strategy a given company adopts. Does it care about being the so-called employer of the choice, or does it want to benefit from the experience of similar companies and be in close proximity to them? A very important element in the decision to locate in a given place is future growth and the possibility of expanding structures with new departments or units. The criteria for selecting a location are very individual. Of course, the key is access to the right staff, both experienced and ready for training. A thorough analysis is the basis for deciding which location fits the project best.

Thank you for the interview.

[1] info.randstad.pl/kierunek-polska-raport-2023-spotkanie-online

[2] info.randstad.pl/randstad-employer-brandresearch-2023-download-country-report

[3] info.randstad.pl/invest/en/0101/lp/przewodnik/w2

This article comes from magazine:
FOCUS ON Business #12 September-October (5/2023)