One in five small companies wants to increase employment - poll

The employment situation is improving with one in five small companies in Poland (over 17 pct) planning to take on staff, according to the August edition of the 'CoronaBalance SME' survey. In the previous edition, such declarations were made by 14.8 pct of SMEs.

Among companies raising their headcount, those planning an increase of a quarter dominate.

The survey's authors reported that 7.7 percent of companies in the small and medium-sized enterprise (SME) sector plan lay-offs in the coming three months; close to the levels in previous surveys (6.9 percent).

"We can see that companies are striving mainly to maintain employment levels," Adam Lacki, president of the National Debt Register's (KRD) Bureau of Economic Information was quoted as saying in the report. "Currently, 17.3 percent of them indicate that in the coming three months they will increase their pool of workers. In the previous edition of the survey, 14.8 percent made such a declaration. The effects are the result of thoughtful staff management, which in many cases is associated with a reduction in wages or shortening of working time, but which ensures the maintenance of positions."

The 'Companies' Payment Priorities' study commissioned by the KRD and the National Guarantee Fund in May shows that salaries are companies' highest payment priority. "Businesspeople are aware that in order to make up losses after the pandemic, they must have an experienced and engaged team," the survey stated. "That's why they set up their list of priorities so that workers are in first place. Without them the company will not survive."

The authors added that for seven years, employment in Poland has grown steadily. "The pandemic caused the trend to reverse in April, and additionally in May the reduction problem deepened," Adam Lacki explained. "In our latest survey, we see that the SME sector would like to employ people, but it approaches those plans with great caution. However, it is pleasing that even while coming out of the crisis, workers are still needed."

Since the beginning of the pandemic, the National Debt Register has monitored the situation of small and medium-sized enterprises. Each month they conduct the 'CoronaBalance SME' survey to check the economic situation, covering: market sentiment, production and delivery, financial condition, investment, government aid and employment.