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Czech Republic

Kristýna Matasová Country Manager, Cpl Czech Republic kristyna.matasova@cpljobs.cz

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Regional challenges in the labour market - Czech Republic

And we are in 2023 - another year which, we all hope, will ow by without restrictions and lockdowns caused by the pandemic of Covid 19. Anyhow, this is how we imagined 2022 would look like as well- instead of restrictions, new challenges came into the game.

The experiences of 2022 will be felt in 2023

After the last lockdown, companies had to face the repercussions of the deeply saddening con ict that broke out in Ukraine. Czech nation did not disappoint - almost everyone tried to help the best way possible, many travelled to the Ukrainian borders to help refuges with transport from the occupied lands, donated to charity or o ered accommodation. As the con ict continues, Czech and International businesses have had to cope with new and new challenges - sky rocketing of energy prices and in ation on top of increasing demand for talent, increasing salary expectations of the candidates and demand for new bene ts. The threat of recession that has been widely discussed is still hanging in the air and in 2023 everybody wants to be ready for when it comes - many companies have decided to restructure or at least change their strategies, many cost - savings solutions were implemented and some even decided to go into hiring freeze until further notice. SSC sector still deals with lack of candidates- many moved back to their home countries and never came back. Languages that remain rare are German and Nordics.

In IT sector the situation has been developing steadily and will continue this way in 2023. High demand for tech roles has remained the key sign and candidates will still have opportunities to choose from many o ers when considering changing the role. No matter if you search for software developer or infrastructure administrator, open roles do highly exceed the number of candidates. The situation has been even more complicated due to new investors entering Czech market o ering US - comparable salaries.

Candidate`s expectations

The labour market, on the other hand has remained on the same wave as in 2021-2022 - skilled candidates are rare to nd, the unemployment rate is on the lowest numbers in history and companies that do need to hire have to re-evaluate their approach towards recruitment and talent acquisition as such. Many were trying to o er jobs to our new Ukrainian residents, unfortunately, the lack of knowledge of either Czech language or a speci c skill caused that the highly sought-after roles remained open still. There are no signs of increase of number of available candidates on the market in 2023, especially candidates with speci c or rare skill set.

Unfortunately, energy crises have caused an unbearable situation for some produ ctions and forced them to lay off. In manufacturing sector, the hesitancy has been more obvious as many businesses are facing lack of components, materials, or high costs of transportation.

In 2023 candidates’ expectations will increase dramatically- the lack of stability has caused them to think twice before changing job and today ask for what would have been couple of months ago considered impossible. HR departments will have to evolve into marketers, as employer brand has become one of the key breaking points when attracting new candidates. They will have to acquire many new skills and learn for example not to interrogate the candidate at the interview but sell the role and promote the company.

What candidates will be looking for are the new “cutting-edge” benefits- full remote work set-up, 4 days-working week, unlimited holidays etc.

Furthermore, in 2023 the demand for new and untraditional bene ts will appear. 25 days of holidays and meal vouchers will be merely seen as standard, and nobody even mentions them when speaking about bene ts these days. What candidates will be looking for are the new “cutting-edge” benefits- full remote work set-up, 4 days-working week, unlimited holidays etc.

The struggle to get employees back to the o ce since 2022 continues in many cities, but many companies will have to accept that this is a lost battle. People have gotten accustomed to the new set up and there is no going back. In some sectors, attempting to nd new sta without remote work option or as a full-time employee has become an impossible endeavour. For example, the increase in demand of IT-skilled professionals has doubled in Q2 and Q3 of 2022.

In 2023 we expect that more and more investors will entering Czech market offering conditions that are comparable to the Western countries of EU or US and thus putting Czech businesses even under more pressure To meet all these challenges in 2023, including budget restrictions and still trying to increase productivity and meet sales targets, clients will start to seek various flexible solutions such as temporary employment, RPO or BPO, redefined their hiring models and talent acquisition strategies and open their doors to contractors.

Most in demand

The most difficult positions to obtain in IT:

• DevOps • Java • .NET • Software architects

TOP 3 most in-demand languages in the SSC sector:

• German • Nordics • French

The most desirable roles in Sales and Marketing:

• Sales/key account managers for various products • On-line marketing specialist • Marketing manager

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