HR trends in 2023

Lucie Matznerová HR Business Partner, Cpl Czech Republic lucie.matznerova@cpljobs.cz

The region of Central and Eastern Europe has been strongly affected by the Covid-19 pandemic, the war in Ukraine, and in recent months also galloping inflation. Each country deals with this in its own way, but in general there are several trends.

Remote & Flexible working

2022 has been a “back to the o ce year” for many. However, research suggests that employees with the

possibility of remote work are 20% more satisfied

than those who do not have this option. Employers that cancelled remote work after the end of the pandemic measures often caused their people a great level of frustration. Those who still allow hybrid or fully remote work models can have a signi cant advantage in the labour market in the competition for skilled talents. Also, the number of employees expecting flexible working hours doubled in the last year. Whereas allowing employees to work from anywhere in the world can be legally questionable, giving them more freedom to manage their own work schedule and focus on their productivity and results seems a win-win for both sides.

2023 will be marked by savings and legal changes

High energy prices are re ected not only in high in ation and cost of living increase but also in employers' costs, so it is not surprising that companies are looking for ways to economize. From decreasing temperature in the workplace to replacing business travel with videoconferences, energy-saving measures are being put in place across all business sectors. In

2023 substantial number of companies are planning suspension of employment or layoffs as part of cost-cutting, affecting mostly blue-collar

positions. Logically, in di cult times, some employers decide to outsource services. Temporary job placement providers, such as Cpl, can o er exible solutions to companies in uncertain times by sourcing and hiring professionals on a xed - term basis according to clients' needs. On the other hand, employers are also recognizing their workers' increased cost of living and applying countermeasures such as reimbursing the energy bills of those working from home. Many

countries in CEE region will introduce an amendment to the Labour Code from 2023, strictly defining the rules of remote work, or the possibility of reimbursement for e.g., energy or Internet while working from home. Such a solution will further change the working models we have known so far.

4-day work week is coming

From 2015 to 2019, two large-scale trials of shorter working hours in which workers moved from a 40-hour to a 35- or 36-hour week without reduced pay took place in Iceland. The view of the employees themselves was unequivocal – an overall increase in well-being, lower risk of burnout and a decrease in stress level as well as more quality time spent with friends and family. Employers reported that productivity remained the same or even increased. Based on the successful project, 86% of Icelanders currently have or can have a shorter working week. Another country presently nishing a large-scale 4-day work-week trial is Great Britain. First companies considering such changes are also appearing in Central and Eastern Europe, yet many employers are still sceptical. Questions arise about maintaining the same level of productivity or additional administrative burden. Experience from Iceland shows that changes in the organization of work are necessary to be successful, such as cutting time spent in meetings. A couple of years back, many employers had doubts about the e ectiveness of remote work, and the necessity during pandemics showed them it could work very well. It may take time to adopt another radical change, but in 2023 we will surely see the rst pioneers among companies in the CEE region paving the way for others. Companies should pay attention to that, especially if they want to remain competitive in the labour market.

HR trends for 2023 in CEE:

• Remote & Flexible working • 4- day working week • Suspension of employment or layo s • New Labour Code regulations • Sustainability

Sustainability

A higher focus on sustainability will be more and more present. Corporate Sustainability Reporting “ESG” is not mandatory for all EU countries yet. Still, some, including those in the CEE region, will soon adapt it for all large and some middle-sized and small companies, so it´s high time to prepare. So what is ESG? In short, it is a report of the company´s progress in terms of KPIs relating to the environment, social issues and corporate governance. Potential candidates are more likely to base their future employer´s selection decision among other factors also on environmental and social justice, especially with Generation Z becoming a signi cant workforce in the upcoming years. Focus on sustainability and emphasizing it in employer branding campaigns may be one of the key factors when attracting new talents.