FOCUS ON Business 8 January-February 2023

Editorial office

EDITOR-IN-CHIEF: Dymitr Doktór | dymitr.doktor@proprogressio.pl

MANAGING EDITOR: Elwira Przybylska | elwira.przybylska@proprogressio.pl

DTP: Iwona Księżopolska

ADVERTISING: reklama@proprogressio.pl

PUBLISHED BY: Pro Progressio spółka z ograniczoną odpowiedzialnością spółka komandytowa ul. Dziekońskiego 1, 00-728 Warszawa www.proprogressio.pl

EDITORIAL OFFICE ADDRESS: Dziekońskiego Street 1, 00-728 Warszawa

Dear Readers,

Welcome to the New Year – both regular and new Readers who have FOCUS ON Business magazine in their hands for the first time.

The year 2022 is already behind us – the year of "black swans", i.e. events of great importance for the economy of Poland and the world, which could not be predicted (the effects of pandemic, war, inflation), and which "flew in flocks" to the world. And, consequently, a year of big changes, but also a year of many new opportunities. It is also the first full year of the FOCUS ON Business magazine published by Pro Progressio, which replaced the Outsourcing&More magazine published for over a decade. At this point, I would like to thank you for the good acceptance of the changes we proposed, which resulted in an increase in the number of readers of the magazine you are currently reading.

In the current issue, we have prepared for you a set of interviews and articles in the area of business and its immediate environment.

I invite you to read the Main Interview of this issue – our interlocutor is Radosław Jankie, Partner at KPMG, with whom we talk about the global BSS market and the changes that are taking place on this market.

Given the global presence of the BSS sector, in 2023 we will host publications by Mark Angus from GBS World on our pages. The first article in this series, analyzing the success of Poland as a key nearshore and offshore location, we recommend you to read in the current issue of FOCUS ON Business.

On behalf of the FOCUS ON Business editorial staff, I would like to thank you for the past year and invite you to accompany us in the next one, in which we will keep you informed about the most important and interesting business initiatives from Poland, Europe and the world.

Editor in Chief

Selected photos come from stock.adobe.com.

An electronic version of the Magazine see the website www.focusonbusiness.eu.

All rights reserved. No copying, reproduction or photocopying allowed without written consent of the publisher. The views expressed in this publication as well as the content of the adverts are not necessarily those of the editor.

LEGAL SUPPORT: Chudzik i Wspólnicy PRINT: Drukarnia Jantar

CIRCULATION: 3000 copies PLACE AND DATE OF ISSUE: Warsaw, 16.01.2023

AUTHORS:

Mikołaj Piaskowski • Mateusz Chudzik

• Piotr Stasiak • Natalia Śniady • Mark Angus • Katarzyna Zalewska

• Magdalena Pawłowska • Ewa Dąbrowska • Anna Mirek • Radosław Jankie • Evelina Lazareva • Anna Ciosek • Edyta Wiwatowska • Patrycja Węgrzyn • Anna Tymoshenko • Joanna Wanatowicz • Sylwia Podpłońska

BPO and SSC sector 2023 trends were discussed in Łódź

In mid-November 2022, Łódź hosted BSS sector experts.

Fair struggle for talent

Employees – the most important asset of the modern business services sector.

The ABC of board membership

The public frequently associates boards of directors of commercial companies, and membership in it, with prestige, wealth and affluence.

Organizational structure transformation

Process-based organization – a way to optimize the structure or a catchy corporate label?

Poland's Rise as a Nearshore and Offshore Location of Choice Poland is quickly emerging as a leading location of choice for Business Process Outsourcing (BPO) and broader Global Business Services (GBS).

Development based on strong competence resources

An interview with Katarzyna Zalewska, Husqvarna Shared Service Center Head.

Startup life cycle vs. Venture Capital funding rounds

A startup, like any product or service, but also any other company, has its characteristic life cycle.

Unlock potential of your workplace

How companies will reshape their offices for a bright future ahead.

What is Connected Farming and How Technology Shapes New Agriculture?

Being revolutionized by machinery in the last decades, agriculture now faces another revolution – by data and connectivity.

Moderntechnologyhubsforbanking

WetalktoAnnaMirek,HeadofCommunicationsandMarketingatINGHubsPoland

Howcanbusinessessupportsustainability?

Theworldisfacingtoughchallengestoday,andtheclimatecrisisisattheforefront.

Advanced expertise is the key to the future of service centers

Interview with Radosław Jankie, Partner at KPMG, Head of the Shared Service Centers and Outsourcing Advisory Team.

SSC LIONS

It’s all about resilience. How Kharkiv IT Community keeps growing stronger Ukrainian IT business community has not only survived, but also managed to develop, strengthen and scale its presence around the world.

Lithuania as a mature finance hub

Lithuania’s post-Brexit push to become a new international finance hub was made in cooperation with the central and GBS industry banks, including Swedbank, Danske Bank, and SEB.

Time for Słupsk! Medium-sized cities on the map of modern services

Medium-sized cities that can fulfil the needs of international investors are benefiting from the current sector trends.

Poznań summarises 2022

It was a period of particularly intense work in the new socio-economic reality, which produced numerous results.

Bydgoszcz BSS market with high potential for further growth

An interview with Edyta Wiwatowska, President of the Board of the Bydgoszcz Regional Development Agency (BARR).

Catch your breath in Kielce

We invite you to Kielce, which offers attractive winter infrastructure.

Katowice with the Green Eagle of "Rzeczpospolita"

The editorial staff and the award committee appreciated the systematic and diverse ecological activities undertaken by the city to protect the environment – including the Green Budget initiative.

Bielsko-Biała – from the city of a hundred industries to the industrial technological revolution Bielsko-Biała and the Southern Subregion are historically considered to be an important regional and national economic center.

Częstochowa: Local government 4.0

The awareness that a person is the best investment is the basis! This applies equally to business and local government.

Elbląg – an attractive location for businesses, residents, and tourists

This makes it all the more worthwhile to acquaint oneself with Elbląg, the crown jewel of the Warmian-Masurian Voivodeship.

Wroclaw – the startup capital of Poland. Startup Poland Foundation Report

Wroclaw and Lower Silesia have particular reasons to be happy this year: the largest number of technology companies in Poland are registered here.

Instead of dreaming of the stars – let’s think about concrete facts

We talk with Joanna Wanatowicz, Managing Director at Grafton Recruitment.

Wellbeing and benefits are setting the tone in the modern employee market

Supporting the further growth of teams, taking care of their wellbeing, and relieving their home budgets could be a possible way out for organisations in their attempt to survive this difficult time.

BUSINESS NEWS

SIGNIFY INCLUDED IN THE DOW JONES SUSTAINABILITY WORLD INDEX

Signify (Euronext: LIGHT), the world leader in lighting, has been included in the Dow

Index (DJSI) for the sixth consecutive year. Inclusion in the DJSI is based on the S&P Global Corporate Sustainability

Assessment, in which Signify achieved an overall score of 88 from a possible 100 (as of September 23, 2022), placing the company in the top 1% of its industry.

Signify obtained full scores (100/100) in 66 categories including Climate Change Strategy and Scope 3 GHG Emissions, Risk Culture, Product Design and Innovation, Social Reporting and Policy Influence (score date: December 9, 2022).

Signify has been carbon neutral in all its operations since 2020, and has actively reduced its operational emissions by more than 70% since 2010.

Source: Signify

Enterprises are increasingly looking to add connectivity to a wide variety of assets. Greater variety of connectivity types, more sensor features and form factors, and greater software intelligence is enabling the Condition-Based Monitoring (CBM) market to expand into new use cases and to generate greater value for customers. According to a new global technology intelligence firm ABI Research report, condition-based monitoring sensors will reach 277 million connections by 2026.

– The CBM market has so far been the preserve of Short-Range Wireless (SRW) technologies – states Tancred Taylor, IoT Markets Industry Analyst at ABI Research. – Increasingly, however, we are seeing a more neutral stance toward connectivity as adopters approach use cases not from a technology perspective but from an outcome perspective. More

investment in software and analytics platforms pushes the focus further toward generating value from sensor fusion and edge data execution. SRW, WAN, and wired technologies play different roles in growing the market into new types of assets that can be monitored. These technologies sometimes compete, but they often address distinct use cases. They contribute to expanding what is possible from CBM solutions rather than purely competing on the same turf – he adds.

To date, the market is dominated by data collection on utilities and processes and monitoring motor-powered equipment. Much of this activity is happening in the industrial market, where companies are looking to reduce downtime by switching to more proactive maintenance strategies and reduce costs through more efficient use of machine and human resources.

– The CBM market is important to follow because of the breadth of use cases and the size of the total addressable market, much of which is completely unserved today – says Taylor. – Hardware and software will continue to evolve, and there is much work to do in the ecosystem to streamline how solutions are sold. However, the growing maturity of IoT technology is increasingly leading to a situation where solution providers and adopters can focus on value first and technology second. These findings are from ABI Research’s Condition-Based Monitoring: IoT Market Segments and Technology Accelerators application analysis report. This report is part of the company’s IoT Markets research service, which includes research, data, and analyst insights.

Source: ABI Research

CONDITION-BASED MONITORING SENSORS TO REACH 277 MILLION CONNECTIONS BY 2026

Jones Sustainability World

HushLock is a new modular office storage system from Hushoffice, being another piece of furniture in the brand's complementary offer. The product is like an allin-one freestanding cabinet for the office that solves the open space office's storage problem in style. It is customizable, offering modern filing cabinets, staff lockers, a large wardrobe closet, open and closed cubbies, and more. The product design fits well into any interior. It can be set it up against the wall or on the open floor as a functional space divider.

HushLock offers an aesthetic design with many finishing options that fit pleasantly into various office styles. The structure is based on a stable metal frame – white or anthracite. After selecting the main modules, its details can also be customized, such as the colors and types of cabinet fronts or the type of locks.

– The hushLock system is a great solution for agile and hybrid offices, where furniture should allow for flexible changes and adaptations to the current teams’ needs. HushLock allows you

to freely configure it. You can decide how much storage space your employees need; where hushLock should be placed and plan its final design; as well as what additional benefit this product should offer in the space where it will be located – says Eliza Donek, Product Manager at Hushoffice.

Source: Mikomax

In the last few days of 2022, UniCredit concluded a new securitisation operation for a portfolio of consumer loans originating from the bank totalling around €850 million.

The senior and mezzanine tranches of the notes (which received ratings from DBRS and Moody’s) issued by the securitisation vehicle were purchased by the European Investment Bank (EIB) for a total value of €700 million and by the European Investment Fund (EIF) for an additional €50 million on the back of UniCredit’s commitment to provide Italian small businesses and mid-caps with an equal amount of additional credit over the next 36 months.

Subsidised loans, with a minimum duration of 24 months, may be used by companies to support investment projects or their own working capital. A share of not less than 30% of the total will be earmarked for initiatives aimed at supporting the adoption by companies of more environmentally sustainable business models.

– Small businesses play a key role in promoting green and innovative investments. Thanks to the excellent relationship between the EIB Group and UniCredit, further consolidated thanks to this operation, small businesses and mid-caps in Italy will be able to benefit from subsidised loans to invest in their future – said EIB Vice-President and EIF Chair Gelsomina Vigliotti.

This new operation is part of a framework of collaboration with the EIB Group

(EIB and EIF) which, in line with the capital efficiency objectives identified in the “UniCredit Unlocked” plan, has generated in the last year five important securitisation operations that have enabled UniCredit to make additional credit available to companies in the countries where it operates.

Source: European Investment Bank

HUSHLOCK – A NEW CONFIGURABLE STORAGE SYSTEM FOR AGILE AND HYBRID OFFICES

EIB GROUP: €750 MILLION IN ADDITIONAL LOANS TO SMES AND MID-CAPS IN ITALY

BPO and SSC sector 2023 trends were discussed in Łódź

In mid-November 2022, Łódź hosted BSS sector experts from Poland, Hungary, Kosovo and Bulgaria. The BSS Tour conference, organized by Pro Progressio was focused on analysing the trends in the BPO and SSC sectors that will mark 2023 year. KPMG was the Know-how Partner of the conference, while the City of Łódź was the Strategic Partner.

The choice of Łódź as the venue for the event was not surprising – the city has been home to many investment projects in the business services sector for over

two decades, and year by year it keeps strengthening its position on the European map of business destinations for the BSS sector.

The conference lasted two days and gathered a total of nearly 190 guests who had the opportunity to participate in a number of presentations, as well as take

part in numerous interactions between the audience and the speakers. The link between both conference days was a networking evening.

Topics highlighted by speakers and industry experts concerned areas such as:

• Differences and potential benefits for SSC’s (Shared Service Centres) and their evolution towards GBS (Global Business Services) structures,

• Supporting the supply chain, both in theory and in practice,

• Evolution of processes based on knowledge and decision-making,

• Retention and future recruitment of employees in SSCs,

• Data analytics as a source of knowledge for GBS development,

• Creating enterprise value in SSC organization,

• Solutions for work quality management and efficiency increase,

• Office strategy in Shared Service Centres,

• Pressure on salaries increase in the BSS industry.

The scope of discussed topics was extended with a macroeconomic snapshot for Poland and Europe, which was presented by an expert from HSBC.

Among the conclusions of the conference, the dominant thesis is that despite various economic challenges the next year will be marked with hard work and further development of the BSS sector. The influx of new investment projects is not slowing down, and the existing operational centres are expanding the scope of their activities, as well as opening their branches in new cities, mainly of Tier 2 or Tier 3.

Here are selected photos from The BSS Tour Łódź. For more go to the web photo gallery:

Adam Brzostowski (City of Łódź Office), Miłosz Aleksander (Tate&Lyle), Bartosz Budzewski (Philips).

Konrad Krusiewicz (The Design Group).

Katarzyna Lazarevic (Philips).

Wiktor Doktór (Pro Progressio).

Adam Pustelnik (Vice President of the City of Łódź).

Paweł Rychlik (KPMG).

Rafal Stawasz (XSYS), Paweł Płocki (Trumpf), Peter Kiss (KPMG).

Zuzanna Krech (Cushman & Wakefield).

Fair struggle for talent. Employees – the most important asset of the modern business services sector

Text | Mikołaj Piaskowski

Over 400,000 people are already employed in the modern business services sector in Poland, including 330,000 by foreign investors (mostly capital groups from the United States – accounting for over 100,000 employees). The types of processes handled by BSS centres are expanding and evolving, more and more often including mid-office processes, which requires hiring better educated employees and then improving their qualifications and skills, especially in projects related to R&D. Since highly qualified employees have become an even more important asset of companies, employers’ struggle (competition) to find employees may intensify despite unfavourable macro- and microeconomic conditions.

The question is whether the struggle will always be fair. And what does it in fact mean to be fair? A rather narrow and hermetic field of economic law – competition law – can provide the answer.

COMPETITION – THE TRADITIONAL UNDERSTANDING

In the past, competition law did not use to be perceived as an instrument of influence on employment policy, or in

particular as a significant risk for companies, or as one of the elements of their compliance programs for that matter.

A standard answer to the question “What law infringements do you associate with

competition (also: antitrust) law?” would have been cartels in terms of geographic markets or customer division agreements, bid rigging or manufacturers or importers requiring their distributors not to sell their products below a certain (minimum) price or to sell at a certain (fixed) price. And those answers remain correct.

Yes, these are in fact the most common examples of infringements of antimonopoly law which may result in the initiation of proceedings by the European Commission or the President of the Polish Office of Competition and Consumer Protection (Urząd Ochrony Konkurencji i Konsumentów – UOKiK), the imposition of fines of up to 10% of annual turnover and, in Poland, fines for managers of up to PLN 2 million or payment of compensation to cartel victims.

FAIR BUYER

However, in recent years, competition law enforcement agencies around the world have been scrutinizing not only the sales practices of entrepreneurs (such as the above mentioned market-division or price-fixing agreements) but also the purchasing ones, i.e. the authorities have noticed that competition can be affected

also by agreements between entrepreneurs as to what they buy, at what prices and whether they fight for supplies or make illegal arrangements among themselves. Such a conclusion leads us to the observation that – from the purchasing side – fair competition should also be present on the labour market where employee services are purchased. The market of employees in the modern services sector could be a good example of that.

IT ALL STARTED IN THE UNITED STATES

For quite some time, so-called “no-poach” agreements, which require the parties not to compete with each other for currently employed workers, have been in the public eye in the United States. More than 10 years ago, the Department of Justice launched proceedings against competing high-tech employers that were colluding to prohibit employee poaching. In 2016, guidelines were issued which announced criminal consequences for companies that fixed wages or agreed not to compete for each other’s employees. But the topic still keeps hitting the headlines. For example, in January 2022, a federal court heard the case of

four managers of home care agencies who were suspected of colluding to limit the salaries of employees of the agencies and their mobility during the COVID-19 pandemic. And in December 2021, in the first no-poach case outside the healthcare sector in the country, six managers from the aviation sector were convicted for their role in a long-running agreement limiting the employment of workers at their companies.

THE EUROPEAN COMMISSION AND A NEW ERA

Generally, the European Commission did not address the above issue before 2021. However, in her speech “A New Era of Cartel Enforcement” given on 22 October 2021, Commissioner Vestager admitted that price-fixing and market-sharing cartels were still the bread and butter of the Commission’s work. She went on to add that some buyer cartels had a very direct effect on individuals, as well as on competition, when companies colluded to fix the wages they paid, or when they used no-poach agreements as an indirect way to keep wages down, restricting talent from moving where it served the economy best.

The rivalry for the best players – including engineers, IT developers, accountants and auditors, of whom, as we can see, there are over 400,000 – must be, to use sports jargon, fair. It should primarily be related to the independent business strategy of entrepreneurs from the modern services sector, which includes a remuneration policy that is adequate to the scale of the talents they employ.

COUNTRIES WORLDWIDE, NEW SECTORS

The topic is really hotting up in many countries. For example, in June 2022 the British regulator initiated proceedings to determine whether there was collusion between companies operating on the market for the production and distribution of sports events on television. The companies had allegedly fixed the prices paid for services to “freelancers” involved in the production process. In turn, in January 2022 in Romania, an investigation was launched against manufacturers of automotive and related components to find out whether the level of remuneration for the engineering workforce had been jointly set by them in a move to share the market for specialized labour.

This does not concern ongoing proceedings only. In 2021 in Hungary, an association of recruitment companies was fined EUR 2.8 million for imposing minimum wage levels on its members and prohibiting the recruitment of other members’ employees.

In some countries, the practice has been considered to require more precise regulation. For example, in Portugal the local competition authority issued special guidelines on competition law in the labour market in 2021. While in Ca nada amendments have been announced and implemented to the competition act to explicitly prohibit employers from entering into no-poach and wage-fixing agreements. These amendments will come into effect in June 2023. Similarly, the Lithuanian Competition Authority announced that identifying competition breaches was one of its main priorities in 2022.

AND, FINALLY, POLAND – IN THE SPIRIT OF SPORTS RIVALRY

Poland follows the global trend. As in several other countries, it also started here with national sports associations.

There are proceedings pending against the Polish Speedway Extraleague (Ekstraliga Żużlowa) and the Polish Automobile and Motorcycle Federation (Polski Związek Motorowy) regarding the determination of maximum remuneration rates for sportspeople compe ting in speedway competitions. And just recently, in October 2022, the President of UOKiK imposed almost PLN 1 million in fines on 16 clubs and the Polish Basketball League (Polska Liga Koszykówki) which, in the President’s opinion, had made joint, prohibited arrangements, limiting the competition between themselves to acquire the best athletes in the 2019/2020 season. Due to the early termination of league competitions, the clubs allegedly agreed, with the help of the Polish Basketball League, not to pay the players all the salaries due for the season, regardless of the individual situation of each club.

Poland follows the global trend. As in several other countries, it also started here with national sports associations.

The decision in this case is not final and binding, but the statement of the President of UOKiK in connection with its issuance seems to fit every business model, regardless of whether we are talking about sports clubs or other entrepreneurs, including those operating in the modern services sector. They should “make their own business decisions”

Author Mikołaj Piaskowski

because when acting in collusion they might be able “to illegally exchange sensitive information and eliminate an important factor affecting competition between them, i.e. rivalry for the best players.”

TALENT UNDER THE PROTECTION OF THE COMPLIANCE POLICY

The rivalry for the best players – including engineers, IT developers, accountants and auditors, of whom, as we can see, there are over 400,000 – must be, to use sports jargon, fair. It should primarily be related to the independent business strategy of entrepreneurs from the modern services sector, which includes a remuneration policy that is adequate to the scale of the talents they employ. Possible cooperation with competitors must always be very cautiously and carefully analysed, because while it does not always have to be illegal, its proper structuring is undoubtedly one of the most difficult tasks under competition law.

The compliance policy of companies cannot pass over this, as it turns out, very important interface between competition and labour law. Potential negligence may lead to dawn raids, high fines (especially now, when changes in the law related to the calculation of fines in relation to the turnover of entire capital groups and not individual companies are being discussed), or the introduction of the liability of parent companies for violations of their subsidiaries, both for the companies and their management, as well as other negative consequences, including lengthy lawsuits for damages or black PR.

legal counsel, co-head of the anti-trust practice, Baker McKenzie Krzyżowski i Wspólnicy sp. k.

The ABC of board membership

Text | Mateusz Chudzik, Piotr Stasiak

The public frequently associates boards of directors of commercial companies, and membership in it, with prestige, wealth and affluence. However, the less discussed issue is how complex and critical this authority is to the company's functioning. The board of directors, through its members, manages the day-to-day affairs, represents the company, and keeps an eye on its overall functioning. At the same time, the individual directors incur tremendous responsibility. In certain circumstances, irrespective of the company's legal form, they may be personally liable for the company activities and the actions taken in their capacity.

LEGAL GROUNDS FOR ACTING AS A DIRECTOR

Foremost, it should be emphasised that to become a company director, one does not need to be its shareholder. Directors may be appointed from outside the partners. The appointment is, in principle, made through a shareholders' resolution, although the articles of association may delegate this authority to the company's supervisory board. The articles of association or the shareholders’ resolution may also specify the requirements required from a candidate for the director position. There is no doubt that directors should enjoy the shareholders’ confidence as they manage their affairs and look after their overall interest in the company. However, in large companies with a broad spectrum of shareholders, not all of them may be familiar with individual candidates for directors. Therefore, under certain circumstances, it seems reasonable to consider introducing precise requirements to be met by a candidate aspiring to be appointed to the board.

As mentioned in the introduction, the board of directors and its members are legally obliged to manage the company's affairs and represent it. The method of representation depends primarily on the arrangements made in the articles of association. In the case of a multi-member management board, the Code

of Commercial Companies states that making declarations on behalf of the company shall require the joint action of two directors or a director together with a commercial proxy unless the articles of association stipulate otherwise. For obvious reasons, a director in a single-member body exercises the full powers of the management board on their own.

to the authority or person appointed by a shareholders' meeting resolution to conclude a contract with the director.

It should be highlighted that the articles of association may also prescribe that the remuneration matters shall be placed at the exclusive decision of the shareholders' meeting or the supervisory board. However, it is unacceptable to allow the board of directors to decide on the remuneration of its members.

Practice shows that directors are most often paid based on one of the following forms of employment:

• shareholders' resolution, • employment contract, • contract of mandate,

• managerial contract.

REMUNERATION OF DIRECTORS

The issue of directors’ remuneration for the performance of their duties may be resolved in several ways. The Code of Commercial Companies reads that a shareholders' resolution may establish remuneration principles, granting fringe benefits, and state such benefits’ upper threshold. The Code also addresses the issue of remuneration for directors employed under an employment or other contract. It delegates its determination

Situations also happen where directors serve without remuneration. In such a case, the company should bear in mind that this type of director’s activity may be treated as a gratuitous service for the company, which is subject to taxation.

The choice of one of the above forms depends on the company's internal situation and arrangements. However, it should be borne in mind that both an employment contract and a contract of the mandate are subject to social and health insurance contributions, per the general rules for the type of contract in question. A managerial contract

To become a company director, one does not need to be its shareholder. Directors may be appointed from outside the partners.

is treated by the Social Insurance Institution (ZUS) as a contract of mandate, which means that the compulsory contributions will also have to be paid.

The Polish Deal has significantly changed the situation in Polish business. In terms of directors’ employment, it has altered the approach to the hitherto most favourable form of directors’ remuneration, namely the appointment through a shareholders' resolution. Before the Polish Deal, directors serving on the basis of the aforementioned form were exempted from paying social or health insurance contributions. After the changes, directors are obliged to pay a health contribution of 9% of the remuneration amount.

Once the form of awarding remuneration is chosen, it is necessary to specify how it shall be paid. Apart from the classic form of monthly fixed salary, other ways are worth considering, such as variable, lump-sum, bonus, profit-based or task-based remuneration. Also, non-monetary benefits may be introduced next to cash benefits, such as a company car.

RECURRING NON-CASH BENEFITS TO THE COMPANY

Recently, a highly disregarded provision of the Code of Commercial Companies, which introduces the institution of recurring non-monetary benefits, has begun to attract growing interest. It essentially consists in introducing a provision to the articles of association by which a partner shall provide specific, recurring non-cash benefits to the company for remuneration. Such recurring services may, in particular, consist in providing specified services (apart from management services) or regular supplies of goods to the company.

This type of remuneration is of particular interest to the shareholder (who may also be a director) as, in the light of the law, the compensation for such pro-

vided services is due regardless of the company's financial situation. Equally attractive is the fact that such remuneration, as a rule, does not constitute the basis for calculating social security contributions and does not obligate to pay health care contributions. However, it is still taxed per the scale, just as another source of income.

LIABILITY RULES FOR BOARD MEMBERS

It is of the essence of capital companies that shareholders enjoy an exemption from liability for the company’s unlawful acts or ones contrary to the company's internal regulations.

However, such comfort is not provided for directors, as there are ways of holding them personally liable for the company's obligations and actions under the current regulations.

The Polish legal order generally distinguishes several types of directors’ liability capital companies:

• liability for the company's civil law liabilities,

• liability for the company's public law obligations,

• criminal and fiscal-penal liability,

• liability towards the company for damage caused by an act or omission contrary to the applicable law, the articles of association or internal regulations.

Due to the complexity of the above issues, discussing every type of liability within this publication is impossible.

LEGAL AND FINANCIAL INSTRUMENTS INDEMNIFYING DIRECTORS AND OFFICERS AGAINST LIABILITY

Company directors may insure against liability towards or in place of the company. This practice is broadly known and used abroad and has recently become increasingly popular in Poland. The terms and scope of the insurance are individually agreed upon in each case, and their coverage may differ. Nevertheless, being a director makes taking out such insurance worth considering. That may prevent or at least reduce the potential costs that a director may be burdened with in their capacity.

Authors

Mateusz Chudzik Attorney-at-law, CHUDZIK i WSPÓLNICY Radcowie Prawni sp.p.

Piotr Stasiak trainee attorney-at-law, CHUDZIK i WSPÓLNICY Radcowie Prawni sp.p.

Organizational structure transformation –Process-based organization – a way to optimize the structure or a catchy corporate label?

Text | Natalia Śniady

How can the implementation of the process-based organizational structure develop both the processes and the employees and drive the development of the service center? What is a process organization? What does it have to do with the GBS sector? What are the ways in which the sector can benefit from it? And how can it affect the employees?

DO WE NEED “TRANSFORMATION”?

The ever so present globalization, competition, IT solutions development, rapid pace of change, and the so crucial in the Global Business Services sector need to ensure the client’s expectations are met, are one of the main reasons why organizations must constantly reassess their strategies. In a dynamic environment, companies cannot remain passive to the changes surrounding them, and that is why many organizations actively look for ways to be a step ahead and to optimize – or transform – their operations and even the entire delivery model. But where to start? And what can be a way to a change for the better?

The focus on processes in the BSS sector is nothing out of the ordinary. What is interesting, is the source of the relevance of “processes” can be found in Business Process Reengineering, along with the Total Quality Management movement , including Six Sigma or even Lean Thinking originating in the manufacturing industry dating back to the early 1900s and only recently being applied to services in GBS. And so today this significance is still relevant. Since the beginning, the main role of BPOs and Shared Service Centers as a supporting function has been a successful transition of responsibilities – processes – to at a later stage lead to continuously improving the taken over scope. A process as a sequence of actions, singular

steps, leading to delivering a tangible effect, is one of the most important key words in the GBS-like type entities. Processes in those centers have been improved, deconstructed, redesigned to be improved once more. Roles such as the Process Architect or the Global Process Owner have earned significance in building an organization where a process and its effectiveness is the clue.

SO WHY NOT GO FURTHER?

Since the boom of the GBS sector, the gravity of processes has become apparent once again. The term Process Organization,

or Process-based Organization has been becoming more prominent in services and business-enabling functions. From a general definition today, a process-based organization is an organization which in its structure places the process in the center.

The structure of an organization oriented towards processes is in its configuration rather horizontal.

The structure of an organization oriented towards processes is in its configuration rather horizontal. That is a contrast to the traditionally perceived structure designed to focus on the particular business functions rather than the end-to-end process. And it is worth to be noticed, that the trend in the GBS sector for a number of years now has been to take ownership of the end-to-end process, rather than serve only as a supporting office that merely executes given tasks with no empowerment.

In a process-based organization, the basic criterion for deciding the formation of the structure is the process, of course, a factor that determines the division of labor and shapes a culture oriented towards comprehensive customer service achieved through process effectiveness and economies of scale. This service, according to the concept of process management, is realized only when the sum of the individual tasks that make up the process, rather than its individual activities, is achieved. Designing this type of structure involves identifying the specific needs of the customer, analyzing, and organizing the process and then activities to improve it. The final product becomes a structure that, by its form, allows the effective execution of processes that create value for the customer.

A company configured in this way is in theory rather flat and devoid of

In the processbased organization, the basic criterion deciding the formation of the structure is the process, of course, a factor that determines the division of labor and shapes a culture oriented towards comprehensive customer service achieved through process effectiveness and economies of scale.

hierarchy and the functional units take the form of multifunctional teams responsible for the implementation of processes. The management of such a structural solution is empowered in regard to the process design and its effectiveness and the tasks of the operational experts are usually complex and specialized. The organizational structure built in this way and, as a result, the organization of work makes it possible, among other things, to reduce the execution time of tasks, increase the quality of goods and services, reduce the costs associated with full-time managers, contributes to greater accuracy

of decisions made and to increased satisfaction of customers.

On the other hand, the process-based approach to the organization in an SSC/BPO unit simultaneously creates a matrix structure from the perspective of the organization as a whole. It combines two points of interest – first the processes and the desire to regard them holistically, reducing waste, driving improvements, and designing a flow that enables the most optimal execution. Second, it’s the client or clients and the different requirements deriving from the business it operates in and its specifics. So, as a consequence, handling the client’s expectations and managing the relationship, to ensure that the business is taken care of.

At this point, it has to be emphasized that even though the roles are split, it is important that the two sides understand each other’s involvement and the need to collaborate and support one another in achieving common goals.

That being said, with the service center’s main responsibility not being “just” the execution of tasks in accordance with the many specifics that different clients or business units usually come with, but rather driving optimization and standardization and in consequence introducing a common approach to processes, it allows the employees to benefit on a professional development level as well.

CAN THE EMPLOYEES BENEFIT TOO?

Given the priority being on the process itself, the employees of the process structure are provided with a chance to deep dive into the specificity and technicality of the process and as a result to specialize in their area. On top of that, a clear split of responsibilities over inventorized and clearly defined processes creates an opportunity to develop a definitive set of competencies that would allow becoming an expert in the assigned scope. That type of an organizational structure and its implications offer a tool for managers to manage their employees, their development expectations, capabilities, and aspirations by strategically mapping the available scope to the best suited competencies to ensure growth possibilities.

That way, a process-based structure may be an answer to more than one need – processes and their effectiveness, but also the employees and possible issues arising from a mismatch between What I am able to do vs What I am assigned to do, such as dissatisfaction, low morale, or even increased turnover.

And those benefits of transforming into a process-based structure could be observed over the years in a number of organizations. One of the companies

being a European producer of machinery that has established a GBS center, however only after a thorough creation of a service catalogue and process inventory were they able to transform into a process-based organization that allowed a further specialization of the taken over scope, which then led to the increase of economies of scale as well as gave way to strengthen their knowledge management and backup structure and in consequence, secured their service to the client. Similarly, benefits noted a certain international company that to a degree thanks to their already well-established process-centric structure was able to handle a merge and make decisions on their assets that resulted in a successful venture. The company now operates with two GBS centers that have split their scope of responsibilities over processes, which enabled them to secure

specialization and provide comprehensive service to the client, but also allowed to leverage economies of scale.

IS A PROCESS-BASED STRUCTURE THE ONLY WAY FORWARD?

We can see now clearer, that organizing our work and tasks around processes offers not only an opportunity to improve efficiency, but also to create a more aligned and agile organization, where responsibilities can be suited to people’s needs. Not to mention the impact of changes in the business that can be observed and managed.

So, is a process-based organizational structure the only way to optimize a structure and the organization as a whole? Definitely not. It is, however, a transformation that may give room to further development and even help the GBS sector to advance as a whole.

Author

Natalia Śniady | Project Leader / Consultant, ADAPTIVE Solutions & Advisory Group

A process-based structure may be an answer to more than one need – processes and their effectiveness, but also the employees and possible issues arising from a mismatch between What I am able to do vs What I am assigned to do, such as dissatisfaction, low morale, or even increased turnover.

F r u i t f u l c o o p e r a t i o n w i t h t h e P o z n a ń U n i v e r s i t y o f T e c h n o l o g y a n d t h e a c c e s s t o a w i d e g r o u p o f w e l le d u c a t e d s t u d e n t s i n t e c h n i c a l f a c u l t i e s

Siemens

E m p o w e r i n g o u r b u s i n e s s w i t h e n t h u s i a s t i c I T p r o f e s s i o n a l s a n d c o m p r e h e n s i v e s u p p o r t Capgemini

P o z n a ń i s l i k e o u r n e t w o r k ( B e s t C o d e r s ) - c o m p e t e n t , y o u t h f u l , e n t h u s i a s t i c a n d c o n s t a n t l y d e v e l o p i n g

BestCoders

Sigma I n v e s t o r R e l a t i o n s D e p a r t m e n t C i t y o f P o z n a ń , P o l a n d i n w e s t o r @ u m . p o z n a n . p l

ROCKWOOL GBS

Poland's Rise as a Nearshore and Offshore Location of Choice

Text | Mark Angus

Poland is quickly emerging as a leading location of choice for Business Process Outsourcing (BPO) and broader Global Business Services (GBS). Noted for its significant growth to become Eastern Europe’s third-largest economy and being officially classified as a developed market, it has increasingly won the attention of GBS/BPO buyers, operators and investors.

While countries like India, the Philippines and Malaysia remain dominant players, Poland is making a name for itself with its growing pool of skilled professionals, global connectivity and cost-effective GBS/ BPO and IT outsourcing (ITO) services.

OVERVIEW OF POLAND AS A LEADING GBS/BPO DESTINATION

Putting context to Poland’s emergence as a GBS/BPO location of choice is its skilled and diverse talent pool. Every year the country produces over 2 million secondary school graduates, most of which enter tertiary education and eventually translate into Poland’s 297,368 annual university graduates. It comes as no surprise that around 44% of Poland’s youth carry a higher education qualification.

These graduate numbers sustain a strong talent pipeline for GBS/BPO operators looking for young, dynamic talent to deliver complex offshore services, such as customer lifecycle management, customer administration, data management, technical support and software development.

Moreover, Poland’s educated talent pool are multilingual, speaking a variety of European languages, including English. In fact, Poland ranks 16th out of 112 countries in the Education First English Proficiency Index. The adeptness of the youth population in English serves as a catalyst for GBS/BPO operators situated in Poland to cater for key English-speaking source markets, including the UK, North America and Australia.

Enabling this service delivery is Poland’s sophisticated ICT infrastructure

and fixed broadband internet speed, settling on an average of 188.49 Mbps. As such, Poland is ranked 28th out of 188 countries in the Speedtest Global Index.

Despite exhibiting these high-income economy features, Poland has managed to maintain low operating and living costs. As a result, the country offers some of the most attractive salaries for GBS/BPO operations. For instance, global contact center operators can save between 48% and 74% (or 64% on average) on salaries when delivering customer experience (CX) services from Poland.

The significance of this is that Poland’s competitively priced talent is in close proximity to the rest of Europe and the UK. Consequently, GBS/BPO buyers and operators based in Poland have access to regional markets in the European Union (EU) with more than 500 million customers.

Additionally, Poland's central location within Europe provides easy travel options for international buyers, operators and investors seeking to access the region's offshoring resources. As such, major GBS/ BPO operators have chosen Poland as a key delivery location to service not only the regional European market, but also global consumers.

These combining factors have earned Poland second place as the one of the Most Favored CX Offshore Delivery Points in the 2022 Ryan Strategic Advisory Front Office CX Omnibus Survey. The report gathered the responses of 668 global executives from key source markets on their view of the top destinations for CX outsourcing.

Since 2020, Poland has featured among the top five, which clearly illustrates the country’s prowess in GBS/BPO delivery.

SOURCE MARKET CONTACT CENTER SALARY COMPARISON

€ / per month

Outsourced role Western Europe Poland

Contact Centre Agent 2,145 568

Team Leader / Supervisor 3,498 994

Contact Centre Manager 5,080 1,848

Quality Assurance 2,660 1,055

$ / per month

Outsourced role USA Poland

Contact Centre Agent 2,330 595

Team Leader / Supervisor 3,800 1,042

Contact Centre Manager 5,520 1,937

Quality Assurance 2,890 1,106

Source: Genesis GBS

AU $ / per month

Outsourced role Australia Poland

Contact Centre Agent 2,842 885

Team Leader / Supervisor 3,975 1,550

Contact Centre Manager 8,096 2,882

Quality Assurance 4,599 1,646

£ / per month

Outsourced role UK Poland

Contact Centre Agent 1,400 488

Team Leader / Supervisor 2,080 855

Contact Centre Manager 3,300 1,590

Quality Assurance 1,750 908

Omnibus Survey

POLAND’S STRENGTHS IN CX AND BACK OFFICE SERVICES

Poland’s recognition as a favored CX location is reflected by the country’s strengths in a range of CX and back office services. In the GBS World Competitiveness Index, Poland achieved high rankings in global data management and digital contact center services. The index and rankings were drawn from extensive survey data from an annual global vertical industry demand survey conducted on behalf of GBS.World by Genesis Global Business Services.

Achieving a score of 6.19 out of 8, Poland is ranked second for the delivery of global data management services, where it was topped by traditional offshoring giant, India (6.27), by a 0.08 margin. Trailing Poland are other notable emerging locations, including Egypt (6.03), Estonia (5.94) and South Africa (5.87).

Again, Poland appeared among the top five locations for global digital contact center channel services, scoring 6.15 out of 8. In this category, Poland was narrowly edged by Egypt (6.27), India (6.31) and the Philippines (6.46).

POLAND’S DOMINANCE IN DIGITAL AND ITO DELIVERY

However, where Poland is a standout is in its digital and ITO capabilities, which is augmented by the country’s ICT talent pool of over 445,000 people, the largest in the Eastern European region. Sustaining and building this rich ICT talent pool are over 12,000 annual ICT graduates. Furthermore, Poland’s start-up visa allows it to draw some of the world’s finest ICT talent across its borders, further strengthening its talent pipeline.

Endorsing Poland’s ICT talent is an impressive array of global companies that have established research and development centers in the country, including Google, IBM, LG, Microsoft, Samsung

GLOBAL DATA MANAGEMENT SERVICES

COMBINED SCORES OUT OF 8

Source: GBS World Competitiveness Index, 2021

and Siemens. Correspondingly, Poland is ranked among the top five global destinations for general ITO services, scoring 6.08 out of 8, beating Egypt (5.47) and Malaysia (5.47).

GLOBAL DIGITAL CONTACT CENTER CHANNEL SERVICES COMBINED SCORES OUT OF 8

Source: GBS World Competitiveness Index, 2021

When compared to its regional peers in Eastern Europe, Poland is ranked as a high performer for general ITO services by a notable margin and ahead of Romania, Czechia, Ukraine, Belarus and Hungary.

Poland also clinched the top position for the global delivery of technical and helpdesk support services in the 2022 GBS World Competitiveness Index, trouncing traditional ITO juggernauts the Philippines (5.82) and India (5.65).

Regarded as one of the world’s havens for software development, Poland is also among the top five for the delivery of global software development services, in third place.

In fact, Poland’s high software development rank is a reflection of the country’s reputation as a popular nearshore software development outsourcing location, supported by approximately 295,300 software developers working in over 63,000 software development businesses.

Gaming, a sub-category of software development, is becoming a national brand for Poland and is worth over €470 million. Notably, the country is home to several gaming giants, such as CD Projekt, PlayWay, 11 bit studios, and Ten Square Games.

However, there is ample room for improvement, especially in the country’s ICT workforce size. Currently there are 131 ICT students and 23 ICT graduates per 100,000 people, which is one of the lowest in the Eastern European region.

THE FUTURE OUTLOOK

With ample opportunities for growth, due to factors such as its educated workforce, cost competitiveness and advanced technological infrastructure, it appears that Poland is well-positioned to continue its growth trajectory in nearshore and offshore service delivery. This, coupled with increased investments in research and development and government initiatives aimed at promoting foreign direct investment (FDI), positions Poland well in its quest to gain a greater share of the global business services market.

Source: GBS World Competitiveness Index, 2022

TECHNICAL AND HELPDESK SUPPORT

COMBINED SCORES OUT OF 8

Source: GBS World Competitiveness Index – Digital and ITO, 202 Bangladesh

CEO of market research consultancy, Genesis Global Business Services and Founding Partner of The World Source Marketplace for Global Business Services (GBS.World)

Author

Mark Angus

Poland Romania Czechia Ukraine Bielarus

A

Photo copyright:

Development based on strong competence resources

We talk to Katarzyna Zalewska, Husqvarna Shared Service Center Head, about priorities in the development strategy and about the way to build a solid, trusted brand in the SSC sector.

FOCUS ON Business: It's been over a year since the launch of Husqvarna Shared Service Center in Warsaw. What were the biggest challenges related to both the opening of the center and its functioning at that time?

Katarzyna Zalewska, Husqvarna Shared Service Center: Husqvarna Shared Service Center was launched in May 2021 as a part of Global Business Services, an organization with overarching reach across the Group. We started our first operations a week after opening with a small, then 6-persons team. Today, with over 60 people on board, we continue on our path of expansion, and at a much faster pace than originally planned. SSC was established as a unit that will hold a place from which the service in the area of Finance and transactional HR will be delivered, but as we have evolved, we have also been supporting our IT organization in building a competence center in Warsaw. Today, we are responsible for the centralization of processes, optimization and best practices. By nature, we execute a transformational program that assumes standardizations, high level compliance, scalability and synergies that can be generated through process centralization and digitization.

As we have been evolving and step-by-step maturing, SSC have been facing miscellaneous challenges at various stages of implementation. From the point of view of scope and impact on the Group's day-to-day business, this is an entirely new program of that scale. For this reason, it required the mobilization of both key sponsors and stakeholders, so – at

an early stage of implementation – our activities focused on presenting program assumptions, expected benefits and planning activities in time. One of the most important challenge at the time, was to build the team with right skillset, highly capable of delivering program of that future, ensuring involvement of key stakeholders at the sponsors level and acceptance of the upcoming change. As a result, we also had to secure a place for our program among other Groups and business challenges that required the organization to be involved in other large programs driven by Group’ roadmaps, with simultaneous challenges resulting in limited resources. One can probably say that at the early stage of implementation, the process of change and its acceptance would have been considered as the greatest challenge.

program, and have implemented a very effective talent acquisition process. SSC has plans for further intensive expansion, which is why building a dedicated, mature team is a priority for us. We constantly monitor the satisfaction of our employees and examine what we can im prove in our offer by proactively responding to the feedback we receive. Husqvarna SSC operates in the spirit of the Group's – promoting values such as work-life balance and diversity & inclusion – at every level of the organization. As a result, in 2022 we have managed to maintain very low level of attrition –only 4%! Our ambition is to maintain an equally low level in 2023 and subsequent years because we focus on longterm cooperation with our employees by building their commitment and offering development opportunities.

Over time, as SSC matured as an organization, we faced challenges related to acquiring and retaining talent, as well as building the employer's own brand on the Polish market. Today, we have achieved the status of a recognizable and desirable employer – introduced many pro-employee solutions (hybrid work, a wide range of benefits, etc.), defined Employee Value Proposition

Today, while developing the structures of Global Business Services, we will focus on program acceleration and redefining the processes that were migrated in to SSC. Emphasizing further the transformation program, deploying LEAN concept and implementing digital and automation solutions, we will focus on delivering the expected benefits. Undoubtedly, this will trigger different challenges than

At an early stage of implementation – our activities focused on presenting program assumptions, expected benefits and planning activities in time. One of the most important challenge at the time, was to build the team with right skillset.

those we have observed so far, but as an organization with a strong competence resource, we believe that we are able to manage them and ensure the expected program results.

What kind of processes does the Warsaw center support?

As I previously mentioned, Husqvarna Shared Service Center is a part of the Global Business Services organization operating within the Group. At the moment, 18 months after launching, SSC provides accounting and HR processes for 16 European countries; additionally, we support a buildup of IT competence center. We are in the process of further migrations, and in Q1'2023 we will start delivering the service to additional countries. Regardless of the geographical scope, we also support a number of corporate functions and take part in the implementation of initiatives deployed as per the Group's roadmap.

What was behind the decision to locate the headquarters at the FOREST campus? To what extent did modern

technologies and pro-ecological solutions used in this facility influence the choice of this place?

The FOREST complex was one of several locations that were considered when considering a corporate office in Warsaw. We ultimately decided on this proposal for many reasons, one of them being wide range of ecological renewable solutions deployed in the complex, which happens to be very close to the values of the Husqvarna Group. interiors’ finished with natural materials, access to filtered water, a large amount of daylight and finally "green" environment encouraging relaxation and balanced approach, was particularly highly apprised and recognized as major value add. The building is full of technological solutions that are to maximize saving of raw materials –water and energy; flexible heating and air exchange systems, leak control systems, and finally the use of rainwater for watering plants, all contribute to sustainable use in every respect.

Not to mention the location itself –very convenient from the point of view of employees' commuting (trams, buses

We ultimately decided on FOREST for many reasons, one of them being wide range of ecological renewable solutions deployed in the complex, which happens to be very close to the values of the Husqvarna Group.

and the nearby metro), close proximity to Warsaw City Center, great restaurants, cinemas and finally – green areas. We are almost feel the city hear beat and yet, boost creativity and focus on business challenges being very well take care of.

Has the Center already started the process of implementing automation? If so, which processes does it apply to and what effects does it bring?

SSC is currently in the process of standardization and optimization. In the following year we will start implementing the first automations that we will identify by using the LEAN methodology, taking into account the Group's future implementations and digitization.

What are the Center's development plans for 2023?

For Global Business Services, as well as for Husqvarna, 2023 will be an another year of intensive development; SSC will continue to focus on further process migrations in to the Centre. In addition, we will continue to implement the Group's strategy in the area of

effective cost management, process harmonization and synergies realization, investing heavily in Process Excellence. One of our priorities will continue to be a buildup of a Winning Culture throughout the Group.

GBS will also participate in implementation of SAP4Hana, a long-term program that will gradually cover all the Group's business areas. As business strategy will evolve, we will continue to identify the necessary areas of support and provide the resources necessary to implement the strategy. It probably fair to say that 2023 already today is shaping extremely interesting and – just like in 2022 – intense. But that is part of our DNA and we are extremely proud that in such a short time we managed to fulfill the expectation set for the organization and of a program and gained the position of a stable partner. Trust and high quality services, this is the foundation of excellent cooperation with clients and trustees.

Thank you for the interview and we wish you success.

It probably fair to say that 2023 already today is shaping extremely interesting and – just like in 2022 – intense. But that is part of our DNA and we are extremely proud that in such a short time we managed to fulfill the expectation set for the organization and of a program and gained the position of a stable partner.

Startup life cycle vs. Venture Capital funding rounds

Text | Magdalena Pawłowska

A startup, like any product or service, but also any other company, has its characteristic life cycle. As an organization, which according to the most popular current definition by Blank, is a temporary creation seeking a viable, scalable, and repeatable business model, it is subject to certain requirements and processes.

A startup, by its nature, is a temporary organization that seeks a suitable business model for itself, and once it finds one, it grows and scales until it irrevocably ceases to be one. The intensive growth of a startup is possible thanks to the funding raised in successive rounds because achieving ambitious goals and generating such a large market share, in such a short period of time, is not possible through organic growth. So let's look at what a startup's path looks like from the seed stage to the exit from an investor's perspective.

WHO IS VENTURE CAPITAL FUNDING FOR?

Not every startup will get funding from venture capital funds. The focus of VC investors is on innovative projects that have the potential to change the paradigm of a given industry's legacy, with the chance to scale globally, attacking markets valued in the billions of dollars, and consequently generating revenues in the hundreds of millions of dollars and valorization over one billion, or preferably $10 billion.

Startup funding rounds have completely changed the approach to building and growing businesses. Several decades have passed from the days of the first investments, made in the United States, to today. The global startup ecosystem has expanded and structured, contributing to the success of companies such as Apple, Google, Facebook, Airbnb, and Spotify.

What conditions must a startup meet to raise funding in subsequent rounds? Venture capital funds evaluate additional elements in each subsequent round, but traction, or sales, always remains the most important.

model, it is essential at this stage to work out the company's agreements and address intellectual property protection and non-compete issues. Legal issues in later stages often turn out to be deal breakers, so it is worth taking care

Not every startup will get funding from venture capital funds. The focus of VC investors is on innovative projects that have the potential to change the paradigm of a given industry's legacy, with the chance to scale globally, attacking markets valued in the billions of dollars.

PRE-SEED – A VERY BEGINNING

The pre-seed stage of funding comes at a time when a startup is getting off the ground. During this period, it is financed by its founders and so-called Friends & family. It is rare for a venture capital fund to invest at this stage, although in recent years there has been a clear trend toward funds that specialize in investing in very early-stage projects created by serial Founders.

Pre-seed serves to define the problem and the concept of the solution the startup wants to create. This is also the stage of market research, identifying potential competition and validating whether the project has a chance to be scalable and profitable. From the perspective of the investor and further development of the company in the VC funding

of them at the very beginning. If funds decide to invest at such an early stage, the standard valuation of a company in the CEE region is in the range of €50,000 – €500,000.

SEED – TIME FOR MVP

The main goal in this phase of development is to develop an MVP, which stands for Minimum Viable Product, i.e. a product that will meet the most urgent needs of customers but is not yet a complete solution. Usually, during this period, startups define the business model, and market entry strategy and start selling. They also build the necessary team and acquire the first customers to help validate and improve the solution. Investors at this stage are business angels and VC funds, and the average valuation of

About 50% of startups fail in the pre-seed and seed stages because they lack the capital to continue operations, which is why it is so important to seek investors as early as possible. The pre-seed and seed stages carry the most risk for investors, so proving sales traction is essential.

a company is between €3 million and €6 million in the CEE region, although recently a valu ation as high as €10 million is common. The elements that determine the acquisition of financing at the seed stage are product-market-fit, generation of first recurring revenues, and a well-thought-out strategy for further development.

About 50% of startups fail in the pre-seed and seed stages because they lack the capital to continue operations, which is why it is so important to seek investors as early as possible. The pre-seed and seed stages carry the most risk for investors, so proving sales traction is essential. Waiting to fundraise until the funds run out means the end of the project in most cases.

ROUND A – FIRST FOREIGN MARKETS AND SALES SCALING

The Round A stage is the time to demonstrate a sustained trend of sales growth in the home market and exit to foreign markets. During this period, the startup should use the funding to aggressively expand its customer base in its home market and go into at least one major or several smaller foreign markets. One of the biggest challenges during the A round, and one of the most important elements evaluated by the VC funds, is to develop a long-term strategy for the startup to ensure an effective monetization and expansion model. The startup's organizational structure aligns with its international reach and expands to include operational teams that support strategy, operations, and specific business areas.

In addition, at this stage investors check whether the company has delivered on the plans declared in previous rounds and whether its revenues are growing at least 20% month-on-month. The goal is to show a sales curve in the shape of a so-called Hockey Stick, which for investors is the main basis for estimating the company's value in the future.

In the A round, it is common for international funds to participate in addition to domestic VC funds, and average valuations oscillate between €10 and €30 million, although there are also times when valuations are much higher. Companies characterized by good traction and product-market-fit can expect to raise financing between five and EUR 15 million.

ROUND B – CONFIRMING THE BUSINESS MODEL IN MULTIPLE MARKETS AND GAINING A LARGE MARKET SHARE

A startup that has successfully navigated its way from pre-seed to Round A, in Round B faces intense business scaling in multiple foreign markets and expanding its market share. Round B is a time of very rapid growth for the company, not only in terms of the market but also in terms of human resources. The organizational and personnel structure, which has already grown considerably in Round A, expands to include more countries and operational areas to be able to meet customer expectations and deliver a product or service to each market in which it decides to operate. Often at the expansion stage, professional C-level executives are hired who, based on previous experience gained in global organizations, can significantly accelerate the startup's growth.

In the B round, investors are joined by large international funds that specialize in funding later-stage startups. Revenue remains the main determinant of valuation, although both investors and Founders include achieving BEP (Break Even Point) in their growth plans. Companies generating sales of $30 million to $60 million can raise around $30 million in a B round. Valuations often exceed $100 million.

ROUNDS C, D, AND BEYOND – ON THE WAY TO A BILLION-DOLLAR VALUATION

A startup entering Rounds C and beyond is already a large, international organization that is focused on continually expanding its market share and target groups. In addition to geographic expansion, it is developing its product portfolio to capture more market segments and multiply its revenue streams. The company has already proven its market and operational success, reducing risks for investors. So-called "late-stage" VC funds, as well as banks and hedge funds, are beginning to join the ranks. Funding raised from later rounds is used for

acquisitions of smaller, local players, allowing rapid entry into more markets.

In later rounds, it's not surprising to see valuations of several hundred million or even several billion dollars. Startups in the C round often raise more than $50 million in funding, and in the D round, they exceed $100 million in raised capital.

EXIT – WHEN A STARTUP'S VALIDATION MATERIALIZES

This is the final stage of a startup's development, which can culminate in the sale

Author

of the startup to industry investors or an IPO. The maturity stage is the culmination of the Founders' hard work and the moment when investors get a return on their investment. Very few startups reach this point. If they succeed, they become world-renowned organizations that can hardly be called startups anymore. Their size, structure, global reach, and revenues place them in a category closer to corporations than temporary organizations seeking their business model.

Magdalena Pawłowska Partner, Level2 Ventures

A startup that has successfully navigated its way from preseed to Round A, in Round B faces intense business scaling in multiple foreign markets and expanding its market share.

Unlock potential of your workplace: How companies will reshape their offices for a bright future ahead

Text | Ewa Dąbrowska

The COVID-19 pandemic has changed the world in many ways, and one of them is how we work. With stay-at-home orders issued around the world, more people are working from home than ever before. The traditional office environment by many companies has been replaced by virtual offices, and WAH (Work-At-Home) work environments have become commonplace.

Early days pandemic for many companies were not easy, sometimes from prosaic reasons: lack of VPN licences, lack of face-to-face contact due insufficient stock of cameras etc. It was a real agility test. BPO companies have adapted quickly to the changing conditions and are now taking the advantage of many benefits that WAH and virtual offices offer. In the past 3 years, business service companies have also redesigned the traditional office spaces to better suit their current and future needs. Let's have an analytical look

at various forms, main benefits but also potential risks associated with them.

PARADOX OF WAH ENVIRONMENTS

Work-At-Home environments offer a number of benefits. These include: convenience and flexibility, cost savings, increased focus on individual tasks, and more meaningful communication between team members.

Convenience and flexibility are especially important for those who have to deal with the challenges of family life

Convenience and flexibility are especially important for those who have to deal with the challenges of family life or health problems while still managing their work responsibilities. By working from home, they can save time and money on everyday commuting and also take care of personal matters without sacrificing the quality of their work.

or health problems while still managing their work responsibilities. By working from home, they can save time and money on everyday commuting and also take care of personal matters without sacrificing the quality of their work. There is a flipside of this coin, some of the people working from home, especially those having children, complain that they are being distracted and have to sometimes restart the same task several times. Another issue, lack of a separate room for work is not only a matter of comfort for

the employee, but often also a security compliance problem.

Available technology might allow em ployers to visually monitor their employees via various means (including facial recognition, body movements, and surveillance of the employee's surroundings) but although ensuring full compliance with a PCI (Payment Card Industry) Standard is possible in theory, these tools do not follow GDPR (General Data Protection Regulation) in Europe. The final question is whether or not employees would accept these types of solutions.

If employees have a good working environment at home – which is not just a separate room or silence, but also the right kind of ergonomic chair, work table, and IT hardware for their job –WAH conditions enable them to focus more on individual tasks. This lack of distractions present in an office can result in greater productivity and improved quality of the work overall.

Finally, meaningful communication between team members is encouraged when everyone is working remotely. With video conferencing technology becoming increasingly advanced, it's easier than ever for teams to stay connected and collaborate on projects from anywhere in the world.

Cost savings are often considered a major perk of WAH environments.

By eliminating the overhead costs associated with office space, businesses can save money on rent, utilities, and other expenses. On the other hand, setting up a permanent WAH environment sets a different requirement for management overhead; frontline teams shall be smaller so that the leaders can dedicate sufficient amounts of their time to manage them efficiently. Governments also introduce changes into the labour codes, imposing certain obligations on employers, to cover utilities or co-finance ergonomic furniture. Each company has to balance these costs in their own way so that WAH remains an attractive option for both the business and employees.

KEEPING YOUR STAFF ENGAGED AND HIGH-PERFORMING

Managing performance and employee engagement in a WAH environment can be a challenge. It is important to set expectations and objectives clearly, as well as make sure that employees have the right tools to do their jobs effectively. The modern business services are very well measurable, so it is easy to assess both quality and quantity of the work of employees even in the dispersed structures. What is different from the traditional team structures, is to create opportunities for team members to interact in creative ways, such as virtual happy

hours, joined virtual breakfast or lunchtime. Managers have to pay increased attention to the quality of interactions with their staff not to oversee the signs of burnout or any other challenges that an employee might be facing. WAH makes it more difficult to host "walk and talk" sessions, which are common in office settings. Managers shall not underestimate the impact of these routines and shall adjust their managerial style accordingly.

Overall, work-at-home environments can be beneficial for both businesses and employees when implemented properly. However, it is important to consider the potential risks associated with this type of arrangement so that employers can ensure a safe and productive working environment for their staff.

With video conferencing technology becoming increasingly advanced, it's easier than ever for teams to stay connected and collaborate on projects from anywhere in the world.

SUPPORTING COLLABORATION AND CREATIVITY IN OFFICE ENVIRONMENT

One of the key advantages of having an office is that it allows for more socialisation and teamwork with colleagues. This creates stronger work relationships. The ability to collaborate with co-workers and share ideas can lead to the development of innovative solutions and increased team productivity. Office settings also provide an environment where employees can learn from each other, resulting in better cooperation on projects.

Additionally, having a physical workspace provides many workers with a sense of structure as well as fewer distractions than if they were at home. Finally, offices generally provide resources such as technology, supplies, and meeting spaces which can help support employees’ productivity.

FUTURE OFFICE SPACE

AS COLLABORATION HUBS

The future of office space is likely to be a blend of both physical and virtual workspaces, with many employers focusing on creating hybrid models. This will give employees the flexibility to work remotely when needed while still providing opportunities for collaboration in-person. Companies may focus more on creating comfortable, inviting spaces that are conducive to conversation and idea sharing. Companies will also look for ways to integrate technology into their

office design in order to foster remote collaboration with employees who work from home, as well as support virtual meetings and presentations. Additionally, businesses may use the physical space to facilitate professional development activities such as panel discussions or team building exercises, especially during the employee onboarding process.

By leveraging the advantages of both physical and virtual workspaces, employers can create an environment that is supporting professional development and a strong sense of community. This will help keep employees productive. Ultimately, this will result in improved organisational performance and increased employee satisfaction. Offering a fully flexible working model (that is with no fixed rotational in office shift pattern) will be most likely commonly used as a benefit when it comes to talent acquisition and retention.

Having a physical space dedicated to team meetings and collaborative tasks will foster creativity by allowing everyone to brainstorm ideas together in an open environment. In the near future office spaces will turn more into social spaces and will be used to host social events. While the companies may in the mid-term re-evaluate the requirement for additional square metres, they will also invest in making the company offices, genuine quality places where people do want to come and co-work with their peers.

Ewa Dąbrowska

Head of Sales Central Europe, Transcom

By leveraging the advantages of both physical and virtual workspaces, employers can create an environment that is supporting professional development and a strong sense of community.

What is Connected Farming and How Technology Shapes New Agriculture?

Being revolutionized by machinery in the last decades, agriculture now faces another revolution –by data and connectivity. Artificial intelligence, connected sensors, and advanced data analytics help increase yields, optimize resource consumption, and improve sustainability in crop and animal farming.

The United Nations Organization projects that global population may grow to 9.7 billion people by 2050 and 10.4 billion by 2100. In the next 30 years, the world will need to produce 56% more food in approximately the same amount of land and other natural resources. Can agriculture fulfill this growing demand in such a short period? In the following post, you will discover how connectivity-enabled digital transformation helps achieve the desired growth of food production.

A variety of sensors across the premises collect data and transmit it to the central platform via a connectivity network (WiFi, Bluetooth, LPWAN, ZigBee, or various cellular networks) for further handling. The data gathered is stored on servers or in the cloud and processed by big data and AI algorithms. End-users then get access to the data-driven analytics through custom dashboards on desktop and mobile apps.

The technology helps extract actionable insights for farmers to make better decisions and manage the farming processes more effectively.

BENEFITS OF CONNECTED FARMING

The implemented connectivity provides the farming business with tangible value in several directions:

• Waste and cost reduction. Continuous monitoring of water, power consumption, equipment, and building conditions enhances resource control and waste management.

As a result of the above benefits, nature-related factors become more controllable, which lowers the risk of losses. Better resource management and planning enhances the farm’s productivity and production quality.

CONNECTED FARMING USE CASES

WHAT IS CONNECTED FARMING?

Connected or smart farming is a vital technology for automating crop or livestock product cycles. The smart agriculture market value is projected to reach about $34 billion by 2026 from just $12.4 billion in 2020.

With this technological approach, farmers can monitor the entire farming cycle in real time and manage all the processes according to the current state of soil, weather conditions, resource availability, and other factors.

• Real-time data from smart sensors helps track equipment efficiency, animals' & crops' health, and climatic changes. It also allows for reacting timely and effectively to heavy weather conditions and natural hazards.

• Better control over internal processes. The accurate data-driven forecasts are used for planning the actual production and distribution with minimum to no residual stock.

• Enhanced business efficiency. Automation streamlines numerous farming processes, including irrigation and fertilizing, as well as controlling pesticides via drones.

The employment of connectivity is important for all agricultural regions, regardless of their current technological advancements. More tech-savvy markets like North America or Western Europe can streamline automation through drones and robotic machinery. Less digitized regions in Asia and Africa can focus on implementing monitoring solutions to boost productivity. Here are the primary use cases for connected farming that can substantially enhance the capabilities of modern agriculture.

• Crop monitoring and precision farming

With connected devices and sensors, farmers can monitor and manage their processes 24/7 without needing to be physically present at fields and premises. Weather conditions, humidity, lighting, and the state of crops can be constantly tracked to adjust resource utilization, plan soil-improvement

In the next 30 years, the world will need to produce 56% more food in approximately the same amount of land and other natural resources.

•

activities, watering, aid pest management, harvesting, and other daily operations effectively.

Corteva Agriscience, the USAbased global agricultural, chemical, and seed company, offers a precision farming solution to its clients – a smartphone app that provides a 360-degree view of their cropland areas with tracking soil quality, historical data on farmed crops, and more. The software solution, developed by Infopulse, helps plan the starting time for the farming season and effectively manage all related processes, from fertilizing fields to harvesting.

• Drone farming

Drones have been used in agriculture for about two decades. The increased availa bility of low-cost drones on the market stimulates their further integration into daily agricultural tasks, including spraying pesticides and planting. More importantly, they are used to collect photo and video data to develop predictive farm management models. Drones are effective in reducing workforce and equipment costs for farming.

Livestock tracking

Wireless IoT systems are used to prevent mass infections and disease outbreaks in herds by identifying potential health issues. The IoT chips monitor temperature, blood pressure, and other health indicators essential for early diagnostics. The real-time statistical analysis is used to adjust the animals' nutrition and care. On top of that, environmental sensors can automatically balance the heat and ventilation in the barns, maintaining the optimal living conditions for herds.

• Robotic farming machinery

Robotic machinery powered by the combination of sensors, computer vision, and precise GPS controls helps manage numerous pieces of equipment on the field without human intervention, which optimizes time and other resources for land and crop processing. Autonomous machines cultivate fields quicker and more precisely than humanoperated ones. As a result, they save on fuel while increasing yields.

• Equipment and building management IoT enables 24/7 real-time visibility of the warehouses, measures the conditions of tanks and silo levels, and plans timely refills of the required supplies. Permanent monitoring of energy output eliminates overconsuming and decreases utility expenses. Additionally, connected technologies are used to develop predictive maintenance mechanisms to identify malfunctions, prevent expensive breakages and repairs, and extend the life of the equipment.

These use cases, if implemented successfully, can bring up to $500 billion of new global GDP value by 2030.

• Personalized farm marketing With connected farming, the suppliers of agricultural products can provide personalized offers based on the clients' actual needs. For instance, Corteva Agriscience proposes farmers tailored products and services based on their silage review. The company approached Infopulse to design a React Native mobile app to gather and analyze relevant information. User-friendly data collection forms with predefined field values for all required silage parameters save

up to 80% of the time to complete the process. The automated, errorfree silage monitoring significantly increased sales and improved customer loyalty. Developed in complete alignment with Corteva’s business growth and scaling plans, the solution can be expanded to new regions and incorporate various integrations to extend the initial functionalities.

SUMMARY

Global megatrends create challenges for the food industry: we need to produce significantly more with significantly fewer resources available. Technologies have already increased farm productivity and reduced the environmental footprint. Further adoption of connectivity solutions can substantially improve farming productivity, reduce waste and cost, and enhance business efficiency through automation.

Considering multiple areas of usage, connected farming is one of the most industry-shaping trends for the near decades. By the latest estimations, it can bring more than $500 billion in additional direct and indirect outcomes for global agriculture by 2030. Smart farming is essential to achieving the desired increase in food production and realizing the global aspirations regarding sustainability and resource efficiency in agriculture.

The article has been created in cooperation with:

farming machinery

and -equipment management

Estimated range of potential new global GDP value, $ bilion Source: McKinsey & Company, Agriculture’s connected future: How technology can yield new growth

Moderntechnologyhubs forbanking

We talk to Anna Mirek, Head of Communications and Marketing at ING Hubs Poland, about issues relatedtothefunctioningofITfacilitiesinPolandservicingINGbranchesaroundtheworld.

FOCUS ON Business: ING Hubs Poland operates in Warsaw and Katowice. What is the story of company’s development in Poland?

Anna Mirek, ING Hubs Poland: ING Hubs Poland is growing dynamically. Just a few years ago, we were an IT company located in Silesia, in Katowice. With the development of our services, we decided to expand the scope of operations and create new business units to support not only IT services, but also operational services at ING around the world.

In 2019, we opened the Risk Hub in Warsaw, which is responsible for credit risk management, and in 2021 we started to build the Transaction Monitoring team. This proves that the ING Group appreciates our specialists and entrusts us with more and more new tasks and services. It is worth to underline that the group invites us to work on global projects. It is important because the voice of our engineers and experts is heard and desirable already at the stage of discussing the architecture of the solution.

The following years, the pandemic ones, saw an even greater increase in the number of employees. There are about 1,000 new people every year. I want to emphasize that such a huge number of recruitments does not result from employee rotation, but from the development of the company and thus the creation of new jobs.

What is the spectrum of processes and operations supported by these units?

Our company provides a very wide range of services for most entities operating within the ING Group. I would mention here business areas such as: cybersecurity (so important nowadays), KYC (Know Your Customer) with main goal to prevent financial crimes, anti-money laundering (AML) or terrorism financing, and widely understood IT services such as IT security, remote services, hosting and application.

ING Hubs Poland is one of the four branches of the Dutch company ING Hubs. There is of course Poland, but we are also present in Slovakia, Romania and in the Philippines. Having hubs in such different places is dictated not only by the need to adapt to the provision of services in different time zones, but also because we feel great potential in these locations. Each country represents different competences and experience, which allows us to complement each other perfectly. This, in turn, affects even better

ING Hubs is present in Slovakia, Romania and in the Philippines. Having hubs in such different places is dictated not only by the need to adapt to the provision of services in different time zones, but also because we feel great potential in these locations.

We also have the so-called Hubs, i.e., specialized units that deal with specific areas, e.g., broadly understood risk (e.g., credit risk modeling and data analysis), Compliance (compliance and financial crime prevention), HR services, or a card service center.

What is the current network of the company's branches in the world and what is the role of Polish offices among them?

and more effective service of the services entrusted to us.

What makes me very happy is the fact that our employees are involved in an increasing number of global initiatives affecting the development of our services. Poland has become a real business partner with a strong and competent team of experts. We act as an expert who shares knowledge and defines standards for state-of-the-art technological solutions.

In the IT sector, remote or hybrid mode of work is now the most common. What model works for ING Hubs Poland?

Many companies are constantly looking for a good solution, so it was with us. The pandemic has taught us to work 100% remotely, taking away what is most valuable – direct contacts. At ING Hubs Poland, we constantly observe the market and its trends, but we always remember about the unique organizational culture of our company. We just like each other, we like spending time together. Everyone who decides to join our orange family feels this good vibe. We care about relationships and therefore do not want to work remotely to the full extent. We believe that a smart combination of remote work and office work is the best solution. In the office we spend time on team meetings and discussions, while the focused work (individual one) is done remotely. This has a strong impact on the efficiency, but also on the employees’ satisfaction.

or pouffes... I often see teams that organize meetings in the so-called Fun Zones, where they can hold a meeting and play a game at the same time. This is also our way of combining work with spending time in the office.

How many days per week or month do employees spend in the office?

We adopted a strategy of adjusting the way of working and the time spent in the office to each team individually. It is the team and the manager who know best how many days they should spend together, at joint meetings in the office, and when they can work remotely. This strategy means that the time spent in the office varies in different business areas. On average, it is about 50% of working time in the office. Which makes me very happy, because it confirms our belief that this approach is the right one. At the same time, it shows that our organizational culture is based on voluntariness and freedom. We do not want to force

At ING Hubs Poland, we constantly observe the market and its trends, but we always remember about the unique organizational culture of our company. We just like each other, we like spending time together.

In addition, we also work in an Agile way of working. People who know this way of working know that it involves rituals, i.e., team meetings that work best when they take place live, in the office.

What do such meetings look like?

Our offices have been designed in such a way as to combine the possibility of conceptual work with teamwork. On our surface there are large tables, comfortable chairs, but also comfortable sofas

employees to do anything. We are happy to see them involved and motivated to undertake various activities.

Solutions based on modern technologies are becoming more and more visible in the activities of banks and financial institutions. What challenges do the IT facilities of such an organization face in this regard? And which area do cybersecurity professionals need to pay the most attention to now?

Each company tries to be as close to the customer as possible and respond to their needs, and even anticipate them. The world of IT, the world of technology supports us in this and allows us to build modern solutions. However, we must remember about security and that is why every company offering modern technological solutions must provide adequate security. Nowadays, each of us functions in cyberspace, i.e., in the online world. This means that, for example, our bank accounts, transactions, or applications we use are vulnerable to various types of attacks from the outside. Our security teams operating as part of the global security management unit at ING, they constantly monitor our activities and ensure a high level of security of our services.

In addition, all applications, and systems that we create or supervise are subject to regular security tests. Thus, our clients, i.e., other ING units in the world, can be sure of the high level of services provided.

What is the company's development plan for the coming years?

I will not surprise you with the answer – our plans are to further develop the company, and more specifically to expand the catalogue of services while using our experience in technology and constantly caring for the creation of the best workplace. We can digitize, automate, and simplify. We will also certainly grow as an organization and develop new competences among our employees. Many interesting projects ahead of us.

Thank you for the interview.

How can businesses support sustainability?

The world is facing tough challenges today, and the climate crisis is at the forefront. Employees, customers, investors, and other stakeholders have greater expectations that organizations will lead efforts to address these climate issues globally. But it’s important to acknowledge that environmental sustainability isn’t an isolated concept. Rather, it’s part of a greater picture that encompasses how we operate in society and how we interact with our planet. Supporting the environment requires implementing practices that also support a more inclusive and equitable society and culture.

Businesses are uniquely positioned to make a difference. Organizations hold the responsibility to implement best practices for empowering people, facilitating an inclusive culture, and supporting a healthier planet.

CARING FOR THE PLANET

Implementing sustainable practices while also pursuing a company’s production goals can be challenging. However, sustainability is becoming inextricably combined with production. Companies must consider environmental sustainability to position themselves for the future, and there are many steps organizations can take to reduce their carbon footprint and protect the planet. For example, companies can use recycled materials and eliminate single-use plastics to deliver products safely with minimal packaging. It's also important to build ecosystems to support and prepare for a circular economy that maintains the value of materials for as long as possible.

Bring sustainability into conversations at your company. Encourage local teams at manufacturing locations to share carbon reduction project ideas and lessons learned. Open communication about steps in environmental sustainability allows companies to identify and implement energy efficiency

opportunities in everyday operations, such as re-lighting and equipment replacement projects.

Another strategy is reducing greenhouse gas emissions by using less fossil fuel-generated energy. As an example, the furniture manufacturing company Steelcase is very conscious of their impact on the environment and have set the goal to become carbon neutral by 2030. Steelcase installed solar panels at their manufacturing sites in Rosenheim, Germany and Pune, India. The 493 solar panels installed in Pune contribute up to 50% of the energy needed for daily activities and the facility is expected to see solar energy usage reach 60%. By the end of 2022, the solar panels will begin contributing surplus electricity generated on weekends to the local power grid. In Rosenheim, 76 solar panels and the combined heat and power (CHP) project, which integrates technologies designed to simultaneously produce heat and electricity, deliver approximately 50% of the power requirements and cut greenhouse gas emissions by about 60%.

CARING FOR PEOPLE

The big issues the world faces require bold new solutions, and organizations need to be committed to coming together with the people in the communities to

enact meaningful, sustainable social change. Only when they work together — businesses, organizations, individuals and governments – they can truly make a positive difference in the world. Focusing on social innovation, equity and inclusion, and wellbeing helps create a better society both within the company and within society.

A key initiative for supporting social innovation is creating connections with community stakeholders. Community partners create the conditions for shared learning. By designing partnerships to include participation in learning community, your company and community organizations can work together to uncover hidden opportunities and facilitate connections for new ideas to develop for their growth.

Encourage employees to make an impact in their communities by providing them with the tools to identify and engage with prospective partner organizations locally. Establish volunteer programs that provide employees with the opportunity to help communities grow and prosper while establishing a foundation for lasting change. Time and talent are valuable assets that employees can donate, which are vital to making the world we live in a place where everyone can thrive. Create a culture where

changemaking and community engagement are encouraged – and celebrated.

Consider providing community grants, to encourage our employee volunteers by giving them access to funding to “do good” with a community partner they care about.

Moreover, within their own workspaces, companies can make changes to support their people. A thoughtfully designed, inclusive office space means moving away from the one-size-fits-all mentality. An equitable workspace caters to employees’ unique needs and supports wellbeing. When people like where they work, they experience a stronger sense of belonging and inclusion and feel energized to work together towards a common goal.

CARING FOR CULTURE

Decisions are best made by employees closest to the issues, who understand and embrace the belief that business is a force for good. Trusting the people and empowering distributed decision making allows them to thrive. Employees’ deep understanding of, and adherence to, the company’s purpose and values furthers the commitment to integrity and reinforces the trust placed in the company by their partners.

One initiative that supports culture is developing effective and empathetic leadership. Leaders are assets that impact how employees feel and operate at work. Interpersonal and team effectiveness factors are key to helping a leader better understand the current context and environment on their team and identify where improvements can be made.

Another strategy for supporting a culture of trust and integrity at work is ensuring the transparency of the company’s core values. Strive to emphasize the positive impact of ethical decision making and celebrate people making the right choices.

Continuously publishing and updating various compliance policies relevant to employees is one strategy for making sure core values permeate the culture. Administering surveys and trainings can help educate employees on potential conflicts of interest issues, and allows management to follow up on survey responses indicating a possible conflict of interest. These steps help employees understand their compliance obligations and illustrate the company’s actions when dealing with core values violations.

Just as an inclusive workplace design supports people, it’s also critical for supporting a strong, cohesive culture characterized by trust and integrity. When people like where they work, they experience a sense of belonging and trust. They will feel more compelled to collaborate and empowered to make decisions together that improve everyone’s future.

THE BOTTOM LINE

People, the planet and culture are pillars that support a better future for all of us.

We can’t tackle our goals for carbon neutrality and environmental sustainability, without also supporting a thriving and inclusive society and culture.

More examples of solutions that benefit the planet, people and culture, is available in Steelcase’s global report.

The article has been created in cooperation with:

ADVANCED EXPERTISE IS THE KEY TO THE FUTURE OF SERVICE CENTERS

What challenges do managers of GBS/SSC/BPO units face and in what direction will such centers develop?

Interview with Radosław Jankie, Partner at KPMG, Head of the Shared Service Centers and Outsourcing Advisory Team.

Wiktor Doktór, Pro Progressio: How do the specificities of Global Business Services (GBS) Centres vary depending on their location in the world? Where in the world there is the most going on right now?

Radosław Jankie, KPMG: Governments and sector organizations in a number of countries are focusing on improving their competitive advantage with regards to business services functions, however, I still believe that India and Poland will continue to play a key role in their respective regions. This is basically due to high availability of talent and significant footprint of business services sector. I am not depreciating the position of other countries like the Philippines or Malaysia in Asia, and Hungary, Romania and Slovakia in CEE region, however, due to high surge in demand we can observe that availability of labor pool is getting even more important than cost criteria.

Organizations are still looking for locations where talent pool is less expensive, however, the key challenge is the availability of the human capital. Furthermore, as more and more complex and judgement-driven processes are being migrated and centralized, it is not only the matter of availability of the human capital but rather availability of the highly-qualified workforce. For that reason India and Poland play the key role on the global GBS map. Both countries offer diversity of locations which fulfill the specific needs of different multinational organizations. And this is why these countries are usually considered as some of the top locations. For India those locations include Bangalore, Pune, Mumbai, Hyderabad, Chennai, while in Poland, apart from mature GBS locations such as

Warsaw, Cracow, Gdańsk, Poznań, Wroclaw, Katowice, Łódź or Szczecin, there is a group of so-called second-tier locations lead by Lublin, Rzeszów, Opole, Radom and others.

I’m not stipulating that economic, political and social environment are not important factors as they are, nonetheless, the key takeaway from the numerous meetings I have with GBS representatives, including center heads and human resources directors, is that for most of them the number one challenge is human capital management and its availability. This can be guaranteed only by the countries listed above. This statement is also confirmed by what we have been observing on the global GBS market for some time and what I have already mentioned, i.e. the growing appetite of global organizations for further transformation and centralizations of services with a higher level of complexity. As the leader of the Shared Services & Outsourcing Advisory area at KPMG, I meet with my colleagues from countries such as the US, the United Kingdom, Germany or India, as well as our foreign clients, which are most often global organizations. When our discussion steers towards GBS site selection for more complex and advanced processes, then it usually comes down to countries which will ensure the security of operations from the perspective of the quantity and availability of qualified human capital.

Which processes delivered by centres are those to which companies pay the closest attention?

Two thirds of centres around the globe expands their service portfolio. There are a number of aspects that

are particularly noteworthy that speak to that trend.

First of all, centres are adding those services to their service menu that don’t lean on clear zero-one rules and principles. In GBS centres we can see functions from a broad spectrum of areas such as customer service, supply chain, legal or marketing.

What is interesting is that they are not only services that were taken over from local units, but also those that were newly designed and implemented and were not previously present in the organisation. The reasons for creating new functions are wide-spread and abundant. They include – among others – constant evolution of processes, their digitalisation, access to new technologies, or market pressure, just as in the case of sustainability matters. Why are new processes placed in the GBS centres? On the one hand, they hold a lot of experience in the plug-and-play model and they exhibit the ability to quickly build new competencies. On the other, it is the GBS centres precisely that hold a humongous amount of data that constitute the input to those novel processes.

Increasingly more often mature GBS centres outgrow their deliver repetitive services and become a power engine for business transformation. To name just a few examples of such transformative capacities, there is automation, digitalisation of processes (not necessarily limited to only those placed in the centres), post-merger integration of ERP systems, or Lean projects. Traditional Finance and Accounting processes gain much of the attention as well. Sky-high benchmarks set by market leaders, translate into making optimisation of cash

As more and more complex and judgement-driven processes are being migrated and centralized, it is not only the matter of availability of the human capital but rather availability of the highly-qualified workforce. For that reason India and Poland play the key role on the global GBS map.

allocation or payment-on-time a high point on the agenda of GBS Heads and their superiors.

A topic which quite suddenly and unexpectedly appears on the map for many enterprises is cybersecurity. Companies which fell victim of cyberattacks and suffered substantial losses, attempt to develop competencies in this area. This may be the reason why organisations are considering processes carried out of GBS centres not only in terms of their effectiveness and costs but also their security. Customer data protection, malware attacks, payment extorsion are sensitive topics which are getting increasingly more attention.

Cybersecurity, process automation, self-service tool development and advanced data analytics contribute to the shift in recruitment trends in GBS centres –from specialists experienced in selected business processes only, to expanding to include also those who are knowledgeable in specific programming languages. We observe with great interest how frequent it is becoming that the “required skills” section of job advertisements for GBS centres expands to list knowledge of programming languages along the usual fluency in foreign languages.

Which competencies are currently the most sought after? Does the GBS industry suffer from personnel shortages? If so, in which areas?

It seems that the dynamics of the SSC/BPO industry is not only not slowing down but is accelerating even more. New centres are founded on a daily basis and they are looking for qualified employees which will secure business

continuity. In GBS centres there is an all-too-frequent expectation that since there are so many players on the market, it shouldn’t be an issue to find talent for the centre and launch processes in a short period of time. For this reason the salary pressure increases and there are shortages of suitable candidates for certain positions.

As a result of high level of automation, standardisation and quality of technological solutions, the more transactional processes are fairly easy to fill and specialists are replaceable. This is the reason why – despite a large number of offers in the “classic” centralisation areas, i.e. finance and accounting processes: Accounts Payable, Accounts Receivable and General Ledger – companies manage to find candidates relatively fast. A far more difficult task is recruiting for more knowledge-based roles requiring making decisions. Thus, in FP&A area, for processes which are becoming the first choice when it comes to expansion of finance department portfolio, such as Controlling, Financial Planning and Analysis or Treasury, recruitment requires a more daunting search for specialists. Branching out from the finance area, centres are increasingly more often deciding to expand their offer with Procurement, Supply Chain, Tax or Legal processes.

Finding an experienced employee who would understand the specifics of a process delivered for various geographical regions is often a real challenge, even more so that the market salaries significantly surpass the average salaries in the centres. Additionally, increased centralisation activities of banks simultaneously increases the demand on

professionals with specialised experience. For this reason, centres are frequently unable to meet the work supply which local units would gladly offer but need to “wait their turn” to join the portfolio of serviced customers or processes.

With unwavering interest centres are looking for specialists who are not only experienced in processes out of centres’ portfolio but also know foreign languages. It is even more significant due to the fact that Asian centres are often unable to provide linguistic support at an adequate level, which causes for the companies operating in European languages to look for support on the Old Continent. The demand for people speaking German or French seems to be endless.

There is a lot of talk of robotization, also with regard to processes at global business services centres. How does it actually look? Are we still at the stage of fantasising about it or are we witnessing actual implementation of robots at work and drawing benefits from the implementation?

Robotization in global business service centers is no longer just a plan for the future, but a reality that the centers co-create.

First of all, entities supporting transactional processes processing many repetitive, standardized, monotonous tasks are an ideal place to implement robotization. Then, there are companies that are struggling with the problem of hiring qualified employees to perform activities where expert knowledge is required. In such cases, RPA allows them to relieve the already employed staff in order to be able to shift them to more complex tasks

With unwavering interest centres are looking for specialists who are not only experienced in processes out of centres’ portfolio but also know foreign languages. It is even more significant due to the fact that Asian centres are often unable to provide linguistic support at an adequate level, which causes for the companies operating in European languages to look for support on the Old Continent.

Shared Service & Outsourcing Advisory Team of KPMG Poland. From the left: Paweł Rychlik (Senior Manager), Igor Siedlarski (Senior Manager), Radosław Jankie (Partner), Piotr Jarosz (Director).

that require decision-making. Companies, recognizing the importance of data in running and developing their business, are paying more and more attention to how and how quickly they can obtain information and how precise the conclusions drawn on its basis can be. When the robot generates reports for them, all attention will be focused on analyzing the results and drawing conclusions, which is a much greater value added.

Our observations show that Centers are moving to the next phase where, apart from repetitive and time-consuming processes, more complex tasks are also considered for automation, thanks to additional functionalities introduced by suppliers, such as extensions of "ordinary" robots with AI or ML.

The employees’ attitude to the idea of implementing robots is also changing. While in the beginning we were faced with skeptical reaction and indication of limited possibility for robotization of processes and tasks in their area (mainly for fear of reduction or downsizing), with time they have become "the ambassadors of change", who even convince other people in their organization to take advantage of this opportunity, and subsequent implementations of robots spark even more further ideas.

An interesting phenomenon is also citizen development, which is becoming more and more popular, where people from business implement some simple improvements and automations for themselves, using low-code/no-code tools.

Which areas within GBS industry should we definitely keep tabs on and which will particularly surprise us in 2023?

I think that the list of interesting topics is quite long. This is due to the fact that GBS sector is very dynamic and this dynamics is actually accelerating.

As consolidated models evolve further, we will be observing an increasing role of the Global Process Owners (GPOs) responsible for end-to-end process management. GPOs will manage process standardization across geographies as well as implementation of the leading practices, Key Performance Indicators and process automation. Some of GBS organizations might even measure their maturity or

importance within their organization by counting the number of GPOs they have in their structures.

I also believe that we will witness further increase of the scale of complex and knowledge-based activities within the scope of GBS organizations as compared to high-volume transactional processes. We will witness the GBS transformation from processing factories to more value-creating organizations. And this trend has already been visible especially in the CEE region as companies have been moving activities like FP&A, Treasury, Data Analytics, Recruitment and increasingly more customer-facing processes from Business Units and Corporate to their GBS models in order to reduce the costs further and also to continue the process of standardization and consolidation.

Certainly, the areas that will remain of interest are the further use of the opportunities offered by the digitization of the GBS organization as well as the growing number of employees in the GBS / BPO sector. Some market organizations in their analyses predict that the demand for employees will continue to grow and, consequently, lead to a 20% increase in employment in the next 2–3 years. For me personally, the area of human capital management seems to be very interesting. This is now the number one challenge for most GBS organizations and I suppose we can expect some revolutionary changes in human resources management. They may concern e.g. offering a larger flexibility in terms of work from home or rather "work from wherever you want", or even the possibility of shortening the working week from 5 to 4.5 or even 4 working days.

Thus, on the one hand, further development of the sector looks very promising, in particular with regard to its growth, on the other. However, we must not forget about the challenges that will also arise for the sector leaders. All in all, in my opinion, business services sector both in Poland and globally, will respond to these challenges in an excellent way and more and more years of prosperity await the industry.

Thank you for the interview.

INVESTMENT NEWS

NOWY RYNEK IN POZNAŃ IS GETTING GREENER

Fifteen new trees have been planted between the buildings of Nowy Rynek in Poznań, the flagship project of Skanska in Poland. This is the start of the greening of the inner square, which will be made available to employees of the complex and all residents of Poznań once Building E is completed.

Nowy Rynek will eventually consist of 5 buildings with a total usable floor area of over 100,000 sqm. A distinctive feature of the project, adding value to the urban fabric in this area, is a central patio in the form of a park, connecting all the buildings in the complex. It will feature trees and low greenery along with street furniture. There will be a fountain in the square and pergolas in its corners. Near one of them, brine graduation towers will operate.

Skanska has just started planting greenery in the internal patio. First, 15 large trees appeared: London planes and pin oaks. – We plant them in fall and winter when the trees have already shed their leaves and entered dormancy – says Konrad Ziejewski, project manager at the Skanska commercial development business unit in CEE. Next spring, smaller trees will also be placed here, including hornbeams and honey locusts. The plaza will also feature shrubs, vines and grasses.

– We always carry out our developments in such a way as to add value for local residents to benefit from. We also make every effort to minimize environmental impact and plant as much greenery as possible. We want the Nowy Rynek to be an integral part of the city, providing not only jobs but also a space where

all residents of Poznań can rest and relax. Hence the concept of an internal plaza, filled with interesting, varied greenery –adds Konrad Ziejewski.

The patio will be commissioned along with Building E in Q2 2023.

Source: Skanska

PANATTONI PARK ŁÓDŹ A1 FULLY COMMERCIALIZED

Panattoni, the European industrial real estate market leader, with another development for Flex, a global supplier of equipment and technology. The lease agreement covered a total of 28,000 sqm at Panattoni Park Łódź A1, where the company will occupy both warehouse and office space.

This year's cooperation between Panattoni and Flex includes the start of the expansion of the Tczew plant and the lease of warehouse space in Elblag, which the company will use in February 2023. Shortly thereafter – in April 2023 –Flex will begin logistics operations for one of its customers on nearly 30,000 sqm at Panattoni Park Łódź A1. The location in the vicinity of the highway was a perfect fit for the company's needs.

– The availability of Panattoni facilities throughout Poland allows our customers to develop in multiple locations. After realizations for Flex in Warmia and Mazury and Pomerania, the time has come for Central Poland. It provides excellent connections to key logistics centers in

the country and Europe. A lot of joint activities in such a short period of time is also the best possible confirmation of our flexibility and adaptability. After all, for Flex, we provide space for various processes – both warehousing, logistics and production – says Jakub Kaczorek, Leasing Manager at Panattoni.

The investment, which is used by Flex, is located in Wola Rakowa next to the A1 highway and just 15 km from the center of Lodz. In addition, Poland's main highway junction A1/A2 is only 30 km from

the park. This ideal location in the central part of the country provides convenient communication with major urban centers.

Panattoni Park Łódź A1 is a modern 55,000 sqm Class A facility that has already been fully commercialized. The space is used, among others, by a global logistics company that conducts operations for E-Leclerc – a French chain of super –and hypermarkets.

Source: Panattoni Europe

POLAND SECURES TOP POSITION IN INDEX OF EMEA’S MOST ATTRACTIVE LOCATIONS FOR MANUFACTURING

The Cushman & Wakefield Manufacturing Risk Index (MRI) brings together a range of important indicators to assess the relative attractiveness amongst 45 countries as locations of production. In EMEA, Poland has assumed the position as the highest ranked country in the Baseline ranking, moving slightly ahead of the Czech Republic, which was the highest ranked EMEA location in 2021. Poland’s elevation is partly due to the lower costs of labour and electricity relative not only to Western and Northern European countries but also to some of its Eastern European neighbours such as Romania, Lithuania, Bulgaria and the Czech Republic.

– Poland’s top position as EMEA’s most attractive location for manufacturing is another confirmation of its good prospects despite challenging months ahead.

A high-skilled and reliable workforce, access to first­rate logistics infrastructure, an excellent business environment, coupled with relatively low economic and energy risks as well as competitive construction costs and some of the lowest utility costs in the region all make our country an ideal location for production and manufacturing

– comments Damian Kołata, Partner, Head of Industrial & Logistics Agency, Cushman & Wakefield.

According to data from the OECD, the inflow of foreign direct investment (FDI) into Poland in 2021 hit a record high of USD 24.8 billion (through close to 450 new foreign projects), ranking Poland sixth in Europe and third in the European Union for FDI inflows.

– Poland’s high position is also confirmed by the findings of C&W’s other research that have revealed that the costs of typical logistics operations in a medium-sized warehouse with an area of 10,000 sqm are over a third (34%) lower than in the Czech Republic and two thirds (62%) lower than in Germany thanks to low energy, labour and warehouse lease costs compared to other European countries – adds Damian Kołata.

China retains the top position in the Baseline scenario ranking as it continues to enjoy significantly lower costs of labour than other major production locations. Industrial production in China has remained buoyed by newly-emerging industries such as “new energy” and “new material” products, including charging piles, wind turbines and photovoltaic cells and the production of “new energy” vehicles which has benefited from positive government support. This transition, together with the ongoing economic expansion of the Asia Pacific region and the commensurate demand for goods, will continue to support China’s manufacturing sector.

Source: Cushman & Wakefield

It’s all about resilience. How Kharkiv IT Community keeps growing stronger

Since February 24, there have been many concerns about Ukrainian business collapse. However, Ukrainian IT business community has not only survived, but also managed to develop, strengthen and scale its presence around the world.

Kharkiv IT Community is driven by NGO Kharkiv IT Cluster – an idea-based organization, which was founded in 2015 by six IT SMEs and have already united more than 210 members and partners by now. Before the war Kharkiv IT industry was represented by 500+ IT companies and 50k IT specialists. The most active part of them is the core of Kharkiv IT Cluster now and the most striking fact and a real value of the community is that none of the Kharkiv IT Cluster members stopped or closed their business.

Since the war began in Ukraine, all companies had to adapt to the new reality. The given cases are real stories of resilient IT business from Kharkiv, cases of losses, foundings and energy to carry on.

CREATIVE INDUSTRY ADAPTS TO WARTIME CONDITIONS: CLICKABLE AGENCY

The creative agency Clickable managed to hold together a team of 60+ people. The company started a hiring process in summer, and created comfortable conditions for those of their employees who stayed in Ukraine. During blackouts, the Odessa team can work in the office equipped with an electric generator and Internet. They keep constant contact with the team members — the well-established communication process during remote working, which COVID taught them previous year, is essential.

Communication with their customers has been maintained at the highest level, and the customer's response time

has not changed — the continuity strategy is in action. They currently work with the Ukrainian and European markets and have clients from the USA and Israel.

They also attended SiGMA Serbia and SiGMA Malta — the most significant gaming conferences where iGaming professionals from all over the world gather.

It did not go without patriotic projects: they designed a website for the Ukrainian Association "Dzherelo," dedicated to helping Ukrainians and acquaint foreigners with Ukrainian culture.

THE SOFTWARE TO ASSIST AND HELP: THE SOFTWARE DEVELOPMENT HUB

The challenge of a software, web and mobile engineering company Software Development Hub team's relocation prompted them to think about providing assistance to internally displaced persons out of their community.

First, in March, the company provided accommodation for their employees in the Dzherelny sanatorium, Lviv region, in a temporary shelter. Then they established the Hosline fund, whose goal was to focus on targeted monetary

assistance to Ukrainians who lost their homes. In collaboration with local communities and bloggers they reached specific families in need of help. Then they developed a Telegram bot for centralized registration and data collection enabling people to ask for help and to receive it.

In the first 4 months, they received 595 requests, most of them from the Kiev, Kharkiv, Donetsk and Luhansk regions. Altogether 248 families of displaced persons were supported with money from the foundation.

The team created a simple web application for managing humanitarian cargo logistics for Swiss Aid to Ukraine. This software helped to consolidate information about resources in warehouses and transportation. On this basis, the software for their charity foundation Hosline was developed. The main goal was to combine incoming requests from the Telegram Bot, their processing status, incoming donations, and accrual of targeted assistance.

Since at all stages of working with the bank it is necessary to involve the head of the fund, and in war conditions this can not always be quickly ensured, a fullfledged CRM system was obtained, which allowed the team to operate completely within the framework of legislation and payment regulations.

– Our own expertise and practice in building multi-level programs for managing business processes helped us to solve the issue of digitizing the fund's work. So now we have separate software for any charity organization – says Vyacheslav Bukhantsov, general director of Software Development Hub.

SIGMA SOFTWARE. STANDING AND GROWING NO MATTER WHAT

Despite the most difficult conditions, the team of Sigma Software, a software development company was able to fully restore their operations and return to pre-war processes within days of hostilities. Together with their clients and specialists, they’ve donated $3,500,000 to the army and humanitarian needs.

To support Ukrainian people both in the country and abroad they developed a number of solutions: chat-bot "Kharkiv is your home" ("Харків – Твій дім"), to get information about the condition of the buildings in Kharkiv, portal Swedes for Ukraine (swedesforukraine.org), that

helps Ukrainians to find a shelter in Sweden. They also created their client’s app Bezyl that helps people who suffer from PTSD. They also launched a program for mental health and computer literacy support for children “Star for life”, and a free training program for teachers and all who want to enter a new career path.

The company opened offices in Argentina, Mexico and Colombia. In addition to Poland, Sweden, and Canada, the teams in the Czech Republic, Bulgaria, Hungary, and Portugal have been set up. In the Western regions of Ukraine, six new permanent development offices were opened in cities of Lutsk, Chernivtsi, Ivano-Frankivsk, Uzhgorod, Ternopil and Mukachevo.

To support the Ukrainian IT community, they’ve established the UA Tech Network, where they help small businesses to gain international clients. In 2022, Sigma Software University became

a partner of the free IT education project — IT Generation, launched and supported by the government of Ukraine.

The main goal of the project is to help talented Ukrainians find themselves in one of the most promising fields.

GLOBALLOGIC’S “MAKE AN IMPACT BEYOND THE CODE” CAMPAIGN

These days, thousands of Ukrainian IT specialists create digital products and services that help millions of people all over the world. To underline their efforts and inputs, an international digital product engineering company GlobalLogic launched the "Make an impact beyond the code" campaign.

Its purpose is to highlight the real impact of software engineers. For the past 4 months the company has been collecting and sharing the stories of developers, designers, managers via GlobalLogic

corporate social networks. Every month –a new industry, a new project: from automotive to healthcare.

MOBIDEV IS ABOUT RELIABILITY DURING A FULL-SCALE WAR

MobiDev is an international outsourcing company with offices in Ukraine and Poland. The company has experienced war twice since one of the offices was located in Mariupol in 2014. At the start of the escalation in 2022, the company launched Сontinuity Plans and moved the team and the business to a safe place: 120 employees were moved to Chernivtsi. MobiDev also opened an R&D center in Poland to employ 54 core developers there.

While resolving security issues, urgent steps were taken to organize 100% delivery of services to customers. This was a pleasant shock as the teams continued to work under constant attacks. Unfortunately, some of the clients ceased cooperation due to the general crisis. This was not an obstacle to continuing growth, and in result 22 new clients were contracted, 5 of which were on the recommendation of current clients, and the team itself has grown by 15%.

MobiDev also continues supporting the Ukrainian Army. The team and the company have raised about $500,000 for the purchase of reconnaissance, combat drones, vehicles, etc. Five MobiDev staff joined the Armed Forces of Ukraine to defend the country. The company saves their jobs and provides them with material assistance. MobiDev also created the volunteer service “Dopomoga Poruch” a platform that unites volunteers who are ready to help.

Even though the war continues and there is damage to critical infrastructure in the country, MobiDev provides Ukrainian teams hubs with uninterrupted power supplies and Starlink internet connection.

GoIT – TRAINING SWITCHERS AND HELPING THEM GET EMPLOYED

The unemployment rate in Ukraine reached 35%, and wages fell by 25–50% during the war. GoIT – an edtech company is challenging the situation by helping people of different professions master a new IT specialisation and find their first job.

During the entire period of GoIT's activity, more than 2,500 of graduates have successfully found a job in an IT company. 524 of them got employed during the war. This shows that the IT sector is developing and continues to hire people despite the significant problems in the Ukrainian economy.

Among their students there are top managers, lawyers, doctors, sailors, flight attendants and even a priest. Their training programs are designed so that people with any background can successfully master a new profession.

The most inspiring thing is the team's dedication. They check homeworks while sitting in a bomb shelter or help students to prepare CVswhile sitting at a gas station, since those are spots where electricity and communication is available during often blackouts.

MWDN: IMPLEMENTING THE BUSINESS CONTINUITY PLAN

The software development company MWDN not only managed to relocate 26% of their team at the beginning of war, but also established an uninterrupted workflow in a team that is now redistributed around the world. What is important in today’s extreme work environment, 81% of their team has been provided with charging stations, generators and power banks, 30% – with Starlinks. All provisions were made at the expense of the company.

Today the majority of their team works remotely on secure company equipment and follows their business continuity plan. Ukrainian offices are coming back to life (in Kyiv and Kharkiv), becoming locations with stable internet, and everything necessary for team’s support. Meanwhile, new locations are starting to work, for example, the newly opened office in Warsaw.

The article has been created in cooperation with:

Lithuania as a mature finance hub

Text | Evelina Lazareva

Lithuania’s post-Brexit push to become a new international finance hub was made in cooperation with the central and GBS industry banks, including Swedbank, Danske Bank, and SEB.

With the EU still reeling from the continent-wide tumult caused by the Brexit referendum, some of its member states perceived it as an opportunity, rather than a crisis pure and simple. The plucky upstart Vilnius made a play for the world’s fintech and moved closer to the ranks of other finance hubs – Amsterdam, Paris, or Frankfurt.

To make this happen with as little friction as possible, having both local and foreign banks on the side was crucial. As financial agents, they facilitate resource allocation in the market, fund enterprises, help to address the asymmetric information problem, and share risks

with other market players, thereby mitigating financial instability.

With that out of the way, let’s zoom in on the hows and whys of Lithuania’s increasing maturity as a global finance hub.

GOVERNMENT- AND CENTRAL BANK – LED TRANSFORMATION

The Bank of Lithuania and the Government both played an absolutely pivotal role in making the country attractive to local and foreign EMIs and fintechs.

To name a few, in May 2021, the Government launched the Centre of Excellence in Anti-Money Laundering, dedicated to refining AML legislation, and

in June 2022, it amended its AML rules to address the risk of cryptocurrency fraud. Bank of Lithuania has a cycle of workshops and seminars for the local licensed players in order to educate them and raise their compliance maturity to another level. As a result of these and many other initiatives, Lithuania is currently the 8th lowest-risk jurisdiction for money laundering in the world, according to the AML Basel Index, which has the UK at No. 12, and the US – at No. 30.

Part of the country’s appeal to entrepreneurs is – exactly as policymakers had hoped – its regulatory system, which is run by the Bank of Lithuania. In addition

to overseeing a well-regarded “sandbox” facility, enabling fintechs to put their ideas to the test under regulatory supervision. Companies can engage with the regulator in face-to-face meetings and establish a connection, present their business case, or get advice on various regulatory topics directly. In Lithuania, a fintech can get up and running much faster than in most other European countries because of the efficiently organized process and at the same time not sacrificing compliance or regulatory quality.

The majority of Lithuania’s fintechs (147, to be precise) have now been licensed as electronic money institutions (EMIs), payment institutions (PIs), or specialised banks. While this figure is an illustrative one, Lithuania is looking to expand to other sectors as well – wealth management, banking, insurance, and others. Besides licensed companies, Lithuania has a strong community of technology companies, consultants, and embedded finance companies which help create a tight-knit ecosystem and puts Lithuania at the top of fintech hubs in the EU.

Lithuania’s favourable regulatory environment and transparent, as well as efficient, licensing were also the decisive factors in the British neobank Revolut’s decision to seek its European banking licence in Lithuania. The specialist banking licence it received in December 2018 was upgraded to a full European one in 2021.

– We picked Lithuania because the Central Bank promised speed, which is what we wanted most – Nikolay Storonsky, co-founder and CEO of Revolut, told Financial Times earlier this year. Revolut has been waiting for almost two years to get a banking licence in the company’s home country (the UK).

The majority of Lithuania’s fintechs (147, to be precise) have now been licensed as electronic money institutions (EMIs), payment institutions (PIs), or specialised banks.

GBS BANKS REACH MATURITY, TAKE CHARGE OF INNOVATION

The Bank of Lithuania and the country’s Government are not the only movers and shakers when it comes to innovation and attracting foreign capital. Having reached maturity, Lithuania’s GBS banks have been rapidly expanding their workforce and the number of features available to clients.

In terms of employment, the Scandinavian trio – SEB, Danske Bank, and Swedbank – have created the most jobs in the sector: 1,400 FTEs (since 2008), 4,200 FTEs (since 2012), and 900 FTEs (since 2016), respectively.

The SEB Global Services centre in Vilnius – whose current headcount

Author

exceeds 1,400 professionals is a far cry from the 67 it began with in 2008. Now it plays a crucial role in providing business support services (operations, IT, HR, and finance) to SEB group subsidiaries and other units in 20 countries across the globe. The key reasons for the company’s decision to establish a presence in Vilnius, Lithuania include its convenient location in Northeastern Europe, a large pool of highly qualified talent, well-developed infrastructure, and high future growth potential.

Danske Bank, for its part, is today one of the country’s biggest employers, adding 500–600 new team members to its workforce (and multiple new, complex options to its service catalogue), every year.

Last but not least, Swedbank is a leading bank not only in Sweden, but also in all three Baltic States. In total, the bank provides a wide range of services to 7.3M private and 650,000 corporate clients. In 2016, the company made the decision to consolidate a number of its activities and processes within and between four home markets, namely Sweden, Estonia, Latvia, and Lithuania, choosing Vilnius as the homebase for business support operations.

With its forward-thinking financial regulator and a mature yet agile GBS ecosystem, Lithuania is a banking hotspot primed for exponential growth.

Evelina Lazareva Investment Advisor | GBS & ICT, Invest Lithuania

Time for Słupsk! Medium-sized cities on the map of modern services

Text | Anna Ciosek

The crisis around the world has not stopped the development of modern business services in Poland. Medium-sized cities that can fulfil the needs of international investors are benefiting from the current sector trends. Such example is Słupsk, which offers favourable conditions for businesses to operate and for their employees to live comfortably.

The pandemic and the economic and political destabilisation caused by it, have accelerated the digital transformation of businesses around the world. It is not just about shifting processes, but also about shifting employees into the network. The hybrid working model has been firmly established as the modus operandi of many, if not most, companies from the business services sector in Poland. The last two years have shown that the BSS industry is resilient to shocks and has experienced year-on-year growth. Bold forecasts indicate that within two years the sector will reach the level of five hundred thousand employees in Poland.

TRENDS IN THE BUSINESS SERVICES SECTOR

Changing working models, together with an increase in demand for staff, have impacted the industry, including the location of new investment projects. The fight for talent goes beyond the borders of Poland’s largest agglomerations, especially when it comes to IT centres. The declining availability of housing combined with rising prices is forcing companies to change their strategy. Rather than attracting masses of employees to their headquarters, they go to where there are opportunities to find potential candidates. Medium-sized cities (Tier 3) have become particularly popular. Not much needs to be said about the success of Bydgoszcz, Rzeszów or Opole. Boutique locations with flexible

office space are attracting investors, who are creating satellite offices. More and more often, they serve as space for regular meetings of teams who work from home on a daily basis. Currently, in medium-sized cities, the largest proportion of employees in the sector is involved in customer service (contact centre) and IT services.

SŁUPSK – A CITY WITH THE POTENTIAL FOR DEVELOPMENT IN THE BUSINESS SERVICES SECTOR

Słupsk is a Pomeranian location where international business is already thriving. Apart from the Tricity, it is the largest city in the Pomeranian Voivodeship, acting as a service and industrial centre of supra-regional importance. Companies such as Fiskars, Scania, Mowi and Perla operate there. In recent years there has also been an important shift towards the business services sector.

– Through its activities, the City of Słupsk strives to develop its business services sector. As part of our preparations, we have held a series of meetings with key partners – representatives of secondary and higher education and local partners from the real estate sector. We understand the model of operation and the needs of the sector, after all, we also have a shared service centre that provides services to our schools. We are committed to organising and attending industry events, where we actively seek investors. Our long-term goal is to build a broadly­defined space

for the development of foreign investment in Słupsk – says Marta Makuch, Deputy Mayor of Słupsk.

The basis for the development of the business services sector is active cooperation between local government, support institutions, education and business. This type of synergy stimulates the development of innovation and has a positive impact on local and regional development. This can be achieved if there is space for education, entrepreneurship and business development. Every year, several hundred students graduating in linguistics, IT, finance and economics from the Pomeranian Academy and enter the Słupsk labour market. Young entrepreneurs are invited to Dom Startupów – Aktywator in Słupsk which provides free support to entrepreneurs both in setting up and running a business, as well as offering co-working space. Space and support are also available from the Słupsk Technology Incubator.

– We offer investment support as a local partner of the regional initiative Invest in Pomerania. Investors can expect personalised support based on the instruments offered by the Polish Investment Zone and the Słupsk Special Economic Zone. We coordinate local activities concerning the development of the business services sector in Słupsk on an ongoing basis. As part of the activities undertaken with Invest in Pomerania, we regularly participate in industry and technology

conferences, such as Infoshare in Gdańsk or Web Summit in Lisbon, where we present investment support and possibilities in Słupsk. To provide investors with optimal conditions for operating in our city, we learn about their expectations and industry trends. We have prepared flexible office space in the Słupsk Technology Incubator dedicated to entrepreneurs from the business services sector to give them a soft landing in Słupsk. We also engage in talks with developers and we are ready to expand our available office space shortly – adds Mirosław Kamiński, President of the Pomeranian Regional Development Agency.

Thanks to a well-developed business and transport infrastructure, workforce availability and competitive cost of operations, Słupsk is attracting more and more attention from international BSS investors. The Kashubian Route and the S6, which are nearing completion, improve the city’s transport accessibility and soon it will take less than 1.5 hours to get from the Gdańsk airport.

Słupsk Technology Incubator.

SŁUPSK – A FRIENDLY PLACE TO LIVE

In terms of work-life balance, Słupsk is a perfect alternative to crowded Polish metropolises. Recent revitalisation efforts under the theme of “Słupsk – a City Close

Young entrepreneurs are invited to Dom Startupów – Aktywator in Słupsk which provides free support to entrepreneurs both in setting up and running a business, as well as offering co-working space.

In 2021, for the first time, Słupsk hosted the “Time for Słupsk” BSS Tour, the industry conference organised in cooperation with Pro Progressio. It summarised initial research, publications and analysis of the city’s investment potential. Panel discussions were held on the availability of talent and modern office space in mid-sized cities. The event was attended by representatives of local and supra-regional businesses (including JLL, Randstad, Grupa Progres), local government, education and real estate sectors. The next such event will take place early this year.

to” have improved the aesthetics and functionality of the urban space. Among others, residents appreciate the reasonable cost of living, the rich cultural and tourist offer, the compact city developments and the resulting lack of traffic jams. The city is an excellent connection with the seaside’s Ustka (less than 15 minutes by car), guaranteeing fewer tourists than in resorts located right by the Baltic Sea. The city’s rich cultural offering includes the world’s largest collection of paintings by Witkacy, presented in the Central Pomerania Museum.

TIME FOR SUCCESS

The conclusions from a strategic report on the investment potential of the Pomeranian Voivodeship, prepared by the World Bank, emphasise the importance of the development of medium-sized cities in the business services sector, not only in Pomerania but also in Poland as a whole. From an investor’s point of view, regional support is invaluable. Invest in Pomerania, a local government initiative coordinated by the Pomerania Development Agency, helps foreign investors implement investment projects in the Pomeranian Voivodeship, including Słupsk. It acts as a “one-stop shop”, providing comprehensive support at every stage of the investment process.

More than a decade of Invest in Pomerania activities has resulted in the success of Tricity, which is currently the fastest growing city in Poland in the business services sector. The appetite comes with eating, so now it’s “Time for Słupsk!".

Author: Anna Ciosek, Project Manager FDI, Invest in Pomerania

More information

Invest in Pomerania

Grunwaldzka 472 D alley, Olivia Business Centre – Olivia Six, 80-309 Gdańsk

Phone: 58 32 33 256, e-mail: office@investinpomerania.pl www.investinpomerania.pl

Poznań summarises 2022

Another successful year for Poznań is behind us. It was a period of particularly intense work in the new socio-economic reality, which produced numerous results. These include many new investors, ambitious investment projects and growth in new areas.

A lot can be said about the capital of the Wielkopolska region in recent times, and not always are these flattering words. The infrastructural changes necessary for the city's further development often overshadow many achievements such as the title of European City of the Future which Poznań got recently. It’s worth paying attention to them to see how much the city has to offer!

WELCOME ABOARD!

Since the beginning of 2022, we have welcomed as many as eleven new companies to Poznań! These are investors from all key sectors of the city. The IT sector is growing steadily – such companies as Finland's BestCoders and Tietoevry, Germany's IVU Traffic Technologies and Sigma Software – a Swedish-Ukrainian consultancy which moved to the Polish market after the Russian aggression against Ukraine, have joined Poznań’s business family. SIS, an ERP software provider, has also trusted Poznań. The new office will become SIS’s main European service centre supporting its American team in global project implementations.

in many markets, such as NIVEA, Eucerin and Bambino. Meanwhile, ROCKWOOL Group's competence centre has expanded into the R&D sector.

– Companies appreciate Poznań's convenient location, allowing them to reach both Eastern and Western European markets. An additional advantage of the city is the stable investment climate. Regardless of the pandemic, which had a huge impact on the economy, Poznań remains one of the cities with the lowest unemployment in the country and records a year-on-year increase in GDP. The stable development of the Poznań economy is confirmed by independent international rankings. In addition, they maintain a stable forecast for the city, which means that in the near future, the financial credibility of Poznań should not change – says Jacek Jaśkowiak, Mayor of Poznań.

LIVE IN POZNAŃ, WORK IN IT

In addition to hosting such events as the IT Corner 2022 Members' Congress, 4Developers or PHPers, for the fourth time, Poznań organised its own conference – Pozitive Technologies. This unique event for the IT industry attracted over 1,000 registrations. Participants had the opportunity to take part in as many as six thematic tracks and listen to more than 50 speakers. The presentations were provided by well-known personalities such as Eric Qualman, Kristin Luck and Hazel Savage. In addition to these speakers, the audience listened to experts from companies such as VISA, Żabka, IT.integro, Capgemini, and Fandom.

After two years of online meetings, this year's edition of the conference was held in a hybrid format. The stationary part took place in eN Studios in the form

The development was noticed in the modern services sector, too. The market was enriched by FIS, a world leader in payment processing, financial software and banking solutions. Meanwhile, at the beginning of the year, Beiersdorf opened in Poznań its first Beiersdorf Shared Services branch office outside Germany. The entire team in Poland already consists of almost 1,000 people, who take care of the development of leading brands The 4th edition of Pozitive Technologies conference was a great success. More than 1,000 participants from different parts of the world registered for the event!

Development has also been noticed in the area of the industrial and logistics real estate market. The latest report from the Investor Relations Department provides a detailed analysis of this area.

of a POZytywne Afterparty, which was an opportunity to meet people from the industry live. The evening was full of attractions: from interesting speeches to the entertainment and networking part. Nearly 90% of the participants plan to attend the event in 2023. The next edition will undoubtedly be special, being the fifth-anniversary edition!

The icing on the IT cake was the premiere of a unique guide dedicated to the sector. Together with local IT companies – STX Next, summ-it and Verseo –the City has prepared a compendium of knowledge entitled "Poznań, the City of IT", which was created for people coming to the capital of Wielkopolska in search of a job in the IT sector. It is a guide to Poznań, which will not only provide strategic data in the area of IT services or the real estate and housing market but will also offer some lifestyle tips. The publication is available for download on the website of the Investor Relations Department – poznan.pl/invest.

CONQUERING THE REAL ESTATE MARKET

The past year has seen potential and growth in new areas. The capital of Wielkopolska has one of the country’s fastest-growing industrial and logistics real estate markets – tells us the report prepared by CBRE in cooperation with the Investor Relations Department of the City of Poznań. It was inspired by the dynamic changes on the real estate market, which began during the pandemic. The aim of the report was to analyse Poznań's industrial and logistics

market in comparison with other cities in Poland and with similar levels of warehouse space stock. Only modern facilities for lease and facilities built for tenants were included in the analysis.

According to the report, the industrial and logistics market in the Poznań region is growing dynamically. The capital of Wielkopolska has the 3rd highest development potential in the country. It is determined on the basis of the target warehouse space in relation to the existing and under construction space. In Poznań, it is +53%. Taking into account the facilities under construction and the plans to build more in the future, the size of the Poznań industrial and logistics market may increase by more than half, i.e. by 1.8 million m2

The report also highlights that between 2021 and 2022, space in logistics facilities delivered in the capital city of Wielkopolska was four times bigger comparing to 2020.

– A very optimistic picture of the industrial and logistics real estate market in Poznań emerges from the report. It shows that the City belongs to the group of strategic players in this area on the nationwide arena – notes Bartosz Guss, Deputy Mayor of the City of Poznań.

Currently, Poznań ranks 5th in Poland with a total existing industrial and logistics space of 3.0 million m2 . This is 12% of Poland's warehouse space and 16% comparing the other markets of the so-called „big five”, i.e. the largest markets – Warsaw, Katowice, Łódź and Wrocław.

Poznań's presence was also spotted at the biggest events in the real estate industry. Firstly, Poznań attended the annual MIPIM international property fair. The distinctive dark blue colours attracted new investors with varied real estate offers. Among the plots for sale, there were both larger and smaller locations. Properties for residential and commercial development remain dominant in the city’s offer. It also included real estate that can be used for the construction of warehouses and storages, production facilities or car parks. Urban investment areas were also presented in Munich during the Expo Real trade fair.

During the MIPIM fair, the investment offer of the City of Poznań is presented. Currently there are 15 plots for sale and 1 plot which can be rented or leased.

This year marked five years since Katja Lozina (third from the right) became Head of the Investor Relations Department. It has been a busy time, which greatly impacted the city's development.

JUBILEE FIVE

Returning to the theme of anniversaries, the other important anniversary should be mentioned. This year marked five years since Katja Lozina became Head of the Investor Relations Department. It has been a busy time, which had a big impact on the city's development. How much has changed since 2017?

Poznań has become home to as many as 50 new investors! The companies not only ensured further growth for the city but also offered as many as 5,000 new job places to its residents. The modern services sector recorded an increase of as much as 45% of centres over five years, resulting in a further 10,000 working places. Office space has also expanded by the same percentage.

Investor Relations Department has successively promoted the city's plots at international real estate fairs and national and international industry conferences, such as the mentioned earlier

MIPIM and Expo Real. During these years, 44 of the promoted sites with a total area of almost 370,000 m2 were sold. The area of individual properties often exceeded 1 ha!

The office has been repeatedly recognised for its achievements, winning more than 70 awards. Among the particularly important awards won this year was the title of European City of the Future 2022/23 in the fDi Intelligence ranking and Business Friendly City of the Year at the Future of Emerging Europe Summit and Awards 2022 gala – the award given for support of the local government. This is a confirmation of the excellent business performance and gratification of the efforts invested in the development of the city.

Poznań is never stopping with its ambitious plans and ongoing investments, accumulating success after success. Don't be fooled – this city is as stubborn as the legendary goats themselves! For more details on current projects, visit poznan.pl/invest.

More information

Investor Relations Department | City of Poznań

Za Bramką 1 Street, 61-842 Poznan

Phone: +48 61 878 54 28, e-mail: inwestor@um.poznan.pl www.poznan.pl/invest

Among the numerous awards won by the Investor Relations Department team, there was the particularly important title of the Business Friendly City of the Year. It was awarded to Poznań for its support of the local government.

MAKING LIFE BETTER FOR MAKESTHEM, LIFE BETTER.

Elanco is committed to creating a healthier life for animals everywhere. We believe healthier animals are central to addressing global issues like food security and nutrition, mental health and social isolation, and environmental sustainability. We combine our purpose-driven world view with decades of scientific innovation to advance the health of animals, people and the planet.

©2022 Elanco. Elanco and the diagonal bar are trademarks of Elanco or its a liates.

Bydgoszcz BSS market with high potential for further growth

Bydgoszcz continues to strengthen its position on the Polish map of the most attractive locations for business. What is the City's potential for further development of the modern business services sector? How does Bydgoszcz attract the attention of investors and what support from the City can be provided for new investment projects? This is what we are talking about with Edyta Wiwatowska, President of the Board of the Bydgoszcz Regional Development Agency (BARR).

FOCUS ON Business: Bydgoszcz consistently and effectively implements the concept of a "city open to outsourcing", and the sector of modern business services is experiencing spectacular development in the City. Where is Bydgoszcz today on the national map of BSS centres and what factors most affect the current position of the City?

Edyta Wiwatowska, Bydgoszcz Regional Development Agency: For over ten years, our City has been successively building its position as one of the leading locations for the business services sector. The success stories and constant development of the activities of the existing investors, combined with the successful entries of new entities, allow Bydgoszcz to compete boldly even for the most advanced projects. The key role is played by access to qualified staff, an attractive offer of office properties, the City’s support provided to investors, as well as a friendly atmosphere to run life and business. These aspects make Bydgoszcz one of the important points for investments from the BSS sector in Poland, being also a market with great potential for further growth.

This is also confirmed by the awards regularly received by our City in industry rankings. In 2022, we were once again among the most dynamically developing cities in Poland according to the European Business Services Association, which

emphasizes the importance of Bydgoszcz in the process of development of the sector in Poland. Our City was also appreciated during the last MIPIM fair in Cannes, in the prestigious fDi European Cities and Regions of the Future 2022/2023 ranking, being among the top ten medium-sized European cities in the "Investment Acquisition Strategy – FDI Strategy" category. Last year we also received the badge of the Minister of Development and Technology granted to the Bydgoszcz Regional Development Agency "for merits for the development of the economy of the Republic of Poland", which is an honourable distinction granted in recognition of the merits for domestic economic growth.

increased from 1,000 in 2010 to over 11,500 today (according to the latest calculations from ABSL). Including local IT and financial companies that often provide services to international clients, this number has risen to nearly 12,000. A definite distinguishing feature of Bydgoszcz is the dominant share of IT companies in the local structure of the sector. These services generate over 80% of employment, creating a strong local specialisation in Bydgoszcz, which is unique in the country. The remaining part of the market are financial and accounting centres, as well as call/contact centres.

A high concentration of IT companies in the City makes Bydgoszcz one of

In which areas is the Bydgoszcz sector of modern business services developing most rapidly and what prospects can be seen in the future?

Bydgoszcz relatively quickly became the headquarters of approx. 60 BPO, SSC, IT, and R&D service centres, and the number of jobs created dynamically

the leading locations chosen by global technology companies. Our specialization in IT and the advanced level of services provided from Bydgoszcz draws opportunities for further expansion of the local BPO/SSC sector. Local competences and an attractive investment environment of the City are the most important factors

In 2022, we were once again among the most dynamically developing cities in Poland according to the European Business Services Association, which emphasizes the importance of Bydgoszcz in the process of development of the sector in Poland.

for investors. Thanks to these, for many entities, Bydgoszcz has become a convenient place to expand business activities with more and more advanced projects, including the R&D area which is of key importance for the further development of the industry.

The main representatives of the industry in the City (including service centres of corporations such as Atos, Nokia, Asseco, or Sii) develop specialized business processes and implement projects for the largest global IT, telecommunications, insurance or automotive companies, confirming the highest level of services and competences in Bydgoszcz branches. Such activities include, for example, advanced work on 5G network solutions carried out by the Nokia Technology Centre in Bydgoszcz, the development of an autonomous traffic system by the Bydgoszcz branch of GlobalLogic, or

electric vehicle charging stations manufactured by Kolejowe Zakłady Łączności. Bydgoszcz specialists from Atos, in turn, participate in such prestigious projects as the IT service of the Olympic Games or the support of the office of the Prime Minister of Belgium, as well as use their talents and competences in the research and development activities of Atos Poland R&D, which has the official status of the Research and Development Centre.

It's worth noting, the IT industry in Bydgoszcz has its well-established, historical traditions in the City. It derives from the telecommunications industry, which has been rooted in the City for decades and is strongly connected with the education system. Today, more than 90 years of tradition in the ICT industry in Bydgoszcz is successfully continued and continuously developed by Nokia, which, in addition to one of its three internal factories

in the world, has created its own Technology Centre in Bydgoszcz, which combines the knowledge and experience of experts from many different departments in one location.

The prospect of further development of the IT industry in Bydgoszcz is currently related to, among others, the dynamic growth of the e-commerce market, development of 5G technology, cloud tools, industry 4.0, smart city solutions, automation, or the possibility of cooperation with other sectors and industries. For example, the services and products provided by IT companies present in the City are used by a strong and well-rooted manufacturing sector, or a dynamically growing logistics and warehouse industry. Development based on the synergy of competences, is often the reason why international entities decide to conduct key business operations in Bydgoszcz.

Photo: Alicja Żebuń / Business Insider Polska.

An asset that is often pointed out by investors, especially from the IT industry, is human capital and the possibility of training human resources for the needs of the local economy. What potential does Bydgoszcz have in this regard?

Bydgoszcz also has an attractive educational offer and an academic base. More than half of the total number of students in the Kuyavian-Pomeranian Voivodeship studies at the ten universities located in Bydgoszcz, which makes our City the largest academic centre in the region. In addition, the profile of education is important for investors, and here it is largely adapted to the needs of local business. An additional advantage is the orientation of education in secondary schools in Bydgoszcz towards technical areas. The City also actively supports the cooperation of educational institutions with the business community. Bydgoszcz pupils and students benefit from attractive programmes of patronage classes and courses created

in cooperation with companies investing in the City – courses geared to practical skills desired by local employers.

The further development of human resources for the sector of modern business services, especially for the IT industry, is further supported by more and more local initiatives popularizing the research and development sector and building the Bydgoszcz IT community. Bydgoszcz regularly hosts meet-ups aimed at exchanging practical knowledge on an ongoing basis, the Bydgoszcz Hackathon initiated by the Bydgoszcz IT Cluster, a typically technical conference "bITconf" organized by local IT companies, or the annual event of the Bydgoszcz branch Nokia "IT Women", promoting science and information technology among women, showing many opportunities for professional development in the industry of modern technologies. The latest initiative is the Bydgoszcz Opera Camp IT Congress, organized in the Opera Nova building by the Bydgoszcz IT Cluster for young people interested in the career path in IT.

What other factors, besides local talents, would you indicate as those that effectively encourage investors to choose Bydgoszcz in order to launch a new project or further develop their business?

The nearly ten years of experience of our agency in servicing investors show that they pay attention to such aspects as the convenient transport location of Bydgoszcz, as well as the availability of modern office parks and areas for investments, located within the administrative boundaries of the city. The cost competitiveness of this location is also important, not only in terms of the expenses necessary to acquire an employee, but also in the rental of modern office space, or the purchase of land.

With the development of the BSS sector in our City, the market of modern office space also grew, with current resources reaching the level of approx. 136,000 m2. New office buildings attract with a high standard, location in the City centre, easy access to public transport,

The City also focuses on efficient and professional service for investors in the "one stop shop" formula. This is the purpose of our agency, which as a municipal company provides free assistance of a dedicated project manager to support entrepreneurs at all stages: from research and preparation of an investment project, to its implementation, and even further –including it in the so-called "post-investment care" programme.

as well as numerous technological facilities, or the possibility of arranging space according to individual expectations.

In Bydgoszcz, there are also flex office spaces offered by one of the operators of the so-called flexible serviced offices – Chilliflex. This is a significant enrichment of the office offer of Bydgoszcz, which provides an excellent alternative when choosing a place of business for new investors considering this location, start-ups or entrepreneurs who focus on the flexibility of the place of business, planning, for example, the implementation of short-term projects or involving less human resources.

In addition, investors can benefit from a number of investment incentives

More information

in our City, such as property tax relief and exemptions or reimbursement of costs related to equipping new jobs. The City also focuses on efficient and professional service for investors in the "one stop shop" formula. This is the purpose of our agency, which as a municipal company provides free assistance of a dedicated project manager to support entrepreneurs at all stages: from research and preparation of an investment project, to its implementation, and even further –including it in the so-called "post-investment care" programme, under which the organisation can receive assistance in applying for available funds for the further development of its activities, participate in cooperation exchanges and

numerous business trainings and workshops, or use the support of PR.

Moreover, what entrepreneurs and their employees are looking for – and they find in our City – is the work-life balance. Bydgoszcz is a city that dynamically develops, and at the same time makes sure to be a place friendly to live, and pursue passions. We are one of the greenest cities in Poland, we have a rich offer of cultural, entertainment, sports and recreation events. We continue to invest to improve urban infrastructure and revitalize the City centre. In service to residents and entrepreneurs, we constantly improve the quality of public services. All this makes Bydgoszcz today not only a strong economic centre, but also an attractive and friendly place to live, develop a career, or for a weekend tourist trip.

Thank you for the interview.

Bydgoszcz Regional Development Agency

4C Unii Lubelskiej Street, 85-059 Bydgoszcz

Phone: +48 52 585 88 23, e-mail: barr@barr.pl www.barr.pl

Catch your breath in Kielce

You plan to spend your winter holidays in Poland, but you don't like crowds or obvious locations? Do you want to take a short, 2-3 day break and get away from the hustle and bustle? We invite you to Kielce, which offers attractive winter infrastructure. The most difficult ski slope in the region, is located on the Telegraf mountain. The route is intended for well-skilled skiers. From the top there is a wonderful panorama of the city and the Świętokrzyskie Mountains.

KIELCE – the capital of the Świętokrzyskie Voivodship, a city of exceptional landscape values located in the Świętokrzyskie Mountains; economic, academic, cultural, sports and tourist center of the region.

Kielce is located in the unique natural and historical area of the Świętokrzyski Geopark, which in 2021 was entered on the UNESCO World Geoparks Network list. Almost 67% of the city's area is green and all protected areas account for over 62% of the city's area. A large part of it is located within the borders of the Chęciny-Kielce Landscape Park.

LOTS OF GEOLOGICAL ATTRACTIONS

Kielce is often called "the largest museum of geology in the open air", it has 5 nature reserves within its borders, including 4 geological ones. The most spectacular

Winter panorama of the city. View from the ski slope.

and best-known is the Kadzielnia park and reserve – a former quarry with the most beautiful amphitheater in Poland, built into the rocks, as well as caves (Underground Tourist Route), a waterfall, a winter icefall and a zip-line (Sky View Route).

ACTIVE AND SPORTY

Walking and tourist trails, educational paths and a trail around the city are waiting for tourists in Kielce. The main attraction of the winter months are the ski runs. There are two ski slopes in Kielce itself, and three more in the vicinity, including one located in the heart of the Świętokrzyskie Mountains. There are easier and more difficult routes to choose from, and for the smallest skiers – "bunny slopes". Skis and boots can be rented on

most ski slopes, and ski instructors are available. All slopes are illuminated, so you can also ski after dark. Night rides are also very popular.

Kielce also has... a ski jump. Although the building is not as impressive as the one that stood on the slope of the Pierścienica mountain years ago, the inhabitants evaluate its creation very positively. The hill was built thanks to their votes in the Civic Budget. The guest of honor, Adam Małysz, took part in the official opening of the hill.

MONUMENTS AND... "KIELCE UFO"

Tourists are captivated by the Castle Hill with the cathedral basilica, the origins of which should be sought over 850 years ago, and the 17th-century former Palace of Krakow Bishops, currently the seat of

the National Museum in Kielce. The cathedral and the palace are a Monument of History. The Baroque monastery on the Karczówka hill towers over the town. This is a place created for lovers! It is worth taking a walk around the Market Square, Sienkiewicza Street and the City Park. You must also see one of the symbols of Kielce – the world-unique Bus Station, called the "flying saucer" or "Kielce UFO". Here, it is worth visiting the modern Reading Room – Mediateka and the Kielce Promotion Point, where you can get promotional publications, as well as obtain detailed information about what is worth seeing in Kielce and the region.

CULTURE IN KIELCE

The list of natural and historical attractions is complemented by an interesting and diverse offer of institutions of culture, art and science. The 17th-century former Palace of Krakow Bishops houses the National Museum in Kielce with original interiors and the Polish Painting Gallery. Unique collections can also be found in the Kielce History Museum, the Diocesan Museum, the Center for Patriotic and Civic Thought, the Stefan Żeromski Museum and the Museum of Toys and Fun, which will surely delight the youngest, but also their parents who will remember their childhood years.

PARADISE FOR CHILDREN... BUT NOT ONLY

"Kielce – Paradise for Children" is a product promoting attractions and tourist and cultural events, dedicated to families with children, encouraging to visit the city and the greatest attractions of the communes that are part of the Kielce Functional Area.

The offer, which is a proposal for family recreation, taking into account various forms of spending time actively, is presented in detail on the website: www. rajdladzieci.kielce.eu. One of the biggest attractions is the Geoeducation Center

with an exhibition in the shape of the Chronos research station floating in the sea depths 360 million years ago. From her deck you can see the amazing tropical seas with their inhabitants. We also encourage you to visit the underground grotto and a virtual time travel in the 5D cinema, as well as the Geological Garden of Experiences on the roof of the building.

In the Energy Science Center of the Kielce Technology Park, another place that popularizes learning through play among children and youth, you can use many interactive stations, as well as take part in very interesting workshops. A visit to the ECN will encourage you to ask questions about the surrounding world and help you find answers on your own, while the time spent in the Energetic Garden of Experiences will be a learning experience intertwined with fun, relaxation and rest.

ACADEMIC AND BUSINESS KIELCE

Kielce invites you for a weekend, but also for longer, e.g. to study! A dynamically developing academic center (the largest universities are the Jan Kochanowski University and the Kielce University of Technology). Educates nearly 20,000 students.

What to do after graduation? Kielce brings together the largest employers in the Świętokrzyskie region, thus offering university graduates unique development opportunities and the prospect of a dynamic and – in many cases – international career in companies with an established position in their industries.

Targi Kielce – the second largest organizer of fairs and exhibitions in Central and Eastern Europe – and the Kielce Technology Park play a dominant role in business. KTP, which has been helping companies emerging in Kielce to develop their business ideas for almost 15 years, is focused on innovation and creativity, open to cooperation with entrepreneurs from all over Poland and abroad, numerous start-ups operate in it.

A modern Świętokrzyski Laboratory Campus of the Central Office of Measures with world-class research laboratories is being built in Kielce – it will be the center of Polish metrology. The main task of the GUM laboratories will be to work to increase the competitiveness of Polish companies on the European and global markets.

Kielce is a city with history and traditions – at the same time open to the future and modernity.

More information

Investor Assistance Centre | Kielce City Hall

Strycharska 6 Street, 25-659 Kielce Phone: +48 41 36 76 571, 41 36 76 557, e-mail: coi@um.kielce.pl www.invest.kielce.pl/en, www.mapa.invest.kielce.pl/en

Icefall on Kadzielnia. A treat for lovers of winter climbing.

Photo: Łukasz Zarzycki.

Katowice with the Green Eagle of "Rzeczpospolita"

Katowice has been awarded the prestigious "Rzeczpospolita" Green Eagle award in the Local Government category. The editorial staff of Rzeczpospolita and the award committee appreciated the systematic and diverse ecological activities undertaken by the city to protect the environment –including the Green Budget initiative.

– In Katowice, we carry out a number of activities aimed at improving the quality of life of our residents, and one of the key directions in this is striving for clean air. Quite a few green initiatives come out of the residents themselves through the Green Budget. As a city, we invest intensively in such projects, because wellkept green spaces are ideal for relaxation, family activities, but they also influence the whole ecosystem. Currently, revitalization work is underway on the Starganiec pond, and soon we will also start investing in Katowice's parks, for which we will allocate a total of about PLN 55 million, says Marcin Krupa, Mayor of Katowice.

– I am glad that our activities are recognized, which is reflected in the results of the rankings. For us, this is an additional motivation to hard work, adds the Mayor.

As indicated in the justification of the award, the editorial staff of the newspaper and the award committee appreciated the city for its systematic and diverse ecological activities for environmental protection, noting that the city is located in the center of the agglomeration. In 2015-2021, thanks to the municipal program, the replacement of 6,273 heat sources worth PLN 53.5 million was subsidized. Numerous thermal modernization projects are also implemented.

Recognized by the award committee were also the activities undertaken under the Green Budget of the Katowice City. This initiative is a form of public

consultation aimed at diagnosing the needs of residents in the broad field of ecology and environmental protection, and then implementing public tasks. Residents can submit their ideas, these are then reviewed and evaluated by a team of experts appointed for this purpose. Based on the team's credentials, the Mayor indicates the tasks that will be implemented. The third edition of the Green Budget was a record-breaking one – as many as 222 applications were submitted, and 96 tasks

were selected for implementation at a cost of nearly PLN 2.8 million. The previous two editions, in turn, had 143 tasks selected for implementation, for a sum of about PLN 4.8 million.

Future plans are also noteworthy. Revitalization of the Starganiec pond is underway. The investment, worth nearly PLN 7 million, includes adapting this place to swimming functions, together with the development of the beach and the construction of a pier with a floating

Mayor Marcin Krupa with the "Rzeczpospolita" Green Eagle award, Photo: Katowice City Hall.

section. Sports enthusiasts will have beach volleyball courts at their disposal, and a new layout of paths adapted to the needs of people with disabilities and free of architectural barriers will be prepared for walkers. Four new parks will also be built in Katowice and part of the Katowice Forest Park will be modernized – these are investments worth about PLN 58 million. We are talking about an area of more than 20 hectares in total. They will be located in the areas of Wełnowiec, Kostuchna, Ochojec and the borderland of Bogucice, Zawodzie and Dąbrówka Mała. Each park will feature space for active spending – including such infrastructure as playgrounds, educational paths, activity zones and dog runs.

In the Local Government Category, in addition to Katowice, the award went to only one other city – Bielsko-Biała – for its consistency in fighting for a better climate, promoting eco-living and for eliminating fossil fuels.

The Green Eagles of "Rzeczpospolita" were awarded for the third time.

The categories in which the awards are given are: Titan, Titanium, Companies, Modern Technologies, Local Governments, Environmental Organizations and In memoriam. In previous editions, the awards in the Local Government category went to Kraków and Konin, and in other categories the awardees included Jacek Bożek – founder of Klub Gaja, Janusz Steinhoff – deputy prime minister in Jerzy Buzek's government responsible for mining reform, and the Institute for Sustainable Development.

The Green Eagles chapter included Andrzej Kassenberg (Institute for Sustainable Development), Daria Kulczycka (Leviathan Confederation), Konrad Nowakowski (president of the Polish Chamber of Packaging Recovery and Recycling), Wiesław Rozłucki (president of the Polish Institute of Directors Foundation), Maciej Sadowski (president of the Startup Hub Poland Foundation) and the head of the chapter Marcin Piasecki (editor of “Rzeczpospolita”).

Text: Social Communication Department, Katowice City Hall

More information

Investors Assistance Department Katowice City Hall

www.invest.katowice.eu

As a city, Katowice invesst intensively in such projects, because well-kept green spaces are ideal for relaxation, family activities, but they also influence thewhole ecosystem.

A flower meadow near the Market Square in Katowice. Photo: Sławomir Rybok.

Bielsko-Biała – from the city of a hundred industries to the industrial technological revolution

Text | Patrycja Węgrzyn

Bielsko-Biała and the Southern Subregion are historically considered to be an important regional and national economic center. The above mentioned 100 industries refer to the textile, metallurgical and automotive sectors, which defined the economic identity of the city in the 19th and 20th centuries.

In the context of relation between past and present, these "historical" industries still play an important role, but they are being replaced by modern sectors such as: electromechanics or ICT. The city’s development is determined by smart specializations, modern technologies and an innovative approach, which leads to increasing the competitiveness of the region on a national and European level.

The economic transformation and the next industrial revolution brings new challenges related to digitalisation – as far as process, social and economic levels are concerned. The combination of manufacturing traditions and well-developed advanced services, makes Bielsko-Biała a very fertile ground for digital changes.

Regional Development Agency in Bielsko-Biała has been trying to support these changes for over 30 years. The Agency develops ideas, shares knowledge and provides financing for post-industrial transformation – from a city mainly identified with traditional industry to a modern center where Industry 4.0, technology and innovation are the driving forces of development. Agency’s experience, its significant role in the local ecosystem, as well as international contacts, allows it to acts as the initiator of technological change, of activities that raise awareness of the benefits from digitalization, it educates about the current needs and trends

of the labor market, as well as transfers good practices from abroad.

In this context, the first FabLab in southern Poland was established in Bielsko-Biała in 2014, as a fabrication and rapid prototyping laboratory, fitted with cutting-edge, accessible for everyone equipment in the field of Industry 4.0 technologies, such as 3D printing, 3D scanning, Industrial Internet of Things or automation. The model of functioning of spaces such as FabLab assumes that

anyone who wants to implement an innovative project, gain new skills or develop their technological passions – after appropriate training, can use the equipment located there.

During its 8 years of operation, FabLab has already trained 3,000 people: school students of all levels, local community representatives, senior citizens or entrepreneurs. There are held training courses in 3D printing, spatial modeling, microcontroller programming, soldering

Photo: FabLab Bielsko-Biała.

and even building drones or LEGO. Each of the training courses is tailored to the age group, there are training courses consisting of several modules, as well as one-off themed workshops and events like technology hackathons and robot races. However, the practical dimension and the assumption that every participant can literally "touch" the technology are always the most important. Thanks to this, and thanks to cooperation with the local education sector, FabLab is a significant place on the city map in terms of building future staff and developing future competences.

sector and the IT industry developing in Bielsko-Biała, as well as global trends related to digitization and automation are conducive to the implementation of projects based on the concept of Industry 4.0.

In addition, a series of workshops entitled Digital Skills was implemented in Bielsko-Biała, among others, with the aim of building digital competencies of different groups: entrepreneurs, the education sector and seniors. Entrepreneurs learned about the application of the main technologies of Industry 4.0 based on numerous case studies concerning process automation, the use

The idea to establish FabLab in Bielsko-Biała, as well as many other initiatives and projects, was created thanks to international cooperation. 4STEPS, AS TRANSFER, InduCCI – these are enigmatic acronyms for projects co-financed by the European Union, but behind which there are real actions.

The idea to establish FabLab in Bielsko-Biała, as well as many other initiatives and projects, was created thanks to international cooperation. 4STEPS, AS TRANSFER, InduCCI – these are enigmatic acronyms for projects co-financed by the European Union, but behind which there are real actions. International projects make it possible to adapt to the local context and make the best use of the endogenous potential of the city. Industrial roots, the modern technology

of virtual and augmented reality or 3D printing. An extremely important aspect of this training program was also making people aware that digitization and automation is not only about new equipment, but also about business models, processes and communication. Also, above all about changing the way of thinking, and that it is necessary to ensure the inclusion of both management and operational staff in planned technological changes. In turn, technical students learned who

the Industry 4.0 Leader is and what competences you need to have to work as a coordinator of the digital transformation of companies or the public sector. On the other hand, seniors learned about Industry 4.0 technologies, on the example of devices and every day services, such as: smartphone operations, e-banking, e-prescriptions and the concept of cybersecurity.

Another example of an event that has already become a permanent fixture in the calendar of technological events in Bielsko-Biała is the EU Industry Week. The event is a flagship initiative of the European Commission, according to which institutions from all over Europe organize events thematically related to industrial transformation and digitization. Every year in Poland, only a few institutions successfully apply for the possibility of organizing an event under this formula.

The first edition of the event in 2021 focused around Industry 4.0 technology and was organized together with local leaders – companies operating in the field of machine learning, virtual and augmented reality, 3D scanning and the Internet of Things. During discussion panels with experts and virtual study tours, participants had the opportunity to learn about individual technologies and, on the example of presented case studies, the possibilities of their application. During the second edition, going a step

Tthe first FabLab in southern Poland was established in Bielsko-Biała in 2014, as a production and rapid prototyping laboratory, equipped with modern equipment in the field of Industry 4.0 technologies, such as 3D printing, 3D scanning, Industrial Internet of Things or automation.

Photo: FabLab Bielsko-Biała.

further, in line with the Industry 5.0 concept that puts people at the center of technological transformation, the focus was on the competences and skills of people in the context of working in the IT industry and modern technologies. However, not only on technical competences, but also on soft skills that a person who wants to work in this industry should have.

Thanks to the extensive cooperation of local technology suppliers, as well as the industrial sector and the municipal government, and taking into account international trends, the concept of the Digital Innovation Hub was implemented in Bielsko-Biała, which in the one-stopshop formula gives the local ecosystem access to knowledge, technological test-beds as well as training and education in the field of Industry 4.0. Based on FabLab's technical infrastructure

and in cooperation with the industry, the Hub should become the first point of contact for everyone interested in technology. The Hub contains information on the technological offer available on the market and the needs of the production or public sector in the field of digitization. The Hub is also designed to network and give the opportunity to establish contacts – by organizing events, technological breakfasts or hackathons.

The technological potential of Bielsko-Biała and the Podbeskidzie region is truly impressive. The Startup Podbeskidzie Foundation has created a report "Startups and the IT industry in Podbeskidzie," according to which in Bielsko-Biała about 100 entities operate in the IT and hightech industry (the number of companies identified and invited to participate in the survey) with about 1,100 people

working in 36 of them (this is how many companies answered the survey). Taking advantage of this potential, in the future it is planned to establish a Beskidzki HUB in the Southern Subregion – a network of laboratories, co-working spaces and innovation incubators, which will be a technology transfer center, testing space and meeting place for both technology enthusiasts and professionals.

Industry 4.0 and digital transformation are terms that in recent years around the world have been occured in every possible form. Successful implementation of these concepts is determined by several factors: multi-sector cooperation, technological potential and people – involved in these processes and aware of their benefits.

In Bielsko-Biała, all these elements seem to be at a high level, which, combined with the innovative potential and developed startup environment and IT sector, make the technological industrial revolution the main driver of the city's development.

Author: Patrycja Węgrzyn, International Project Specialist, Regional Development Agency S.A. in Bielsko-Biała

City Hall in Bielsko-Biała | Strategy and Economic Development Department

pl. Ratuszowy 1, 43-300 Bielsko-Biała Phone: +48 33 4971 486, e-mail: wrg@um.bielsko-biala.pl www.bielsko-biala.pl

The technological potential of Bielsko-Biała and the Podbeskidzie region is truly impressive.

Fot. PICS STUDIO Michał Kisiel.

Częstochowa: Local government 4.0

Text | Anna Tymoshenko

People are the city's greatest asset! Local government is similar to business or industry in this regard. The awareness that a person is the best investment is the basis! This applies equally to business and local government. Business needs educated staff, schools need students, and local government needs residents who are satisfied with their work – this should be skilfully combined.

IN THE BEGINNING, THERE WAS IRON

The city, once famous for its traditional industry, today is an important point on the automotive map of the country. In the third decade of the 21st century, employment in the industry exceeds 15,000. After the transformation in 1989, automotive absorbed human capital from the metal, textile and polymer industries. Thanks to this diversification of competencies and effective modelling of technical education and science, new staff are constantly being educated in the city, and large companies have the opportunity to acquire employees. Domestic SMEs and family businesses keep pace with global giants. Staff training applies to the local government and industry to the same

extent, which is why cooperation is the basis of every action in Częstochowa.

LOCATION!

The ring road of the city as part of the TENT Baltic-Adriatic network and the connection via the A1 motorway shortens the distance from the Katowice-Pyrzowice airport to 20 minutes. Since 2014, the city has had three real estate locations in the KSSE S.A. again, near motorway junctions and DK91, in the local plan 550 hectares are allocated for production activities and the same amount for services. However, perfectly developed areas are not a sufficient argument for locating a modern investment today.

The city is one of the best logistics locations in Poland and is an alternative to the BSS market. The level of unemployment in the surrounding districts gives access to 8.5 million human resources in just 1.5 hours from the city. Every day over 40,000 people come to work and school here and the production company will complete a 100-person crew in Częstochowa within 50 days.

LOCAL GOVERNMENT 4.0

The fourth revolution is happening before our eyes, computing power of the smartphone is on par with the NASA computer that sent people into space half a century ago. That required an evolution in the thinking of the local government,

which focused on flexibility and unconventional solutions in the field of staff training because innovation means a change in the way of thinking and perceiving resources. Częstochowa has long been proud of the fact that people are the city's greatest investment incentive which is why Smart City in its innovation should also emphasize securing staff for Industry 4.0. Częstochowa innovations have a human face, it started with the first In Vitro co-financing program in Poland, but also subsequent Częstochowa programs have been called innovative.

FROM THE SEWING ROOM TO THE PROCESSOR

In Częstochowa, apart from traditional investments, innovative projects are developed and technologically advanced products are created, and educated staff are the basis for modern investments. High work culture is something

that cannot be learned overnight, and the automotive industry is a diversified industry that strongly reacts to any social or political changes, which is why it appreciates staff support. Starting from the first factories of belts or airbags, through metal processing – as in the case of brakes or fastening systems – with time, engineering centres, shopping centres, new R&D departments, shared services and BPO centres began to appear in Częstochowa, ending with modern electronics plants. The changes taking place in the industry are illustrated by the profiling of education and the development of scientific disciplines at the Częstochowa University of Technology. In 2018, students from Częstochowa with their Modernity rover "conquered Mars" and are still at the forefront of the URC competition – this is invaluable potential!

INVEST IN CZĘSTOCHOWA

To effectively develop cooperation between business and education, the local government needs a unit that combines both worlds, employing people who know the specifics and priorities of both, but above all are aware that without this cooperation there is no possibility of the region's development. Investment in people means cooperation with schools at the basic level, proper profiling of secondary schools and support for universities in constant dialogue with business and industry. Without it, there will be no room for innovation, without prepared staff and an open community, the best projects may fail because, after all, it is the human who designs, the human performs, and finally, the recipient is also a human.

Author: Anna Tymoshenko, Head of the Investor Assistance Center in Częstochowa Translation: Magdalena Wytrzymała

More information

Investor Assistance Center Department of European Funds and Development | City Hall of Częstochowa

Waszyngtona 5 Street, 42-217 Częstochowa Phone: +48 34 3707 212, +48 34 3707 213 e-mail: coi@czestochowa.um.gov.pl, fer@czestochowa.um.gov.pl www.czestochowa.pl

Elbląg – an attractive location for businesses, residents, and tourists

Favorable location, excellent connectivity and transportation links, brilliant investment potential –these factors contribute to Elbląg’s growing prominence on the economic map of Poland. We find ourselves in the era of snowballing competition on the labor market and a growing saturation of traditional business centers. This makes it all the more worthwhile to acquaint oneself with Elbląg, the crown jewel of the Warmian-Masurian Voivodeship.

For decades, Polish coast has enjoyed the status of ‘the gateway to the south’ for the Nordic and Baltic countries. Equally, it is viewed as the entry point to Northern Europe for countries located to the south of Poland. Of course, Polish companies and entrepreneurs take advantage of this extraordinary economic potential. A quick glance through the data on Poland's trade balance with countries in the Baltic Sea basin confirms that: in 2020 Poland recorded a trade surplus to the tune of PLN 41 bn, while year-on-year data shows stable, continuous growth for over a decade. Northvolt, Stora Enso, Tietoevry, and Vestas are just some of the companies that have located their production plants and BSS operations in the north of Poland. Conversations with investors clearly demonstrate that they attach great importance to Poland’s geographical and cultural proximity.

A LOCATION FAVORING TRADE

Geographical proximity plays a particularly significant role in maritime transport – an important element of the regional and central economy. Elbląg’s excellent location spurred it on to pursue this area as its major development driver. The city is already very much involved in the constantly growing trade alongside the North-South axis as it is located en route of some of the largest Baltic Sea ports – Helsinki, Tallinn, Riga, and Stockholm – and it keeps working to further reinforce its standing. This is crucial

especially considering the strengthening of European cooperation that stems from Russian aggression in Ukraine.

THE VISTULA SPIT: CANAL’S HUGE POTENTIAL

The construction of the Vistula Spit Canal is another essential factor. The investment, albeit in a slightly different context, was first mentioned in the 16th century, when the Polish king Stefan Batory ordered his representatives to investigate the feasibility of constructing a waterway near the village of Skowronki. The intention was to make his country independent from the Port of Gdańsk. Fast forward some 450 years and not only the cooperation with Tri-City is much better, but the grand vision of the Polish king has finally been realized and added to further diversification of Baltic ports.

The investment, albeit in a slightly different context, was first mentioned in the 16th century. Launched in September 2022, this strategic infrastructural investment greatly increased the accessibility of Elbląg for sea vessels.

The Elbląg Technology Park represents the focal point of the Modrzewina investment area. It brings together almost 80 startups and innovative companies from the biotech, IT, and metallurgy industries. A truly invaluable feature of such places is their tremendous creative capacity.

Launched in September 2022, this strategic infrastructural investment greatly increased the accessibility of Elbląg for sea vessels. Now, vessels up to 100 meters in length and with a draft of over 4.5 meters will be able to enter the port! The Canal more than halved the waterway to the Vistula Lagoon from the Baltic Sea. Cautious estimates indicate that this will boost the Port of Elbląg’s transshipment capacity to over four million tons, representing a fourfold increase. And importantly, none of this will require consents or face restrictions from Russia, something that thus far has been a genuine issue in connection with the use of the Pilawa Strait.

AT THE CROSSROADS

Growing transshipment capacity and importance of the Port of Elbląg go hand in hand with the constantly expanding and increasingly dense network of land connections. Leading the proverbial way are pan-European road corridors, like the Via Carpatia – connecting the North and the South of the continent – and the Via Baltica, connecting Northern and Western Europe. These key routes running close to Elbląg will add to the increasing capacity and safety of freight forwarding as well as positively impact the mobility of Europeans.

HOME OF MODERN TECHNOLOGIES

Location, security, and mobility are a set of words we may also reach for when talking about the Warmia and Mazury Special Economic Zone (W-MSEZ), one of the most dynamic special economic zones in Poland. Part of the Polish Investment Zone, it offers extremely attractive tax benefits that cover up to 70% of the value of eligible expenses. So far, household brands such as Michelin, Tymbark, and NET have trusted the W-MSEZ and invested there. In total, nearly 350 investment decisions were issued thus far and projects worth almost PLN 7 bn were implemented.

creative capacity. While engaging in R&D activities, exchanging ideas, and networking, young entrepreneurs gain cutting-edge knowledge and lifelong business relationships.

EXPANSION OF THE MODERN OFFICE INFRASTRUCTURE

Bearing in mind the value of intellectual capital, Elbląg focuses its efforts on growing its office space, which provides knowledge workers with a suitable place to grow their businesses. ‘Porta Mare’, Elbląg’s maiden Class A office building, is the city’s flagship investment and will be commissioned in 2024. Located

Investment areas in Elbląg, already developed to a large extent, are located in Modrzewina – a rapidly growing district divided into industrial and residential parts.

Investment areas in Elbląg, already developed to a large extent, are located in Modrzewina – a rapidly growing district divided into industrial and residential parts. The city is working tirelessly to expand its offer and add new investment areas meeting the needs of entrepreneurs even better. The Elbląg Technology Park represents the focal point of the Modrzewina investment area. It brings together almost 80 startups and innovative companies from the biotech, IT, and metallurgy industries. A truly invaluable feature of such places is their tremendous

on the historic Spichrzów Island and consisting of 11,000 m2 of best-in-class office space it has been carried out as part of Program Fabryka – one of the instruments driving the development of medium-sized cities and bringing numerous benefits to both companies and residents.

WORK-LIFE BALANCE – THE ELBLĄG WAY

Discussions often center around Elbląg's business plans and opportunities. However, one should never lose sight of just how important it is to find a moment of respite from the stresses and professional

challenges of everyday life. In the case of Elbląg, relaxing and unwinding in the nature could not be simpler. That’s because part of the Elbląg Upland Landscape Park is located within the city limits! Consisting of a number of nature reserves, the Landscape Park is characterized by an extremely diverse flora that resembles mountainous areas – made all the more interesting by the fact that Elbląg is located on the opposite end of Poland. ‘Bażantarnia’, an area almost 400 hectares in size and boasting multiple hiking trails, represents pristine nature – ‘the green lungs of Elbląg’ – and acts as a genuine tourist magnet. With its own hotels, it is the perfect spot for everyone wishing to experience the beauty of Elbląg forests first hand. And, when the weather is on your side, make sure you climb to the top of the picturesque Chrobry Mountain and marvel at the sight of the Vistula Lagoon.

THE ELBLĄG CANAL, A WORLD-CLASS SIGHT

Business significance of the Vistula Lagoon is one thing, however we should not lose track of its considerable tourist potential. It is, among others, a fantastic starting point for trips to towns located along the Vistula Spit. Krynica Morska deserves a special mention here – an excellent summer and spa resort, it is a real diamond in the crown of the Polish coast.

The Vistula Lagoon is both an important gateway to the sea as well as a great vantage point looking inland, towards the Masurian lakes. They are connected with the city of Elbląg by means of a truly remarkable and unique structure – the 80 kilometers-long Elbląg Canal. Each year, thousands of tourists set off on a journey along the Canal to admire the serenity and beauty of nature and experience this nineteenth-century engineering wonder,

utilizing a set of locks, inclined planes, and a natural, hundred-meter difference in water levels. Protected by the status of a ‘Historic Monument’, the Canal connects with the Elbląg River and enters the city from the south before finally flowing into the Vistula Lagoon. This one is not only for the sea dogs!

There is a broad agreement that maintaining a healthy work-life balance is fundamental to a proper individual, family, and professional development. Elbląg has all the necessary ingredients for professional success, while ensuring its residents enjoy life at the same time. Getting to know the wide range of possibilities offered by the city of Elbląg, both in terms of business and leisure, simply makes sense!

More information

Promotion, Culture and Tourism Department, Promotion and Entrepreneurship Unit | City Hall of Elbląg

Stary Rynek 25 Street, Ratusz Staromiejski, IV floor, room 400, 82-300 Elbląg Phone: +48 55 239 32 90, 55 239 33 17 e-mail: invest@umelblag.pl www.inwestycje.elblag.eu

Elbląg Canal is, among others, a fantastic starting point for trips to towns located along the Vistula Spit.

The Future of the Workplace is Hybrid

We help people do their best work in all the places where work happens. Discover our insights, furnishings and solutions that help hybrid work better.

Wroclaw – the startup capital of Poland. Startup Poland Foundation Report

The most awaited publication of the Polish ecosystem is based on research and information from several hundred respondents and analyses by startup industry experts. Wroclaw and Lower Silesia have particular reasons to be happy this year: the largest number of technology companies in Poland are registered here.

The latest report "Polish Startups 2022", the premiere of which was held in Wroclaw for the first time ever, confirms that our region deserves to be called the "Polish Silicon Valley".

– Wroclaw has been working towards the title of Poland's startup capital for years. Successive editions of our "Polish Startups" report show that this ecosystem is doing very well here – the Lower Silesian Voivodship is leading the way when it comes to the number of innovative companies. There is also the latest ranking by Dealroom.co – the authors analysed 201 cities from 65 countries and selected those in which innovation develops most efficiently. Wroclaw came eighth in the 'Rising Stars' category and ahead of Warsaw, which landed at eleventh. Let the premiere of the eighth edition of "Polish Startups'' –which we are organising for the first time in Wroclaw and not in Warsaw as before – be further proof that startups feel comfortable in Wroclaw, says Tomasz Snażyk, CEO of Startup Poland.

GREAT POTENTIAL DESPITE THE CRISIS

The map of Polish startups, funding, investments, consequences of global crises and foreign expansion – these and other questions are answered in the report.

Tomasz Snażyk, President of the Startup Poland Foundation, emphasises

also that this edition is another one which is being written at a time of crisis, or rather several simultaneous crises.

Magdalena Okulowska, CEO of Wroclaw Agglomeration Development Agency,

The latest report "Polish Startups 2022" confirms that Wroclaw deserves to be called the "Polish Silicon Valley".

points out that the Polish ecosystem does not assess the last years negatively, and that the potential inherent in startups, their flexibility and creativity, has led not only to the acquisition of new customers and a noticeable increase in sales but also to the retention of employed staff.

– In many industries related to product digitisation, e-commerce and healthcare, a number of interesting projects have emerged, and the market for tech startups has definitely grown. The profitability of businesses in relation to their innovation

Premiere of the Polish Startups 2022 report, Google Wroclaw, December 9, 2022.

was in the background, as reflected in many spectacular and record-breaking VC deals. Examples of the positive use of the crisis are well-known Wroclaw companies: Infermedica, Alphamoon, Bioceltix, CUX, PayEye, Brand24, Biotts, Vue Storefront or SatRev, adds Magdalena Okulowska.

STARTUPS FOCUS ON LOWER SILESIA AND WROCLAW – THE POLISH SILICON VALLEY IS HERE

The report answers the question which Polish region can be described as the "Polish Silicon Valley". Two voivodeships come out on top when it comes to the number of registered startups –the largest number (21%) is in the Lower Silesia Region, with Mazovia in second place. Thus, Wroclaw and Warsaw are the two main centres chosen by domestic startups. Third place is occupied by the Lesser Poland (Cracow) – every tenth entity questioned was registered there. Wroclaw's promotion on the startup map of Poland is significant. Last year, the Masovian Voivodeship had 32% and the Lower Silesian Voivodeship had 9%.

Wroclaw's promotion on the startup map of Poland is significant. Last year, the Masovian Voivodeship had 32% and the Lower Silesian Voivodeship had 9%.

MAP OF POLISH STARTUPS. THE DOMAIN OF 30-YEAR-OLDS

The structure of the Polish startup market does not change significantly from year to year. Still most of them are young companies, usually with less than four years of experience. Almost every third has been operating for three to four years, a similar percentage has been operating for one or two years and every fifth startup questioned has not yet had a year's seniority (22%). Companies founded as startups, but with a longer history, are relatively few in number – one in ten is between 5 and 10 years old, and 7% of the surveyed companies can boast operations lasting longer than a decade.

While last year's survey showed a slight increase in the number of startups founded by younger people (20-year-olds), the latest survey confirms a trend already observed in previous years – founding a startup is most often the domain of 30-year-olds.

WHAT OUR STARTUPS ARE BEST AT

The authors of the report emphasise that when asked to indicate the three keywords that best reflect the nature of the main service or product offered, startups mentioned: AI and machine learning (21%), productivity and management (14%), analytics – research tools, business intelligence (13%), HRtech and HR tools, medtech (both 12%), financial services – fintech or insurtech and big data (10%).

Polish startups most often operate in the B2B enterprise model (39%), with a further 25% indicating B2B small business. In total almost two-thirds of Polish startups operate in the B2B model. Significantly fewer, only 11%, operate in the direct to consumer (B2C) formula.

Almost two-thirds of the startups pointed to B2B – small and medium-sized

Premiere of the Polish Startups 2022 report, Google Wroclaw, December 9, 2022.

companies (up to 250 employees) – as the target group for their services, followed by 62% of large companies and corporations with more than 250 employees. Individual customers (B2C) are the target group for 35% of startups. Slightly fewer (30%) target institutional customers (B2G) – government offices, local authorities, schools, universities, hospitals, services etc.

SOURCES OF FUNDING FOR STARTUPS

Only 7% of startups experienced a decline in interest from foreign investors at the time of the survey. A much higher share (38 %) has not yet experienced such a negative trend. More than one in two startups, however, gave the answer "difficult to say".

Among startups asked about the sources of capital, as many as 68%, indicate bootstrapping, i.e. own funds. A key role on the Polish market is played by domestic VC funds, which capital was used by 28% of the startups surveyed, as well as domestic business angels, who

supported one in five startups (22%). An identical percentage pointed to funding obtained from the National Centre for Research and Development.

WHAT IS HOLDING BACK THE STARTUP MARKET IN POLAND?

The main barrier to the development of startups in Poland is the difficulty in recruiting employees, with the employment costs rising rapidly (52%). The second barrier most frequently faced is the difficulty in obtaining financing in subsequent phases of development (4 %). Less than 30% of startups complain about too much bureaucracy when running operations.

BLACK SWANS – CONSEQUENCES OF GLOBAL CRISES

In the face of recent crises (black swans), almost half of Polish startups (49%) declare that the costs of doing business have increased significantly. Those who have not seen an increase in costs are 50%, while startups in which costs have

decreased are a trace number (only 1%). The most common tactic chosen to combat rising business costs is to raise the prices of the products or services offered. This move was made by as many as 37% of startups. The second most common way to cope with rising business costs is to reduce advertising and marketing budgets. Almost one in five startups was forced to make redundancies (19%).

EXPANSION ABROAD

The report shows that last year as many as 78% of founders planned to enter foreign markets with their business in the next 12 months. Nearly half of domestic startups are considering moving their business permanently outside Poland, which would also mean moving their headquarters to another country. The vast majority plan to move their company to another country for strictly business reasons. The second most frequently cited reason is the difficulties related to the "Polish Deal", introduced by the Polish Government and then repeatedly amended.

More information

Business Support Centre | Wroclaw Agglomeration Development Agency

pl. Solny 14, 50-062 Wrocław Phone: +48 71 783 53 10, 41 36 76 557, e-mail: office@invest-in-wroclaw.pl www.araw.pl, www.invest-in-wroclaw.pl

Premiere of the Polish Startups 2022 report, Google Wroclaw, December 9, 2022.

Change begins with understanding

Just because something is circular does not automatically mean that it is sustainable. We believe in sustainable circularity. It’s about interior design solutions and furniture that are designed and prepared for use over a long period of time – by you and the next generation. You can increase well-being and efficiency in your organisation while at the same time preserving nature’s resources. Making a difference should be easy.

more at kinnarps.pl

MICHAŁ OZIMEK JOINED VALUATION DEPARTMENT OF COREES POLSKA

Michał Ozimek joined Valuation department of Corees Polska – Commercial Real Estate, taking the position of Senior Valuation & Investment Analyst. Working in the Warsaw branch of the agency, he will be responsible for supporting processes related to the development of real estate valuations, as well as advising on transactions on the commercial real estate market.

Michał graduated full-time first degree studies in the field of Finance and Accounting, continuing the second degree of E-business and postgraduate studies in Real Estate Valuation at the Warsaw School of Economics.

He has been involved in real estate valuation for over 2 years. Working in an international consulting company, he gained experience in preparing valuations in the sector of offices, warehouses, shopping malls, apartments and land.

Previously, he worked in the strategic consulting sector and business.

Source: Corees

SAVILLS STRENGTHENS ITS UPPER SILESIA TEAM OF INDUSTRIAL ADVISERS

Bartosz Czuba, a seasoned expert in industrial real estate, has joined the Industrial Services Hub of real estate advisory firm Savills with responsibility for the Upper Silesia region.

Bartosz specialises in tenant advisory in Upper Silesia, Subcarpathia and Krakow. Prior to joining Savills, he was a management board proxy at DL Invest Group, where he was responsible for

leasing warehouse, production and office space, and contributed to fund-raising and acquisitions of development land.

– Upper Silesia has for years been one of Poland’s core industrial markets and a mecca for the automotive industry and rapidly growing companies from other sectors, including local manufacturing firms. I am delighted to welcome to Savills another experienced expert who knows this region inside and out – comments Katarzyna Pyś-Fabiańczyk, Head of Industrial Services Hub, Savills.

The Industrial Services Hub, an integrated platform of Savills, advises on warehouse and industrial space leasing as well as acquisitions and sales of logistics properties.

Source: Savills

WILL INNOVATION SAVE THE POLISH ECONOMY FROM THE CRISIS?

For as many as 70% of specialists and managers, the company's innovation is important. Its development is one of the key challenges faced by most companies, regardless of their size, industry and form of business. Additionally, it is a key selection criterion regardless of gender, indicated by 69% of women and 73% of men.

Antal and Sodexo Polska prepared the report "Innovative work environment", which was carried out using the CAWI method on a sample of 1,016 specialists and managers on September 2022. The patrons of the report are Employers of the Republic of Poland and SPCC (Scandinavian-Polish Chamber of Commerce).

When it comes to choosing a workplace, innovation is most appreciated by the senior management (84%). It is also crucial for 77% of engineers and people working in marketing. Lawyers (56%) and administration (60%) pay the least attention to innovation.

Meanwhile, only 4 out of 10 respondents consider the current workplace to be innovative, and only one in

ten is completely convinced of it. A similar percentage of respondents describes their current company as non-innovative.

– These data indicate that Polish companies have something to work on in the context of innovation. According to the latest edition of the Global Innovation Index 2022 prepared by WIPO, Switzerland has been hailed as the most innovative economy in the world. Poland was placed 38th with a score of 37.5 points. Compared to the 2021 edition, we have fallen by two positions. The participants of the Polish labor market and observers should strive to ensure that the innovation index has a constant upward trend. In this area, cooperation between business, scientific and political decision-makers is necessary – comments Małgorzata Bachner, Regional Operations Manager, Sodexo Polska.

Some companies are at an early stage of innovative transformation – they are looking for ways to increase innovation and prioritize them, but the way employees perceive them is still a long way. At the same time, innovations still

have a low priority for the employer, according to as many as 30% of the respondents. In most organizations where the respondents work, innovation has a high priority – very high for 12%, rather high for 32%.

– As many as 56% of employees confirm that they feel that they have permission to make mistakes in their workplace. A sense of security in this regard is very important if we want to try to change reality. In my opinion, Polish employers are ready to accept these errors and to invest in fewer resources, in projects with a low probability of success. We were not wealthy as an economy, we could not afford a high risk of failure, but with the development and maturation of the market, I assume that it will continue to change – comments Roman Zabłocki, Business Unit Director Antal, Engineering & Operations.

The full report is available for download:

Source: Antal

Instead of dreaming of the stars – let’s think about concrete facts

What challenges are recruitment agencies facing? Which will the most successful sectors in 2023 in recruitment industry? We talk with

FOCUS ON Business: What will 2022 be remembered for?

Joanna Wanatowicz, Grafton Recruitment: It was a year of businesses retaining high vigilance due to an unstable geopolitical situation, growing inflation and a looming threat of a new crisis. However, it bears keeping in mind that in a globalized world the social and economic consequences of any disruptions affect everyone, albeit to a different degree. Despite the common complaints, I believe the past year to have been quite a good one. From the viewpoint of recruitment scale, we have seen companies catching up and further strengthening their 2021 recovery. 2022 was satisfactory primarily for those who retained their momentum and could act upon the current market conditions. This time could have lulled some into complacency, as companies generally did well despite the unstable conditions.

The last quarter has brought a notable change, as a slowdown was noticeable at that time. Despite no lack of expert opinions, no one is truly sure how long will it last, as there are simply too many ongoing factors. The risk of current situation’s long-lividness requires analysis and deliberation – are those momentary circumstances or a continuous trend?

Which of these outcomes will prove true?

The experts are predicting the current events to have delayed consequences, while companies ceased any attempts at long-term planning, focusing instead on

the upcoming quarter – or maybe a year at most. Having said that, entrepreneurs are still competitive about their results and effectiveness. They don’t want to lose their position or previously earned effects – and definitely don’t want to lower their standards. I believe that the key to survival or growth lies in business maturity and adaptability, which have been exhibited by many over the past two years.

What, aside from the geopolitical situation and overall air of uncertainty, impacts the recruitment plans of companies?

The war in Ukraine and the runaway inflation are hitting the wallets, with a great effect on consumer sentiments and behaviors. This in turn has a direct impact on company operations, businesses are still learning how to operate in a changing environment. The entrepreneurs are currently rather cautious. It bears mentioning the great impact media and their way of conveying information have on their recipients. We have already noticed the correlation between media reports and business plans concerning personnel policies quite a while ago, especially in the case of global companies. If the press, tv channels, web portals and radio stations all claim the situation will get worse, that there is a looming crisis, resource shortage or price increase, the number of recruitments falls immediately. This is true even when said reports are greatly

exaggerated or don’t reflect the facts at all. If instead they’re positive, the businesses begin to breathe more easily and consider expanding their staff.

The priorities for 2023 include retaining financial discipline and profitability. How helpful will HR be to that end? We should all remain vigilant in tracking the market situation, but also in examining our own organizations – are they managed properly? Are the teams indeed prepared to achieve their objectives? Do they have the necessary competencies? Cohesion and consistency are key, even when experts are warning of uncertainty and the media are heralding doom. After all, we often don’t actually see any direct adverse effects, here and now. A positive factor for the markets is the gradual diversification of services offered by companies and the development of new sales tools, both introduced in order to avoid dependence on a single source of income.

I am fascinated by how some are following the inflation and increasing prices, while others do the opposite – seek new ways to lower them and reach effectiveness by means such as developing e-commerce. However, accustoming the clients to constant promotions is a dead end. It leads to forfeiting one’s margins, which can be quite dangerous. A trend we have seen for several years now and expect to further strengthen in the near future is heightening standards and quality of offered services and customer service.

Joanna Wanatowicz, Managing Director at Grafton Recruitment.

The companies are aware that they cannot grow at the same pace as they used to. Key actions involve not only the diversification of incomes, but also extending the current contracts and scope of cooperation with the current partners.

In each of these areas, humans, their competencies and skills will remain key. As will their suitability to a given organization. As a recruitment agency, we are seeing this increasingly starkly in our everyday work. This is particularly true in a situation of an employee shortage.

To what extent are re-skilling and up-skilling the answer to the problem of employee shortage?

These actions are key and should be the first steps in analyzing one’s personnel needs. The entrepreneurs need to consider whether they have already used up all available means and re-examine the competencies of existing employees. Therefore, instead of dreaming of stars, we should think about concrete facts – to what extent are we utilizing the potential of our employees? Are they in the right positions? To what extent is it possible to move them to more appropriate posts? Another important topic is utilizing the older generations, whose potential is greater than it might initially seem. This is further supported by the fact that multi-generational environments have proven to work well, helping teams grow and businesses to flourish. There is a lot of talk about these issues, but companies are not treating them comprehensively yet. They are not looking downward, to examine in detail the individual team members, nor implementing measures to the necessary degree. Yet in fact it should be an ongoing trend. On the other hand, a promising factor is the openness of Poles to change their profession or qualifications. The 55+ age group has many aspirations, which is confirmed by the research of both Grafton Recruitment and Gi Group.

Recruitment mirrors the market. What sectors are entering 2023 in good shape and will keep recruiting?

Logistics and distribution were doing the best during the year. Consumers have taken a liking to shopping online – and getting the pandemic under control is not a reason to stop doing it.

The change has become a part of the new reality and will persevere – these industries will require personnel at different levels of the organization.

When it comes to the BSS sector, it did not grow quite as dynamically as in 2021, but we might very well still be surprised. While we’re becoming an increasingly expensive country in terms of labor costs, which could pose a risk of relocating services to other countries, we are still competitive in terms of quality – and therefore, ultimately in terms of effectiveness. Our changes are therefore pretty good.

The HR sector has wind in its sails. The industry has been growing this year to the point where at a certain point we were faced with a lack of new candidates. What’s coming next?

All eyes are also focused on the manufacturing industry, which for the entire year has struggled less with the changing demand and more with supply chain difficulties. Currently, manufacturing plants – ranging from food processing to steelworks – are focused on profitability, as the increased costs, including energy prices and rampant inflation, are turning the budgetary discipline into a matter of life and death. It should therefore come as little surprise that the companies will also attempt to optimize the recruitment costs. This doesn’t have to mean retirements, but will definitely cause greater caution. The companies will pay closer looks to competences.

It bears mentioning that HR will keep increasing in importance across the entire world. This area is no longer being seen in a supportive role, but rather a managerial one. Increasingly often, we are seeing HR directors on the management boards. They are partners. This changing perspective is currently very important, as the companies are not only focused on the sales and their clients, but also the factors that impact the quality of service. Within this scope, technological solutions are no longer the most important, as they have grown quite common. Rather, the real deciding factor is the employees and their competencies – especially the soft skills.

I believe that while the HR industry still has much catching up to do, it is looking at a bright future related to management, talent acquisition, motivation and loyalty building. The tempo of technological development and inevitable demographic trends are also causing an increased number of challenges in the areas of education and training.

The employee market and the increased role of specializing in the area of new technologies are causing the role of recruitment agencies to not only increase, but also evolve. They are partners, co-creating the strategies for recruitment and reaching new candidates.

Thank you for the interview.

When it comes to the BSS sector, it did not grow quite as dynamically as in 2021, but we might very well still be surprised. While we’re becoming an increasingly expensive country in terms of labor costs, we are still competitive in terms of quality.

Wellbeing and benefits are setting the tone in the modern employee market

Text | Sylwia Podpłońska

Inflation in November 2022 in Poland stood at 17.5 percent, a record high unseen for the last 25 years. Rocketing commodity prices and interest rates, as well as the costs of living, mean that employers are currently facing a huge challenge, having to meet the high wage-related expectations of their staff. In addition, we still have an employee market, and in some industries, we are witnessing a shortage of staff with specific competences and talents. Supporting the further growth of teams, taking care of their wellbeing, and relieving their home budgets could be a possible way out for organisations in their attempt to survive this difficult time.

FATIGUE AND FRUSTRATION FORCE US TO LEAVE

According to Michael Page survey conducted in 2021, over 60% of Polish employees are feeling the negative effects of the pandemic. Half of the respondents have admitted that they feel more pressure from their employers, and 49% believe that their work is not sufficiently appreciated. Disturbances in work-life balance have been reported by over 40% of the respondents. All this has been exacerbated by fatigue. According to WHO data, in the pandemic, the number of hours worked rose by about 10% compared to the situation prior to March 2020. As a result, more and more specialists have been complaining about burnout and have decided to take a gap year, i.e., some time off from their work and duties. Another thing that has recently been on the increase is so-called “quiet quitting”, which rests on the idea of doing the minimum requirements of one’s job and putting in no more time, effort, or enthusiasm than absolutely necessary.

PRICES GOING UP – WAGES STAGNATING

The situation on the labour market has pushed more and more people to start

actively looking for a new and better job. This also applies to those sectors that offer some of the higher wages in the market, such as the pharmaceutical and medical industries. Businesses have begun to realise that it is easier to keep a member of staff who has already settled in and knows their way around than to invest time and money in recruiting a new person. Having said that, awareness is one thing, but the need to change the pay spines is another. This process is often arduous and lengthy – especially when it comes to large multinationals. HR departments have undoubtedly been faced with a huge challenge. The solution could be found in a wide and individually adjusted offer of benefits.

RESPONDING TO INDIVIDUAL NEEDS

According to report by the Union of Entrepreneurs and Employers, in 2021 employees already expected benefits that would allow them to meet their individual needs and thus respond to the effects of the pandemic. The study showed that additional benefits were typically expected to guarantee stability and be personalised and flexible.

It is worth noting that there has been a small revolution in the area of non-wage benefits. Those that were attractive before the pandemic have become insufficient or even outdated in today’ world. Multisport or medical plans are already a standard in Poland’s labour market, and they are unlikely to attract the attention of potential employees. Just like delicious coffee from the coffee machine, or fruit Tuesdays…

FLEXIBILITY FIRST

Undoubtedly, the most important aspect of the modern labour market is the option of remote work. According to a study by Michael Page, the majority (59 percent) of respondents would prefer to work exclusively online, or in a hybrid system Flexible working hours, the ability to perform one’s duties from home is not only a way to save time and costs related to commuting, but it also helps staff to strike work-life balance, which is of key significance for as many as 88 percent of the respondents.

It is the meeting of employees’ expectations, an approach that respects their needs and family life that gives

a sense of support, and in the long run it can help to bond with the organisation. The role of managers is also worth highlighting. On the one hand, employees expect trust and the opportunity to work from home from their superiors, but at the same time they also want to feel part of the team and be actively involved in integration events. We know perfectly well that it is not easy to build a sense of belonging to a company or a team in times of virtual meetings.

Clearly, the benefit of remote/ hybrid work entails further expectations of employees in the form of co-financing or equipping, on the part of the employer, of the workplace at home (extra allowances for desks or armchairs, or covering at least a fraction of the costs of electricity). Another response to high inflation and the needs of the labour market that seems to be gaining momentum can be found in prepaid cards, co-financing of meals, or a company car with a fuel card.

WELLBEING ON THE PRIORITY LIST OF ORGANISATIONS WORLDWIDE

When discussing benefits, it is necessary to mention wellbeing. Wellbeing is a word that has gained value during and after the pandemic. In the Benefit Trends 2021 report, more than half of the surveyed companies intended to implement benefits supporting the physical but also mental condition of their staff.

In the Michael Page study, we have asked candidates to identify specific solutions that they believe could help affect their wellbeing. Almost one in three respondents (33%) would like their company to launch more initiatives aimed at improving wellbeing and team integration.

Almost one in three respondents (33%) would like their company to launch more initiatives aimed at improving wellbeing and team integration.

Anonymous telephone or online consultations with specialists (e.g., psychologists), online chilling out yoga classes, a masseur in the office, or an individual mentor ready to help in the development of the employee – these are just some of the solutions that seem to be in the spotlight these days.

THE PHARMACEUTICAL INDUSTRY STAYS FOCUSED ON GROWTH

These days, it is hard to find a company that would not offer at least one non-wage benefit. The pharmaceutical giants and, alongside them, IT and FMCG businesses have always been in the lead when it comes to innovative benefits and their scale. Candidates from the pharmaceutical industry still declare that it is important for them to feel the sense of meaning of their work and for them taking part in the recruitment process

depends on the market image and “reputation” of the employer. Practice, however, has shown that potential employees of this sector have also recently been more willing than before to engage in recruitment processes. Here, interestingly, a very valuable benefit is the possibility of getting co-financing for education (postgraduate studies, MBA, or exams), which proves that they care about continuous development. Increasingly, businesses from this industry offer their employees and their families a medical package, including a dental plan. It looks like this benefit is gaining popularity.

HOW TO CHOOSE THE RIGHT BENEFITS FOR YOUR ORGANISATION?

Well-chosen benefits will pay off in staff motivation and commitment, and they will eventually translate into better results, not only at the individual level, but also at the level of the entire company. This said, selecting them sensibly is important – after all, what counts is not the quantity, but the quality. Certainly, the needs of manufacturing workers will be different from those of office staff. So, how to choose the right benefits? It is worth asking for the opinion of the interested parties themselves.

Once we have selected a given package of benefits, we should also remember about validation. We should check what works, and what staff are happy to use. A helpful solution will certainly be quick surveys that examine employee satisfaction. Thanks to them, employers can be sure that the benefits offered by the company are not just an empty lure, and an additional cost for the organisation, but they actually constitute a real added value.

In the nearest future, the businesses that will gain real competitive advantage will be those that will be based on a flexible approach and offer a wide array of benefits, those that will stay alert to the market requirements and competition, and, above all, those that will listen carefully to the needs of their staff.

Author

Sylwia Podpłońska

Managing Consultant, Healthcare & Life Sciences, Michael Page