BUSINESS SERVICES SECTOR IN POZNAŃ

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1 BUSINESS SERVICES SECTOR IN POZNAŃ - analysis of salaries and employees motivation

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3 CPL JOBS With 20 years experience in the recruitment business, CPL is uniquely placed to support any business from start-up to SME to multinational in virtually any phase of the employment life cycle. CPL consultants specialise in various industry sectors and functional areas and are up to date with the market issues and trends that influence or impact on a client s business. These seasoned consultants build recruitment, business, and human capital solutions that deliver to the time, cost and quality constraints. The broad range of solutions on offer means clients can leave these complex and demanding business processes in the hands of experts, giving clients the freedom to focus on other areas of their business. CPL s highly trained consultants, each with sectorspecific experience, understand the challenge clients face of hiring the ideal candidate at the right price. These experienced recruiters meet the demands of today s market using CPL s extensive candidate database of 1 million live and up to date candidate CVs. The breadth of this database results in the timely delivery of suitably qualified and assessed staff. Clients of CPL benefit from CPL s ability to attract candidates of the highest calibre by proving them with expert career guidance and a simply unbeatable range of employment opportunities.

4 Business services sector in Poznań/ 2012 Region Central and Eastern Europe has both an exciting and significant potential for growth within business services sector over coming months. The main advantages of the Polish proposition in terms of attracting such investment include the favourable business climate, the high level of qualifications among the Polish workforce and the development of modern office space. At the moment, in the modern services sector there are almost 50,000 skilled workers specializing in IT, financial services, as well as within the wider finance and accounting sectors. The ABSL data indicates that Poland is firmly ranked within the top five most important locations in the world and is successfully securing investment against the likes of India and China. In 2011, Everest Group found Poland to be the most mature offshoring location for investment across Europe. Over the past five years Poznan Agglomeration enjoyed rapid development in terms of outsourcing investment inflow and is now one of the fastest growing centres of this type in Poland. In 2007, the number of business service centres was less than ten. Wind the clock forward to today and that number has grown to over 30 representing a 300% increase over a five year term. In 2011 approximately 5.8% of the city s total employment was employed within the modern business service sector. The combined employment figures for Poznan agglomeration service centres was approximately 6300 with a forecasted jump to over 8000 by the end of Since 2008, companies located in the agglomeration delivered over 2700 new jobs. Firms operating in the modern sector of business services located within the agglomeration of Poznan and the surrounding area are presented in Table 1 (Source - UM Poznań). Table 1 No. Name of the centre Type Location 1 arvato services Polska BPO/ITO Poznań, Plewiska 2 Contact Center BPO/ITO Poznań 3 Holicon BPO/ITO Poznań 4 MAN Accounting Center SSC Poznań 5 Franklin Templeton Investments SSC Poznań 6 Roche SSC Poznań 7 Carlsberg Accounting Service Centre SSC Poznań No. Name of the centre Type Location 8 GSK Services SSC Poznań 9 McKinsey EMEA Shared Services SSC Poznań 10 Talex BPO/ITO Poznań 11 Bridgestone EBS SSC Poznań 12 itelligence BPO/ITO 13 Jerónimo Martins SSC Poznań 14 Business Consulting Center BPO/ITO 15 ZETO BPO/ITO Poznań 16 Dalkia Services SSC Poznań 17 Kennametal SSC Poznań 18 Ciber BPO/ITO Poznań Lorenz Snack-World Services IKEA Business Service Center SSC SSC Tarnowo Podgórne, Poznań Złotniki (gmina Suchy Las) Sady k. Poznania Poznań 21 Unilever Polska R&D Poznań 22 Grant Thornton BPO/ITO Poznań 23 Duni EFF SSC Poznań 24 Samsung R&D Poznań 25 Telcordia R&D Poznań 26 Wikia R&D Poznań 27 Mentor Graphics R&D Poznań 28 External Services BPO/ITO Złotniki 29 Grace R&D Poznań 30 Open Text BPO/ITO Poznań 31 HolidayCheck ITO Poznań 32 Sii ITO Poznań Over the past twelve months many new centres have opened in Poznan. Among them are a number of bluechip companies and household names including Sii, Samsung, Bridgestone, Jeronimo Martins and HolidayCheck. Furthermore the Office of Investor Services and Investment Promotion of the City of Poznan is currently facilitating a further 12 investment projects within the modern sector of business services. To date five of these projects have resulted in a positive decision to invest in the City. The Office of Investor Services also shows that the centres, which began operations in recent months, or are just planning to mobilise plan to employ at least 500 employees. Research carried out by CPL Market Flash at the end of the first half of 2012 among fifteen selected companies in Poznan (SSC/BPO/ITO) shows a clear declarative increase in employment which is in the region of 20%

5 Business services sector in Poznań / 2012 (compared to the current level of employment in one centre, which is developed in the Wielkopolska province at around 200 employees). This result represents a 5% higher rate in comparative terms to the increase declared for % of companies participating in the survey also said they intended to expand their range of language competence with Swedish and Finnish speakers topping the lists of requirements. The growth trend in demand is also noted for CEE language skills with 13% pointing to Czech and Slovak as the main priority. Within Wielkopolska voivodeship modern sector centres the most common language English; however in addition to this the second largest group of foreign speaking professionals require German and French competence. According to the feedback from surveyed companies, the share of languages is broken down as follows: English 80% German 38% French 16% Spanish 6.6% Portuguese 2.2% Italian 4.8% Russian 4.1% Netherlands 0.4% Finland 0.2% Norwegian 0.1% Danish 0.1% Chinese 0.3 % Japanese 0.2% Lithuanian 0.3% Turkish languages 0.2% REMUNERATION AND FINANCIAL EXPECTATIONS OF CANDIDATES In the case of business service centres we can extract four levels of roles, which inform the remuneration of employees: Junior Specialist: Expectations of candidates for junior role related to the modern services sector are at a similar level. Candidates in most cases do not need to have work experience nor education direction. The most important factors influencing the recruitment decision on the employment of a worker are: language skills, soft skills and a strong motivation to work. In terms of younger professionals experience in customer service or working in an international environment is desirable. Specialist: In the case of candidates for specialist roles financial expectations vary depending on the specialization. People working in accounting positions or help desk roles achieve higher wages than those working in Call Centre/ Contact Centre environments. Candidates within specialist roles must have a minimum of 1-2 years work experience in a similar role, direction and education and often experience in the modern business services is required. The expectations of candidates often require significant negotiation and discussion as part of the offer/acceptance process. The employer also expects candidates within the Finance space to have more advanced knowledge about the various accounting processes (AP, AR, GL). Equally for Help Desk positions additional certifications may be required (CCNA / CCNP, TCP / IP, Network +, MCSE). Senior Specialist: Senior Specialists must have several years experience (at least 4 years) and have had a focus on the development of the individual departments or processes. Team Leader / Manager: In the case of managerial roles language skills do not affect the level of remuneration. The most important ranked requirement was the role of professional competence and experience with knowledge of foreign languages generally regarded as an asset. In recent years there has been a visible change in the level of salaries and financial expectations of candidates. Analysis across the last two years of the modern business service centres in Poland, largely reflective of the Poznan market, accurately reflects the direction and scope for development in the industry. Below is a comparison of the requirements and expectations for different levels of positions over the years 2010 and 2012.

6 Business services sector in Poznań/ Financial expectations of candidates and offered rates in 2010 compared with 2012 were at a lower level. The reason primarily related to a reduced demand from employers and a smaller number of centres categorised as belonging to the modern sector of business services. Junior Specialist: Financial expectations of candidates can be divided based on the three language groups: Group I English: PLN gross Group II popular languages (German, Italian, French, Spanish, Portuguese, Czech, Russian, Lithuanian): PLN gross Group III languages niche (Finnish, Danish, Norwegian, Dutch, Swedish, Hungarian, Chinese, Japanese): PLN gross, the Finnish, Dutch, Chinese and Japanese are the most valued. Specialist: Oczekiwania finansowe kandydatów możemy podzielić w oparciu o 3 grupy Languageowe oraz poszczególne branże: Group I English: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Group II popular languages: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: gross Call Center: PLN gross Group III languages niche: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Senior Specialist: Financial expectations of the candidates are divided as in the case of Specialists: Group I English: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Group II popular languages: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: gross Call Center: PLN gross Group III languages niche: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Team Leader / Manager: Financial expectations of candidates can be divided based on the division of positions Team Leader/ Coordinator and Manager for Department or Process / Operations, and the individual sectors: Team Leader F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Manager F&A: more than PLN gross ITO/HelpDesk: more than PLN gross HRO: more than PLN gross Call Center: more than PLN gross A detailed listing of salaries, see Tables at the end of the report. (Source - analysis of CPL Market Flash).

7 Business services sector in Poznań / In 2012, the financial expectations of candidates and offered rates as compared to 2010 increased significantly, especially for those with foreign languages and again specifically for candidates with Finnish, Danish, Dutch or Norwegian competence. The wage increase also affected the dynamic development of the business services sector in Poland. Over the last 2 years Poznań, as well as other centres of offshoring and nearshoring services were enriched with new investments. Increasingly companies are offering extensive relocation packages, with candidates more mobile than ever. As a result, the competition for talent across the country and between cities has increased. However Poznan with its excellent geographical location places it among the most attractive places to not only attract investment but in terms of candidate relocation. Companies from the sector are becoming increasingly aggressive in the talent war with salaries reflecting this competition. Junior Specialist: Financial expectations of candidates can be divided into three language groups: Group I English: PLN gross Group II popular languages (German, Italian, French, Spanish, Portuguese, Czech, Russian, Lithuanian): PLN gross. Group III languages niche (Finnish, Danish, Norwegian, Dutch, Swedish, Hungarian, Chinese, Japanese): PLN gross, the Finnish, Dutch, Chinese and Japanese are the most valued. Specialist: Group I English: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Group II popular languages: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: gross Call Center: PLN gross Group III languages niche: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Senior Specialist: Group I English: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Group II popular languages: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: gross Call Center: PLN gross Group III languages niche: F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Team Leader / Manager: Team Leader F&A: PLN gross ITO/HelpDesk: PLN gross HRO: PLN gross Call Center: PLN gross Manager F&A: more than PLN gross ITO/HelpDesk: more than PLN gross

8 Business services sector in Poznań / 2012 HRO: more than PLN gross Call Center: more than PLN gross A detailed listing of salaries, see Tables at the end of the report. (Source - analysis of CPL Market Flash). Chart no. 1 46,9% 39,4% Comparison of salaries for the years 2010 and 2012 demonstrates that the greatest increase in wages is across positions requiring knowledge of a niche language - wages increased by up to PLN and in the case of specialist and senior posts a PLN increase was common. Wages of candidates speaking English only have increased approximately PLN (professionals) and 500 PLN (senior roles) respectively. BENEFITS AND SOCIAL PACKAGE Social benefits have increased their importance in tandem with the growth of the industry. The following is an analysis of changes that have occurred over the last 2 years: 2010 In 2010, business centre services offered basic benefit packages, which included mainly medical care, Sport or Multi card combined with the financing of language courses. As a consequence of the relatively low business density and specifically Poznań market saturation, the expectations of candidates rarely went beyond what was on the table at offer stage In 2012, feedback indicates increased candidate expectation in terms of basic salaries and benefit packages. In addition to an attractive salary, candidates also count on a rich attractive benefit package. This expectation now extends to medical care and funding for recreational and sporting activities, (employees now consider this standard), funding for learning foreign languages or to further education, relocation packages and discount tickets to cultural events are also listed as important factors in delivering a positive acceptance outcome. The most desired benefits are shown in Chart no. 1 (survey carried among candidates by CPL Market Flash, I-VI, 2012). Medical care 9,9% Life insurance Trainings / Language trainings This increase in the expectations of employees is directly linked to the development of the market and increased competition (local and national), with candidates consistently tempted by a growing list of non-wage benefits. Companies in the local market of Wielkopolska increasingly declare the need for workers with specific skills who most likely can be found abroad or from another region. It is clear from the surveys conducted by CPL Market Flash among people applying for work in the field of new business services that almost 47% of respondents are open to relocation. In terms of this group of candidates relocation package often turns out to be the determining factor for acceptance of the offer submitted.an alternative to the more costly benefits include: Assistance in finding housing and in the case of candidates from other countries help in administrative matters (visas etc); Access to a real estate agency that offers housing; Chillout rooms; Sponsorship/refunding of tickets; Lunches vouchers or subsidies for meals; Internal training. 24,9% The bonus system 7,3% Laptop / Mobile phone Assistance in finding accommodation 17,8% 17,6% Funding for sporting activities 8,6% Discount tickets to cultural events

9 Business services sector in Poznań / 2012 EMPLOYEE SATISFACTION Employee job satisfaction a few years ago mainly related to long term employment, financial stability and medical care (insurance). In the current competitive market and in particular the struggle for quality candidates, decreasing job satisfaction and turnover of staff is becoming a real problem for employers. It would appear some corporations report resorting to quite radical solutions such as exclusivity contracts and limitation clauses within contracts for employment. However this is deemed a temporary solution as the approach can damage brand reputation and candidate perception. Chart No. 2 presents the factors, which in the opinion of the candidates rank subjective job satisfaction. (Survey results, survey carried among candidates by CPL Market Flash, I-VI, 2012). SUMMARY The development of modern business services growth has brought not only increase in the salaries of workers employed in the sector (BPO/SSC/ITO) but has also influenced the increasing importance of the package and additional benefits offered to candidates. It is indisputable that a company s relocation package policy will gain more candidate importance when planning headcounts, especially in view of the projected increase in demand for professionals with niche language competence in particular Swedish or Finnish. Availability of professionals who possess niche language skills is small, so recruitment strategies will focus mainly on attracting candidates from other locations, including from abroad an international talent mobility strategy will become increasingly important as the market continues to grow. Chart No. 2 70,4% 52% 56,7% 46,8% 43,5% 23,7% Good working atmosphere Hihg salary Attractive social package Trainings Employee s reputation Development opportunities

10 Business services sector in Poznań / 2012 TABLES 2010 Language ACCOUNTANT - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian Language CALL/CONTACT CENTRE AGENT - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian

11 Business services sector in Poznań / Language ITO/HELPDESK - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian Chinese Japanese Language HRO - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian

12 Business services sector in Poznań / Language ACCOUNTANT - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian Language CALL/CONTACT CENTRE AGENT - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian

13 Business services sector in Poznań / Language ITO/HELPDESK - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian Chinese Japanese Language HRO - salary in PLN gross Junior Specialist Senior Team Leader Manager English German French Spanish Italian Portuguese Dutch Swedish Norwegian Finnish Danish Czech, Slovakian Lithuanian Hungarian Turkish Russian

14 Authors: Magdalena Pałczyńska Team Leader (Multilingual, SSC & BPO) E: Katarzyna Witak Senior Recruitment Consultant Team Leader E: Magda Sienkiewicz Marketing Coordinator E: CPL JOBS IN POLAND Al. Jerozolimskie 81, Warszawa T: E: ul. Józefa Piłsudskiego 13, Wroclaw T: E:

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