Financial view on 2023 labour market
Pavol Nagy CEE Finance Director, Cpl & Covalen pavol.nagy@cpl.ie
In 2023 global economic activity will experience a broad - based and sharper - than expected - slowdown in the CEE region, with inflation higher than seen in several decades. The economic crisis that started in 2022 - reflected in the rising cost of living, tightening financial conditions in most regions, Russia’s invasion of Ukraine, and the lingering COVID-19 pandemic - all weigh heavily on the outlook for the whole of 2023. Global growth is forecasted to slow from 6.0 percent in 2021 to 3.2 percent in 2022 and 2.7 percent in 2023. It will cause businesses will struggle financially for some time. Quality instead of quantity Businesses today must implement cost-effective hiring strategies. Leaders will have to figure out how their processes must change and what skills they need. Solving this factor right quickly is critical to surviving post-pandemic recruitment. It is very important to find quality in recruitment processes instead of quantity. Here, paraxially, companies should focus on outsourcing services - to entrust recruitment into the hands of professionals who will help us in the well-needed talents for the organization. Thanks to this, they will avoid the costs of unsuccessful recruitment processes and maintaining additional jobs within the organization.
Good planning is key in 2023 All departments in company should work in synergy and forecast budget realistically. Important to understand incoming projects, take into consideration all risk factors, plan into turnover forecast. If we plan well, at least 90% of projects we should provide our organization with relative financial stability in these uncertain times. In current market situation every mistake - such as overstaffing, cash-flow issue, unnecessary spending, attrition of key employees - can be crucial in company's performance. In 2023 it will be very important for each company to fully prepare for hiring in the future. It is a must to have a proper recruitment plan followed by lining up the best talent to fill future roles. In hard economic times there are two primary reasons why businesses fail: lack of proper planning and problems with leadership.
The recruitment battle for the greatest talent is already intense and in 2023 it is likely to escalate as investment into senior, experienced employees could show crucial to improve company’s performance within current tough financial times. Looking at the current situation on labour market companies must realize that their best investment is investing into overall employee’s satisfaction. All this to limit employee turnover and keep talents within the organization for as long as possible.
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CEE Salary Guide 2023