Frozen labor market: Workers avoid risks and seek fewer raises

The Polish labor market is showing signs of stagnation, with employee turnover at its lowest point since late 2017. This trend, detailed in Randstad Polska's latest "Monitor Rynku Pracy," suggests that employees are staying in their current roles not out of contentment, but due to a pragmatic assessment of the risks involved in seeking new employment.

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For years, low turnover was a reason for HR departments to be proud; we interpreted it as proof of people's commitment to the company. Today, this same indicator must be read more cautiously, because beneath the surface of apparent stability, there is sometimes resignation. People stay not because they want to, but because they see no alternative.

Joanna Kolasa, HR Consultancy manager at Randstad Polska, noted that while low turnover was once a point of pride for HR departments, it now signals a potential undercurrent of resignation. Employees are opting for the perceived security of their current positions because they see limited alternatives in a more challenging job market.

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This is one of the lowest results in the history of our survey. The decline in turnover is not due to employees being fully satisfied with their current positions, but rather due to pragmatism and risk calculation.

Magdalena Tołubińska, a communications specialist at Randstad, highlighted that the decline in job changes is a result of employees calculating risks. The average time to secure a new job has climbed to 4.5 months, a record high and over a month longer than in the previous year. This extended job search period particularly impacts individuals aged 50 to 64, who now take an average of 8.7 months to find employment, and those with higher education, who require about six months.

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In the face of a more difficult and demanding market, employees prefer security and stability in a place they already know.

Daria Seklecka, a manager at Randstad Polska, explained that employers are also becoming more cautious, conducting more thorough talent assessments and extending recruitment processes to mitigate risks. Consequently, a significant 43% of respondents remain uninterested in changing jobs, a slight increase from the previous year, while the proportion actively seeking new employment has decreased.

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The situation becomes even more difficult for people aged 50 to 64, who look for employment for as long as 8.7 months, or for individuals with higher education, who need an average of six months to find new work.