Human resource management in the context of dynamic changes on polish labour market

Abstract

The state of Polish labour market has changed dramatically since Poland’s entrance to the European Union. Falling unemployment rate, labour shortages, and sharply rising wages create new challenges for companies’ human resources management departments. Key employee retention is vital to the long term success of the fi rms. There is a need for more active and creative recruitment, motivation, and communication techniques. It is much more expensive to recruit a new employee than it is to retain one. An implementation of succession planning is important in order to reduce risk of losses induced by a lack of qualifi ed workers. In these new circumstances pay schemes should me made more fl exible, and should be linked more closely with worker’s individual performance and achievements. Employee retention strategies however should include not only competitive salary and bonuses, but also nonmonetary factors such as: career-development opportunities, training, workers’ involvement programs, steady work, and comfortable working conditions, which may increase job satisfaction signifi cantly when a pay budget is limited.