GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES

Transcription

1 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES HOW TO PREPARE FOR THE CREATION OF A NEW BUSINESS SERVICE CENTRE? HOW TO FIND LOCATION THAT POSITIVELY IMPACTS EMPLOYER BRANDING? WHICH SHOULD BE CONSIDER WHEN CHOOSING OFFICE SPACE TO SUCCESSFULLY ATTRACT AND RETAIN TALENT? HOW DO MARKET TRENDS INFLUENCE THE OFFICE MARKET IN POLAND? STRATEGIC PARTNERS MEDIA PARTNERS

2 CONTENTS INTRODUCTION 4 THE OPTIMAL LOCATION FOR YOUR OFFICE THE CENTRE OF ATTENTION MACRO LOCATION 6 BUSINESS TAILOR-MADE FOR EMPLOYEES MICRO LOCATION 8 RENTING & PREPARING FOR THE MOVE OFFICE REQUIRED IMMEDIATELY! 10 DO WE HAVE A PROJECT MANAGER? 12 RECRUITMENT EMPLOYEES REQUIRED JOB DESCRIPTIONS 14 EMPLOYER BRANDING AND UNIQUE EMPLOYER VALUE PROPOSITION 16 FLEXIBILITY PROBLEMS WITH RECRUITMENT 18 PLANNED RECRUITMENT CASE STUDY 20 LEGAL ASPECTS OFFICE WANTED AGREEMENT & RENT 22 BUSINESS ACTIVITY IN POLAND 24 INVESTMENTS WANTED INCENTIVE POLICY 26 EMPLOYMENT AGREEMENT, REMUNERATION, RESPONSIBILITIES 28 NEW STANDARD: THE FRIENDLY OFFICE OFFICE FOR SPECIAL TASKS 30 THE OFFICE AS A MAGNET 32 SEVERAL GENERATIONS IN ONE OFFICE 34 CREATING THE PERFECT OFFICE SPACE 36 WELL-BEING AN OFFICE WITHOUT SICK LEAVE 38 NATURE ENTERS THE OFFICE 40 OPEN ALL HOURS CASE STUDY 42 Raport 3

3 INTRODUCTION Business Service Centres are developing rapidly in Poland with international companies increasingly keen to outsource advanced business processes to Polish companies. Four main sectors are predominant: Business Process Outsourcing (BPO), Shared Services Centres (SSC), IT Centres and R&D Centres. Across 40 Polish towns and cities, there are currently over 1000 Polish and foreign business service centres in operation, employing altogether around employees. If the current growth rate continues, this figure will reach 300,000 by At present Warsaw boasts the highest number of companies in this sector, but other leading cities include Kraków, Wrocław, Poznań, Katowice, Łódź, the Tri-City (of Gdańsk, Gdynia and Sopot), as well as smaller cities like Rzeszów and Lublin. Companies looking to cut costs and strengthen their market position from large corporates to small businesses can see the value of these centres. As many as 73 companies from the 2015 Fortune Global 500 list maintain their service centres in Poland. Modern business services must adapt to the everchanging economic environment and constantly changing priorities of their clients. That means offering office space that is versatile, optimal from a range of perspectives including recruitment, employer branding and talent retention. Offices with modern interior design and functional layouts represent a competitive advantage as they provide staff with an attractive, efficient space for teambuilding, individual work, and recreation. For today s employee, the workspace has become as important as salary levels. And modern business services must also use advanced technologies effectively, to boost the functionality of the office. Companies operating in the modern services sectors aim for intelligent office design. A central location is not all that important: of much greater significance is convenient commuting and employer-friendly technological solutions. CUSHMAN & WAKEFIELD AND HAYS POLAND ARE COOPERATING WITH A WIDE VARIETY OF ORGANISATIONS AND SUPPORTING THEM IN MAKING THE RIGHT BUSINESS DECISIONS. CLOSE COOPERATION WITH OFFICE TENANTS AND EMPLOYERS OVER MANY YEARS HAS ALLOWED US TO ACQUIRE THE IN-DEPTH EXPERIENCE AND BEST PRACTICES ESSENTIAL FOR CREATING NEW CENTRES IN POLAND. WE HAVE ALSO INVITED HB REAVIS AND BENE WARSZAWA TO SHARE THEIR EXPERTISE. HB REAVIS IS A FULLY INTEGRATED DEVELOPER, OFFERING UNIQUE SOLUTIONS ON THE REAL-ESTATE MARKET AND BENE WARSZAWA IS ONE OF THE LEADING COMPANIES IN THE EUROPEAN OFFICE FURNITURE INDUSTRY SPECIALISING IN THE DESIGN AND FURNISHING OF INSPIRING AND CUSTOM- TAILORED OFFICE AND WORKING ENVIRONMENTS. Opening an office of a business services centre is not a simple process. It involves a series of complex steps that include selecting the optimal legal form for the business, choosing the right space and employing productive staff This study identifies the biggest challenges that companies intending to set up in Poland will face. How to prepare for the opening of a new business service centre? What location to choose? How to build an attractive employer brand, and recruit and retain great talent? What current trends are affecting the office space market in Poland? To find out read on! Cushman & Wakefield is a global leader providing advisory services in the commercial real estate market. We help our clients identify and align strategic business, financial, and operational objectives with their office space requirements, which is especially important for BPO, SSC and IT companies intending to move their operation to Poland. As well as standard advisory services and tenant representation, our services include: development strategy, build-to-suit, demographic analysis, logistic solutions, market analysis, cost analysis, negotiation services, project management, property management and real estate lease. Hays Poland is an HR advisory company, part of the Hays plc international group, listed on the London stock exchange. It is the largest company in the world for specialist recruitment, operating on the recruitment market for almost 50 years and we currently run 240 offices in 33 countries. In 2002, we opened our first office in Poland and since then we have strengthened our position here, becoming the unquestioned leader in specialist recruitment. We offer services in: specialist recruitment, HR advisory, Outplacement, Executive Search, Recruitment Process Outsourcing, IT Contracting, Temporary Recruitment and Interim Management. We provide services for both the private and public sectors with projects involving employment contracts, temporary work and contractual work. We are fulfilling our mission of POWERING THE WORLD OF WORK by providing professional services adapted to the needs of the Client, finding the most highly qualified experts in any given area. 1 ABSL Report: The Sector of Modern Business Services in Poland 2017, June GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 5

4 THE OPTIMAL LOCATION FOR YOUR OFFICE THE CENTRE OF ATTENTION MACRO LOCATION A desirable, productive office will be in the right location. For some businesses, a prime location is best. But for others, an off-prime location has its advantages. It is generally assumed that a prime location means a central location, which has direct connections to other parts of the city and the airport, as well as access to public transport and motorways. Prime location also means an office that is close to high-quality shopping centres and hotels, and comes with a prestigious, easy-to-remember address. A centrally located office building is not always what the tenant is looking for, however. Although law firms, consultancies and many financial companies demand a central location and a prestigious address, other companies, including many start-ups, may want to avoid expensive locations in order to contain their costs and maintain competitive prices on their products or services. Food companies, for example, operate on low margins and low overheads, which include rent. Pharmaceutical companies want to be seen to be investing in research, not spending on expensive real estate. Non-prime locations may also appeal to mobile sales divisions that need access to an expressway and more parking space than a prime, central location can offer. Centrally located offices are often sought after, but not by all tenants and investors. Office space for modern business service centres is increasingly being developed in less prestigious parts of the city and therefore is significantly less expensive than company headquarters. They do not need to be particularly imposing as they are not often visited by clients but should be attractive enough to allow successful recruitment and maintain team stability. IN OUR DAILY CONTACTS WITH TENANTS FROM THE BUSINESS SERVICES SECTOR WE EMPLOY SEVERAL APPROACHES TO DETERMINE THE APPEAL OF A BUSINESS LOCATION. THE MOST BASIC OF THESE IS AN ANALYSIS OF THE EMPLOYEES POSTAL CODES TO CREATE A MAP SHOWING COMMUTING TIMES FROM VARIOUS LOCATIONS. ANOTHER APPROACH IS TO COMPARE THE CURRENT LOCATION OF COMPETITOR COMPANIES WITH THEIR PREVIOUS LOCATIONS, IN ORDER TO IDENTIFY TRENDS. CUSHMAN & WAKEFIELD S REGULAR REPORTS ON CURRENT TRENDS IN OFFICE REAL ESTATE ELABORATE THIS THEME. When evaluating an office location, it is also important to consider upcoming events in the period following the potential move. Road works, depending on their extent and duration, can hinder access to the office and prolong commuting times. The construction of several phases of a business complex in the immediate area would cause many months of disruption. In recent times, many modern service centres have opened up in Warsaw to serve companies in the legal, real estate and business services sectors. Companies such as Dentons, Linklaters, CreditSuisse and Goldman Sachs carefully analysed the market and business environment before deciding upon the location for their headquarters. They chose Warsaw because of its excellent human capital, Poland s rising position in the world economy, the capital s convenient location and its broad selection of competitive office space. It should be noted that all the centres mentioned placed offices in the most rapidly developing part of the city - where Śródmieście and Wola meet. This is a clear signal that the heart of the business district is moving west. JP Morgan is another important tenant considering the capital for their new offices. In their case, the decision to move their offices from London to Warsaw was brought about by Brexit. Warsaw long ago joined the list of the most attractive locations for business and, according to prestigious tenants, is a good alternative to other European cities. Piotr Capiga Associate Cushman & Wakefield Piotr.Capiga@cushwake.com 6 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 7

5 THE OPTIMAL LOCATION FOR YOUR OFFICE BUSINESS TAILOR-MADE FOR EMPLOYEES MICRO LOCATION When creating a new business services and selecting a specific location, it is a good idea to consider the implications for employee recruitment. Location is one of the key success factors: Are there any competitors active in the vicinity? Are there tertiary educational institutions providing the required training? Are there external partners who could help develop the necessary structures? For the modern business services sector, the availability of educated, experienced candidates is an important consideration. Many people who find employment in business services centres are college graduates. So, investors who plan to hire young employees should direct their attention to university towns offering broad educational opportunities. Furthermore, investors can motivate colleges to modify their curriculum to suit the sector s needs. Depending on the kinds of processes that will be implemented at the new centre it may be important to reach potential employees with more extensive experience, candidates who possess appropriate qualifications and skills such as knowledge of foreign languages, programming or Six Sigma management methods. In this context, it helps if companies with a similar profile are already active in the area as they can be a source of experienced staff. The presence of competitor firms can in fact be a major advantage. It is worth emphasizing that a number of smaller cities are rapidly broadening their offer at the present time, becoming much more attractive to businesses by providing excellent infrastructure and qualified candidates. For new investments this means savings, both in terms of labour costs and office rental costs. Another aspect to be considered by the investor is the choice of a particular office within a given city. The rapid expansion of the business real estate market means there is ample opportunity to compare and contrast, be it in the centre or in one of the outer suburbs. What matters is not just the location but the standard of the office building as well as the level of technical infrastructure provided. LOCATION HAS TAKEN ON A NEW DIMENSION OF MEANING, AS SOMETHING TO BE CONSIDERED NOT JUST IN TERMS OF DISTANCE TO THE TOWN CENTRE, BUT PRIMARILY IN TERMS OF ACCESS TO PUBLIC TRANSPORT AND THE MAIN TRANSPORT HUBS. MORE AND MORE EMPLOYEES ARE GIVING UP ON TRAVELLING TO WORK BY CAR, THEREBY AVOIDING TRAFFIC JAMS AND THE PROBLEM OF LOOKING FOR SCARCE PARKING SPOTS. IN EFFECT, IF THE COMPANY PROFILE DOES NOT CALL FOR A LOCATION IN THE VERY CENTRE OF THE CITY, MANY INVESTORS CHOOSE A LOCATION THAT IS FURTHER OUT BUT THAT IS NONETHELESS EASY TO GET TO QUICKLY.. Investors often prefer a location which is away from the centre of town but which are nonetheless easy to get to quickly. This trend is evident in Warsaw, with the growing popularity of areas near railway stations such as Dworzec Gdański and Warszawa Zachodnia, as well as in Wrocław where new office buildings have been built in the vicinity of the Dworzec Główny and Wrocław Mikołajów stations. Agata Piątek Business Services National Practice Head Hays Poland Piatek@hays.pl 8 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 9

6 RENTING & PREPARING FOR THE MOVE OFFICE REQUIRED IMMEDIATELY! Moving into a new office is challenging. However, by preparing for the move properly you can help ensure that it goes smoothly and efficiently. This will benefit everyone involved directly or indirectly with the process - and most importantly the tenant - both in tangible and intangible ways. It is a good idea to start with a timeline for the move, one that details the key dates and the duration of the search. The timeframe required for finding a small office for a minor organization or a local entity will be shorter than the timeframe required for a global entity to find thousands of square meters for a country headquarters. Before agreeing a date to begin the search for a new office, an in-depth inventory of the company s requirements should be completed, preferably by a project manager who has knowledge of the local real estate market and experience with projects of this kind. Joanna Blumert Business Development Manager Cushman & Wakefield Joanna.Blumert@cushwake.com 1THE FIRST STAGE INVENTORY OF REQUIREMENTS Requirements include not just the office s location but also staffing needs, the quality standard of the building and the amount of workspace, as well as communication/ IT links and ancillary facilities. An analysis of these requirements will involve many parties, including representatives of the management, finance personnel, human resources and IT specialists. These parties must co-operate and take into account the needs of all business lines, business development plans and the expectations of all levels of management and staff. 3 THE THIRD STAGE FINISHING THE OFFICE SPACE The time need to complete this stage depends upon the amount of space being rented. Offices that occupy only a few dozen square metres can take from four to six weeks to complete the finishing stage, whereas a move to a space of several thousand square metres will take a few months. It should be noted that the tenant will be able to commence finishing work only after the lease agreement has been signed and the security deposit paid. This stage is extremely important when it comes to formulating the timeline of the project. 4 THE FOURTH STAGE MANAGING THE MOVE One might think that once the hand-over documentation is signed, the process of looking for an office is over. And in a sense, that is true. The project, which may already have taken months, could be deemed complete at the moment the property is handed over - were it not for the human factor. Moving into new offices should be as smooth as possible for the company and its employees. That is why it is becoming common for the project timeline to include management of the move, which involves helping the employees prepare for the relocation and start work at the new locale as well as managing all the resulting changes. 2 THE SECOND STAGE THE SEARCH AND NEGOTIATIONS The next stage is to identify properties that satisfy the above requirements and then send out requests for proposals. These negotiations should include, apart from financial considerations such as rents and deposits, such issues as interior design and finishing as well as the hand-over date. At what stage should the parties begin talking about these issues? The principle is simple the sooner the better. Spelling out requirements at an early stage will help avoid unpleasant surprises later on and save time for all business partners involved in the process. Talks regarding specific issues such as financial considerations, the standard of the interiors, the date and manner of the hand-over, and the costs of preparing the office space should ideally be carried out simultaneously by project teams whose work is co-ordinated by the project manager. WHAT MAKES A GOOD PROJECT TEAM? WHO SHOULD BE INVOLVED IN THE SEARCH FOR THE PROPERTY, ITS DESIGN, FINISHING AND THE MOVE TO THE NEW LOCATION? SEVERAL SOLUTIONS ARE AVAILABLE TO TENANTS. THE FIRST OF THESE IS TO ENGAGE THEIR OWN RESOURCES AND USE THE EXPERIENCE AND ABILITIES OF THEIR OWN STAFF. ANOTHER APPROACH IS TO RELY PARTIALLY ON THEIR OWN STAFF BUT BE GUIDED BY THE EXPERIENCE, KNOWLEDGE AND ENERGY OF EXTERNAL CONSULTANTS. MORE AND MORE TENANTS, HOWEVER, ARE OPTING TO OUTSOURCE THE PROCESS TO A SPECIALIST FIRM. THIS APPROACH IS PREFERRED BY COMPANIES IN THE MODERN BUSINESS SERVICES SECTOR; THE TENANT IS INVOLVED ONLY AT KEY MOMENTS IN THE PROCESS. OUTSOURCING THE PROCESS TO SPECIALIST FIRMS WILL MINIMISE TENANT INVOLVEMENT AND SHORTEN THE TIME NEEDED TO COMPLETE THE INDIVIDUAL STAGES OF THE PROCESS. 10 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 11

7 RENTING & PREPARING FOR THE MOVE DO WE HAVE A PROJECT MANAGER? The preparation of a new office is a multifaceted process involving many people and numerous decisions. It is essential that it be systematic, and ordered according to deadlines specified in the project plan. Project management methodology plays a critical role. The project manager s job is to prepare the outline of the process, define roles and provide periodic checks on the progress made by the project team. Time, costs, risks and business viability are all variables the manager must always bear in mind. In addition, depending upon the particulars of the project, it may be necessary to call on specialists in construction law, architecture, and building infrastructure, such as plumbers and electrical engineers. For this reason, project managers rely increasingly on the assistance of external partners experienced project management departments that are part of real estate agencies. The project manager should be involved in the process right from the start, from the stage of choosing the property and assessing the developer s finishing standards for the space on offer. Evaluating the quality of the materials used in the building and the cost of finishing the office are key steps that help determine the value of the property in terms of rent. Of equal significance is the evaluation of the overall physical state of the building particularly if the tenant is moving into an existing office block With new-build schemes, it is worth paying particular attention to the technology used in the ventilation and airconditioning systems. Quite often, failure to consider these issues leads to numerous complaints from the occupants soon after their move. Preparing and updating the timetable is a key task for project management personnel. A good action plan makes it possible to determine the current stage of the project and to identify any potential problems. An experienced project management team will assist with gathering and analysing the relevant data. During the project, the team will suggest steps to take and ways to avoid problems as well as pointing out what still needs to be done. Effective communication and the exchange of information is also a key task for the project manager. Regular meetings allow all parties involved to monitor the process and provide an opportunity to exchange information with teams specialising in information technology, finance and human resources. MOST DEVELOPERS ALSO OFFER TURNKEY SOLUTIONS COVERED BY A WARRANTY WHOSE PERIOD IS USUALLY LONGER THAN THE LEASE PERIOD. THE GREAT ADVANTAGE OF THIS OPTION IS THAT RESPONSIBILITY FOR THE WORK AND ANY FUTURE FAULTS COVERED BY THE WARRANTY LIES WITH A SINGLE ENTITY. THE DOWNSIDE IS THAT THE DEVELOPER USUALLY CHARGES A FIVE TO TEN PER CENT MARGIN FOR CO-ORDINATING THE WORK. Owing to the need to verify the costs and the scale of the investment, the cost estimator is a key member of the project team. This individual must be familiar with the market and the prices of building and finishing materials. A detailed inventory of the prices of materials and services, which constitute the main cost, can provide a valuable resource in later negotiations with the developer. The cost estimator is also responsible for quantity surveying as well as comparing the architectural project estimates with the cost estimate. This inventory can help to lower the costs by up to thirty per cent. THE SUPPLIERS PREFERRED BY DEVELOPERS, AND THE MATERIALS AND PRODUCTS THESE SUPPLIERS RECOMMEND, DO NOT ALWAYS MEET THE STANDARDS REQUIRED BY THE CORPORATE CLIENT. THEREFORE, USING A CONSULTANT WHO, OWING TO THEIR KNOWLEDGE OF THE MARKET, IS ABLE TO SUGGEST ALTERNATIVES THAT ARE COMPARABLE IN PRICE OR EVEN CHEAPER THAN THE DEVELOPER S RECOMMENDATIONS, IS ADVISABLE. Commissioning construction is another key step for the project team and their manager. The relevant requirements should be set out in the lease agreement and should spell out how and on what conditions the hand-over is to take place. Commissioning covers four main areas: information technology, electrics, sanitation and construction. The last category is the most important to verify. Faults such as scratched walls, faulty décor or wall paint that does not match the design, damaged doors, or missing bits of floor or ceiling are all easy to spot. In the case of the information technology, electrical and sanitation installations, it is necessary to carry out random tests and compare these results with those expected by the developer. Timetable Hand-over Selection of building, assessment of standards and physical state Cost estimate 12 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Marcin Golly Associate Director Cushman & Wakefield Marcin.Golly@cushwake.com Aleksander Szybilski Workplace Strategy Consultant Cushman & Wakefield Aleksander.Szybilski@cushwake.com Raport 13

8 RECRUITMENT EMPLOYEES REQUIRED JOB DESCRIPTIONS Before opening a modern services centre, clearly define the profiles of the right employees for the centre, including the kind of experience and abilities they should possess. This will make it possible to analyse the local labour market and chose the appropriate recruitment tools. It will also make it easier to prepare the best employer branding strategy, which is particularly significant for companies that are new to the market. The key issue is the actual range of processes that will be serviced by the business services centre and the range of competencies that will be required to deliver them. Lists of ready descriptions of various positions are generally available and companies often have their own materials. It is not a good idea to simply use existing documents without further consideration of their content. Even though it takes time to put together a job description, it is worth putting that time in. The proper definition of responsibilities greatly simplifies the recruitment process. An accurate description makes it easy to clearly determine the profile of the sought-after candidate and minimizes the risk that the recruitment process will run over time, as happens when the candidate profile is only verified during recruitment. A good job description also more quickly reaches the right candidates, and speed is often the decisive factor in successful recruitment, especially in a highly competitive market. Familiarity with the scope of responsibilities also allows the employer to highlight the most interesting aspects of the job offer, thereby encouraging the participation of candidates who are not otherwise seeking a new employer. It is easier to meet employee expectations when the employer is in possession of precise information regarding the proposal. Candidates want to talk about specifics and an offer that stands out draws more attention to itself. PROPER ANALYSIS OF POSITIONS AND PREPARATION OF JOB DESCRIPTIONS ENABLES FASTER DECISIONS IN THE RECRUITMENT PROCESS AND DECREASES THE LIKELIHOOD OF ERRONEOUS CANDIDATES SELECTIONS. THIS PREPARATION ALSO HELPS TO AVOID PROBLEMS DURING RECRUITMENT, THEREBY POSITIVELY IMPACTING THE COMPANY S IMAGE AS AN EMPLOYER. ALL THIS IS OF GREAT SIGNIFICANCE NOT JUST AT THE STAGE OF THE CREATION OF A NEW SERVICES CENTRE BUT, ALSO, IN THE FUTURE. A detailed job description also facilitates consistent communication through all the various stages of recruitment. This is of great importance to the company s employer branding strategy. If the offer is presented in the same manner throughout the entire process and the staff participating in interviews possess complete information, the candidates will view the employer as reliable and competent. If it turns out after the candidate starts their new job that the scope of their responsibilities is not the same as presented during recruitment, or if their skills do not in fact match the requirements of the job (e.g. no opportunity to make use of a foreign language or being given tasks that are too simple) then disappointment and frustration can be the result, leading to increased staff turnover for that particular position as well as contributing to a negative perception of the company in the market. Katarzyna Nowak Talent Acquisition Consultant Hays Poland Knowak@hays.pl 14 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 15

9 RECRUITMENT EMPLOYER BRANDING AND UNIQUE EMPLOYER VALUE PROPOSITION An employer s image and reputation are key elements impacting the success of a new business service centre. Candidates are only too keen to exchange information about companies, so to improve the company s standing, recruitment must be conducted professionally and the employer s offer should stand out from the crowd. The job itself is most important in a candidate s choice of employer. However, we increasingly observe that a modern, attractive office is a decisive consideration for candidates, especially in the case of the youngest generation of employees. Companies are aware of this and try to arrange their work space in such a way that it serves as a competitive advantage during the recruitment process. Meeting employee needs brings enormous benefits, not just in terms of personnel and employer branding but also in direct financial terms. Satisfied employees are more engaged, independent and happy with their professional life. A strong brand places the company among ideal employers and helps the recruitment and retention of talent. The modern business services sector is setting the trends for developments in the workplace to serve the needs of employees. However, real and effective employer branding takes time. Development of employer brand cannot just be based upon the company s aspirations but must have a basis in the genuine ability to keep promises made. At the same time, the struggle to acquire talented employees is one of the main challenges facing companies. To recruit and keep the best staff, employers must ensure their Employee Value Proposition a proposal justifying why their company is worth working for and developing one s career within. The values of the company, with which the employees should identify, also help to maintain a high level of engagement and client service. What should the Employee Value Proposition be like? It should be attractive, real, and credible and what is most important unique. A properly defined EVP should help answer the question: Why would the target candidate choose that particular company s job offer? On the one hand, the values must be consistent with company communication, on the other they should be visible in the company s actions and in the behaviour of the management and employees. How can employers from the modern business services sector attract talent? Remuneration is definitely not enough. For employees, it is extremely important to have the opportunity to develop, to acquire knowledge and experience, to influence the running of the company and to have a good working atmosphere with cordial relationships. THE DYNAMIC DEVELOPMENT OF THE MODERN BUSINESS SERVICES SECTOR HAS MEANT THAT EMPLOYERS NEED TO COMPETE FOR WORKERS BOTH THOSE WHO ARE NEW TO THE EMPLOYMENT MARKET AND THOSE WHO HAVE EXPERIENCE AND ARE LOOKING TO CHANGE EMPLOYER. WHAT IS MORE, YOUNGER GENERATIONS ARE APPEARING ON THE EMPLOYMENT MARKET AND THEY ARE AMBITIOUS, SELF-CONFIDENT AND WELL- AWARE OF THEIR ABILITIES. THESE ARE PEOPLE WITH INITIATIVE THAT HAVE DEFINITE REQUIREMENTS. TO MEET THEIR EXPECTATIONS, EMPLOYERS MUST COMPETE NOT JUST IN TERMS OF SALARIES, BUT ALSO BY OFFERING DEVELOPMENT OPPORTUNITIES AND WORK SUITING INDIVIDUAL PREFERENCES. Candidates, especially those from Generation Y, perceive great value in their participation in the development of organisational structures and in the implementation of processes. The opportunity to obtain unique professional experience is highly valued. Candidates expect that the company they join will provide them with interesting challenges, a dynamic work environment and contact with people from other cultures. A new employer is viewed as an opportunity for advancement as well as the opportunity of participating in interesting, ambitious development projects. Firms are becoming better at meeting these kinds of expectations. For example, some centres no longer organise specialised expert teams responsible for cost optimisation or quality improvement. Instead, they engage the whole team in these processes. This means every employee has the chance to present their ideas on how to improve company efficiency and to then participate in the implementation stage. Another consideration that can tilt the balance for potential employees regarding an employment offer from a particular centre is the company culture. Open communication, a good atmosphere, a partnership approach to management, training opportunities these are all things that employees value highly. The formula to draw on comes from Scandinavian companies, famous for their attention to employee relations. For many people non-financial benefits are also still very important. Most centres offer health care for their employees, a sports-centre pass and life insurance. It is also quite common to see language courses, lunch vouchers, discounts on goods and services as well as commuting costs all being co-financed by the company. The increasingly popular cafeteria system helps to manage benefits, and it also serves as a repository of idea and enabling employees to individually pick the benefits they wish to avail themselves of. AN INTERESTING BENEFIT OFFER THAT MEETS THE INDIVIDUAL NEEDS OF EMPLOYEES CAN BE CRUCIAL TO HOW THEY PERCEIVE AN EMPLOYER S OFFER. PRIVATE MEDICAL CARE IS OF THE GREATEST SIGNIFICANCE TO EMPLOYEES. ALSO OF GREAT IMPORTANCE IS FLEXIBLE WORK ARRANGEMENTS. EMPLOYERS WHO HAVE NOT PREVIOUSLY HAD SUCH SOLUTIONS, SHOULD CONSIDER THEM FOR AT LEAST SOME OF THEIR WORKERS. MOST OFTEN FLEXIBLE WORK ARRANGEMENTS MEAN THE ABILITY TO BEGIN WORK WITHIN SOME GIVEN PERIOD OF TIME. Other new solutions are appearing including: dental cover, the option to purchase shares in the company at reduced price, the co-financing of holidays, cinema, theatre and concert tickets, flexible working hours and spacious offices with a relaxation area or game room. Anna Czyż Executive Manager Hays Poland Czyz@hays.pl 16 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 17

10 RECRUITMENT FLEXIBILITY PROBLEMS WITH RECRUITMENT When defining the profile of prospective employees, it is well to prepare for possible problems in obtaining the right candidates. Today s is an employee market as far as skilled staff are concerned. Consider which of the requirements are not essential and which skills could in fact be developed through training. This will help with meeting recruitment deadlines and finding the right number of employees without affecting the quality of the processes to be carried out. One of the most important steps in planning a large recruitment process is risk assessment. Every largescale recruitment process carries many threats for the project. Early identification of these and a plan to counteract them will help to avoid delays. The best moment for this kind of analysis is the very beginning of the project, even before a recruitment agency has been hired. CONSULTANTS FROM THE RECRUITMENT AGENCY WITH EXPERIENCE OF LARGE-SCALE RECRUITMENT CAN ADVISE AND PRESENT THE MAIN POTENTIAL PROBLEMS FOR THE PROJECT AND DRAW ATTENTION TO LOCAL FACTORS. THEY CAN HELP WITH PLANNING STEPS THAT NEED TO BE TAKEN BUT MOST OF THE WORK WILL HAVE TO BE DONE BY THE COMPANY THAT IS SEARCHING FOR EMPLOYEES. IT IS A GOOD IDEA TO LOOK FOR A RECRUITMENT PARTNER WITH EXTENSIVE EXPERIENCE IN THE LOCAL JOB MARKET, WHO CAN POINT OUT THE KINDS OF PROBLEMS THAT TYPICALLY ARISE IN THIS REGION. It is also a good idea to consider the most common problems and determine in what ways to introduce flexibility into the recruitment process in order to avoid them. When putting together a new business services centre, there are a few problems that come up most often. 01. PROJECT LENGTH Companies often put off recruitment till the last moment, leaving very little time to find candidates. They do not take into consideration that other companies could be looking to fill similar positions at the same time and competing for the same candidates. It is a good idea to always think about how much time is realistically needed to carry out the whole recruitment process. A contingency plan should also be in place what is the minimum number of people that must be employed and what steps need to be taken if, six weeks before the planned start date, there are not enough accepted job offers. 02. COMPETENCIES AND SKILLS When beginning the recruitment process, it is important to consider what competencies and skills are necessary for a given position. It often happens that firms look for candidates with more experience than necessary for the position. It is worth considering how long the person is going to stay in that position and whether they will not be soon looking for a more challenging position with another employer. The possibility that candidates with the right experience cannot be found on the market is a situation the company should be prepared for. There should be answers ready to the questions: Is it possible to hire fewer experienced staff and plan additional training? Are all of the stated competencies essential for a given position? 03. LINGUISTIC ABILITIES Most teams in business services centres work for foreign markets, so companies require that candidates are fluent in foreign languages. When starting the recruitment process, it is necessary to analyse what would happen if the desired number of candidates is not found. Will the whole team have regular contact with clients or can the work be divided up in such a way that it will be enough for a few members of the team to speak a given language? Agencies that often look for employees in the modern services sector will know the market and be able to judge the likelihood of the project s success. 04. REMUNERATION When asking an agency to conduct recruitment it is necessary to give them information about potential salaries. It may be, however, that the budget given will not match market realities. A remuneration policy that is well thought through will make it possible to avoid delays in the recruitment process while negotiations take place. The client should be ready for the likely circumstance that most of the candidates will want to negotiate their salaries, that they may receive counteroffers from their current employers or an offer from another company. How flexible one can be in approaching salaries is something to determine before commencing the recruitment process. 05. COMPETITION IN THE JOB MARKET Recruitment never takes place in a vacuum. There are other business services centres on the market and some of them are also looking for employees. One of the significant dangers to be prepared for is that another start-up will appear at the same time as the planned recruitment. The current market situation, including which companies are currently recruiting, is something to be discussed with the recruitment agency. The client should be prepared for competition and should have an offer that stands out. The problems listed above are some of the most commonly faced during recruitment for new services centres. However, this is not an exhaustive list of potential problems so, before starting to recruit it is essential to analyse the project and agree contingency plans for when the problems do arise. Katarzyna Nowak Talent Acquisition Consultant Hays Poland Knowak@hays.pl 18 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 19

11 RECRUITMENT PLANNED RECRUITMENT CASE STUDY Hays Poland With even the best of employer labour markets, problems will arise if we wait too long to begin recruitment. How much time is needed to ensure we will have options and to fully take advantage of the opportunities afforded by a new office? A financial services company has decided to put together a modern business services centre in Warsaw - to bring together financial, accounting, client service and administration processes. Over a period of a year, the company intends to hire around eighty people. The recruitment process has been entrusted to Hays Poland, specialising in projects for modern business services companies. Before beginning the recruitment process, it is essential to hold a meeting with the client, where the recruiters can meet the company managers responsible for the project. The timeline and requirements for recruitment are discussed during this meeting. It is one of the key steps in the project as it allows participants to realistically determine requirements. The meeting is also an opportunity to present the current market situation in Warsaw, in particular as regards the location chosen by the investor. At the same time, the managers from the new centre provide the recruitment team with detailed information about the company: the positions to be filled, the company philosophy and values, all of which may later be of use in employer branding and recruitment. During the meeting, potential risks and common problems in volume recruitment are also discussed. To maintain regular contact and exchange information on an ongoing basis, regular reports on current activities of the recruiters are sent to the managers of the new centre. This makes it possible to closely monitor progress and quickly react to changes. This kind of tool makes it possible for the recruitment agency to properly distribute its resources and the client company to receive regular updates on any problems that appear. So both parties can react quickly and modify the proposal or exchange necessary information. The company provides the external recruiters with direct access to the hiring managers which greatly increases the speed of communication as well as allowing the agency to better understand their needs and to modify the profile of prospective candidates to suit the preferences of their future managers. In addition, this greatly cuts down the reaction time needed for decisions to be taken, so that the candidates receive replies quickly. The client discusses with its managers the way the offer will be presented so the agency s actions will be consistent with the client s internal actions. The process of making offers is carried out by agency experts. Once an offer is accepted, the client takes over contact with the candidate and gives them the contact details for the internal human resources department. Once the first wave of recruitment is complete, a second meeting with the decision makers takes place, to discuss how recruitment is proceeding, what problems have been encountered and to determine the plan of action for further recruitment. The project is completed without major difficulties mainly thanks to the close cooperation and open communication between the agency and the client. The client clearly expressed their requirements and capabilities but also received valuable tips that were taken into consideration when planning placements. 20 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 21

12 LEGAL ASPECTS OFFICE WANTED AGREEMENT & RENT Piotr Woźniak, Legal Counsel, EY Law Before starting a business, it is necessary to find and lease the right office space. Recent increases in the availability of office space in Poland has led to a significant change in the approach taken by landlords towards the commercialisation of office buildings, i.e. towards the process of renting out space to tenants. The market increasingly favours tenants who have the ability to negotiate the details of their lease agreements. Normally lease agreements for office space in Poland are signed for a fixed term of five to ten years. This is of mutual benefit to the parties the landlord has guaranteed revenues for the period stated in the agreement while the tenant is able to amortise their initial start-up costs across the period of the agreement. A valid lease agreement may be concluded in writing with or without the participation of a notary. However, to guarantee the term of the agreement and to protect the tenant from early termination, it is recommended to use the written form with signatures certified by a notary. This form of contract is also in the tenant s interest - to ensure that the agreement includes binding provisions for possible extensions to the lease. It is a sensible to formulate these in a way that makes it possible to extend the lease on the existing, agreed terms. Another solution is to have the lease extend automatically, provided the tenant does not give notice of their wish to terminate it. RESPECT FOR THE TERM OF THE LEASE IS STATUTORY UNDER POLISH LAW. HOWEVER, TO HAVE FURTHER PROTECTION FROM EARLY TERMINATION, IT IS NECESSARY THAT THE AGREEMENT BE PROPERLY DRAFTED. AN AGREEMENT FOR A FIXED TERM CAN ONLY BE TERMINATED BEFORE TERM UNDER CERTAIN MUTUALLY AGREED CONDITIONS OR IN SITUATIONS SET OUT IN THE GENERAL PROVISIONS OF POLISH LAW (SUCH AS LATE RENTAL PAYMENTS). THIS IS THE MAJOR DIFFERENCE BETWEEN A LEASE AGREEMENT FOR A FIXED TERM AND ONE SIGNED FOR AN INDEFINITE PERIOD, WHICH CAN BE TERMINATED AT ANY POINT SO LONG AS THE STATUTORY AND CONTRACTUAL NOTICE PERIODS ARE RESPECTED. THE DEGREE TO WHICH THE POSSIBILITY OF EARLY TERMINATION OF THE AGREEMENT BY THE LANDLORD CAN BE LIMITED, WHILE RETAINING THEIR OWN RIGHT TO WITHDRAW FROM THE AGREEMENT, DEPENDS UPON THE TENANT S NEGOTIATING POSITION. It is standard on the Polish market for rent to be set in Euros and the maintenance fees to be in Polish zloty (PLN). Rental payments are usually secured with a bank guarantee or a bank deposit to the value of the rent plus maintenance fees for a three-month period. The amount of rent to be paid is indexed annually on the basis of goods and services price indicators. Regulations do not provide an unequivocal answer to the question of whether a party leasing office space for a fixed term is entitled to increase the price of the rent during that period. To ensure that the landlord does not do this, it is necessary to include the appropriate provision in the agreement. It is also worth paying attention to the range of costs for which the landlord will charge the tenant to cover costs of using the property s common areas. Is it standard for the tenant to cover a portion of the payments and taxes on the property as well as of the costs of its ongoing maintenance? Landlords often charge their tenants with other costs that are only indirectly connected to the property or with the costs of increasing the value of the building. It is a good idea to study the relevant provisions of the agreement and to exclude the costs that the tenant should not be burdened with. At the same time, landlords are increasingly offering a range of incentives to attract tenants. The greater the amount of space to be rented, the more advantageous the offer one can expect. The length of the lease as well as the brand and reputation of the tenant, which could serve to attract other tenants to the property, also influence the offer. The most commonly used incentives include rentfree periods and fit-out, i.e. a budget for modifying the space to the tenant s needs which is financed by the landlord and does not have to be paid back. Decisions regarding such arrangements also have to be spelled out in detail in the agreement. 22 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 23

13 LEGAL ASPECTS BUSINESS ACTIVITY IN POLAND Jakub Organ, Legal Counsel, EY Law Businesses from the European Union, the European Economic Area or from countries that have signed the appropriate international agreement with the European Union can undertake economic activity in Poland on the same terms as Polish companies. Before starting a modern services centre, it is wise, however, to consider the legal form that the business should take and the consequences issuing from this decision. WHEN UNDERTAKING BUSINESS IN POLAND, FOREIGN INVESTORS MOST OFTEN FORM COMMERCIAL COMPANIES OR PARTNERSHIPS, LIMITED LIABILITY COMPANIES ESPECIALLY. IT IS ALSO COMMON TO ESTABLISH BRANCHES OF FOREIGN BUSINESSES; THIS ALLOWS THE FOREIGN INVESTORS TO CARRY ON IN POLAND THE SAME SCOPE OF BUSINESS ACTIVITY AS IN THE COUNTRY WHERE THEIR HEADQUARTERS ARE LOCATED. LIMITED LIABILITY COMPANY The limited liability company is the preferred form of business activity for foreign investors in Poland. Shareholders are limited in their liability for the company s debts. The regulations of the company s articles of association can be shaped relatively freely and the minimum share capital is five thousand Polish zloty, i.e. around 1.25 thousand Euro. To start up a limited liability company, it is necessary to sign a notary deed, appoint a management board and pay-in the initial capital contributions. Next, the company is registered in the commercial register of the National Court Register. The whole process of the founding of a company takes about one or two months. The period can become more drawn out depending on the court. It is also necessary to register for the purpose of paying CIT and VAT as well as registering with the Polish Social Insurance Institution (ZUS). To register the company, it is necessary to have signed a lease agreement for its headquarters and to start business activity it is required to have a bank account in Poland. The limited liability company has two governing bodies the shareholders meeting and the management board. The shareholders meeting votes on resolutions regarding the most fundamental concerns of the company. A general shareholders meeting is called at least once per year, with extraordinary shareholders meetings being called as and when they are needed. The management board handles the day-to-day running of the company. Foreigners, including those unable to speak Polish, may be members of the management board. A supervisory board may also be appointed to provide additional oversight. A supervisory board is obligatory only in the case of companies with share capital in excess of five hundred thousand Polish zloty (about one hundred and twenty-five thousand Euro) and with more than twenty-five shareholders. The main feature of the limited liability company from the point of view of the foreign investor is its separate legal status. A limited liability company is organizationally and economically independent of the founding company and has separate legal status. The shareholders have limited liability, their risk being limited to the capital they have invested as equity or additional equity contributions. At the same time, company liability extends to all of its capital, without any exceptions. In particular cases, set out in law, members of the management board may become personally liable. There are also no limits on the type of business activity that can be undertaken although it should be defined precisely in the articles of association. It is worth noting that the company may have a single shareholder. It may not, however, be formed by another single shareholder limited liability company or its foreign equivalent. BRANCH OF A FOREIGN COMPANY The branch of a foreign company is set up on the basis of a resolution of the appropriate management body of the foreign business in question. It may only undertake the same scope of business as its founding company, or a more limited scope. The name of the branch includes the name of the foreign business with the addition of Oddział w Polsce (Polish Branch). The branch must be registered with the National Court Register. Similarly to the case of a limited liability company, the whole process takes a month or two, possibly longer depending on the court. The branch must also be registered for tax purposes and with the Polish Social Insurance Institution. To register the branch, it is necessary to have signed a lease agreement for the branch headquarters; to start business activity, the branch is required to have a bank account in Poland. The branch has two forms of representation. Firstly, it may be represented by the body which represents the foreign company in its original country, as per the laws that foreign company is subject to. Secondly, the foreign company is obliged to appoint a representative who will act on behalf of the branch within Poland. The name of the representative must be entered into the National Court Register and he/she should have an address of residence in Poland. He/she does not have to possess Polish citizenship or be able to speak Polish. A notary-certified signature of this person must be provided to the National Court Register. The most important feature of the branch of a foreign company, from the point of view of the foreign business, is its capacity to carry out business activity within the scope of business handled by the mother company. The branch is not a separate entity for legal or economic purposes: organizationally and economically it is a part of the founding company, does not possess the status of a legal entity and does not require that any share capital be paid in. The mother company is responsible for all liabilities incurred. The branch may, however, independently employ staff. 24 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 25

14 LEGAL ASPECTS INVESTMENTS WANTED INCENTIVE POLICY Paweł Tynel, EY Polska Current state incentive policy in Poland targets modern business services. Extensive process specialisation is one of the main directions of the Polish economy at present, and investors who are planning this kind of investment can count on support in the form of nonreturnable subsidies as well as tax reliefs and exemptions. In the last few years, support for research and development (R&D) projects has also grown. Among the most useful forms of support are the government grants provided as part of the Programme to support key investments in the Polish economy in the period (Multiyear Support Programme MSP). These are direct subsidies to cover investment costs and employment aimed at new investment when this is deemed critical for the Polish economy. In addition, investors are able to receive CIT exemptions on income derived from their business. Another example of available support are EU funds to enhance R&D activity by helping with financing and the purchase of equipment that is essential to the R&D, as well as tax relief for R&D activity whereby these costs qualify as tax deductible. To receive a government grant from the MSP, it is necessary to enter a successful application for public assistance. Furthermore, to receive funding, investor proposals from the modern services sector must assume the creation of at least two hundred and fifty new jobs and incur expenditure of at least one and a half million Polish zloty. Assistance can be calculated on the basis of the amount invested (at no more than twelve and a half per cent) and the costs of employment. The amount of support per job (from 3200 to Polish zloty) depends on the assessment of factors such as: the type of activity planned, the quality of jobs offered, the location of the investment, cooperation with tertiary educational institutions, the company s brand and the uniqueness of the processes. AMONG THE TYPES OF PROCESSES THAT ARE DEEMED MOST VALUABLE IN THE MULTIYEAR SUPPORT PROGRAMME ARE: THE PREPARATION OF ADVANCED ANALYSES AND MARKET FORECASTS FOR VARIOUS BUSINESS PROCESSES, R&D AS WELL AS ADVANCED INFORMATION TECHNOLOGY PROCESSES. IT IS ALSO POSSIBLE TO OBTAIN SUPPORT FOR PROCESSES SUCH AS: ADVANCED FINANCIAL AND ACCOUNTING PROCESSES, PROJECT MANAGEMENT (HUMAN RESOURCES, FINANCES, ETC.), THE TESTING AND LOCALISATION OF APPLICATIONS, INFORMATION TECHNOLOGY PROCESSES, HUMAN RESOURCE MANAGEMENT PROCESSES, FINANCE AND ACCOUNTING SERVICES, ETC. Special economic zones (SEZ) are particular areas within Poland where investing businesses can receive income tax exemptions. Currently, businesses can apply for permits to conduct business within fourteen special economic zones. A condition for CIT exemptions within a SEZ is to obtain permission to do business within the SEZ before investing and fulfilling the requirements set out in that permit: incurring the declared investment outlays and creating the planned number of jobs. The time required to obtain the permit is around 6 weeks. Depending on the location of the project and the category of applicant (a small to medium business as opposed to a large business), companies can count on financing in the order of ten to fifty per cent (with small to medium businesses being able to receive up to seventy per cent) as set out on the map. Warsaw Maximum aid intensity 25% 35% 50% Maximum aid intensity 20% 35% 10-15%* * 15% until % from Source: EY materials (The map shows the amount of support for large businesses. In the case of small businesses the value is increased by twenty per cent, with a ten per cent increase for medium sized businesses) It should be noted that new concept to support investments is about to be introduced in 2018 (Polish Investment Zone, replacing current special economic zones). Unlike in SEZ there would be a possibility to receive CIT exemption in entire Poland after fulfilling certain criteria specific for a given location. New approach towards tax incentives will allow for up to 15 years of CIT exemption when quantitative, but also qualitative criteria are met. These new rules should be in force in the first quarter of TAX EXEMPTIONS FOR R&D Tax exemption for R&D is available for every business and does not require that a formal application be lodged or that the company compete with others for the funds. In addition, there is an instrument supplementing the support provided for the R&D project by the EU or via MSP. This form of support is to be made available, under conditions, also to businesses in the SEZ from The R&D exemption makes it possible to obtain financial benefits in the form of an additional deduction for the R&D costs incurred. Eligible costs - those reducing the tax base - include: employee costs including overheads, materials connected to the R&D activities, expert opinions, consulting fees, research results obtained from scientific institutions, paid use of scientific research equipment, depreciation of assets including intangible assets. The R&D exemption may be applied once company processes that fall within R&D activity and the costs connected to them have been identified. The value of the write-offs for large businesses for 2017 is set at fifty per cent of the remuneration costs and thirty per cent of remaining costs. From 2018 onwards these levels will be set at one hundred per cent regardless of the type of costs and size of the company concerned. What should be taken into account when preparing a new investment? To make use of the available forms of support, the location of the investment should be thought through, as the amounts of support available varies according to region. The way the amount of support is calculated is also important; in the case of the modern services sector, it will probably be most advantageous to calculate the amount on the basis of the cost of new jobs created rather than on the basis of investment outlays. It is important that sources of support can be combined so long as permissible limits are not exceeded. Effective use of the available tools is possible when help is sought from a number of different sources. Please remember that an application for financing must be submitted before the investment is started, i.e. before the start of the construction work connected to the investment or even before the first legally binding agreement is signed to purchase equipment. Neither the purchase of land nor the execution of preparatory work amounts to starting the investment. 26 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 27

15 LEGAL ASPECTS EMPLOYMENT AGREEMENT, REMUNERATION, RESPONSIBILITIES Michał Balicki, Advocate, EY Law Under Polish Law, a new employee can be hired on the basis of one of three kinds of contract specified in the Labour Code: 1. a trial-period employment contract (entered into for no more than three months, in order to check qualifications), 2. A fixed-term employment contract, concluded for a definite period (limited period of employment) and 3. an employment contract for an indefinite period. Every employment contract must specify the basic conditions of employment the type of work to be carried out, the place it will be carried out, the salary to be paid, the working hours and the starting date. No later than seven days from the start of work, the employer is required to inform the employee about when how often their salary will be paid, the amount of holidays the employee will be entitled to, etc. Every employer who has fifty or more employees must maintain work and remuneration regulations setting out in writing how work is organised and the principles in force at the workplace. In the event that there is no work or remuneration regulation in force, the employer is required to inform employees about night hours, about the place, date and time that salaries are paid as well as the methods used to record presence at work and justify absences. According to the Polish Labour Code, basic salary is payable in arrears, at least once per month, on a set date and no later than the tenth day of the following month. The frequency of the other element of an employee s remuneration is flexible. An employee may be employed full time or part time. The working hours may not exceed eight hours a day and forty hours per week, with an average of 5 working days per week. The labour code allows more flexible arrangements and contracts including mobile, task-based or equivalent working time ( flexi-time ) contracts. Work time in excess of the set working hours is deemed to be overtime for which the employee is to receive overtime bonuses of fifty or one hundred percent of normal pay rates. The termination of an employment contract with an employee can take place (immediately) with the mutual consent of the parties, by giving due notice, or without notice in the event of disciplinary discharge or if the original definite period of employment has finished. The statutory period of notice for employment contracts concluded for a definite or an indefinite period is from two weeks to three months, depending on the length of service of the employee. In the event of the termination of an employment contract for a fixed term, the employer should provide a written justification for the termination. THE MINIMUM WAGE IS THE LOWEST PERMISSIBLE MONTHLY SALARY THAT CAN BE RECEIVED BY A FULL-TIME EMPLOYEE. THE MINIMUM WAGE DOES NOT INCLUDE OVERTIME. IN 2017 IT WAS SET AT TWO THOUSAND POLISH ZLOTY GROSS. IN THE CASE OF PART-TIME EMPLOYEES, THE MINIMUM WAGE IS PROPORTIONAL TO THE NUMBER OF HOURS WORKED DURING THE MONTH. 28 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 29

16 NEW STANDARD: THE FRIENDLY OFFICE OFFICE FOR SPECIAL TASKS Low unemployment and high demand for qualified employees are increasingly affecting the business services sector. In effect, the significance of non-salary motivators is growing and companies are increasing their spending on employer branding, developing the image of a flexible organization that is focussed on development and concerned with the needs of employees. One of the factors playing an increasing role in the perception of a company is their ability to create an attractive working environment and then to communicate its strengths to those outside the organization. Besides obvious aspects such as prestigious location or access to public transport, the office is coming to play a more general role in establishing the competitive advantage of the company. During the last few years, modern solutions used in office design - such as a multipurpose office space suitable for flexible work patterns, high quality comfortable furniture or original design - have become, in addition to any aesthetic merits, an added value in the eyes of prospective employees, one making the company stand out from competition and thereby help modern organizations carry out tasks faster, more flexibly and effectively. Recently we have witnessed significant changes in working culture and approaches to the working space. This has been reflected in the layout of office space and the demands placed upon the manufacturers of furnishings. There has been a tendency to move away from individual desks assigned to particular employees in favour of a flexible approach to task completion. The activity based workplace is the answer. It is based on the division of the available space into comfortable subspaces in which the employees can carry out particular tasks combining individual work spaces furnished with desks together with team-work areas, meeting rooms of various sizes and spaces for relaxing and informal interaction. The layout and furnishings of the rooms should match the company profile and the particular needs of its employees. All the resources available within the company should be shared, to be used by the employees as required. An office designed in this way presents a challenge to the manufacturers of furnishings to meet high quality demands with their products as well as flexibility in their offer. Lease periods for office space are becoming shorter so changes to the furnishings are more frequent. On the other hand, the sharing of resources and shift work - typical for the modern business services sector - mean that furniture is used more intensively. This makes it all the more important that, among other things, only high quality, resilient materials be used. Katarzyna Jasińska Managing Director Bene Warszawa Katarzyna.Jasinska@bene.com 30 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 31

17 NEW STANDARD: THE FRIENDLY OFFICE THE OFFICE AS A MAGNET Employees want to work in visually appealing, highly functional offices. Therefore, many employers view the workspace as a recruitment tool. To ensure that employees regard their office as modern, desirable places to work, employers must do more than provide dedicated team work rooms and relaxation areas with a kitchen fitted with a highquality espresso machine, sofas, screens for watching sports or playing games, or headphones and quiet space for listening to music. Today s employees expect real comfort high-quality furnishings suited to their needs such as adjustable desks for both standing and sitting, access to the latest IT tools that encourage team work and facilitate business processes, and a layout that incorporates modern trends such as biophilic design. In addition, company benefits that in the past were considered bonuses are now becoming part of the standard compensation package, such as private medical insurance. In contrast with the past, the modern style of working is based on multitasking and the simultaneous use of several pieces of equipment. Younger people expect flexible working hours and access to the latest technologies. For them, commuting should not take too long, so the office should be in a central, easily accessible location close to places to have lunch or to meet friends after work. Younger employees demand workplaces that suit their lifestyle and work style and have no qualms about leaving a company that does not meet their expectations. They expect work to have a positive impact on their health, wellbeing and quality of life. Open-space office designs with rows of small desks, and being tied to one workspace all day, are things of the past! It might seem that creating a modern, functional and welldesigned space that will attract employees and make them more productive would be costly. However, this is not necessarily the case. By adapting the office to the working style of the employees, sacrificing a few larger offices and optimising the number of conference rooms, a firm can repurpose space to create the modern workplace elements that are in demand. Compared with payroll costs, the cost of the office is quite small. Over a thirty-year period, the average cost of an office turns out to be around one tenth of the costs of staff recruitment, development and payroll. Investing in an office that will attract and help retain good employees is money well spent. A well-designed, modern office can stand out as an icon of a company by communicating its values and image to clients and the public. It is also an excellent recruitment tool and an arena for innovation and productivity. Investing in a modern workplace will yield returns. Maciej Markowski Partner, Head of Workplace Strategy CEE Cushman & Wakefield Maciej.Markowski@cushwake.com 32 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 33

18 NEW STANDARD: THE FRIENDLY OFFICE SEVERAL GENERATIONS IN ONE OFFICE In line with European trends, it is very likely that we will all have longer working lives in the future - to prevent competency gaps on the employment market. We already have a wide spread of age in our workplaces from very young employees who are just starting their careers together with employees who are approaching retirement. How can a workplace meet the needs of such different people? Is that even possible? The needs of employees in different age groups differ a lot less than it might seem; most needs are much the same regardless of age or gender and this is reflected in employee criticisms which tend to focus on the same set of issues. The work stations in many places in Poland are unsuitable - for any age group. Old, non-ergonomic chairs, desks that cannot be adjusted, insufficient space between furniture all of this makes for discomfort and even physical complaints. A sedentary workstyle does not serve any generation well. SCIENTISTS COMPARE SITTING FOR MANY HOURS A DAY TO A SMOKING HABIT. RESEARCH SHOWS THAT SPENDING MANY HOURS IN A SITTING POSITION LEADS TO NUMEROUS ILLNESSES NOT JUST OF THE SPINE BUT ALSO THE JOINTS, HEART AND THE MOTOR ORGANS. TOGETHER WITH A NON-ERGONOMIC WORK STATION THIS SITUATION CAN MEAN THAT INSTEAD OF PROVIDING EMPLOYEES WITH THE TOOLS TO CARRY OUT THEIR RESPONSIBILITIES, WE ARE CONSIGNING THEM TO SUFFERING A RANGE OF POSTURE-RELATED COMPLAINTS. It is important that the work place be designed ergonomically. The office chair should take pressure off the spine and the height of the desk should be at a level appropriate for the employee s height. Staff should be trained in how to properly regulate their chairs and desks so that they know how to adjust their work station to suit them. If there is a high level of staff turnover, it is good to organise this training once every six months to ensure that new employees also know the healthiest postures for work. Another source of employee complaints is air-conditioning. Very often the average air temperature is set to low for a typical user. A good idea is to consider setting smaller airconditioning zones within the office which would allow the temperature to be adjusted to suit individual needs. Employee comfort is never an unnecessary expense, and it can greatly improve work conditions which affect efficiency and business results. What is more, employee comfort is an effective tool for recruiting the best employees in our communications with companies we are witnessing a definite trend: a rapid growth in employee interest in ergonomics, health and well-being in general. Dominika Kowalska Senior Workplace Consultant Cushman & Wakefield Dominika.Kowalska@cushwake.com 34 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 35

19 NEW STANDARD: THE FRIENDLY OFFICE CREATING THE PERFECT OFFICE SPACE How can we make a perfect office? Is this even possible, given that decisions regarding the selection and look of a new work place are often made without prior knowledge of the needs and preferences of future employees? Most people responsible for a new office design use a range of studies and analyses applying quantitative methods to determine e.g. the number of people hired in a given financial year, or qualitative methods to examine people s individual needs and behaviour. Detailed assessments are prepared setting out the characteristics of the future employees, IT standards and corporate requirements regarding particular rooms. The starting point should be an analysis of the time that employees spend in the workplace. In a period of dynamic change and varied work systems, we do not necessarily work forty hours a week sitting behind a desk. Regardless of whether the design of the new office is fully outsourced or partially prepared in-house, the key to making a user-friendly space is to define the right proportion of rooms with a given function to the number of employees and work stations. It is a mistake to skimp on spaces that contain employee amenities as this leads to poorer working conditions and, later, to difficulties with recruitment and employee retention. UNDOUBTEDLY, HIRING A CONSULTANT, A SPECIALIST IN THE DEVELOPMENT OF NEW WORK ENVIRONMENTS HAS THE ADVANTAGE OF BEING ABLE TO DRAW ON THEIR KNOWLEDGE, EXPERIENCE AND THE BEST PRACTICES. THE CONSULTANT WILL HELP CARRY OUT A DETAILED ANALYSIS OF WHAT IS NEEDED TO DETERMINE THE AREA AND NUMBER OF INDIVIDUAL ROOMS, WORK STATIONS AND DESKS REQUIRED. THE KEY IS TO SYSTEMATISE THE 2 Raport DTZ I Unwork, The Future of the Financial Workplace, sierpień 2014 ENTIRE PROCESS AND TO USE HARD DATA. AS A FORMER PRESIDENT OF NETSCAPE SAID 'IF WE HAVE DATA, LET'S LOOK AT DATA. IF ALL WE HAVE ARE OPINIONS, LET'S GO WITH MINE.' By optimising costs, a company both improves their competitiveness and their ability to create new jobs. At the same time, an increasing number of companies has realised that a part of their budgets needs to be set aside for additional space to facilitate traditional office work. This additional space can be obtained by sacrificing separate offices for managers, who rarely use them more than fifty percent of the time. This approach can greatly improve work within teams and communication between management and staff. Activity based working and agile working approaches can also be implemented. These are based on providing a sufficient number of focus rooms, as well as telephone booths, quiet working rooms and the introduction of desk-sharing. Introducing additional common areas is an uncontroversial step, however, the optimisation of the number of work stations often meets with employee resistance. The Unwork report shows that the use of fixed work stations does not exceed 45 percent. Every day a number of employees are on holiday or on sick leave, are working from home, away on business trips or participating in training or business meetings outside the office. By decreasing the number of work stations it is possible to make better use of the available space and significantly reduce operational costs. PROBLEMS IN THE WORKPLACE 51% Excessive noise 42% Badly adjusted air-conditioning 34% Inappropriate lighting 34% Inability to choose the work station 32% Insufficient access Source: Hays Poland Research, Overtime, Aleksander Szybilski Workplace Strategy Consultant Cushman & Wakefield Aleksander.Szybilski@cushwake.com 36 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 37

20 WELL-BEING AN OFFICE WITHOUT SICK LEAVE For many years developers have sought certificates confirming that their buildings are friendly to the natural environment thanks to the use of waterand energy-saving solutions and their limiting of CO2 emissions and waste. However, they did not consider the direct influence of the buildings on the health and efficiency of the employees. This approach changed recently thanks to the WELL Building Standard certificate which, on the basis of advanced medical tests, determines the impact of factors connected to a building and its internal environment on the people who spend time there. In effect, it provides confirmation for the owners and occupiers that a particular space has a positive impact on health and wellbeing. According to analyses carried out by some of the top consulting firms, last year staff turnover in Poland was the highest in the European Union. At a time of intense competition between companies for talent, such data must be troubling. While the main declared cause for changing jobs is to obtain better conditions of employment and a personal need for change, this is not the whole story. Surprisingly many employees pay attention to difficult conditions in the office the level of noise, malfunctioning air-conditioning, and artificial lighting, the lack of greenery or places to relax. Many people think that uncomfortable working conditions in the office limits their effectiveness, innovation and ability to face new challenges. By choosing healthy offices, employers significantly improve their chances of building a stable, valuable team. THE TREND TOWARDS ADOPTING A HEALTHY LIFESTYLE HAS ALSO REACHED BUSINESS CENTRES. OFFICE SPACES THAT PROMOTE THE WELL-BEING AND THE IMPROVED PHYSICAL AND PSYCHOLOGICAL CONDITION OF EMPLOYEES ARE INCREASINGLY THOUGHT OF AS ESSENTIAL. THIS IS PARTICULARLY THE CASE FOR COMPANIES THAT WISH TO LIMIT STAFF TURNOVER AND THE AMOUNT OF SICK LEAVE TAKEN BY THEM. A HEALTHY OFFICE IS AN IMPORTANT ELEMENT IN ENSURING THE STABILITY AND QUALITY OF THE TEAM. It is easy to judge whether a particular building and the offices located inside it are healthy - thanks to the WELL certificate, which works in a similar way to the nutritional value information on the side of a box of cornflakes. It takes into account a hundred different factors that characterise a given building and its interiors. Below are a few of the most important. AIR QUALITY Good air quality improves productivity by up to 8 to 11 percent. Effective ventilation, constant moisture and pathogen control as well as a ban on smoking near the building all help to maintain air quality. ACCESS TO FRESH DRINKING WATER The loss of just 2% of one s liquids leads to the loss of concentration and the inability to recall or solve complex tasks. The easiest solution is testing water quality and ensuring that it is available in sufficient quantity. APPROPRIATE LIGHTING Natural light and an appropriate view outside the window can improve concentration by 15%. Within offices it is also a good idea to ensure that the artificial lighting has the right intensity and colour. HEALTHY EATING Bad eating habits can reduce productivity by up to two thirds, so it makes sense to promote healthy eating within the office. PHYSICAL AND PSYCHOLOGICAL CONDITION The effectiveness of people who do not exercise their body or their mind can be halved. This does not mean that we need to run a marathon every week, but it is important to get some exercise. Stairs in the office? Why not? COMFORTABLE TEMPERATURE Office temperature that is either too high or too low leads to a loss of efficiency of 4 to 6 percent and can lead to the spread of diseases. Modern air-conditioning and heating systems make it possible to set the temperature separately for different parts of the office. ACOUSTIC COMFORT Excessive noise can decrease productivity by up to 66 percent. Ensuring that there are areas for quiet work will definitely be appreciated by employees. BIOPHILIC DESIGN It is a good idea to pick buildings whose architecture draws on nature, using greenery and water as well as materials, forms and patterns from nature. Their influence on the wellbeing of the employees is invaluable. WHAT WORK-RELATED COMPLAINTS DO YOU SUFFER FROM? 65% 46% 45% 45% 36% 26% 22% 8% 19% Irritability and nervousness Lack of energy, apathy Concentration problems Difficulty sleeping Headaches Increased frequency of illness, low resistance Stomach aches Back pain Other (including problems with sight and hearing) Source: Hays Poland, Overtime, Ewelina Grodzicka User Experience Specialist HB Reavis Ewelina.Grodzicka@hbreavis.com 38 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 39

21 WELL-BEING NATURE ENTERS THE OFFICE When asked how their new office and its surroundings, almost three-quarters of employees say they would like to have access to a park or some other open, green space. This is an indication that should not be ignored by employers and office building developers. According to scientific research, in the next few decades around seventy percent of the world s population will come to be concentrated in cities. The inhabitants of the largest conurbations spend up to ninety percent of their time in enclosed spaces and their contact with nature is very limited. In HB Reavis research carried out with the help of 300 Warsaw office workers, 73 percent of those asked about the most desirable property that an office could have indicated without hesitation the proximity to a park or some other relaxation area. 72 percent declared that they like to spend time in green areas and 70 percent would appreciate the possibility of making use of green roof space on top of the office building. Only a slightly smaller number would like to work in such a green roof space every day. It is not surprising, therefore, that an increasing number of offices is being constructed according to biophilic design principles a design trend that draws on lessons from nature. Already known to ancient civilizations, this trend continues the ideal of places that are built to serve people as living organisms with attention to their key physical and psychological needs. THE PRINCIPLES OF BIOPHILIC DESIGN ARE COMPLEX VERY GOOD EFFECTS CAN BE ACHIEVED WITH MINIMAL COSTS BUT MORE COMPLEX INVESTMENTS REQUIRE A SERIOUS BUDGET. SOME OF THE SOLUTIONS NEED TO BE BUILT INTO THE BUILDING FROM THE START WHILE OTHERS CAN BE ADDED TO A PRE-EXISTING BUILDING THAT IS ALREADY IN USE. BOTH WILL HAVE A VISIBLE EFFECT UPON OUR HEALTH AND WELLBEING. Buildings designed according to biophilic principles make it easier for people to quickly recharge their batteries and achieve top cognitive ability. This is particularly important in the case of those who have to cope with routine, repetitive tasks on a day-to-day basis. Such buildings also improve psychological wellbeing and reduce stress. Finally, they do wonders for the human body, including the respiratory and blood systems as well as the senses. The simplest step is to introduce living nature into the building interior or surroundings. Another way is to make use of natural shapes and materials when designing, building and finishing the office space. A third is to imitate the features that characterize most organisms. In most cases, it is unreasonable to expect to see a forest or a lake from our office window. But even an ultramodern office building can give the opportunity to stay close to nature. This is made possible by careful design of the surrounding area as well as by introducing elements of nature into the interior (green-covered walls, aquaria or even just works of art that represent nature), using the rooftops (introducing greenery, putting up shelters for birds and insects) and by creating atriums between building (walking paths, artificial reservoirs). VARIETY AND IRREGULARITY Even though we might not realise this, irregular sensory stimuli are among the best ways to recover strength and the will to work. How to achieve this effect in an office building? By making use of materials that subtly react to the movements of the air (in the lobby, for example), reflections on the water in an artificial pond, the play of light and shadow formed by glass façades or sounds that play in the background from time to time, just to give a few examples. VARIATION IN TEMPERATURE AND LIGHTING Office staff know that there is nothing more tiresome than spending a long time in an area with a stable temperature that is all too often too high or too low. The lack of variation in the artificial lighting is just as draining. Individual temperature control in the air-conditioning and heating systems as well as windows that open are solutions which help maintain the thermal comfort of the employees. The use of modern materials in the building façade or of shutters that automatically react to the intensity of sunlight can only help improve that comfort. BIOMORPHIC FORMS AND PATTERNS We often do not realise that most people prefer forms which - more or less directly draw on nature. This is also true of buildings - it is not an accident that many buildings or their elements take their forms from trees, bones, wings, flowers or shells. NATURAL MATERIALS Providing contact with nature finds an obvious expression in the use of the right materials. The use of wood, stone, leather, rattan or cork in natural shades and colours are among the simplest of ways to be closer to nature while being in the office. EMOTIONS AND MOODS The wish to impress, curiosity, anticipation, fatigue nature knows well how to deal with these emotions and moods. The various parts of the office building should also reflect the needs of their users at a given moment. The decision where a two-storey atrium is needed and where intimate rest areas will serve best should also be taken on the basis of observations of nature. As can be seen from the above examples, the range of inspirations for biophilic design is almost unlimited. When deciding upon a new office it is worth remembering that even in the most technically advanced building the employees will sometimes want to feel as if they were surrounded by nature. Ewelina Grodzicka User Experience Specialist HB Reavis Ewelina.Grodzicka@hbreavis.com 40 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 41

22 WELL-BEING OPEN ALL HOURS CASE STUDY Bene Warszawa Imagine an office that must remain open 24 hours a day, due to the nature of the services it provides. It maintains contact with the whole world by employing staff on a shift system throughout the day and night. This means that the office furnishings such as tables and chairs are in almost constant use. In addition, wanting to keep up with changes in the market, the company is constantly modifying its team by employing new full-time and temporary staff. The office should be designed to meet the needs of all of the employees and to be able to adjust to any changes. Among the projects prepared by Bene, an example of this kind of solution is provided by the MoneyGram Warsaw offices. This worldwide money transfer operator offers its financial services to clients in more than 200 countries. The MoneyGram Global Business Center, its Warsaw operations centre, is the company s largest office anywhere in the world and employs 25 percent of its total number of employees. It serves as the focal point for joint services and directs 46 different business processes. The key challenge for the design of the office was to develop areas connected to the ongoing, roundthe-clock client services and integrating them with the administrative part of the office. From the beginning, it was clear that the space would be used 24 hours a day using a shift system and that the resources would be shared by 600 employees. The latest international design trends were applied, with the aim of providing comfort and stability to the employees while creating mobile, multifunctional work stations. IN ACCORDANCE WITH THE IDEA OF AN ACTIVITY BASED WORKPLACE, THE WHOLE SPACE WAS DIVIDED IN TO FIVE AREAS, DEPENDING UPON THEIR FUNCTION AND THESE AREAS WERE TO BE SHARED BY ALL OF EMPLOYEES THE RECEPTION, MEETING AND TEAM WORK AREAS, AREAS FOR INDIVIDUAL WORK, TRAINING ROOMS AND A CALLOUT ZONE. EACH OF THE MAIN AREAS WAS PROVIDED WITH ITS OWN KITCHEN AS WELL AS SPOTS TO CONCENTRATE OR RELAX IN. IT IS UP TO THE EMPLOYEES TO DECIDE WHICH AREA THEY WANT TO MAKE USE OF AT ANY TIME. 42 GUIDE FOR COMPANIES PROVIDING MODERN BUSINESS SERVICES Raport 43