SHARED SERVICES CENTRES BUSINESS PROCESS OUTSOURCING
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1 MARKET OVERVIEW SHARED SERVICES CENTRES BUSINESS PROCESS OUTSOURCING POLAND 2016
2 MARKET INSIGHTS SHARED SERVICES CENTRES POLAND IN FIGURES Economy Average monthly income in the companies sector (2015) 938 EUR 1 Population Number of inhabitants 38.5 million 1 Unemployment rate (April 2016) 9.5% 1 Number of students 1.5 million 1 Real GDP growth (2015) 3.6% 1 Higher education rate 17% 1 GDP per capita (2015) 10, EUR 1 Number of people employed in shared services centres over 200,000 2 International membership European Union NATO OECD Schengen Zone WTO 1 Source: Central Statistical Office in Poland 2 Source: Association of Business Service Leaders in Poland
3 THE POLISH SSC/BPO MARKET AT A GLANCE Michael Page Shared Services Centres in Poland is a business partner for companies from the SSC/BPO sector Our goal at PageGroup is to deliver mass- or single-recruitment services in respect of financial and non-financial positions ranging from entry level, via specialists and experts, through to managerial roles. In 2016, the race for talent is back on track. According to Michael Page s Global HR Barometer, nearly half of HR leaders declared that they were expecting an enlargement of their company s workforce over the next 12 months. Furthermore, almost a third of organisations have decided to increase their recruitment budgets. As we have learned, a third of respondents are most interested in talent acquisition, talent management, training and development. Companies are investing in people, while cities are seeking to attract new investments, given the way these can propel development forward dynamically. The Polish SSC/BPO sector does not concentrate in just the largest cities, but is rather developing in at least 10 urban areas. Those with very high growth potential are Katowice (the capital of the biggest conurbation in Poland Upper Silesia) and The Tri-City, populated by 4 million people overall. Polish graduates tend to start their careers at renowned outsourcing centres (BPO), where they can learn from experienced managers and make good use of their language skills. In turn, candidates with some experience in the sector are more willing to work in the smaller shared services centres (SSC), at which they have a chance to prove themselves and perform duties requiring more responsibility. The goal of this report is to present recent trends in SSC/BPO recruitment, and to provide you with an overview of crucial data. I trust this publication will prove both interesting and useful. So have a great read! Regards, Wojciech Bartz Executive Manager
4 POLAND: LEADER IN THE CEE REGION Facts and trends The last few years have seen Poland assume the status of Central and Eastern Europe s undisputed leader where advanced offshore business services are concerned, as well as one of the major centres for such services anywhere in the world. Poland is able to supply a wide array of benefits to new investors, including an abundance of experienced SSC/BPO staff, a large number of students speaking 1 3 foreign languages, relatively low labour costs and infrastructure already in place. Around a dozen of the country s towns and cities serve as locations for BPO and SSC centres, and the rail and road network grows with each passing year. Poland is also a leader in the CEE region when it comes to employment in business services, with a 15% annual growth rate noted for this sector. Among over 330,000 employed in this sector in the region as a whole, more than 45% (150,000) are at work in Poland. What is more, this number is predicted to rise to around 200,000 mainly as a reflection of dynamic growth in the area of financial services. Employees Number of centres 200, % 3 POLAND Real GDP growth CZECH REPUBLIC 55, % 5 35, % 5 SLOVAKIA 1 Source: Association of Business Service Leaders 2 Source: Polish Information and Foreign Investment Agency 3 Source: Central Statistical Office in Poland 4 Slovak Investment and Trade development Agency 5 Annual GDB Growth in 2014, Source World Bank HUNGARY 45, % 3 50, % 5 ROMANIA 6 Source: HIPA Database, September, 2015
5 SHARED SERVICES CENTRES COMPETITIVE LABOUR COSTS Growing interest on the part of investors is driving the race among employers to find and retain talent. What is especially valued is a combination of technical expertise and a knowledge of foreign languages, with companies willing to pay a dozen or even several dozen percent more for such competences. These higher salaries reflect more than just competition between employers, given the way they are also arising out of the more and more complex processes being implemented in Poland. This in turn boosts candidates interest in the sector, encouraging a reputation for this sphere as offering attractive career opportunities. Crucial in this regard is the fact that, while salaries in some of its structures are rising, overall labour costs in Poland remain very competitive compared with those in the economies of Western Europe. Following table shows gross monthly salaries on most popular positions within SSC/BPO sector. Position Average Monthly Salary (EUR)* Average Total Annual Empl, Cost (EUR)* AP/AR Accountant 1,050 15,120 AP/AR Team Leader 1,860 26,784 GL Accountant 1,357 19,543 GL Team Leader 2,100 30,240 Finance Process Manager (AP/AR/GL) 4,186 60,278 Data Analyst 1,280 18,432 Financial Analyst 1,745 25,128 Tax Specialist 1,630 23,472 Senior Tax Specialist 2,350 33,840 Customer Service Specialist 1,012 14,571 HR Administrator 1,131 16,286 Payroll Specialist 1,429 20,571 Internal Auditor 2,210 31,824 Transition Manager 3,500 50,400 Head of SSC 7, ,520 * +10% Group I (French, German, Spanish, Italian) +20% Group II (Nordics, Dutch, Czech, Slovak, Hungarian) FX = 4,3 Benefits offered by Shared Services Centres Shared services centres use various benefits to attract the best candidates. Some of these like healthcare and life insurance form part of a standard package. However, employers also tempt potential employees with an array of coupons and discounts, while those whose approach to their workforce is really forward-looking will also provide them with pension funds, or with an opportunity to purchase shares. Benefits, especially those of a long-term nature, are a good way of increasing employee engagement and reducing staff turnover a traditional challenge of this sector. STANDARD PACKAGE Private healthcare Basic life insurance SOCIAL PACKAGES RARELY OFFERED Dental care Share purchase option Pension fund PACKAGE OFFERED BY MOST CENTRES Cafeteria plan Lunch coupons Co-financed language courses Postgraduate study or relevant professional courses Discounts (on company products or services)
6 MARKET INSIGHTS OFFICE SPACE According to the CBRE, at the end of Q there was around 8.3 million of modern office space located in Warsaw and Poland s eight other major regional cities. A further 1.3 million was under construction. The average monthly rental cost range around 13 EUR per, while prime headline rents in A-class buildings range between 10.5 and 23.5 EUR per. Warsaw Lublin Krakow Szczecin Lodz EXISTING MODERN OFFICE SPACE IN MAJOR CITIES Wroclaw Tricity Poznan Katowice
7 WHY POLAND? SHARED SERVICES CENTRES EUROPEAN TIME ZONE COMPETITIVE LABOUR COSTS DEVELOPED INFRASTRUCTURE TALENT POOL INCENTIVES Cultural and linguistic compatibility with Western Europe (30+ languages covered). Almost 950 business service centres already operating. Office space availability: A choice of 17 potential locations with airport access, already hosting SSC/BPO centres. Sector already employing over 200,000 people: Approx. 1.5 million students, with some 485,000 graduating each year. CIT exemption in Special Economic Zones, property tax exemption. Investment support (government grants, EU cash grants for R&D). WHY MICHAEL PAGE? It is our pleasure to recommend Michael Page as a reliable and effective partner in the area of recruitment for specialist positions. During our period of cooperation, the Michael Page team has demonstrated excellent knowledge of the job market in the SSC/BPO sector, as well as a great understanding of our needs. We particularly appreciate our cooperation with this company from the point of view of its responsiveness, focus on objectives and smooth communications. STANLEY BLACK & DECKER Anna Chmielinska HR Director Michael Page has been providing comprehensive recruitment services for Marsh since November During that time, the company has worked for different business units, including our European Business Support Centre. Up to now Michael Page has successfully recruited over 60 specialists for SSC functions. The flexible approach of our partner allowed us to adjust the plan of the recruitment project to frequent changes. The company provided advisory and guidance throughout the whole transition period, as well as professional support in difficult situations. We would like to strongly recommend Michael Page as a reliable partner, whose dedication and experience adds great value to the recruitment process and guarantees outstanding results. MARSH POLAND Dominika Kozakiewicz Managing Director
8 Publisher: Michael Page International (Poland) Sp. z o. o. Zlota 59 Str Warsaw Poland contact@michaelpage.pl Contacts: Wojciech Bartz Executive Manager Michael Page WojciechBartz@michaelpage.pl T: Joanna Mroczek Senior Director CBRE Research & Consultancy joanna.mroczek@cbre.com T: Disclaimer: The information provided in this publication has been carefully researched and compiled. Nevertheless, the authors and publishers take no responsibility for the correctness and completeness of the publication. Like any printed material, it may become outdated. All rights are reserved, including those pertaining to photomechanical reproduction and storage in electronic media.
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