Construction sector’s trends

The consequences of the war in Ukraine in the form of an exodus of Ukrainian workers, the disruption of supply chains, but also drastic increases in the price of construction materials and transportation costs – these are just some of the challenges the construction industry has been facing recently. Growing inflation, uncertainty in the business environment and the geopolitical situation have caused the industry to face the need to renegotiate contracts. Local government investment has also slowed down. The housing sector is also experiencing a great deal of uncertainty as a result of stunted investment, resulting in job cuts, but also an exodus of workers to other industries. A freeze on National Reconstruction Plan funding has stalled rail tenders. The situation is more optimistic in the market for investment in warehousing, logistics and roads, where employment is increasing.

The year 2023 is primarily a time to address the challenges of the economic and geopolitical situation, but also the energy crisis. We are seeing a huge increase in interest in investments in new energy-efficient technologies, RES and WtE, which will translate into a demand for highly qualified personnel to run these projects. 2022 showed that the Polish market still does not have enough trained professionals and the industry is still receptive.

Strong salary pressures, talent shortages in narrow specialisations, employee turnover, as well as rising non-wage expectations of candidates and reluctance to relocate remain challenges for employers. Specialists with licenses, as well as experience in managing construction works, continue to be in high demand among employers. The good state of the road investment sector means that site managers in this speciality are also in demand, especially those with experience in tramway investments. Another profile that remains in demand is a project manager with language skills and experience in managing large projects. Companies in the industry are also strengthening their financial controlling departments and looking for specialists who prepare claims and BIM.

The announced recession is not having a significant impact on the willingness to change jobs. Despite uncertainties related to the economic and geopolitical situation, the industry is experiencing turnover. Salary is still the most important component of the offer for candidates, but also the opportunity to work on interesting projects, the possibility of flexible working hours, and a location close to home. Candidates are increasingly asking about the possibility of remote or hybrid working. The order book and benefits offered by the company are also important when changing jobs.

In terms of salaries, we are seeing tremendous wage pressure. Compared to last year, depending on the type of motivation, candidates expect at least 15-30% gross more than existing salaries, which is also largely a consequence of the price-wage spiral.

Employers are still willing to raise their offers in order to retain staff, but only to an acceptable level within the salary scale. RES and WtE specialists, claims experts and those with skills that are rare in the market can expect significant increases.

Author: Olga Nowakiewicz, Recruitment Business Partner