News

2022-09-01
India – A Vibrant Democracy and A Pluralistic Society

For much of the two thousand years of the Common Era, India was the largest economy contributing a third of the global output. Archaeological evidence traces the origins of ancient India’s Indus Valley Civilization to the 5th millennium before the Common Era. During medieval times too India witnessed several glorious empires and great civilizations spread across millions of miles under enlightened emperors.

Towards the last quarter of the last millennium, India came under the influence of East India Company for almost a century during 18th and 19th centuries. Thereafter the Sepoy Mutiny in 1857 compelled the British to place India directly under the British Crown for another ninety years. For almost two centuries, therefore, India was anchored to Great Britain serving the interests of only the British Empire. Of all the colonies the British conquered, controlled and immensely benefited from it was India that was by far the biggest and the wealthiest and was often referred to as the Jewel in the (British) Crown.

Before finally leaving India the British divided the Indian subcontinent into two countries in three parcels - India, Pakistan West and Pakistan East. India’s population then was 330 million and the GDP was INR 2.7 trillion - a paltry 3% of the global GDP. A country which accounted for a third of the global output for much of two millennia before had thus been bled bone dry by the colonial masters.

Independent India

Independent India has witnessed seventeen free and fair Parliamentary Elections with fifteen Prime Ministers at the helm - each contributing his/her mite to the growth, stability and development of the Indian Nation, its society and economy. How individual Prime Ministers of India tried to build a modern India from the debris of two centuries’ rule by the British Empire is in itself a great story and has been narrated by many authors, Indian and foreign.

In the seventy five years since independence, India has negotiated a difficult, at times treacherous, journey replete with five wars (1948, 1962, 1965, 1971 and 1999) and facing frequent occurrence of natural calamities i.e. floods, famines, droughts and epidemics. Two of its elected Prime Ministers were brutally assassinated and a third died mysteriously after signing the Ceasefire Agreement in the Soviet city of Tashkent post the India-Pakistan 1965 War. A stretch of 21 months during 1975-77 remains an aberration in India’s otherwise uninterrupted democracy when fundamental rights of Indian citizens were suspended during the period of national emergency.

Progress achieved

Much water has flown in the Ganga since India attained her independence. During 1950-51 the contributions to Indian GDP by agriculture, industry and services sectors were 56%, 15% and 29% respectively.Agriculture employed the largest work-force of 72% with Manufacturing and Services providing 10% and 18% jobs respectively.Today the service sector accounts for 54% of Indian GDP. The Industry and agriculture follow with 25.92% and 20.19% respectively.

Life expectancy on the eve of independence was 32 years. It has now gone up to 70 years. In 1950,infant mortality rate in India was 145.6/1000 live births and maternal mortality ratio in the 1940s was 2000/100,000 live births which declined to 1000 in the 1950s. There were just 50,000 doctors across the entire country and the number of primary healthcare centres was 725. Today, infant mortality is 27.7 per 1000 births and maternal mortality rate is 103 per 100,000. India now has more than 1.2 million doctors. There are 54,618 Sub-Health Centres (SHC), 21,898 Primary Health Centres (PHC) and 4,155 Urban Primary Health Centres (UPHC), as on December 8, 2021. There are as many as 70,000 public and private hospitals. As of April 5, 2022 there were117,771 Ayushman Bharat-Health and Wellness Centres (AB-HWCs) are operational in India apart from 748 e-Hospitals established across the country as part of the ‘Digital India’ initiative of the government.

As for education, when the British left India there were 210,000 primary schools, 13,600 middle schools and 7,416 higher secondary schools in India apart from 498 colleges and 27 Universities. Today there are 1.6 million schools, 42,343 colleges and a thousand Universities. More than 250 million children are going to school today in India and close to 40 million are enrolled in our Universities.

India survived a devastating once in a century pandemic of Covid 19 and its economy contracted by 7.3% in the financial year 2020-21. It may be some consolation that this contraction was lower than in other major economies. As per latest available estimates the growth rate of GDP for 2021-22 is pegged at 8.7% which has to be seen in the context of 7.3% contraction in the preceding year.

India is bound together as a great nation by the strength and stability of its democracy, the rule of law and a breath taking diversity of its populace in terms of religion, language, culture, climate, history, geography and more. At the time of India’s first census in 1951 Hindus were 305 million (84.1%), Muslims 35.4 million (9.8%), Christians 8.3 million and Sikhs 6.86 million (1.9%). In 2022 the estimated population is 1090 million Hindus (79.80%), 200 million Muslims (14.23%), 31.2 million Christians (2.3%), 23.7 million Sikhs (1.72%), 9.6 million Buddhists (0.70%), 5.1 million Jains (0.37%) and 9.1 million (0.66%) other religions and 3.3 million (0.24%) religion not stated. There are two million Hindu temples, 300,000 active mosques, 8,114 Jain temples a few of them abroad, more than 125 Buddhist temples, monasteries, stupas and pagodas, some 35 Jewish synagogues etc. At the time of independence many predicted that India will splinter into pieces based on caste, creed, tribe, language, culture etc., but she has remained in one piece and stronger than ever.

Future Prospects

In the last ten years, despite a sliding down of growth rates since 2016 till the economy picked up this year and a significant unemployment burden haunting policy makers in the country, there is a quiet revolution taking place in the arena of technology, digitization and innovation spearheaded by young Indian companies. The government’s Atmanirbharta crusade has given an impetus to it.

Latest research of the Indian economy in the last ten years by analyst Ruchir Sharma has a few exciting revelations. In 2011 India had 55 Billionaires with a cumulative wealth of US $ 256 billion which was then equivalent to 13.5% of India’s GDP. Ten years later in 2021 India hosts 140 billionaires with the cumulative wealth US$ 596 billion equivalent to 19.6% of the GDP. Sharma adds that 110 of these are new Billionaires created during the course of just last decade. At the time of independence India was the sixth largest economy in the world. In 2021 it retains the same position which is no mean achievement with India’s population having more than quadrupled.

Notwithstanding the above, there is no room for complacency because (a) India still have a large population that lives below the poverty line, estimated by the World Bank at 140 million which is 10% of the population, (b) the formal and informal sectors may not able to absorb the large number of educated young who are passing out of colleges (2022 estimate is 10.76 million), (c) external and internal factors will keep haunting the policy establishment in its effort to achieve double digit GDP growth rate which is the need of the hour for India. Be that as it may India also has several advantages - (i) a median age of less than 30 years, (ii) a strong and focussed government, (iii) growing market, and, (iv) an innovative Indian youth. If India persists with its pursuit of building and consolidating its infrastructure, keeps the society cohesive and harmonious, stabilizes predictable consistency in policy formulation and implementation, a brighter future can be ensured for its future generations.

***

Ambassador A. R. Ghanshyam - 

is a retired Indian diplomat who has served as Ambassador of India to Angola and High Commissioner of India to Nigeria

2022-06-09
International Day of Yoga 2022 – come and join us!

This June, International Day of Yoga celebrations will be held across the Czech Republic again. This year’s celebrations will be bigger than usually since India is celebrating 75th anniversary of its independence from colonial British rule. Under the title of “Azadi ka Amrit Mahotsav“, a number of events are taking place in India and abroad, including in the Czech Republic.

„The International Day of Yoga was first celebrated globally in 2015, following its inception in the UN General Assembly in 2014. In his UN address then, Prime Minister of India Narendra Modi had suggested the date of 21 June to celebrate the International Day of Yoga, as it is the longest day of the year in the Northern Hemisphere and has a special meaning in many parts of the world. The first celebration in India was organized by the Indian Ministry of AYUSH which deals with ayurveda, yoga and other Indian health systems. Since then, the International Day of Yoga is celebrated annually all over the world, including in the Czech Republic,“ said H. E. Hemant H Kotalwar, Ambassador of Republic of India to the Czech Republic who invited all yoga enthusiasts to take part in events organized across the Czech Republic by the Yoga associations.

In the curtain raiser event hosted at the Indian Embassy in Prague on 8 June , Psychologist and psychotherapist Petr Růžička explained how practise of yoga benefited the mental health. Petr said “people are then able to look at themselves in a healthy way (self-reflection) and to keep their behaviour and acts under control. This function of self-regulation is safeguarded primarily by an area of brain behind the forehead whose development is supported especially by concentration and meditation but also by other yogic exercises.”

How can yoga help us?

· Let’s practice yoga (classical yoga which includes a comprehensive system of physical, mental, breathing and spiritual techniques, such as for example the Yoga in Daily Life System) on the basis of the principle of "sannahana", i.e. resistance and indomitableness.

· Let’s not avoid adequate load and obstacles, let’s rather try to overcome them (each unnecessary avoidance weakens our ability to manage and deepens our fear of further load).

· Let’s harden our body (cold shower in the morning, walking barefoot in the nature…), let’s cultivate our self-discipline, let’s direct our lives from chaos to organization and regularity (it saves considerable amounts of life energy that we can use to manage load).

· Let’s think and communicate in a positive way. The way we think about the world creates our world.

· Let’s build our health self-confidence and self-awareness. They represent the basis for life stability and resistance.

· Let’s strengthen our social and environmental health. What is my relationship with other people, with the environment, with the world? Do I love them, take care of them?

· Let’s cultivate our spirituality (it does not have to be tied to any religion), let’s feel our connection with the wholeness, let’s respect what goes beyond us.

How to join us?

This year’s celebration of the International Day of Yoga organized by the Embassy of India will take place on June 21 from 8:30 am in the India House at Sarecka 7, Prague 6 and will be live telecast globally.

Every week, 25 branches of Yoga in Daily Life offer almost 500 public yoga courses in over 100 Czech towns and cities. Apart from Yoga in Daily Life, more than 35 centres all over Czech Republic also organize regular yoga classes which promote mindfullness and holistic well being. In Prague, to celebrate the International Day of Yoga 2022, there will be open house on June 16 in three Yoga in Daily Life centres (in Blanicka street in Prague 2; Velichovska street in Prague 5 – Mala Ohrada and Donovalska street in Prague 4 – Jizni Mesto). People interested in yoga can come to try a free yoga class within 6 different yoga courses: for beginners; against back pain; and to support vitality. In other Czech and Moravian cities, people can join yoga in a park, tasting of vegetarian specialities and other programmes. All the courses, seminars and other events organized by Yoga in Daily Life can be found atwww.joga.cz and the Facebook pagewww.fb.com/jogavdennimzivote.cz.

2022-01-28
India Celebrates Republic Day in the Czech Republic

The 26 January celebrations of India's Republic Day were organized in style by the Embassy of India in the Czech Republic to commemorate the 75th year of India‘s Independence from colonial rule, being celebrated as ‘Azadi ka Amrit Mahotsav’ - with a series of yearlong events, both in India and abroad.

On this day, the national flag is unfurled throughout India accompanied by singing of the Indian national anthem – this takes place in state and local government venues, as well as in schools, universities and other similar institutions. The most important event is held in New Delhi where the President and Prime Minister take active part. There is a parade with participation of people from all walks of life to highlight the cultural diversity of India including the strength of armed forces and other security agencies.

To commemorate this special year, several firsts took place during the main parade in India‘s capital, New Delhi, including a grand flypast by 75 aircraft/helicopters of the Indian Air Force; cultural performances by 480 dancers selected through a nationwide dance competition; display of ten scrolls each of 75 metres prepared during the ‘Kala Kumbh’ event and a drone show by 1,000 indigenously developed drones has been planned for ‘Beating the Retreat’ ceremony, along with projection mapping.

In the Czech Republic several curtain raiser events: an interaction with Indian students, an international yoga and wellbeing conference, a cultural program by the students of an Arts School culminated in an official Reception at the Prague Congress Centre.

On January 21, at the Faculty of Medicine of Masaryk University in Brno, H.E. Hemant Kotalwar, Ambassador of India to the Czech Republic, celebrated the Republic Day with the students of the University with the support of the Dean of the Faculty Prof. Martin Repko, Ph.D. Ambassador also discussed with the Indian students their experience of studying in the Czech Republic. The faculty management agreed with the Ambassador to cooperate in finding partner universities in India with the aim to facilitate student exchanges and to establish expert cooperation in science and research.

On January 22, an international conference took place in the largest European yoga centre (ashram) of the Yoga In Daily Life NGO in the Czech village of Střílky in the Kroměříž District[1]. Ambassador and Indian yoga Guru,Vishwaguru Swami Maheshwarananda were the keynote speakers at the conference. Ambassador highlighted the importance of the Republic Day of India while appreciating the long-term work of Vishaguru Maheshwarananda and the Yoga in Daily Life organization in spreading the good name of yoga and India in the Czech Republic. Dr. Kateřina Sheardová, head of the Memory Center of the International Clinical Research Center at St. Anne's Teaching Hospital in Brno, introduced the participants to the use of yoga and the System Yoga In Daily Life in the prevention and treatment of the consequences of the COVID disease, including memory disorders and psychological problems.

On January 23, Ambassador attended a musical performance and drawing exhibition organised by students of the Revnice Arts School as a part of the Republic Day celebrations. This was also an occasion to commemorate the 125th birth anniversary of the great Indian freedom fighter, Netaji Subhash Chandra Bose.

The celebrations culminated with a reception which was well attended by Czech dignitaries and diplomats. Mr. Jiri Kozak, Deputy Minister of Foreign Affairs graced the occasion as the chief guest and the Czech Army military band regaled the audience with instrumental rendition of Czech and Indian national anthems.

Ambassador also expressed his appreciation to the Mayor of Liberec city, Mr. Jaroslav Zámečník, for his gracious gesture of lighting up the City Hall in colors of the Indian flag on this occasion.

On this occasion, Prime Minister of India also conveyed his personal greetings to Mr. Jakub Janda, Director of European Values Center for Security Policy, Prague and appreciated his work on global security policy.



[1] Střílky hosts the largest European centre of the international non-profit organisation Yoga in Daily Life, founded by the Indian Yoga Master Vishwaguru Swami Maheshwarananda. He has been coming to the Czech Republic regularly since 1973 to lecture on yoga spirituality and philosophy and to train yoga teachers.

2022-01-19
SALARY GROWTH IS ON THE CARDS FOR 2022, BUT WILL IT EVENLY BENEFIT ALL?

- 56% of employers plan to increase the number of employees in 2022
- 54% of employees in qualified roles are considering a career change in 2022
- Employees in the positions of financial controllers and analysts, e-commerce experts, IT recruiters, FMCG and technology salespersons, employees in retail chains and construction; or highly specialized employees in pharmacy or production might earn higher wages in 2022.

The ongoing coronavirus pandemic continues to affect global economies and labor markets, including the Czech labor market. However, despite another strong pandemic surge in the winter and spring of 2021, positive changes are evident. Companies again intensify their recruitment, they have successfully implemented hybrid work schemes, wages have risen slightly in 2021, and many industries plan to increase salaries this year as well, according to Hays' annual Salary Guide.*

Lockdown in the first third of 2021 caused a freeze on recruitment in many companies, and new job opportunities were usually sought only by those candidates for whom the change was crucial. Employers mainly focused on setting up new working regimes, adapting the work environment to the new style of work, which, probably permanently, will mean greater flexibility and a greater proportion of work from home. In the summer, the easing of restrictions brought a new lease of life to the labour market. Companies intensified recruitment and the number of candidates who were actively searching new jobs also increased. However, not enough to meet the needs of employers. Thus, the need to approach candidates directly has increased significantly, so headhunting is no longer a recruitment method used exclusively for top management roles, and operational roles are increasingly being filled in this way.

"The candidate shortage across the professions will most likely not ease in 2022. The need for applicants to fill open vacancies will be huge, and it will put further pressure on accelerating automation in many industries - mostly in production or logistics. According to the survey, 56% of companies plan to increase the number of employees, and another 14% will consider recruitment according to the situation during the year," says Sándor Bodnár, Managing Director of Hays in the Czech Republic and Romania.


Over the past year, the skilled jobs market has seen moderate wage growth, typically in the 3-5% range on average. "It is still the case that the highest chance for higher salaries are offered to profiles that are typically in high demand - currently, for example, online marketing, operational financial roles, experts in research and development, IT professions. On an individual basis, wage increases may be higher, by 15% on average, depending on the urgency of the employer and the type of position. We can expect increased upward pressure on wage growth this year due to labour shortages, but also rising consumer prices and thereby inflation. However, companies most often plan to maintain growth at the current level, i.e. not exceeding 5%, " comments Sándor Bodnár on the results of the survey.

However, considering current economic developments and especially the growth of inflation in recent weeks, the wage growth in 2022 remains an open topic.


LABOUR MARKET DEVELOPMENTS IN SELECTED BUSINESS SECTORS

Accountancy & Finance

The sector is facing a shortage of candidates for operational roles. The most sought-after professionals who meet the requirements of companies are not actively looking for a new job opportunity, but employers do not compromise on their requirements and wait for ideal candidates with proper qualification, managerial and language skills. Opportunities for managers have decreased significantly, mainly due to team mergers and centralization. Companies looking for candidates for managerial roles thus have a choice of many quality candidates, but financial managers find it difficult to find a new job. The most sought-after professions include an independent accountant, financial controller and analyst, preferably with English language skills. Wage growth in these positions is expected to be around 6%.

Role

Minimum

maximum

Independent Accountant

45 000

65 000

Junior Financial Controller

40 000

50 000

Finance Analyst

55 000

75 000


Banking

As banks usually do not compete significantly with the offered salary and the offer of benefits to the candidates, staff turnover between individual institutions is low and it is therefore necessary to approach applicants without previous experience in this environment. The biggest number of open positions is in retail banking, some more vacancies appear as a result of digitization of services, for example in the field of business analysis. The pandemic has led to an increase in online and telephone communication with clients, so even employees in financial institutions can now enjoy greater flexibility and a higher ratio of work from home, which is usually 1-3 days a week, depending on the role. The expected increase in wages in the area of back office roles will be around 5% this year, basic wages in the front office will rather stagnate. Potential wages increase will rather concern the bonus component, which could reach up to 30% of the gross monthly salary.

Role

Minimum

maximum

Personal Banker - retail

28 000

38 000

Investment Specialst

40 000

48 000

Risk Analyst

50 000

80 000


Administration & HR

Due to the higher proportion of work from home, administrative positions have decreased significantly, and we will probably not see a significant increase this year either. Positions are usually paid at a similar levels as was usual in the years before the onset of the pandemic. However, the importance of HR departments is fundamentally changing, being now transformed into crisis teams, dealing with cases of covid-positive employees, prevention and safety at work, and amendments to labour law documents. The significant increase in recruitment last year caused a massive increase in demand for recruiters in all fields, but most in IT. Thus, an enhanced bonus component and hiring bonus which can amount to one month´s salary for IT recruiters, are no longer an exception.

Role

Minimum

maximum

Receptionist

25 000

35 000

HR Specialist

40 000

55 000

IT Recruiter

50 000

80 000


Sales & Marketing

The need for experienced salespeople and experts, especially in online marketing and e-commerce, continued to grow last year and still remains at the forefront of interest of employers. However, the activity of applicants is low and therefore it is important to focus on other recruitment techniques, such as headhunting and approaching candidates directly. The lack of people with the right experience forces companies to compromise on requirements and consider also motivated candidates with experience from other business sector. Wage growth in Sales will be evident mainly in the technical segment, especially in industrial automation and electrical engineering, and also in the area of online marketing and e-commerce across market segments, it can reach up to 7-10%. The wages might also increase in FMCG industry, where there is a risk of an outflow of applicants to sectors with high potential. Here, the growth may reach 3-7%.

Role

Minimum

maximum

Sales Representative / technical

37 000

65 000

Key Account Manager / FMCG

60 000

95 000

Online Marketing Specialist

45 000

80 000


Information Technology

The number of job offers for IT experts is growing again, it is no exception when candidates have up to 5 job offers to consider and choose from. The possibility of remote work has increased, which allows companies to expand the selection of candidates beyond the location and surroundings of the employer´s operation throughout the Czech Republic. This trend can potentially contribute to a levelling of wages between Prague and other regions. Listed roles are now generally more complex, with the most sought-after profiles still being developers, cyber security or cloud technology experts, data and business analysts. However, there is no widespread wage growth, any increases are more on an individual basis.

Role

Minimum

maximum

Developer, Java, .Net

60 000

120 000

DevOps Engineer

80 000

130 000

Data Analyst

70 000

80 000


Engineering

Sector continues to face a shortage of commodities for manufacturing companies, especially the automotive industry and they are therefore unable to plan their activities accurately. Some industries have seen growth in terms of demand and production capacity, such as development centres or the packaging industry. Candidates in development and automation are in high demand- PLC programmers, PLC test engineers, automation technicians; the most popular profiles include a combination of IT and engineering knowledge such as SW or Electrical Engineer. On these roles, there is also the greatest probability of obtaining a more attractive salary, but the increase will be rather on an individual basis, according to the current urgency of the company.

Role (3-5 yrs exp.)

Minimum

maximum

PLC Programmer

45 000

85 000

Quality Engineer

50 000

80 000

Project Engineer

50 000

75 000


Construction & Property

The construction sector is very active across areas. Not surprisingly, logistics and residential construction are the busiest, and administrative buildings are not left behind either. In particular, Property and Facility managers with several years of experience, as well as quality managers and sustainability experts, which is a trend in commercial construction, are in demand. Although the level of basic wages in the sector stagnated, there was a visible shift in the bonus components and the offer of benefits. The bonus components have been increased by an average of 15%, and the trend in benefits is to build a tailor-made portfolio where employees select benefits according to their needs. Basic wages are expected to increase in the construction sector by up to 10% on average this year due to staff shortages.

Role

Minimum

maximum

Property Manager

50 000

90 000

Facility Manager

45 000

80 000

Construction Manager / Development

60 000

120 000


Shared Services Centres

In terms of demand for employees, the shared services sector was one of the busiest in 2021. New job roles appeared mostly in customer service and financial services. There were relatively enough candidates on the market, given that as a result of the pandemic, some companies decided to end their operations in the Czech Republic. Other companies, on the other hand, strengthened their teams, so workforce supply and demand were relatively balanced. Applicants now have higher wage demands, which is often a complication in the recruitment process. Companies that have been able to adapt to these increased financial requirements, albeit at the expense of some benefits, are more successful in attracting candidates. Reducing travel restrictions will bring foreign applicants to the Czech market, who will help to fill difficult-to-fill roles, for example those with non-standard language combinations or knowledge of atypical technology.

Role

Minimum

maximum

Customer Service Specialist

40 000

48 000

AP/AR Specialist

39 000

48 000

IT, 1st level Support

43 000

50 000


*Methodology:

The recruiting trends and benefits data is based on a survey among 937 candidates and 511 employers conducted in October 2021. The salary data has been compiled using information gathered during 2021 from the Hays Czech Republics’ database, considering thousands of job listings, job offers and data from Hays´ candidate database.

2021-01-19
Wages stagnated last year, the goal for 2021 is personnel and economic stabilization

Hays, the specialist recruitment company, conducted a survey of recruitment trends and salaries of qualified workforce across the industries for 2021. The Hays Salary Guide evaluates the salary data collected from more than 20,000 registered candidates and over 6,000 job offers.

“The pandemic affected individual sectors differently, with most needing to make some redundancies, but many were still looking for new staff, with the second half of the year in particular seeing more recruitment take place. Some areas, like in IT or the Life Sciences sector, have seen growth throughout the pandemic and continue to actively seek experienced professionals for their projects.Higher activity of applicants is also evident in some areas of the financial segment, such as controlling and analysis," says Sándor Bodnár, Director of Hays, about the situation on the labor market last year.

A new reality: Remote working and the hybrid team model
Lockdowns hit the Czech Republic twice last year, both varying in their intensity and influence on working patterns and recruitment. Moving quickly from the workplace to home-office wherever possible has been a major challenge for many companies. Data protection and cyber security are becoming a priority, given the number of workers in this mode and the overall higher online activity of the population.

“Digitization and an increase in automation can be seen across all sectors and business areas, and the advent of the pandemic has accelerated its development even more. New roles will continue to emerge, while others will adapt to meet new expectations and business needs of companies. These trends are especially visible in the areas of online marketing and e-commerce, and in the IT field, companies are strengthening their teams with positions focused on machine learning, Cloud and IoT solutions.”, adds Sándor Bodnár from Hays.

Wage stagnation and a different approach to the benefits offered
“Wages across sectors stagnated last year. A slight increase of 3 - 10% was evident mainly in the roles with high demand, a narrow specialization or because of urgency from the employer, for example on the roles mentioned above. Applicants therefore looked at other aspects beyond the salary of a role, such as the attractiveness of the job content itself, the possibility for growth, the offer of courses and other opportunities for further education or flexibility and stability of the employer. When considering benefits package, companies have gone in two directions, either narrowing the range of benefits in order to reduce costs, or have revived their offer of benefits and adapted them to the current situation. Currently, benefits such as paid-for tests for Covid-19, financial compensation when working from home, online psychological consultations etc. can be found more often.”, says Sándor Bodnár, Managing Director of Hays.

For 2021 experts expect a GDP growth of 3.9%. Companies will therefore put more effort on economical and personnel stabilization.

Situation across the business sectors:

Accountancy and Finance

We can see less job opportunities for experienced finance managers. Many companies have cancelled such jobs and their responsibilities are currently covered by existing teams. On the other hand, the demand for applicants for financial and business controlling, which are essential in companies setting up cost-saving solutions, has increased significantly.

Companies are being more careful when selecting new employees. Therefore, selection processes are being extended and companies are also including assignments / case studies in them to make sure of the qualification of the candidate. There was a sharp decline in wages offered for finance managers, conversely, growth has been seen in highly demanded positions in controlling and analysis, where job seekers may receive wages that are higher by 5-10%. This year companies will continue to look for ways to cut costs, to optimise organisational structure and their recruitment processes.

Accountancy and Finance

2019/2020

2020/2021

Financial Accountant

40 000 - 50 000

40 000 - 50000

Invoicing

30 000 - 35 000

25 000 - 35 000

Finance Manager

100 000 - 150 000

100 000 - 150 000

Business Analyst

50 000 - 70 000

50 000 - 80 000

Banking

Last year, the priority of financial institutions was mainly the development of internal digital projects, the optimization of online tools and also effective customer service. There has been an increase in marketing positions in banks, business positions have decreased and their further reduction will probably take place this year as well. The impact of the pandemic on the hospitality and retail segments has sparked a great interest among candidates with experience from these industries to join a career in banking. Companies are therefore facing a large number of responses to junior business positions, but not all job seekers have the necessary personal and professional qualifications for such jobs.

Wages stagnated last year and the same situation will persist this year. The range of benefits remains attractive and varied, despite austerity measures - flexibility, a cafeteria system and attractive bonus schemes dominate.

Banking

2019/2020

2020/2021

Credit Analyst

50 000 - 75 000

50 000 - 75 000

Internal Audit Specialist

50 000 - 90 000

50 000 - 90 000

Personal Banker

28 000 - 38 000

28 000 - 38 000

Relationship Manager - SME

35 000 - 45 000

35 000 - 45 000


Administration, HR and Law
Due to the massive transition by companies to remote working, the need for administrative staff and office support in general has decreased. Therefore, dismissals have been frequent across companies, and existing employee contracts have not been extended.

HR positions were among the more frequently available last year. HR staff have been closely working with other departments to transition employees to home office and create programmes for successful onboarding and online training. Their task was to ensure the overall wellbeing of employees in the new situation, and to create new standards for a safe return to offices and the subsequent working practices within these offices. Wages across most positions have stagnated over the past two years. This year will not be any different, and no general changes can be expected in the remuneration of positions in the sector.

Recruitment has remained relatively active within the legal services sector. Companies are mainly looking for junior candidates with knowledge of English and German. Since there are very few such candidates available in the market, companies can tailor their financial packaged offered based on the abilities of the candidate. For 2021, we can expect a very slight increase of wages, however, it is likely that this increase will not exceed 5%.

Administration / HR / Law

2018/2019

2020/2021

Team Assistant

28 000 - 45 000

28 000 - 45 000

HR Administrator

30 000 - 40 000

30 000 - 40 000

Office Manager

40 000 - 60 000

40 000 - 60 000

Call Centre Operator

22 000 - 30 000

25 000 - 35 000

Junior Lawyer / corporate

35 000 - 60 000

35 000 - 60 000


Sales and Marketing

The impact of the restrictive measures varied mainly depending on the area of business operation. In general, companies have strengthened their e-commerce teams - online sales have helped them to cover the drop in sales from closed brick-and-mortar stores. Outside the marketing area, experienced salespersons with knowledge of the given area of business were also on demand, primarily for acquisition activities. Wages for such roles workers grew very slightly, up to a maximum of 3%. There were no redundancies in the commercial sector. Applicants are strongly motivated by the strength of the employer's brand, which will be a priority for them this year as well, as wages will not rise further.

Sales and Marketing

2019/2020

2020/2021

Sales Representative / FMCG

30 000 - 50 000

30 000 - 50 000

Sales Representative / Technical

35 000 - 65 000

35 000 - 65 000

Sales Representative / IT

40 000 - 55 000

40 000 - 55 000

E-commerce Manager / FMCG

35 000 - 60 000

40 000 - 100 000


Retail

Different situation is with retailers. Many companies have not been able to avoid laying off employees, with global brands reducing the number of brick-and-mortar stores, choosing instead to focus on further stabilising their businesses or strengthening their e-commerce channels. Traders lack tourists, especially in the luxury and premium segments, where foreign customers represent a majority of their sales volume.

Decline in wages is present mainly in Prague, particularly in senior roles like Area Managers, where the current financial offer is approximately 5-7% lower than it has been previously. Planned expansions have been postponed to this year, which could bring a new recovery and new jobs to the sector. But everything will depend on the further development of the pandemic.

Retail

2019/2020

2020/2021

Shop Assistant

21 000 - 50 000

22 000 - 50 000

Store Manager

28 000 - 60 000

28 000 - 60 000

E-commerce Manager

45 000 - 150 000

45 000 - 150 000

Brand Manager

40 000 - 75 000

40 000 - 75 000


Life Sciences

Recruitment also slowed down in pharmaceutical companies in the beginning of the year 2020, but it was relatively lively in the area of medical equipment. Especially in the second half of the year, new positions were opening, especially digitally focused, but also educational. Companies prefer experienced candidates rather than juniors and graduates. Wages in the sector grew slightly on certain roles, especially for experienced traders and e-commerce specialists, by an average of 5%. A similar trend is expected this year.

Farmacie

2019/2020

2020/2021

Medical Sales Representative Rx

40 000 - 60 000

40 000 - 60 000

Medical Sales Representative / OTC

35 000 - 45 000

35 000 - 45 000

Medical Sales Representative / Diagnostic

45 000 - 55 000

40 000 - 55 000

Marketing Manager

100 000 - 130 000

100 000 - 120 000


IT and Telecommunications

There was a certain slowdown in the IT labour market at the end of 2019 already. Companies rationalized their recruitment strategies and, with the advent of the Covid-19 pandemic, intensified their efforts. The sector has been admirably resilient to the unexpected changes, the number of jobs available declined temporarily, but employers' demand remained higher compared to candidates available. There was a drop down of vacancies for project managers. On the other hand, number of jobs for developers, experts in cloud solutions, machine learning or security remained high or even increased. The trend of hiring IT experts from outside the EU has been completely disregarded, primarily due to traveling obstacles. Wages usually remain unchanged, any increases are minimal and only on an individual basis.

A number of roles in the sector show a drop down in the maximum levels of wages offered.

Information Technology /Telco

2019/2020

2020/2021

Java/.NET Developer

60 000 - 140 000

60 000 - 140 000

Programmer / Analyst (graduate)

35 000 - 65 000

35 000 - 65 000

DevOps Engineer

60 000 - 180 000

60 000 - 140 000

Analyst / Security Specialist

40 000 - 90 000

60 000 - 110 000


Manufacturing & Engineering

The slowdown in the industry was seen as early as the beginning of 2020, and fully erupted with the outbreak of the coronavirus crisis in the Czech Republic a couple of months later. The hardest hit areas in the first phase were those businesses involved in the supply chain of Asian companies, and then those that were somewhat dependent on Italy and Spain in Europe. The most affected area was in the automotive industry, where all suppliers were affected by the crisis. The only exception in the automotive industry has been in Research and Development centres, where there is continued interest in highly qualified candidates from both the Czech Republic and abroad. We have already seen an increase in the need for automation over the last few years. This year’s coronavirus crisis has amplified this need, and so we are seeing ever-increasing demand for candidates, especially in the positions of PLC programmers, PLC test engineers and automation technicians. The majority of companies have had to lay off employees, especially in low-level production positions. In many companies, there has been a reduction in working hours or cancelled shift work. Companies in the pharmaceutical, food and service sectors were performing the best. As employers strive to reduce wage costs, the amount of they’re willing to offer a candidate has become a key factor in the selection process. There may be a slight increase in wages in specialised positions at R&D centres or in automation-focused positions this year.

Manufacturing & Engineering (3-5 yrs exp.)

2019/2020

2020/2021

Production Engineer

50 000 - 75 000

50 000 - 75 000

Quality Engineer

50 000 - 80 000

50 000 - 80 000

PLC Programmer

43 000 - 80 000

43 000 - 80 000

R&D Designer

50 000 - 80 000

50 000 - 80 000


Logistics

Wage growth in the logistics and purchasing sector has stagnated over some time, and in some cases, wages are actually declining. This hit carriers and companies dealing with external logistics the hardest in the sector.Some employers, like carriers, manufacturing companies linked to the automotive sector or storage providers, had to make redundancies for cost-saving reasons and reorganise their businesses when these positions were cancelled. The situation has been different for companies focusing on medical equipment, pharmaceuticals or FMCG, which have actually increased their capacities and recorded growth, both economically and in terms of number of employees they have.

New jobs are often advertised with a lower basic salary than last year, by a maximum of 5%. Experienced Buyers are currently the most sought-after job profiles in the sector, where demand remains relatively stable and wage offerings tend to be stable as well. In 2021, we do not expect wages to grow, but also more importantly, even not to decline.

Logistics & Purchasing

2019/2020

2020/2021

Purchasing Assistant

37 000 - 45 000

35 000 - 43 000

Purchasing Coordinator

39 000 - 50 000

38 000 - 48 000

Logistics Manager

85 000 - 180 000

80 000 - 160 000

Logistics Specialist

30 000 - 50 000

28 000 - 50 000


Construction & Property

Construction companies lack unqualified construction workers, may lead to a delay within the entire construction process. There is still demand for experienced construction managers and people for the preparation stages, or specialists in the technical security of buildings. The closure of retail branches or entire shopping centres has transferred a huge volume of purchases to the online environment, and e-commerce is thus on the rise. This has meant increased demand for storage premises. In the case of the residential market, a significant topic will be the demand in Prague, the Central Bohemian region and probably in Brno and its immediate vicinity as well. In the office market, the importance of first-class projects that offer exceptional technologies, equipment, services and locations will grow. This will result in ongoing demand for acquisition experts and experienced project managers or technicians who specialise in interior installations and conversions - so-called ‘fit-outs. Wage growth will not happen this year, as the second wave of the pandemic may hit the market harder than the first wave.

Construction & Property

2019/2020

2020/2021

Construction Manager

40 000 - 70 000

35 000 - 60 000

Budgeting

35 000 - 60 000

35 000 - 60 000

Property Manager

60 000 - 90 000

55 000 - 90 000

Technical Director

70 000 - 130 000

70 000 - 120 000


Shared Services Centres

March 2020 saw a temporary freezing of the labour market for shared services centres and a suspension of recruitment processes. Organisations primarily tied to the segments most affected by the pandemic have not avoided lay-offs. The austerity measures applied by companies meant that wage growth stalled, mostly due to the economic impact of the coronavirus pandemic. Wages have remained at the same level as in the previous year. The number of vacant jobs is lower than it was at the beginning of last year. Job seekers who are currently unemployed are now willing to accept a compromise with job offers and are often willing to reduce their wage demands if this may increase the likelihood of finding a new job more quickly. The 2021 may bring an increase in job opportunities again, including newly opened positions. However, the speed at which vacant positions are offered and the number that we will see, will be closely related to the further development of the pandemic.

Business Services / AP/AR¹

2019/2020

2020/2021

Junior

35 000 - 40 000

35 000 - 40 000

Specialist

38 000 - 45 000

38 000 - 45 000

Senior

45 000 - 55 000

45 000 - 55 000

Team Leader

55 000 - 85 000

55 000 - 85 000

¹ Wages include bonuses for knowledge of another language, apart from English


About Hays

Hays plc (the "Group") is a leading global professional recruiting group. The Group is the expert at recruiting qualified, professional and skilled people worldwide, being the market leader in the UK and Australia and one of the market leaders in Continental Europe, Latin America and Asia. The Group operates across the private and public sectors, dealing in permanent positions, contract roles and temporary assignments. As at 30 June 2020 the Group employed c.10,400 staff operating from 266 offices in 33 countries across 20 specialisms. For the year ended 30 June 2020:

– the Group reported net fees of £996.2 million and operating profit (pre-exceptional items) of £135.0 million;

– the Group placed around 66,000 candidates into permanent jobs and around 235,000 people into temporary roles;

– 17% of Group net fees were generated in Australia & New Zealand, 26% in Germany, 23% in United Kingdom & Ireland and 34% in Rest of World (RoW);

– the temporary placement business represented 59% of net fees and the permanent placement business represented 41% of net fees;

– IT is the group’s largest specialism, with 25% of net fees, while Accountancy & Finance (15%) and Construction & Property (12%), are the next largest

– Hays operates in the following countries: Australia, Austria, Belgium, Brazil, Canada, Chile, China, Colombia, the Czech Republic, Denmark, France, Germany, Hungary, India, Ireland, Italy, Japan, Luxembourg, Malaysia, Mexico, the Netherlands, New Zealand, Poland, Portugal, Romania, Russia, Singapore, Spain, Sweden, Switzerland, UAE, the UK and the USA

Contacts

Address

J&N Publicity s.r.o.

Wuchterlova 584/16, Praha 6, 160 00, Czech Republic

IČ: 03518442

DIČ: CZ03518442

Contact

Mgr. Jitka Novotná, Managing Director
jitka.novotna@jnpublicity.cz
tel: +420 723 540 511