A market full of contradictions: Poland’s evolving investment appeal

When analysing the latest labour market data, one thing stands out. It feels like employers and employees are facing a mix of conflicting signals from the market. What kind of business environment are we entering this year?

Alex Shteingardt: That’s true about conflicting signals. The labour market in 2026 is marked by a variety of at times contradictory observations rather than a single, dominant trend. On the one hand, organisations remain cautious simply because of uncertainty. This uncertainty undoubtedly affects their investment and hiring decisions. At the same time our latest Salary Guide study revealed that 84% of employers in Poland plan to recruit this year. It doesn’t look like a declining market at all. I believe that talent acquisition challenges lie elsewhere. It’s about the skills shortages, which remain a significant barrier to growth and competitiveness for many organisations.

In my opinion we are witnessing a stabilising market rather than a declining one. There are neither signs of heading towards a crisis nor a surge in demand. In such a landscape, individual expert skills and a readiness for continuous development become key factors determining success in the labour market. Experienced candidates who fit this profile still receive very attractive job offers. Those who don’t, however, often need more time to find employment.

Organisations participating in the Hays survey often note that, despite higher candidate activity, it’s still difficult to fill specialist roles. How do you explain this mismatch?

It’s the outcome of several factors. First is the digital transformation, including the rapid development of AI, that has changed how organisations operate and the skills they require. Additionally, businesses have faced pressure over the past few years to improve operational and cost-related efficiency. During that period there were some layoffs, and many professionals still feel insecure about their jobs. And then the paradox kicks in. On the one hand more applications are being sent for job openings, yet on the other hand, the same candidates are more hesitant to make a move unless they are 120% sure of their security in their future organisation. Not having too many job openings in the current market doesn’t help this trend either.

There are more factors to it though. The skills and experience that employers are seeking are becoming increasingly difficult to find. Experts with desirable profiles, such as expertise in specific fields, digital and AI literacy combined with strong soft skills are indeed in high demand. However, their salary expectations are often outside of range that new employers are ready to offer. Therefore it’s not surprising that around 43% of surveyed employers feel that candidates have unrealistic expectations.

Let’s talk about the HR strategy. With skill gaps on one hand and limited budgets on the other, what will define successful people strategy in 2026?

This year will test companies’ HR brands in terms of their competitive abilities. Whereas HR is playing a significant role in supporting a company’s employer brand and its positioning, the business leaders of different levels in the organisation should play a pivotal role in setting and implementing the strategy to have the talent they need. Many businesses are in the middle of structural, digital and organisational transformations, with AI becoming integrated into more processes. For all leaders this means two things. Firstly, they need to identify the skills of the future they need and invest in reskilling and upskilling, rather than solely relying on the market to fill all gaps. Their talent strategy should be clear, flexible and future-orientated. The past few years have shown us that nothing is constant and businesses need to adapt continuously, including their approach to talent. Not only people should commit to life-long learning. Organisations should do the same. Unclarity of direction, disconnect with reality, complacency and ignorance towards candidates’ needs will lead organisations to failure faster than before.

Secondly, organisations must pay closer attention to the non-financial elements of their offerings. Professionals now prioritise work-life balance, flexibility, good relations and atmosphere, and a sense of purpose in their work. It’s essential to highlight these aspects, especially when budgets are constrained. Additionally, organisations must prepare for the EU Pay Transparency Directive, which will require a clear, internally consistent approach to compensation. While many organisations are waiting for the detailed legislation, it will undoubtedly influence how pay structures are organised in 2026.

Despite pay rises last year, employee satisfaction remains low. How should employers interpret this?

It’s true, 74% of specialists and managers received raises in 2025, yet only 39% report being satisfied with their current salary. This discrepancy may stem from the fact that these pay increased were modest, typically around 5%. At the same time, companies’ cautious hiring practices often lead to heavier workloads for smaller teams, resulting in frustration among employees who feel overworked but inadequately compensated. It contributes to rising salary expectations, even in a low inflation environment. So, while salaries for white-collar workers in Poland will continue to increase, these raises are unlikely to reach the high levels seen two or three years ago.

Despite increasing salaries, global companies continue to establish advanced operations in Poland. What sustains this investment appeal?

Several factors. Poland offers a large and scalable talent pool – something that smaller European markets cannot provide. Investors appreciate that they can start with a team of 50 specialists and scale to 150 or 200 if their operations expand. Secondly, the talent in Poland is not only well educated but also experienced in delivering complex regional or even global processes, whether in IT, finance, cybersecurity, engineering or life sciences. Finally, Poland benefits from its geographical location, strong infrastructure and digital readiness. Time‑zone alignment with key markets, reliable internet and transport networks and strong language skills create a highly attractive environment for businesses.

Although labour costs have increased, Poland still provides an excellent return on investment for high-value roles. It has become less attractive to locate simple, transactional business processes here, though it should be considered as an indicator of the growing maturity of the Polish economy.

What risks or longer-term structural challenges should investors consider when planning their operations in Poland?

When planning operations in Poland, international investors should look carefully at several longer-term structural challenges. To begin with, choosing the right region is crucial. Talent availability and the ability to scale teams differ significantly across the country, so the selected location must meet not only current needs but also support future growth. This is particularly important given the disparities in skill sets and labour supply between regions.

Another essential consideration is the growing importance of upskilling and reskilling. Organisations increasingly value adaptability, digital literacy and the ability to grow into new roles rather than static, narrowly defined expertise. Employers who invest early in workforce development will have more independence in securing the talent they need and will be less vulnerable to possible misalignment of market needs and the educational system.

Investors should also keep in mind that Poland is no longer a low-cost destination. As the world’s 20th largest economy, Poland has experienced substantial wage growth, and this trend will continue. However, higher labour costs – at least higher than in the most of CEE countries – goes hand in hand with great quality, efficiency and a high success rate. These factors need to be built into investment plans.

Finally, demographic pressures present an additional challenge. Poland has an ageing population, limited migration inflows and a shrinking pipeline of young people entering higher education. These trends make talent development even more critical. Organisations entering Poland will need to plan proactively, focusing on reskilling and long-term talent strategies to secure the workforce they will rely on in the years ahead.

Finally, if you were advising a multinational company considering expansion in Poland this year, what would be your top message?

Clarify what you want to achieve and what skills your organisation needs to succeed. Poland offers a rich talent pool capable of supporting both high‑complexity processes and long-term growth, but successful outcomes depend heavily on thorough preparation. Understanding the available talent in specific regions, anticipating future skill requirements and designing clear skill development strategies will ensure that investments in Poland deliver long-term value.