In the Czech Republic, a paradox exists in the job market: while changing jobs could lead to significant financial gains, many Czechs are reluctant to leap. This phenomenon and employers’ cautious hiring strategies have created a stagnant employment landscape.
According to Jaroslava Rezlerová, director of ManpowerGroup CR, “The Czech Republic ranks as the country with the lowest job mobility in Europe”. This reluctance to switch jobs persists despite data showing that job changers typically see an 8% wage increase – equivalent to an extra month’s annual salary.
Interestingly, those who benefit most from job changes are often unexpected. For instance, women in their forties who left previous jobs involuntarily or for serious reasons see an average 11% increase in income after changing jobs.
The hesitation to change jobs is mirrored by employers’ reluctance to lay off staff, even when work is scarce. Companies, particularly in the manufacturing sector, maintain what Rezlerová calls “artificial employment,” fearing they won’t find new employees when needed. This caution is understandable, as hiring new employees can be up to 25% more expensive than retaining current staff.
Looking ahead, the IT sector shows the most optimism for the end of the year, with nearly half of companies planning to hire and only 13% considering layoffs. This surge is partly driven by new cybersecurity regulations, creating a demand for specialists in this field.
As the Czech job market evolves, employees and employers may need to reassess their strategies. Overcoming the fear of job changes could lead to significant financial benefits for workers. For companies, balancing staff retention with the need for new talent will be crucial in navigating the changing economic landscape.