Government agencies and public administration are struggling to retain and attract top talent, according to a new study by the IDEA think-tank. The research reveals a concerning gap between public and private sector compensation, particularly in Prague, where government positions often offer significantly lower salaries than their corporate counterparts.
The disparity is most striking in senior positions. HR managers in the private sector earn an average of 167,000 CZK monthly, while their public sector counterparts receive just 96,000 CZK. Similar patterns emerge in finance, IT systems analysis, and network administration, where public sector employees in Prague earn nearly 50% less than their private sector colleagues.
The compensation gap extends beyond base salaries. Performance bonuses in Prague illustrate the divide, with public sector employees receiving around 4,500 CZK compared to 9,500 CZK in private companies. This disparity in total compensation makes it increasingly difficult for government institutions, predominantly based in the capital, to attract highly qualified professionals.
Study authors emphasize that effective comparison between sectors must consider factors beyond average salaries, including job content, region, age, education, and gender. The research also notes that certain professions, such as IT administrators and chefs, may show skewed comparisons due to informal payment arrangements in the private sector.