SHARED SERVICES CENTRESBUSINESS PROCESS OUTSOURCING

POLAND2016

MARKET OVERVIEW

THE POLISH SSC/BPO MARKET AT A GLANCE

Page Personnel Shared Services Centres in Poland is a business partner for companies from the SSC/BPO sectorOur goal at PageGroup is to deliver mass- or single-recruitment services in respect of financial and non-financial positions ranging from ‘entry level’, via specialists and experts, through to managerial roles.

In 2016, the race for talent is back on track. According to Michael Page’s Global HR Barometer, nearly half of HR leaders declared that they were expecting an enlargement of their company’s workforce over the next 12 months. Furthermore, almost a third of organisations have decided to increase their recruitment budgets. As we have learned, a third of respondents are most interested in talent acquisition, talent management, training and development.

Companies are investing in people, while cities are seeking to attract new investments, given the way these can propel development forward dynamically. The Polish SSC/BPO sector does not concentrate in just the largest cities, but is rather developing in at least 10 urban areas. Those with very high growth potential are Katowice (the capital of the biggest conurbation in Poland – Upper Silesia) and The Tri-City, populated by 4 million people overall.

Polish graduates tend to start their careers at renowned outsourcing centres (BPO), where they can learn from experienced managers and make good use of their language skills. In turn, candidates with some experience in the sector are more willing to work in the smaller shared services centres (SSC), at which they have a chance to prove themselves and perform duties requiring more responsibility.

The goal of this report is to present recent trends in SSC/BPO recruitment, and to provide you with an overview of crucial data. I trust this publication will prove both interesting and useful. So have a great read!

Regards,

Wojciech BartzExecutive Manager

THE POLISH SSC/BPO MARKET AT A GLANCEPOLAND IN FIGURES

1 Source: Central Statistical Office in Poland2 Source: Association of Business Service Leaders in Poland

PopulationEconomy

Number of people employed in shared services centres

over 200,000 2GDP per capita (2015)

10,168.49 EUR 1

Number of students

1.5 million 1Unemployment rate (April 2016)

9.5% 1

Higher education rate

17% 1Real GDP growth (2015)

3.6% 1

Number of inhabitants

38.5 million 1Average monthly income in the companies’ sector (2015)

938 EUR 1

International membership

European Union | NATO | OECD | Schengen Zone | WTO

SHARED SERVICES CENTRESMARKET INSIGHTS

POLAND: LEADER IN THE CEE REGION

The last few years have seen Poland assume the status of Central and Eastern Europe’s undisputed leader where advanced offshore business services are concerned, as well as one of the major centres for such services any-where in the world. Poland is able to supply a wide array of benefits to new investors, including an abundance of experienced SSC/BPO staff, a large number of students speaking 1–3 foreign languages, relatively low labour costs and infrastructure already in place. Around a dozen of the country’s towns and cities serve as locations for BPO and SSC centres, and the rail and road network grows with each passing year.

Poland is also a leader in the CEE region when it comes to employment in business services, with a 15% annual growth rate noted for this sector.

Among over 330,000 employed in this sector in the re-gion as a whole, more than 45% (150,000) are at work in Poland. What is more, this number is predicted to rise to around 200,000 – mainly as a reflection of dynamic growth in the area of financial services.

Facts and trends

POLAND

SLOVAKIA

CZECH REPUBLIC

HUNGARY

ROMANIA

Employees

Number of centres

Real GDP growth

45,4001

50,9001

35,0004

1 Source: Association of Business Service Leaders2 Source: Polish Information and Foreign Investment Agency3 Source: Central Statistical Office in Poland4 Slovak Investment and Trade development Agency5 Annual GDB Growth in 2014, Source World Bank6 Source: HIPA Database, September, 2015

1006

2901

201

3.6%3

3.6%3

2.8%5

2.5%5

2.0%5

6592200,0001

150155,0001

POLAND: LEADER IN THE CEE REGION

Shared services centres use various benefits to attract the best candidates. Some of these – like healthcare and life insurance – form part of a standard package. However, employers also tempt potential employees with an array of coupons and discounts, while those whose approach to their workforce is really forward-looking will also provide them with pension funds, or with an opportuni-ty to purchase shares. Benefits, especially those of a long-term nature, are a good way of increasing employee engagement and reducing staff turnover – a traditional challenge of this sector.

Benefits offered by Shared Services Centres

COMPETITIVELABOUR COSTSGrowing interest on the part of investors is driving the race among employers to find and retain talent. What is especially valued is a combination of technical expertise and a knowledge of foreign languages, with companies willing to pay a dozen or even several dozen percent more for such competences. These higher sala-ries reflect more than just competition between employers, given the way they are also arising out of the more and more com-plex processes being implemented in Poland. This in turn boosts candidates’ interest in the sector, encouraging a reputation for this sphere as offering attractive career opportunities. Crucial in this regard is the fact that, while salaries in some of its structures are rising, overall labour costs in Poland remain very competi-tive compared with those in the economies of Western Europe. Following table shows gross monthly salaries on most popular positions within SSC/BPO sector.

SOCIAL PACKAGES

STANDARD PACKAGE• Private healthcare• Basic life insurance

RARELY OFFERED• Dental care• Share purchase option• Pension fund

PACKAGE OFFERED BY MOST CENTRES• Cafeteria plan• Lunch coupons• Co-financed language

courses• Postgraduate study or

relevant professional courses• Discounts (on company

products or services)

* +10% Group I (French, German, Spanish, Italian) +20% Group II (Nordics, Dutch, Czech, Slovak, Hungarian) FX = 4,3

Position Average Monthly Salary (EUR)*

Average Total Annual Empl, Cost (EUR)*

AP/AR Accountant 1,050 15,120

AP/AR Team Leader 1,860 26,784

GL Accountant 1,357 19,543

GL Team Leader 2,100 30,240

Finance Process Manager (AP/AR/GL) 4,186 60,278

Data Analyst 1,280 18,432

Financial Analyst 1,745 25,128

Tax Specialist 1,630 23,472

Senior Tax Specialist 2,350 33,840

Customer Service Specialist 1,012 14,571

HR Administrator 1,131 16,286

Payroll Specialist 1,429 20,571

Internal Auditor 2,210 31,824

Transition Manager 3,500 50,400

Head of SSC 7,675 110,520

SHARED SERVICES CENTRES

SOCIAL PACKAGES

According to the CBRE, at the end of Q1 2016 there was around 8.3 million m2 of modern office space located in Warsaw and Poland’s eight other major regional cities. A further 1.3 million m2 was under construction.

The average monthly rental cost range around 13 EUR per m2, while prime headline rents in A-class buildings range between 10.5 and 23.5 EUR per m2.

EXISTING MODERN OFFICE SPACE IN

MAJOR CITIES

Krakow

Warsaw

Wroclaw

Tricity

KatowicePoznan

Lodz

Szczecin

Lublin

800 000m2

4 750 000m2

724 000m2

622 000m2

394 000m2

388 000m2

323 000m2

166 000m2

129 000m2

OFFICE SPACE

724 000m2

166 000m2

MARKET INSIGHTS

WHY PAGE PERSONNEL?

WHY POLAND?

EUROPEANTIME ZONE Cultural and linguistic compatibility with Western Europe (30+ languages covered).

COMPETITIVELABOUR COSTS Almost 950 business service centres already operating.

Office space availability: A choice of 17 potential locations with airport access, already hosting SSC/BPO centres.

DEVELOPEDINFRASTRUCTURE

Sector already employing over 200,000 people: Approx. 1.5 million students, with some 485,000 graduating each year.

TALENTPOOL

CIT exemption in Special Economic Zones, property tax exemption. Investment support (government grants, EU cash grants for R&D).INCENTIVES

SHARED SERVICES CENTRES

Page Personnel has been providing comprehensive recruitment services for Marsh since November 2014. During that time, the company has worked for different business units, including our European Business Support Centre. Up to now Page Personnel has successfully recruited over 60 specialists for SSC functions. The flexible approach of our partner allowed us to adjust the plan of the recruitment project to frequent changes. The company provided advisory and guidance throughout the whole transition period, as well as professional support in difficult situations. We would like to strongly recommend Page Personnel as a reliable partner, whose dedication and experience adds great value to the recruitment process and guarantees outstanding results. ””

MARSH POLAND Dominika Kozakiewicz – Managing Director

It is our pleasure to recommend Page Personnel as a reliable and effective partner in the area of recruitment for specialist positions. During our period of cooperation, the Page Personnel team has demonstrated excellent knowl-edge of the job market in the SSC/BPO sector, as well as a great understanding of our needs. We particularly appreciate our cooperation with this company from the point of view of its responsiveness, focus on objectives and smooth communications. ”

STANLEY BLACK & DECKERAnna Chmielinska – HR Director

Publisher:

Michael Page International (Poland) Sp. z o. o. Zlota 59 Str 00-120 Warsaw Poland contact@pagepersonnel.pl

Contacts:

Wojciech Bartz Executive Manager Page Personnel wojciechbartz@pagepersonnel.pl T: +48 22 319 30 25

Joanna Mroczek Senior Director CBRE Research & Consultancy joanna.mroczek@cbre.com T: +48 500 000 583

Disclaimer:

The information provided in this publication has been carefully researched and compiled. Nevertheless, the authors and publishers take no responsibility for the correctness and completeness of the publication. Like any printed material, it may become outdated. All rights are reserved, including those pertaining to photomechanical reproduction and storage in electronic media.