The tight labor market in the Czech Republic is causing significant challenges for companies, even when offering higher salaries and various benefits. This labor shortage has pushed some businesses to adopt unconventional strategies to attract talent. For example, Příbram-based ZAT, a company specializing in control and intelligent systems for energy and industry, acquired a fully-owned stake in Benešov’s Definity Systems, which brought thirty specialized developers to help address their staffing needs. Similarly, Sodexo, a company in need of IT employees, has experienced prolonged difficulties filling technical positions.

The labor shortage is not limited to specific industries; it affects a wide range of sectors. BR Group, which comprises thirteen manufacturing companies, is struggling to find skilled workers like welders, grinders, operators, and CNC machine adjusters. Engineering company Žďas, specializing in heavy engineering and metallurgy, faces similar challenges, from welders to crane operators and technologists to designers and programmers.

This labor shortage is causing production problems for these companies, resulting in the rejection of specific orders due to capacity constraints. Additionally, it negatively impacts technology utilization, forcing companies to make decisions about deploying available capacity and temporarily shutting down certain technologies during periods of higher absenteeism.

To address the labor shortage, companies are employing various recruitment strategies, from advertising and social media campaigns to collaboration with educational institutions and employment offices. They also offer recruitment incentives and increased salaries to attract more candidates.

However, this labor shortage is not just a company-specific issue; it has broader implications for the Czech economy. Employer associations and human resources experts consider it one of the biggest obstacles to the country’s economic growth. A survey indicates that sixty-two percent of employers struggle to fill vacant positions. The retirement of the older generation and the lack of graduates entering the labor market exacerbate this problem.

To combat the labor shortage, the Confederation of Industry and Transport of the Czech Republic is calling for a more open migration policy to attract qualified individuals. They emphasize the need for reducing the processing time for immigration documents and enhancing the attractiveness of technical fields for students.

Addressing the labor shortage is not just a challenge for individual businesses but requires cooperation between companies and policymakers to find innovative solutions and create an environment that fosters workforce growth and development.

Czech Companies Struggle to Find Skilled Labor Despite Higher Salaries and Benefits

In a challenging labor market, Czech companies are facing difficulties in recruiting skilled employees, even when offering competitive salaries and various benefits. This situation has prompted some businesses to take unconventional measures to address their staffing needs. For example, ZAT, a Příbram-based company specializing in control and intelligent systems for energy and industry, acquired a fully-owned stake in Definity Systems, a Benešov company with thirty specialized developers. This move aimed to mitigate the shortage of technical specialists and experts.

Sodexo, a company in need of IT employees, has also experienced persistent difficulties in filling technical positions. The labor shortage extends beyond specific industries and affects a wide range of sectors. BR Group, a conglomerate comprising thirteen manufacturing companies, is currently grappling with a shortage of welders, grinders, operators, and CNC machine adjusters. Despite continuous advertising efforts over the past five years, there have been only three applicants for the position of machine adjuster.

Similarly, Žďas, an engineering company specializing in heavy engineering and metallurgy, is facing challenges in finding qualified workers across various roles, from welders and crane operators to blacksmiths, machinists, technologists, designers, and programmers. The lack of interest in these professions is partly attributed to a decline in vocational education and limited vocational training options.

The labor shortage has led to production issues for these companies, forcing them to reject specific orders due to capacity constraints. Additionally, it has a detrimental impact on technology utilization, requiring companies to make decisions regarding the deployment of available capacity and occasional temporary shutdowns of certain technologies during periods of higher absenteeism.

To combat the labor shortage, companies are employing diverse recruitment strategies, including advertising, social media campaigns, collaboration with educational institutions and employment offices, and offering recruitment incentives. Many have significantly increased average salaries over the past two years to attract more candidates.

However, this labor shortage is not just a localized issue but is considered one of the most significant obstacles to the overall growth of the Czech economy. A survey reveals that sixty-two percent of employers are struggling to fill vacant positions. With more people retiring each year than new graduates entering the labor market, this trend raises concerns about the future, especially considering the retirement of the generation born during the Gustav Husák era.

To address this issue, the Confederation of Industry and Transport of the Czech Republic is advocating for a more open migration policy to attract qualified individuals. They emphasize the need for reducing the processing time for immigration documents and enhancing the appeal of technical fields to students.

The labor shortage not only impacts individual businesses but also has broader economic implications. Collaborative efforts between companies and policymakers are required to find innovative solutions and create an environment that fosters workforce growth and development.