Employee demands rise in warehousing market

It is no longer just the level of wages but also the stability of employment or the attractiveness of the workplace that influences employees’ decisions in the warehousing market. Experts Wojciech Kosiór, Head of Development at MDC2, and Marzena Milinkiewicz, Operational Talent Solutions Director at Randstad Polska, discuss how employee requirements and skills are evolving in the context of changing technologies and the challenges facing employers in the sector.

How do you assess the workforce’s potential in Poland’s warehousing market compared to Western European markets?

M.M. Randstad: The warehouse market in Poland has been expanding for several years. This is due to its favourable location in Europe, the nearshoring trend and the dynamic development of e-commerce. Compared to Western European markets, attractive labour costs and the availability and professionalism of the workforce, especially at middle and senior levels, are also important. Thanks to the development of the sector, employees have gained the necessary experience of working for foreign companies, which is now a valuable resource.

The sector also enjoys a good image among candidates, which facilitates recruitment processes and access to employees. The sector is present in all regions of the country, although it is mainly concentrated in the Warsaw agglomeration, Lower Silesia, Greater Poland, Central Poland (around Łódź) or near the Tricity agglomeration. There, employees already have more work experience in logistics. On the other hand, other regions of the country, including eastern and southern Poland, offer employers greater accessibility to candidates, and the gradual development of infrastructure in these regions also makes it easier to reach employees from municipalities far from the provincial capitals.

Does the Polish warehouse labour market offer sufficient opportunities for career development?

W.K. MDC2: There are more and more opportunities for development due to the new skills required in modern logistics facilities, where new technologies and innovations are implemented. We are talking mainly about production, but also about warehouse logistics, where technological innovations such as modern racking systems, mezzanines or conveyor belts are emerging. At the same time, employees’ responsibilities and employers’ demands for new skills are increasing.

More and more global companies are finding our market attractive for serving customers from all over Central Europe, not least because of access to qualified staff. In addition to logistics, companies are also relocating other business processes such as marketing, sales or research and development. One example is Stryker, which relocated to the MDC2 Park Kraków South, from where it serves the entire region. The development of the workforce is therefore visible and is also reflected in the growing expectations of employees in terms of the environment in which they work. The offices in our facilities are ergonomic and environmentally friendly, and a biodiverse environment is being created around them, with flower meadows, apiaries and relaxation and sports areas. All of this is designed not only to promote a pleasant working environment but also to attract the best talent.

Do you notice differences in the qualifications and skills of warehouse workers between Poland and Western European countries?

M.M. Randstad: The skills of employees in Poland and Western Europe are very similar. However, the biggest difference is in productivity. According to our observations, the productivity of warehouse workers in Poland can be several dozen per cent or higher than similar positions in Western Europe in the case of lower-level profiles (and these are the candidates most often recruited in the warehouse industry).

Therefore, despite rising wages, including a higher minimum wage, Poland remains an attractive destination for investment in the warehouse market. Our Randstad Employer Brand Research also shows that professional development opportunities are an important employment factor for employees, which also demonstrates the openness of employees to acquire new skills and professional development relevant to technological change in warehouse centres.

W.K. MDC2: It is also worth mentioning that our workforce is increasingly well qualified, especially in terms of foreign language communication, be it English, German or even Chinese, which is a great advantage for investors.

What measures are Polish employers taking to become more competitive with Western Europe in attracting staff?

W.K. MDC2: Employers are increasingly trying to identify talent while they are still at university, so they run various programmes that focus on finding the best students in the year, for example, or recruiting for internships. In this way, young people can try their hand at working for one of the reputable real estate companies, and the employer gains a potentially good specialist who can stay with the company permanently after training.

It should be emphasised that our universities can compete with the best in the world when it comes to training valuable employees for the economy, which is confirmed by their increasingly high position in the rankings. New fields of study closely related to logistics or real estate are also welcome.

Are there any specific challenges in human resources management in the Polish warehouse market?

W.K. MDC2: The main challenge remains the recruitment of employees due to the insufficient number of specialists in the labour market. In this situation, retaining valuable talent within the company also becomes crucial. In addition to salary, the attractiveness of the job itself and its surroundings is becoming a driver for change. This is why both employers and developers such as MDC2 are striving to make it as comfortable as possible. Our facilities include not only offices with all amenities but also attractive recreational areas with relaxation zones, such as communal barbecues. The facilities are also equipped with shelters for bicycles and motorbikes, parking spaces and charging points for electric cars. An example of such an implementation is the Rohlig SUUS Logistics office we prepared, where the office space was designed according to the Office of the Future concept.

Such an environment is also conducive to organising initiatives, such as planting trees and taking care of the environment together, which integrate the team and make people identify with their workplace. Measures that contribute to minimising CO2 emissions into the atmosphere are also important, such as reducing CO2 emissions during the construction phase and later during the operation of the building, as was the case in our investment in Głuchów near Łódź, where we significantly reduced the amount of embedded carbon during the construction phase to 163 kg CO2e/m2 (the average Polish result is 319 kg CO2e/m2).

What can we identify as the main barriers to attracting and retaining talent in the Polish warehouse market?

M.M. Randstad: The aforementioned decreasing availability of employees, especially in low-skilled positions, is a challenge for employers today, not only in the warehouse sector. Companies are competing with each other, which is leading to an increase in turnover in this group of positions. According to research by the Randstad Research Institute, salary remains an important factor in the choice of job offer. However, following the recent significant increases in the minimum wage, fewer employers are prepared to raise rates further.

Other factors will therefore become more important, such as the atmosphere in the place of employment, opportunities for professional development and the comfort and attractiveness of the workplace. Job stability is also important in a candidate’s choice of employer. We see that companies in the warehousing sector are already taking this into account so that they have the opportunity not only to attract employees but also to retain them in the long term.

How does immigration policy affect the availability and diversity of the warehouse workforce in Poland and Western Europe?

M.M. Randstad: Foreigners have been part of our labour market for almost 20 years. Initially, they were only workers from the eastern border, as access to legal work was made easier for them in the first place. However, the geopolitical situation in recent years has significantly reduced the inflow of new candidates from Ukraine, and it may soon be the case (as a result of the Ukrainian mobilisation law) that we will have to deal with an outflow. We are therefore increasingly turning to markets further away from Poland, such as Asian countries or even South America. However, we have to expect a longer waiting period, sometimes 4-5 months, before an employee arrives in Poland and starts work, which can be a challenge for the warehouse sector. Due to the rather complex process of legalising employment, this is a much more stable group, which on the other hand can mean less flexibility in adjusting the size of the workforce to current needs. While Ukrainian workers are a culturally close group who integrate fairly quickly, Asian workers require more preparation on the part of the employer. This ranges from assessing whether the English language skills of the management team and middle managers will enable them to manage such employees effectively, to taking religious and cultural aspects into account in the organisation of work.

Do you see the potential for further development and professionalisation of warehouse staff in Poland compared to Western Europe?

W.K. MDC2: We see a lot of potential here, but we still have room for improvement when it comes to process efficiency. With increasing access to technology, automation and robotics, this area will level out, which is already noticeable in the implementation of modern systems for the storage and distribution of goods. The workforce still needs to adapt to the changes, understand them and learn how to apply them in practice.

The development of the workforce is a consequence of the further expansion of the warehouse market in Poland. Our sector still compares favourably with Western Europe, especially in terms of access to investment land for industrial and warehousing facilities. This is land with a zoning plan, adequate infrastructure and utilities. We also rate the investment process in Poland as better, being faster and more transparent than in other European countries. Attractive rents are also important.

In terms of the professionalisation of the workforce, companies are visibly improving working conditions and standards for office and warehouse workers and drivers. An example of this is our cooperation with the Truckers Life Foundation, which resulted in the first open-air gym in Poland, located in the MDC² Park Gliwice logistics centre. We have chosen facilities for warehouse workers and drivers, who can use the gym and relaxation area while waiting to load or unload.