The boom in the labour market is finally reflected in employee remuneration. As much as 38 per cent of Poland’s medium-sized and large enterprises declare that they will be increasing salaries.

1. Employers set to raise salaries
Findings from a survey examining the willingness of businesses
to increase pay, conducted within the framework of Grant Thornton’s
International Business Report series
December 2016

2. The labour market in Poland has been on the up and up in recent
months. Registered unemployment dropped last October down
to 8.2 per cent, reaching its lowest level in two decades. Over the
past 12 months, the number of people out of work decreased by
209,000. As we revealed in our recent report, a staggering 40 per
cent of businesses in Poland reported “serious” or “very serious”
problems finding employees with the right qualifications.
Unfortunately, for a very long time the growing demand for
workers was not reflected in salaries. According to the data from
the Central Statistical Office (GUS), pay dynamics in Polish
enterprises over the past four months not only did not accelerate,
but actually slowed down a little – the year-on-year increase
amounted to 3.6–4 per cent, compared to 4.1–5.3 per cent
in preceding months.
It seems, however, that the tide is finally turning. According to
a study conducted by Grant Thornton, in Q4 of 2016 as much
as 38 per cent of medium-sized and large enterprises declared pay
increases for their employees, and none announced salary cuts.
This is the highest result in the history of the survey, i.e. since
2009. For the sake of comparison, in the two preceding years
the percentage of companies planning pay increases ranged
between 18 and 28 per cent.
Poland | International Business Report 2016 | Grant Thornton
2017 to bring pay increases
The boom in the labour market is finally reflected in employee remuneration.
As much as 38 per cent of Poland’s medium-sized and large enterprises declare
that they will be increasing salaries.
Monika Smulewicz
Managing Director, Partner at Grant Thornton
Even though in the recent past signs of
improvement in the labour market were very
noticeable, salaries across the economy were quite
slow to grow. The unemployment rate remained
high so employers did not have any incentive
to increase labour costs significantly. It seems,
however, that enterprises have now come to a wall.
Unemployment has fallen so low that employers
are actually facing labour shortages. Competition
between employers has increased, to the point that
more and more often they have no choice – they
have to pay more.
A particularly difficult time is up ahead for the small
Polish businesses which operate on small margins.
Their capacity in terms
of competing for employees by offering to pay more
is limited and, ultimately, increased labour costs
will push up the prices of their services.
Figure 1. Percentage of medium-sized and large businesses in Poland which plan to increase salaries in the coming 12 months (above the inflation rate),
less the percentage of businesses planning to reduce salaries (in percentage points.)
24
32
5
10
15
20
25
30
35
8
18
20
22
16
18
26
20
16
20
40
0
2011 2012 2013 2014 2015 2016
Source:
Survey by Millward Brown for Grant Thornton International, conducted among
10,000 medium-sized and large enterprises from 37 countries worldwide
(including 200 businesses from Poland).

3. If Polish employers actually make good on their promises,
Poland stands to become a country with some of the fastest-
growing incomes in the population. Out of 37 countries
where Grant Thornton conducts its survey, none had a higher
percentage of businesses intending to increase pay in the most
recent questionnaire. Only Sweden reported the same result
as Poland – 38 per cent. The average figure across the study
was 19 per cent, in the European Union – 20 per cent,
and in the Eurozone – 18 per cent.
Poland leads in terms of salary promises
The exceptional inclination of Polish businesses to bump up salaries becomes even more remarkable
when viewed in an international context – Poland leads in the study in this category
Figure 2. Percentage of medium-sized and large businesses which plan to increase salaries in the coming 12 months (above the inflation rate),
less the percentage of businesses planning to reduce salaries (in percentage points.)
Source:
Survey by Millward Brown for Grant Thornton International, conducted among 10,000 medium-sized and large enterprises
from 37 countries worldwide (including 200 businesses from Poland).
Poland | International Business Report 2016 | Grant Thornton
Poland
Sweden
Netherlands
Germany
Turkey
India
China
Ireland
RSA
USA
Philippines UK
Estonia
Spain
Canada
Lithuania
Monika Smulewicz
Managing Director, Partner at Grant Thornton.
On the one hand, it is good news that the incomes
of Polish households may be growing dynamically
in the nearest future – this will definitely boost
consumption and, as a result, contribute to
economic growth. On the other hand, however,
increased labour costs are bound to impact
adversely on the rates of return in business,
so in some cases it may be a disincentive to invest.
One should also remember that an increase in
business operating costs has an obvious effect on
prices, which will definitely be felt by households.
5
10
15
20
25
30
35
40
0
Japan
Finland
Latvia
Thailand
Mexico
France
Brazil
Greece
Indonesia
Italy
Australia
Argentina
Russia

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Contakt
Jacek Kowalczyk
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T +48 22 205 4841
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Information about the survey
The survey was commissioned by
Grant Thornton International and
conducted by Millward Brown within
the framework of the International
Business Report research project.
It is a cyclical questionnaire survey
conducted among 10,000 medium-
sized and large business owners and
managers. The survey examines 37
countries worldwide, including Poland,
where 200 businesses are surveyed.
Monika Smulewicz
Managing Director
T +48 22 205 4900
M +48 603 446 692
E monika.smulewicz@pl.gt.com