Executive Search in Czech Republic – 2021 Outlook
Turning Challenges into Opportunities
Until the beginning of 2020, the Czech economy managed to maintain solid GDP growth and production statistics. In 2020, on the contrary, it went through a short but deep recession as a result of the global SARS-COV-2 virus pandemic.
The standard of living is 92% of the EU average measured by GDP per capita in purchasing power parity.
Our forecast for 2021 expects economic growth of 2.8% of GDP and a return to pre-pandemic levels in 2023.
In 2021, a gradual resumption of the strengthening of the Czech koruna is expected in connection with the improvement of the pandemic situation, and the koruna will gradually reach values of around 26 CZK / EUR.
The state budget deficit is planned at CZK 320 billion. However, this deficit expects relatively positive economic growth (3.9%) and does not include the law on personal income tax.
The Czech Republic’s external debt should fall below 70% of GDP.
Current Political Situation:
Coalition government: ANO 2011: centre-right, populist, Civic Democratic Party (ODS): centre-right, Czech Social Democratic Party (CSSD): centre-left.
The trend of the last 10 years has been ever-increasing employment and a declining unemployment rate, which was 2% in 2019. Due to business constraints and the growing crisis, the unemployment rate rose to 2.8% at the end of the year. Still, compared to other EU countries, it is one of the lowest values. Unemployment growth would be much higher had it not been for the government’s Antivirus job retention program due to new quarantine measures.
Despite the pandemic, in 2020 there was pressure to increase wages, where the year-on-year growth of the average wage ranged from 3.5% (real growth of 0.3%).
In 2021, there will be a slight deterioration in the labor market resulting from last year. Employment should fall and the unemployment rate should rise to 3.5%
Changes in Recruitment
The market for top managers is changing rapidly.
On the one hand, there are successful internet projects and e-shops that are growing, recruiting talent and expanding their activities abroad.
On the other hand, there are companies that have been affected by the pandemic and they are thinking about how to reduce costs and with whom to end cooperation. It is necessary to change and transition to another economic functioning, and partially or completely change production programs.
In the Czech environment, however, there are several promising companies, start-ups, which are looking for their place in the sun and growing both on a domestic scale and abroad.
Among them, a new profile of future managers is emerging, who are not only innovative entrepreneurs but often talents for new ways of managing their companies according to the latest trends such as agile and leading their subordinates with completely new leadership styles.
Overcoming the current complicated economic situation requires a new type of managers who manage crisis and change.
Critical are skills and competencies such as the courage to confront change and explain it, to be able to work with big data, to use the latest procedures and technologies. There is no room and time for compromises.
Overall, the demand for recruitment services is declining. New companies look for their colleagues through social networks, based on recommendations (employer branding) and through web portals, where you can successfully find managers at the middle management level.
However, it is still valuable to look for top and change managers through companies specializing in executive search, which are also undergoing change and expanding their services with other consulting activities such as consulting in creating HR systems, providing remote HR services, outplacement, interim, consulting for board, …
It is often very critical within a relatively large pool of candidates to find the right pearl, a wheel that not only fits into the machine and very often puts the machine into operation, speeds it up. This is the irreplaceable role of experienced headhunters who know how small and big companies work, what are the advantages of young and experienced managers and how to very appropriately combine personalities, experiences and manage diversity to meet completely new challenges that we are going through and that are still waiting for us.
Contact the author, Ales Jirec
Information on executive search services in Czech Republic visit Cornerstone Prague