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City of Poznań Investor Relations Department pl. Kolegiacki 17, 61-841 Poznań direct: +48 61 878 5428 [email protected] Edited by: Wydawnictwo Miejskie Posnania ul. Ratajczaka 44, 61-728 Poznań www.wmposnania.pl Photos: fotoportal.poznan.pl, City of Poznań Archives Computer typesetting: Studio Graficzne Wydawnictwa Miejskiego Posnania Poznań 2012 Sector of modern business services in Poznań agglomeration Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Poznań 2011 1 Authors of the Report Janusz Górecki Expert in the Association of Business Service Leaders (ABSL) e-mail: [email protected] Jadwiga Naduk Head of Market Research&Consultancy, HAYS Poland e-mail: [email protected] Tomasz Szreder Analyst in HAYS Poland e-mail: [email protected] Jan Szczepanowski Analyst in HAYS Poland e-mail: [email protected] Anna Bartoszewicz-Wnuk Head of the Department of Market Research and Consultancy in Jones Lang LaSalle e-mail: [email protected] Mateusz Polkowski Senior Analyst in Jones Lang LaSalle e-mail: [email protected] Grzegorz Micek Jagiellonian University, Institute of Geography and Spatial Management e-mail: [email protected] Hays Poland Sp. z o. o. ul. Złota 59, 00-120 Warsaw tel.: +48 22 584 56 50, fax: +48 22 584 56 51 www.hays.pl Association of Business Service Leaders (ABSL) Rondo ONZ 1, 00-124 Warsaw tel.: +48 22 445 33 58, fax +48 22 445 32 00 e-mail: [email protected], www.absl.pl Table of Contents Offer for investors in the City of Poznań.........................................................................................................................................................................5 Executive Summary....................................................................................................................................................................................................................7 1. Introduction............................................................................................................................................................................................................................. 11 1.1. Structure of the report...................................................................................................................................................................................... 12 1.2. Sources of information and methods of analysis............................................................................................................................ 13 1.3. Terminology............................................................................................................................................................................................................ 14 2. Investment attractiveness of Poznań for investors in the sector of modern business services.......................................... 15 2.1. Human resources................................................................................................................................................................................................. 16 Demography .............................................................................................................................................................................................................................. 16 2.2. Costs of business activity................................................................................................................................................................................ 40 2.3. Characteristics of a regional real estate market in the context of the needs of investors in the sector of modern business services........................................................................................................................................................................ 48 2.4. Availabilityof communications.................................................................................................................................................................... 50 2.5 Quality of life............................................................................................................................................................................................................ 52 2.6. Summary – service centres location factors and their changes............................................................................................ 53 3. Characteristics of service centres in Poznań agglomeration.................................................................................................................... 55 3.1. History of development of modern business services sector in Poznań agglomeration...................................... 56 3.2. Employment in the sector and its changes........................................................................................................................................ 56 3.3. Types of business processes supported by the service centres............................................................................................. 57 3.4. Languages in which the centres provide services.......................................................................................................................... 57 3.5. Service centres and the country of origin of capital...................................................................................................................... 57 3.6. Non-wage benefits offered by the centres.......................................................................................................................................... 59 4. The business environment as a whole.................................................................................................................................................................... 61 4.1. The dynamics of the formation of new businesses........................................................................................................................ 62 4.2. The structure of business entities.............................................................................................................................................................. 62 4.3. The opinions of employers on employees........................................................................................................................................... 62 5. The effects of the operation of modern business services sector companies in Poznań agglomeration.................... 65 5.1. The main conclusions regarding the economic effects of the operation of service centres in Poznań agglomeration:...................................................................................................................................................................................................... 66 5.2. Corporate Social Responsibility.................................................................................................................................................................. 66 Bibliography.................................................................................................................................................................................................................................. 68 Appendix 1 .................................................................................................................................................................................................................................. 69 Offer for investors in the City of Poznań Poznań is one of the main centres of investment loca- computer science in 2010. University level schools also offer new tions in Poland. The greatest asset of the city is its eco- interesting fields of study related to IT, such as bioinformatics and nomic potential: good and stable economic situation, high level technological applications of the Internet (unique in the country, of the entrepreneurship, and above all the human capital. Poznań intercollegiate faculty created by three of Poznań universities, at stands out among other Polish cities for a good situation on the the initiative of the American telecommunications company Tel- labour market – one of the lowest in Poland unemployment rate cordia Technologies). The Institute of Computer Science at the – 3.5% (October 2011). For the potential investors, however, the Faculty of Computer Science at the Poznań University of Technol- high quality of the labour market counts. The investors appreciate ogy is considered one of the best in Poland, as evidenced by nu- the high qualifications and effectiveness of the Poznań employ- merous awards and honours earned by students in international ees. Poznań is a city of young people, very well educated, speak- IT competitions (such as Microsoft Imagine Cup). ing foreign languages freely. Nearly 140 thousand students study With these assets, as well as an attractive location, good telecom- at the 27 university level schools in Poznań, almost 40 thousands munication and office infrastructure, advanced network of the graduate each year supplying the local labour market. services for business and the support of the City, Poznań creates The developed technical infrastructure and the infrastructure the attractive conditions for the realization of highly specialized of business environment and transport accessibility, particularly investments. international air connections and the A2 motorway, which links Poznań is an attractive place to do business for both the inter- Poland with western European network of motorways, are also national corporations and the small businesses. All investors important for the investors. can count on the support of local administration. The system of According to the adopted “Strategy for attracting investors to incentives for investors was created, which include exemption the city of Poznań” promotional activities are aimed primarily at from property tax or subsidies to create jobs for the unemployed attracting investors to the priority sectors: (offered by the District Employment Office). Also the special sup- − technologically advanced production, port programs were created for investors pursuing investments − outsourcing centres and shared services centres, in highly specialized service sector and innovative investments. − R&D (research and development), For the innovative investors the program of scholarships − convention and exhibition activities, for students was created to finance the internships with − recreational and entertainment facilities. the employers investing in Poznań. All investors are pro- Poznań offers attractive conditions for investors of the modern vided with the assistance of Investor Relations Depart- services sector [shared services centres (SSC), outsourcing cen- ment and the protection of “the guide of investment,” tres (BPO/ITO) and centres of research and development]. The the officer responsible for handling the particular invest- condition for the development of this type of investment is to ment project. provide highly qualified personnel, university graduates. The Please feel invited to invest in Poznań! potential of knowledge is the greatest asset that Poznań offers investors. Investors can find job candidates especially among graduates in economics and finance, IT, and philologists. Poznań is a known centre of education in philological studies. The Faculty of Modern Languages at the Adam Mickiewicz University – the largest such department in Poland – offers the opportunity to Ryszard Grobelny study almost all European languages and major non-European languages. Poznań stands out from other Polish cities as the centre for research and development and education in the field of modern information technology. Information technology is one of the Mayor of Poznań most popular fields of study in Poznań, where the university level schools currently educate more than 4,600 future IT professionals, and 1,200 young professionals who graduated with a degree in 5 Executive Summary Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 8 educate staff that meet this criterion at even more than expected level. In addition, the Poznań inhabitants are highly valued in the studies of the tendency to further learning. Only 17% of employees do not express such a will. The Poznań City Hall tries to support the ambitions of most of those people by organizing the projects such as “Top Skills for Wielkopolska”. Poznań has the fifth largest population among the cities in Poland (about 552 000 inhabitants). Within the agglomeration live 877 thousands of people. The population density in the area is steadily decreasing. As other major urban centres, Poznań is aging, which results in a significant number of people of working age (70% of the population) and small in the pre-working age (2010 – 83 thousands). For every 100 people of working age in retirement are 30. This is a very favourable result in relation to the whole Poland (Łódź – 33.8; Warsaw – 33.1; Tri-City (the Tri-City) – 31). The local community therefore assumes no significant demographic burden. The Capital City of Wielkopolska has, after Warsaw, the lowest in Poland unemployment rate (3.5%). It is noteworthy that as many as 24% of people without jobs have higher education, who are a base of workers with relatively low demands and high competence. The duration of unemployment of the potential employee is also a very important piece of information, as it indicates the possibility of re-adoption to perform the job. The number of the long-term unemployed is very small and amounts to only 3% of the group. The fact that over 80% of working population in Poznań is engaged in service activity cannot be ignored. Of that in IT, accounting and personnel – payroll services specialize more than 13.5%. The skills of personnel most valued by employers include: knowledge of English, German, of the area associated with the performed duties (IT, accounting), soft skills (communication skills and ability to work in a group), hard skills (technical knowledge and practical skills), the ability to quickly acquire knowledge and the willingness for further development. At the same time, it is worth mentioning that gone are the days in which the decisive factor in inducing to establish a service centre in Poland were the labour costs. Now the key is to prepare the intellectual potential of human capital. Poznań university level schools Poznań is the centre, whose population is characterized by above-average level of competence and preparation of human capital. The knowledge of English is declared by nearly 100% of the employees, German – about 50%, Spanish, Russian and French – about 30% each, Italian – 20% and Scandinavian languages – about 10%. Among the students the results of the analysis provide similar information: English – 90%, German – 50%, Russian, Spanish and French – 10% each and others – 7%. In 2010, there were 27 university level schools in the Capital City of Wielkopolska, including the Adam Mickiewicz University (“UAM”), the Poznań University of Technology and the University of the Economics. This first offered 49 faculties and 183 specializations in 2011, which educated nearly 40 thousands of students (studies of the I and II degree) and more than 1,300 graduate students. In the ranking of universities drawn up in 2011 by the magazines “Perspektywy” and “Rzeczpospolita” UAM took the third place and maintains this position for three years now. In 2010, 10 departments and 24 faculties of the Poznań University of Technology educated nearly twenty thousands of people, while at the University of Economics in Poznań almost 11.5 thousand of people. An extremely important factor determining the location of service centres is the number of students and graduates in a particular area. In Poznań, according to data of the City Hall, study nearly 136,000 people. This puts Poznań in the fourth place among the other Polish academic centres, before Łódź and the Tri-City. The most interesting for investors, however, is the number of people gaining education in the fields of economic, IT and technology. In the first Poznań is in fourth place in Poland, after Warsaw, Cracow and Wrocław, with the number of 9.5 thousand graduates, which is a huge potential for investors that support accounting processes. Four and a half thousand students of IT allow Poznań to take the fifth place among the Polish cities. But if we look at the number of graduates Poznań is moving to the fourth place, slightly ahead of Wrocław. The companies in the sector of modern business services are also very eager to hire graduates of philology, especially those fluent in using rare or exotic foreign languages. Executive Summary Poznań has the widest range of language studies in Poland, in the 2009/2010 academic year were as many as 44 such directions, which together graduated 2697 people. Most of them chose English philology, they were up to 28%. Also the faculties educating people who speak rare languages are very important. At the Adam Mickiewicz University, among others, an unique in Poland Vietnamese-Thai philology is offered, as well as Japanese philology and sinology. The additional skills and expanded knowledge of specific subjects or courses are also increasingly important. This is because of the farther-reaching specialization of the economy. Those with niche knowledge, which is usually not acquired under the program of study, explore the secrets of the art in an overtime period, eg. participating in a wide range of scientific circles. At the Adam Mickiewicz University only there are 120 scientific circles, with a broad profile of activity. The Poznań University of Economics has 63 active scientific circles, and the University of Technology more than 40. It is worth mentioning also the expectations of employees towards employers. In the first place is the friendly atmosphere at work (60%), and only at the second the perspective of high wages (57%). Further places take: the type of implemented projects and the possibilities of selfimprovement and development of interests. For employers an important determinant of the potential of young personnel are the preferences for a particular industry or specialization. The research shows that the preferences of graduates are not fully clarified, the preferred industry has not chosen more than 20% of the respondents. The greatest interest among future personnel enjoyed Marketing and HR as well as Training (respectively 19% and 13%). Also the customer service (8%) was chosen, further areas have reached no more than 6% of the respondents. Extremely important is the change in the perceptions of employers in the sector of modern business services for almost 60% of the respondents declared that they wish to work for them. The cooperation of the business with the research centres makes mutual benefits. Poznań institutes and universities are able to provide services in the field of research on a large scale and at a very high level. In addition to the universities, among the best in the country, the city has about 50 research institutes, boasts that its economy is largely based on knowledge and everything indicates that this character will be maintained and further developed, because it has 27 university level schools and over 140 thousands of the students. The City Hall actively supports the creation and maintenance of connections between the science and the business, and for this purpose the Wielkopolska Innovation Platform was created – a platform for communication in the form of a website which provides information on current research and offer to private companies (www.wpi.poznan.pl). One of the examples of good practices of cooperation between the science and the business are joint ventures of the Poznań University of Technology and Microsoft. Among the 6.3 thousand people employed in the service centres in the Poznań agglomeration, 2/3 are working in the centres of BPO/ITO. About 2 thousand are employed in the shared services centres and less than 200 people – in the research and development centres. Interesting conclusions arise from analysis of the position of Poznań in terms of employment in the service centres with foreign capital. According to the data for the years 2008-2010, Poznań was the second in Poland (after Wrocław), the fastest-growing centre for offshoring services. The number of employees in Poznań service centres at the end of 2010 was about 90% higher than at the end of 2008. The share of the City in the total employment in the service centres in Poland increased from 4.4% to 5.7% (as of 31.12.2010). Currently the share of Poznań is about 6%, so the tendency is clearly increasing. The plans of the centres assume that at the end of 2012 in the Poznań sector will be employed nearly 8.2 thousand people (up by 1/3 compared to the present status). This value does not include the new jobs in centres that have not yet announced a start-up. It can therefore be assumed that the value eventually will be higher. Interesting is, that the average service centre in Poland employs 245 persons. In Poznań, the value is 197 persons (for foreign centres) and 207 persons for all companies in the sector. The Poznań centres employ fewer people than the statistical average in the country. The analysis of the structure of the services provided in the centres of the SSC and BPO/ITO and R&D showed that the business processes supported in the largest number of centres in the Poznań agglomeration are the finance and accounting (14 centres) and IT services (12). Most of the respondents participating in the study, when questioned about changes in the activity of the centres responded that during their operation more advanced features were introduced without reducing the scope of provided services. 9 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle The centres in Poznań agglomeration provide services in over 21 languages, mostly European. Four of them (English, Polish, German and French) are used in over half of them. 10 The enterprises from 12 countries invested in the activity in the Poznań agglomeration. Most centres (almost 60%) is owned by the companies from the European Union and more than one quarter of all – American. The situation has not changed significantly over the past few years. Five centres belong to Polish investors and four – to German ones. The employers highly value the initiative and entrepreneurship among its own personnel. One of the indicators allowing to estimate it, could be number of businesses registered in the statistics (REGON) per 10 thousands of the inhabitants of the region. In Poznań, the indicator’s value is 1773 and it is one of the highest in Poland (greater number of entities is registered only in Warsaw). The Wielkopolska Province, and in particular Poznań, is a very attractive place for foreign investors. The number of entities with foreign capital grew in recent years, although in 2009 the increase was insignificant due to the economic slowdown that has affected our country. The best and most reliable way to verify the skills of personnel available in the city is the opinion of employers about them. The opinion of the companies already present on the market about their own employees is very good in Poznań. All companies express the above-average satisfaction at their subordinates. Not even one of the respondents interviewed by HAYS Poland sees weaknesses among their own human resources. Another positive sign is the fact that the turnover rate is much lower in comparison with other large centres, and is estimated at a level of 2.5%. 1. Introduction Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 12 The modern business services sector in Poland in recent years is rapidly expanding, already employing about 100 thousands of persons (including R&D centres), including 80 thousands in the service centres with foreign capital. The Poznań agglomeration is one of the important clusters of service centres, not only in the country but also whole Central and Eastern Europe. The global competition among particular locations requires activities to facilitate the development of the policy of the cities and the regions, to increase the investment attractiveness. Among these activities are: preparing the current characteristics of the industry and identify the changes that have occurred in the sector in relation to previous years, identification of the factors influencing investment decisions, identification of the investors’ needs and the recognition of local and regional resources (development potential). What is, therefore, the status of development of the sector in the area of the Poznań agglomeration and its future in the context of the challenges awaiting him? What are the needs of the investors in the sector? What is the impact of service centres on the local economy? These are the chosen important questions that the authors of this report want to answer. The purpose of this report is to give a comprehensive characteristic of the modern business services sector in the Poznań agglomeration1 and to discuss investment attractiveness of Poznań as a location for offshoring of business services. In the report a broad definition of the sector was adopted, which also includes the research and development activities. The considerations for the sector were based on the analysis of service centres with foreign capital2 and with the Polish capital: the shared services centres (SSC), the business process outsourcing (BPO/ITO), and the research and development (R&D). Despite the relatively low capital commitment by the service centres, they play a very important role in the local and regional labour market, due to the size of employment. In the area of the Poznań agglomeration 30 service centres The spatial unit of analysis for the characteristics of the service centres is in the report the Poznań agglomeration. 2 Centres, in which foreign investors hold at least 10% of the capital are called in the report the ‘foreign service centres’ or ‘service centres with the foreign capital.’ 1 operate. In the fourth quarter of 2011 they were employing 6.3 thousand of people. Since 2008 in the sector appeared almost 2.7 thousand of new jobs. Owing to the service centres, especially those with the foreign capital, significant quantitative and qualitative changes in the labour market of Poznań occurred. It should be noted that over 1/5 of the today existing centres in the Poznań agglomeration was established in the past two years, including four already in 2011. Among the currently operating service centres, 13 are the shared services centres (SSC), 11 – the centres of outsourcing services (BPO/ITO) and 6 – the research and development centres (R&D). It is worth noting that the service centres with the foreign capital accounted for a dominant share of these entities and more than a quarter of all centres belonged to companies with the American capital. The authors wish to thank all the representatives of the companies and institutions who have agreed to participate in the study and gave their time to prepare the data for this study. 1.1. Structure of the report In the introduction the key information was presented about the sector of modern business services in the Poznań agglomeration, the sources of information and methods of analysis used in the report were discussed and the basic terminology was set. The second chapter the various elements of the investment attractiveness of Poznań compared to Poland in total was discussed. The information was presented on the availability and potential of human resources, the costs of doing business (along with a detailed characteristic of the wages in the sector at different positions), accessibility by the communications and quality of life. The characteristic were presented of the regional real estate market in the context of the needs of investors in the sector of modern business services. Also the opinions of the representatives of the sector on the changes in the investment location factors for service centres were presented. The third chapter is a comprehensive characteristic of selected elements of the activity of modern business service centres in the Poznań agglomeration and the history of development of the sector in the area. It contains also the information on non-wage benefits offered by the service centres. In the next part of this work a description of Poznań business environment as a whole is contained. The fifth chapter is a thorough analysis of the effects of the functioning of the sector in the Poznań agglomeration: the financial multiplier effects, employment effects arising from the operation of service centres and service centres social responsibility. 1.2. Sources of information and methods of analysis The primary source of information used for analysis in this report was data base of the service centres operating in Poland. This specification is updated on an ongoing basis for over two years by acquiring data from the companies, the information contained in the industry reports and the press query of the selected journals. It is worth noting that the report also includes information from the in-depth interviews, which HAYS Poland conducted with the representatives of the centres. A very important stage of the study was an online survey addressed by the ABSL and the Poznań City Hall to managers of the service centres and filling in the questionnaires by the representatives of 15 of 30 centres operating in the agglomeration, employing 4 thousands of people, which represents nearly 2/3 of employment in the sector on the analyzed area. The preparation of the report in the part regarding the quality of life required the collection of information contained in a nationwide survey Social Diagnosis3. ‘Social Diagnosis 2011’, J. Czapiński, T. Panek (ed.), 2011, www.diagnoza.com, 23.10.2011. 3 The presentation of a detailed review of salaries for individual positions in the service centres in the Poznań agglomeration was made possible by obtaining direct information from the representatives of the companies from the sector. The results of the recent studies by HAYS Poland of 2011 were also used in the report. To estimate the additional employment created in the surrounding of the centres the interviews with the management of the service centres were used. The consumption expenses structure necessary for the calculation of the income multiplier effects is derived from the publication of the Central Statistical Office “Household budgets in 2009” (2010). For the employees of the investigated sector the structure of expenses typical for the households in the urban areas of over 500 thousands people was taken. For the calculation of the revenue from the personal income tax the value of average deduction from PIT was taken into account according to the latest available information of the Ministry of Finance (Information relating to the settlement of income tax ... 2011). To assess the value of revenue from the participation of local governments in the corporate income tax (as of 2009) were used the financial statements of the individual companies. It should be noted that due to the unavailability of the data for some companies, the revenues from the corporate income tax were estimated according to the state in 2009. 13 The analysis of the real estate market in Poznań has been done on the basis of the results of Jones Lang LaSalle researches. Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 1.3. Terminology 14 In this report three types of service centres were distinguished (due to the scope of the activity): 1. Business Process Outsourcing Centres (Business Process Outsourcing Centres/ Centres of IT Outsourcing) – specialized companies or their organizational units, which on behalf of other companies take over the implementation of selected, non-productive business processes4. 2. Shared Services Centres – separate service units of the company or individual business entities acting for the benefit of the parent organization and its branches, supporting the assigned business processes. 3. Centres of research and development (R&D Centres) – specialized companies which lead the research and development works on behalf of other companies or separate units of companies operating in the field of research and development. Due to the adoption of a broad definition of research and development, the technical and engineering centres and the centres in which the main activity is the work on the development of software5 were also classified as this type. It is worth noting that some of the centres serve both the parent company as well as the external clients. This is called the hybrid model of providing the services. In the database a separate, mixed type centres BPO/SSC was not distinguished, but th particular entities were assigned to different basic types (BPO/ITO, SSC, R&D) basing on their dominant business profile. The process of blurring the differences between the above mentioned types of centres, however, requires caution in the undertaken analysis. It seems that the most appropriate approach to this issue Outsourcing of IT (ITO) was taken as the part of the BPO. It is worth noting that the requirement for a given entity to be treated as a research and development service centre is to conduct its commercial activities primarily in the field of business services. Therefore, this study does not include, among others Microsoft Innovation Center and a number of research institutions. 4 5 is simply analyzing the centres collectively, without detailing the information for each of their types. Such a solution was adopted in this report (with some exceptions). The local impact of modern companies on the environment is usually multidimensional. One of the obvious manifestations of this kind of impact are the revenues of the local governments from the property tax and from the participation of municipalities, districts and provinces in the corporate income tax (CIT) and personal income tax (PIT) – for the purposes of this study they were called financial multiplier effects. Another measurable result of the operation of enterprises are newly created jobs. They are created: − in the analyzed business entities (direct effects), − in the sectors supplying the employees of the analyzed companies in the services (income multiplier effects), − in the companies providing products and services to the service centres (supply multiplier effects). The income and supplies, as well as the employment multiplier effects resulting from the business tourism, therefore, contribute to employment multiplier effects. This report presents the cautious, minimum estimations of the multiplier effects. The multiplier effects testing methods are also outlined in the publication of B. Domański and K. Gwosdz (2008). Due to the nature of modern business services sector (BPO/ITO, SSC and R&D centres) the activity conducted in the service centres can not be assigned to one section of the PKD 2007. Most of them operate in line with the characteristics of M section (professional, scientific and technical activity), but the business processes in the other centres are also classified as belonging to the K section (financial and insurance) and J (information and communication). In this last section a particularly important section is the PKD 62 – that is, the activity related to software and IT consultancy and related activities – which include business of eg. certain centres of software development, and ITO centres (IT outsourcing). In addition to N section (Activity related to services in administration and support service) can be included the processes of call and contact centres. 2. Investment attractiveness of Poznań for investors in the sector of modern business services Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Age structure 16 Like all highly developed countries of Europe, Poland is currently undergoing a process that is commonly known as aging of the society. Due to the steadily declining birth rate and increasingly higher average life expectancy the demographic structure of the society is changing – more and more people are in the retirement age, and the number of people in pre-productive age is decreasing. 2.1. Human resources Demography Population Poznań has the fifth largest population among the cities in Poland. At the end of 2010, according to CSO data, more than 550 thousand people were domiciled there. These data, compared to other Polish cities, are shown in the Diagram 1. Additionally, in the district of Poznań, which consists of the municipalities located in the nearest vicinity of Poznań, for example Kostrzyn, Swarzędz and Kórnik, lived over 327 thousands people, who often commute to Poznań to work. Therefore, the Poznań agglomeration numbered in total to more than 877 thousand people. The density of population in Poznań in 2010 was 2,107 people per square kilometer and for a few years systematically decreased. This process can also be seen on the example of changing of the demographic structure of Poznań between 2005 and 2010, which is presented in Diagram 2. Slightly, because only about 1,360 persons has decreased the number of people in pre-productive age since 2005, in 2010 there were over 83 thousands of them. Nearly 70 percent of the inhabitants is still of working age, i.e. between the 15 and 60 (women) or between the 15 and 65 (men) years of age. For employers the most attractive is the group of people with the greatest job mobility, that is, at the age of 20 – 44 years. The share of such persons in the total population in Poznań rose by 0.4 percentage points compared to 2005. And about 3 percentage points lowered the share of people in immobile productive age. Diagram 1. The population domiciled in the major Polish cities at the end of 2010 (source: own elaboration based on CSO, Local Data Bank) 1 800 000 1720398 1 600 000 1 400 000 1 200 000 1 000 000 756183 800 000 737098 632996 600 000 551627 456967 400 000 405606 348450 Szczecin Lublin 200 00 0 Warsaw Cracow Łódź Wrocław Poznań Gdańsk The share of people in the retirement age within those 5 years increased by 2.4 percentage points. At the end of 45,0% 2010 according to CSO data over 105 thousands people of that age lived in Poznań, which accounted for 19.1% 40,0% of all inhabitants. In 2010 the demographic depend35,0% ency ratio in Poznań amounted to 29.2. This means that for every 100 people of working age account almost 30 people in the retirement age. The height of this indica45,0% tor compared to other large Polish cities is presented 39,9%for Poznań in in Diagram 3. The value of this39,5% indicator 40,0% 39,9% cities looks very facomparison to other 39,5% large Polish 35,0% vourable. So we can say that the society of Poznań in 31,3% comparison to other cities is relatively low demographi28,3% 30,0% 31,3% cally burdened. 28,3% 30,0% 25,0% 25,0% 20,0%of Poznań between 2005 Diagram 2. C hanges in population age structure 20,0% and 2010 (source: own elaboration based on CSO, Local Data Bank) 15,0% 12,5% 12,6% 15,0% 45,0% 39,5% 40,0% 39,9% 12,5% 10,0% 10,0% 12,6% 0,0% 31,3% 0,0% 30,0% Pre-productive age 28,3% Pre-productive age Mobile, productive age Mobile, productive age Immobile, productive age Immobile, productive age 2005 2010 2005 25,0% 2010 16,7% 12,5% 12,6% 10,0% 5,0% 0,0% Pre-productive age Mobile, productive age Immobile, productive age 2005 Retirement age 2010 Diagram 3. The demographic burden ratio in selected Polish cities in 2010 (source: own elaboration based on CSO, Local Data Bank) 35,0 33,8 34,0 33,1 33,0 32,2 32,0 31,1 31,0 30,0 29,0 29,7 29,8 Cracow Wrocław 29,2 28,6 28,0 27,0 26,0 Szczecin Poznań Tri-City Katowice Warsaw R Retirement ag 19,1% 20,0% 15,0% 16,7% 5,0% 5,0% 35,0% 16 19,1% Łódź 17 Migrations Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Migration balance is the second factor, after the birth rate, which affects the number of people in the given area. In the case of Poznań since 2000 one can observe a growing number of registrations. The exception was 2008, when the Diagram 4. The number of registrations in Poznań in the years 2000-2010 (source: own elaboration based on CSO, Local Data Bank) 8000 6983 7000 6000 4990 5000 5347 5940 5662 5618 5968 6444 5015 5125 5234 2009 2010 4000 3000 14 000 2000 14 000 12 000 1000 14 000 12 000 0 2000 2001 10 000 2003 2002 10 000 2004 2005 2006 2007 12 000 2008 8 000 10 000 4 000 6 000 2 000 4 000 Diagram 5. The comparison 8 000 of registrations in Poznań subregion and the de-registrations from Poznań district in the years 2005-2010 (source: own 6 000 8 000 elaboration6based on CSO, Local Data Bank) 000 14 000 4 000 12 000 2 000 10 000 0 0 2000 8 000 2 000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 0 De-registrations – Poznań Registrations – Poznań subregion 2000 2001– Poznań 2002 subregion 2003 2004 2005 200 De-registrations – Poznań Registrations De-registrations – Poznań 6 000 4 000 2 000 0 2000 2001 2002 2003 2004 De-registrations – Poznań 18 number of registrations dropped. Also the number of de-registrations decreased, so it can be inferred that the economic slowdown, which in 2008 affected Poland decreased the mobility of the Poles. In subsequent years, one could still observe a small increase. Diagram 4 presents the changes in the number of registrations in Poznań in the years 2000-2010. 2005 2006 2007 2008 2009 Registrations – Poznań subregion 2010 Regist At the same time increased the number of de-registrations the district of Poznań, this does not necessarily mean that the City of Poznań is unattractive. The analysis of the number of de-registrations from Poznań district in comparison with the number of registrations in the Poznań subregion, which is the districts located in the nearest vicinity of Poznań (Oborniki, Poznań, Środa Wielkopolska, Śrem and Szamotuły), show a clear relationship between these variables, which was presented in the Diagram 5. With the increase in the number of de-registrations from Poznań, at a similar rate increased the number of registrations in the surrounding localities and when the number of de-registrations fell in 2008, decreased also the number of registrations in the subregion. This may indicate that people who decide to leave Poznań did not move to the other cities, but settled in one of the suburban towns, where thanks to a well-developed transport infrastructure could commute to work in the city centre. Often the corporations choosing to establish an office in Poznań are likely to choose suburbs, due to lower rental price of the office space. Then the access is even easier. This direction of migration is now very popular and contributes to the creation of agglomerations, in which people live in the suburbs and nearby towns and work in the city centre. The level of unemployment in Poznań The level of unemployment in Poznań in 2010 was the lowest among major Polish cities. The lower unemployment rate occurred only in Warsaw. The data on the level of unemployment in the major Polish cities is presented in Diagram 6. In 2005-2008, the unemployment rate in Poznań declined steadily, reaching in 2008 a record low amount of 1.8 percent – even in Warsaw there was a higher unemployment then. In 2009, the level of unemployment has increased due to the economic slowdown which hit Poland at that time. In 2010, the unemployment rate continued to rise, but this increase was only 0.3 percentage points. This may mean that the situation on the labor market is stabilizing and in the year 2011 the decrease of the level of unemployment can be expected. The data on changes in unemployment rates in Poznań in 2005-2010 are presented in the Diagram 7. The valuable information are also provided by the study on education structure of unemployed registered in Poznań. In 2010, up 24% of unemployed people had higher education, representing more than 2.5 thousand highly skilled job seekers. This is a great opportunity for employers to quickly gain valuable employees, and at the same time the possibility of obtaining funding from the Employment Diagram 6. The unemployment rate recorded in 2010 in selected cities in Poland (source: own elaboration based on CSO, Local Data Bank) 12,0 10,0 10,0 9,7 9,6 8,0 6,0 5,4 5,3 4,7 3,8 4,0 3,5 3,4 2,0 0,0 Łódź Lublin Szczecin Wrocław Tri-City Cracow Katowice Poznań Warsaw 19 Diagram 7. The changes in the unemployment rate recorded in Poznań in 2005-2010 (source: own elaboration based on CSO, Local Data Bank) Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 8,0 20 6,0 6,2 5,0 4,0 3,2 2,9 3,5 1,8 2,0 0,0 2005 2006 2007 Office, for example, to equip the workplace. The structure of unemployment in Poznań in terms of the level of education was presented at the Diagram 8. For the potential investors the structure of the unemployed in the division due to the duration of unemployment is also important. The shorter the easier it will predispose the person to work. 2008 2009 2010 At this point there have been very positive changes in Poznań in the last 5 years. First of all, about 27 percentage points, from 30 to just 3 percent, decreased the share of the long-term unemployed who remained unemployed over 24 months. In 2010 there were only 312 of them at the average in Poznań. Also the share of people who remain without work for over a year decreased. However in the last 5 years increased the share of those who remained unemployed for shorter periods. Above all, inspire the optimism the fact that as many as 45% of all unemployed people are unemployed for less than 3 months. It gives them a much greater chance of successful return on the labour market. Employees The structure of the employment The Diagram 9 presents the structure of employment in Poznań in 2008 in terms of a section of PKD 2004. About 20% of all workers found employment in the industry, and only half a percent in agriculture. This means that nearly 80 percent of the working population in Poznań is engaged in service activities. Most of them 18.7% of employees is providing services in the section Trade and repair, in 2008 over 42 thousands. This number may be higher, however, as the data presented by the CSO do not include the smallest economic entities employing less than 9 persons, i.e. in this case, all the small shops and craft workshops. The next in terms of number of employees is a real estate section, and services related to business activity. This section includes many modern services such as IT service and accounting and personnel-payroll services. In these enterprises were employed 13.5% of the working inhabitants of Poznań. It is also a section that according to pro- Diagram 8. The structure of unemployment recorded in Poznań in terms of the level of education (source: own elaboration based on CSO, Local Data Bank) 20% 14% 24% higher post-secondary, secondary vocational secondary general education basic vocational lower secondary and less 20% 22% Diagram 9. The structure of employment in Poznań in terms of the sections of PKD 2004 (source: own elaboration based on CSO, Local Data Bank) 2,5% 0,5% 7,1% 20,6% 11,8% 6,6% 5,1% 13,5% 18,7% Agriculture Industry Building industry Trade and repair Hotels and restaurants Transport, warehousing, communication Financial brokerage Real estate services and the services related to conducting business activity Public administration Education Health and social care Other services 4,8% 6,7% 2,2% 21 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 22 jections made by the City Hall will significantly increase employment until 2014. Less, that is 11.8% of employees are employed in the Education section, so are working in kindergartens, schools and colleges. This industry is very dependent on the demographics and due to the changes described in Chapter Population demand for labor will decrease in this section, if not reversal of demographic trends. The demand for skills The foundation of the development of any business venture are its employees. They are the essence of the company and its future success depends on the quality of their competence and preparation for work. Young investors eagerly come to Poznań planning to establish the service centres; they require employees with relatively high-skills, mostly related to soft skills and language skills. To clarify and crystallize the knowledge of employers’ expectations in Poznań, HAYS Poland conducted a series of studies, interviews and analysis. On this basis it can be concluded that the most valued is the knowledge of English. Almost equally important is the ability of fluent communication in German due to geographical proximity and strategic business location. The investors also pay the attention, certainly, to the candidate’s basic knowledge about the field, department in which they will work (such as IT or accounting). Not only the soft skills are valued, such as communication skills and ability to work in a group, but also the hard: technical and practical knowledge. Due to the in depth specialization that characterizes the shared services centres, the retraining of employees is sometimes necessary, therefore, absolutely needed is the ability to quickly acquire knowledge and enthusiasm for the occasion of its acquisition and expansion. Such knowledge would not make sense for the employer, without the talent to transfer it into practice. It is worth noting that most companies train employed people, which usually lasts from six months to a year. The internship served in the company is definitely an advantage, as well as the lack of need for long-term training. Extremely valued is the experience and language skills acquired eg. in Erasmus. One should not skip the fact that knowledge of the basic tool for office work, which is Microsoft Office, is valued. The investors in the field of IT, however, are much more demanding, for their activity is much more complicated. IT industry is very dynamic and subject to significant changes in very short periods. The knowledge of new information technology, knowledge of fresh advanced products, awareness of the network etc. are required in this area. Especially appreciated is the knowledge of the SAP system. Among the soft skills the extremely important position takes the motivation, flexibility and reliability; the assurance that the employee remains engaged and attached to the job. Finally, it is worth quoting a rather constructive and somewhat prognostic statement of one of the investors, namely, that a good theoretical background of graduates of Polish universities, more and more of which are also in Poznań, makes it possible to implement in the country increasingly complex processes, requiring not only knowledge but also creativity being the fruit of good intellectual preparation. Gone are the days when only low labour costs were taken as an asset. The new advantage of Poland will become the ability to handle the most demanding business needs. Poznań will be a city that could provide personnel with the excellent intellectual preparation not only today, but probably also in the future. The tendency to raise the qualifications The employees of Poznań service centres express the deep will to extend their professional qualifications. They are aware of the fact that activity in this field can be a source of promotion, a better performance of actual duties, and self-fulfilment. The basic, desirable form of the personal development are the training and the courses, more than 65% of personnel is planning to take advantage of this possibility in the next 6 months, typically provided by the employer. Almost as much popular is, resulting yet solely from their own initiative and involvement, reading articles on the Internet (52%) or the industry press (38%) associated with their work. About 27% plan to start a language course, so that will gain the opportunity to broaden the competence of the most valued by employers. Natural for each specialist should be involvement in seminars and conferences (24%). This serves to broaden the theoretical knowledge; it is essential to acquire the knowledge of the latest trends and technologies in the world that is changing so rapidly and is subject to the technical transformation. The opportunity to exchange experiences and acquire knowledge of the market is also important here. One should not ignore also those who seek to supplement their theoretical information in a manner broader than through one-time conferences. 24% of respondents would like to gain new knowledge in college. The MBA plans to take only about 7%. And only 17% do not have any intentions in the matter of gaining additional profes- sional competence. The results of this study are presented in the Diagram 10. Programs aimed at developing the sought after skills Poznań City Hall is very interested in raising the qualifications of the persons already present on the labour market, by supplementing or updating knowledge, to make the City’s human resources become more competitive. One of the methods are the training projects such as “Top Skills for Wielkopolska,” for persons interested in working in the sector of the modern business services. The aim was to broaden the skills in language, communications, financial and IT field. The project lasted for two years, a total of 445 persons were trained. The professions of the future in the Poznań aglomeration Forecasting the development of specific industries in the region is of the great importance, since it allows to plan, among others, educational reforms, so that the development was not hindered by the lack of the qualified staff. To this purpose, the City of Poznań, in cooperation with the District Employment Office in Poznań started the research project “The personnel demand of the business in the Poznań agglomeration on the background the socioeconomic fields of the development of the region – diagnosis, prognosis, monitoring.” After the second stage of the work the report was published, which contains, among others, the prognosis for the strength of the individual industries and the changes in the employment in the years 2009-2014. Industries (included in the study as sections of PKD 2004) were evaluated in terms of the development potential in comparison to the average. A value below 1.0 means that the industry is not crucial for the region, a value above 1.0 indicates a key industry. On the basis of the available data also an attempted was made to forecast employment growth in each of the industries. Forecast results are presented in the Table 1. On the basis of the presented data the conclusion can be drawn that in the year 2009 (the year in which the survey was conducted), the strongest industry in the agglomeration was the Trade and repair. This sector was not as strongly affected as the industrial sector by the economic slowdown in 2008-2009 and will continue to increase the Table 1. The prognosis of the personnel demand of the business in the Poznań aglomeration The strength of the industry in 2009 The prognosis of the strength of the industry in 2014 The change in the employment in 2014 Agriculture 0,88 0,94 0 Industrial processing 1,16 1,14 0 Building 0,88 0,97 ++ Trade and repair 1,24 1,18 ++ Hotels and restaurants 0,57 0,52 +++ Transport, warehousing, communication 0,78 0,71 +++ Financial brokerage 0,88 0,94 +++ Real estate services and the services related to conducting business activity 1,19 1,20 ++ Public administration 0,88 0,89 ++ Education 0,65 0,66 0 Health and social care 0,95 0,94 + Other services 0,74 0,66 ++ Industry The source: The final report of the study ”Personnel demand of the business in the Poznań agglomeration,” 2010. 23 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle number of employees, which means that it will increase the demand for employees presenting skills related to trade and services industry. Part of the gaps in the staff will be filled by unskilled people, but for certain activities, such as the sale of more complex devices, it is necessary to have 24 appropriate education and experience in sales. Therefore, the demand for such better-skilled employees will grow. The strength of this industry, however, will decline and in 2014 it will be overtaken by the real estate-related services industry and services related to business activity. Diagram 10. The plans regarding professional development among the employees of the service centres in Poznań (source: survey by HAYS Poland, n=100) 65,5% Participation in the trainings and courses Reading materials available on the Internet (blogs, articles) 51,7% Reading the industry press or other publica tions 37,9% Starting language courses 27,6% Participation in conferences and seminars 24,1% Starting the post-graduate studies 24,1% 6,9% Starting the MBA studies 17,2% None of the above 0% 10,0% 20,0% 30,0% 40,0% 50,0% 60,0% 70,0% Diagram 11. The knowledge of foreign languages among the Poznań employees of the BPO/ SSC (source: survey by HAYS Poland, n=100) 100% 100,0% 90% 80% 70% 60% 48,3% 50% 40% 34,5% 30% 30,0% 27,5% 20,6% 20% 13,8% 10% 6,9% 6,8% 13,5% 4,0% 3,4% 3,3% 0% English German Spanish Russian French Italian Swedish Danish Norwegian Portuguese Finnish Turkish Other languages This sector will also significantly increase the employment, but due to the wide range of educational profiles which can be used within it, a problem associated with a deficiency of suitably qualified staff should not appear. It can occur only for very specialized job profiles, especially in the IT industry and biotechnology, where very specific skills are usually required. Small industry, but with a great development potential is the financial brokerage. The employment will continue to grow in it, but because of the very large number of university graduates with economic and administrative profile it is not expected to show the deficiencies in the available staff, on the contrary, there is a big “overproduction” of graduates for this profile, which means that employers will be able to select employees with the highest competence. The industry, which remains extremely important for the Poznań agglomeration, but during the next five years, will not make a significant increase in employment is industrial processing. It is forecasted that in 2014 it only reach the level of employment of 2007, the time before the economic slowdown. The most rapidly growing types of production in the Poznań agglomeration are: production of food and beverages, production of motor vehicles, furniture production and the production of machinery and electrical equipment. These industries were chosen because of the good position in the current regional economy and a high innovation. Knowledge of foreign languages among employees The most popular language among the workers of Poznań centres BPO/SSC is obviously English, which is used by almost all respondents. This is not surprising, considering that in most centres, it is a language whose knowledge is required when applying for a job. The second place takes German, which is about half less common than English. The results of 25-35 percent reached also: Spanish, Russian and French. The last of the most common European languages proved to be Italian, which is used by about 20% of the respondents. In Poznań, there is no shortage of language skills generally considered to be less popular or even niche. The top ranked the Scandinavian languages: mainly Swedish, and just after the Danish and Norwegian. The knowledge of other shapes at about 3-4 percent, and even so is considerably higher than the Polish average, which does not exceed 0.5%. Test results are presented in the Diagram 11. The result of these studies can prove a perfect personnel environment prevailing in Poznań. The offer of the human resources is rich and well qualified in terms of communicative competence. Education University level schools in Poznań In 2010, according to data of the Poznań City Hall there were 27 university level schools in the city, including 8 public and 19 private. The latest university level school, founded just in 2010, is the Campus in Poznań of the Warsaw School of Social Sciences and Humanities. The list of Poznań university level schools with the number of students are presented in the Table 2. Among the largest and most famous universities include Adam Mickiewicz University, Poznań University of Technology and University of Economics. The first offered in 2011, 49 faculties and 183 specializations. It was attended by almost 40 thousands students (studies of the I and II degree) and more than 1,300 graduate students. In the ranking of universities prepared in 2011 by the magazine “Perspektywy” and “Rzeczpospolita” the University took third place and maintains this position for three years now. In 2010, nearly twenty thousands people have been educated in 10 departments and on 24 faculties of the Ponań University of Technology. The University was employing over thousand persons of academic staff. In 1995, Poznań University of Technology, as the first Polish technical university, has become a member of the Conference of European Schools for Advanced Engineering Education and Research (CESAER), an organization binding together the best technical universities in Europe. Poznań University of Economics in the ranking of the “Perspektywy” in 2011 took the third place among the 25 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Table 2. The number of students in Poznań university level schools in the academic year 2010/2011 in thousands 26 In total Full-time Part-time Public university level schools 96,20 65,00 31,20 1. Adam Mickiewicz University 39,70 26,10 13,60 2. University of Economics 11,40 7,60 3,80 3. Poznań University of Technology 19,20 13,50 5,70 4. Poznań University of Life Sciences 11,50 8,10 3,40 5. Poznań University of Medical Sciences 8,30 5,70 2,70 6. Academy of Physical Education 3,90 2,70 1,20 7. University of Arts in Poznań 1,40 0,80 0,60 8. Academy of Music in Poznań 0,70 0,60 0,20 39,70 7,90 31,70 1. Management and Banking College 2,40 0,00 2,40 2. Academy of Hotel Management and Catering Industry in Poznań 1,60 0,90 0,70 3. Poznań School of Banking 6,20 1,30 4,90 4. College of Humanities and Journalism 4,20 1,10 3,10 5. Poznań Trade and Commerce College 0,70 0,20 0,60 6. College of Communications and Management 1,40 0,20 1,20 7. Poznań School of Social Sciences 2,50 0,50 2,00 8. College of Trade and Accounting 0,50 0,00 0,50 9. Poznań College of Modern Languages 1,90 0,80 1,10 10. College of Logistics 2,60 0,40 2,20 11. College of Health, Beauty and Education 1,00 0,40 0,60 12. Poznań College of Business 1,10 0,20 0,90 13. Wielkopolski College of Tourism and Management 0,70 0,10 0,60 14. College of Pedagogic and Administration 8,10 0,90 7,20 15. College of Education and Therapy 1,60 0,40 1,20 16. College of Security 1,90 0,30 1,60 17. Vocational College “Personnel for Europe” 1,00 0,10 0,90 18. College of Integration and Intercultural Education 0,04 0,00 0,04 19. School of Social Sciences and Humanities 0,30 0,10 0,20 135,90 72,90 62,90 Private university level schools Total The source: Socio-economic situation, 2010. http://www.poznan.pl, access: 23.10.2011. 66926 70 000 60 000 60 000 50 000 50 000 80 000 70 000 37754 40 000 Diagram 12: The number of students and graduates in economics in selected 33489 37754 40 000 cities of Poland, 2010 (source: CSO, Local Data Bank)30 000 33489 30104 30 000 18375 20 000 18375 20 000 66926 10660 10 000 10 000 0 Warsaw 50 000 20 000 10092 9661 Warsaw Cracow Wrocław 22943 9661 8075 8075 5325 Cracow Wrocław Poznań Poznań students Łódź Łódź Tri-City graduates K graduates 30104 24242 23872 18375 22943 14 000 10660 10 000 10092 9661 14 000 8075 Cracow Wrocław Poznań 5325 12 112 12 000 0 Warsaw 23872 10092 students 33489 24242 10660 37754 30 000 24242 0 60 000 40 000 30104 Łódź 12 000 12 112 10 Tri-City 000 6553 Katowice 10 000 graduates students 8000 7192 Diagram 13: The number of students and8000 graduates in IT in selected cities of Po-7070 7070 land, 2010 (source: CSO, Local Data Bank) 60007192 6467 6467 4522 6000 4000 14 000 12 000 4522 4000 12 112 1693 2000 1693 2000 0 10 000 0 Warsaw 8000 7192 7070 1355 1355 1118 Warsaw Cracow Cracow Wrocław students 6467 1118 1933 Wrocław 4275 1933 1152 Łódź Łódź students Poznań 1152 2 616 Poznań Tri-City graduates graduates 6000 4522 4000 2000 1693 1355 1118 1933 4275 2287 1152 616 601 Tri-City Katowice 0 Warsaw Cracow Wrocław students Łódź Poznań graduates university level schools with an economic profile. In 2010, on 5 faculties and 11 specializations, almost 11.5 thousand people gained their knowledge in total. In addition to full-time and part-time studies, the University offers also a wide range of post-graduate studies, 69 faculties in total. Faculties Investors in the sector of modern business services very willingly employ people right after studies, and therefore an important factor determining the location of service centres is the number of students and graduates in par- 27 K Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 28 and Higher Education and has taken appropriate action consisting mainly of the introduction of courses ordered. Partly due to that the situation began to change for the better. Already at the admission for the academic year 2010/2011 the average number of candidates for the position of Universities of Technology exceeded the number of applicants to study at the University. In Poznań from studies of this type graduate every year more than three thousands people. These data are presented in Diagram 14. ticular area. In Poznań, according to data of the City Hall, study nearly 136 thousands people, with over 96 thousands at public university level schools and nearly 40 thousands in private. This puts Poznań in the fourth place in this respect among the Polish cities, ahead from Łódź and Tri-City (Tri-City). In addition to the total number of students, the number of persons expanding knowledge in the specific fields: above all, economic, IT and technical is also essential. In the case of economics Poznań takes the fourth place in Poland, after Warsaw, Cracow and Wrocław, and with the number of over 9.5 thousand graduates is a popular choice for centres serving the accounting processes. These data are presented in the Diagram 12. Philology Enterprises from the sector of BPO/SSC also very willingly hire graduates of philology, especially those fluent in speaking rare or exotic foreign languages. Such persons are sought primarily due to the fact that the teaching language for the communication proficiency takes a very long time, so for the companies it is more profitable to employ the person without accounting competence, and proficiency in language; then the training follows. Four and a half thousand students of information technology allow Poznań to take the fifth place among Polish cities. If we look at the number of graduates then Poznań is moving to the fourth place, slightly ahead of Wrocław. The data are presented in the Diagram 13. 29 220 For a long time there is a lack of engineers and techni- Poznań has30the 000 widest range of language studies in Poland,29in220 the 2009/2010 academic year were as many as 44 cally qualified persons on the Polish labor market. This30 000 is primarily due to less popularity of the technical stud- such directions, which together graduated 2697 people. 25 000chose English philology, they were up to ies in comparison to the social sciences and humanities. Most of them 22181 people21648 28%. Also the faculties educating who speak rare This problem has recognized the Ministry of Science25 000 22181 21648 20 000 20 000 Diagram 14: The number of students and graduates in the field of technology 000 Bank) in selected cities of Poland, 2010 (source: CSO, Local15Data 15 000 30 000 12 899 29 220 9332 10 000 4138 4138 5000 25 000 22181 3855 3057 3855 3057 21648 Warsaw 0 Warsaw Cracow Cracow Wrocław students 15 000 12 899 12 821 9332 10 000 3855 3057 3709 3109 1398 1424 0 Warsaw Cracow 3109 1398 37 3109 0 20 000 4138 12 821 12 821 10 000 5000 5000 12 899 Wrocław students Łódź Poznań graduates Tri-City 651 Katowice 1398 Wrocław Łódź Łódź Poznań students graduates 1424 Poznań Tri-City graduates K Table 3. The number of graduates in foreign philology in Poznań university level schools in academic year 2009/2010 Faculty/specialisation Number of graduates Number of graduates Faculty/specialisation English Philology 760 Serbian and Croatian Philology 24 German Philology 348 Norwegian Philology 24 Applied Linguistics 242 Linguistics and scientific information 24 Ethnolinguistics 145 Swedish Philology 22 Russian Philology 144 Baltology – Lithuanian Philology 21 Roman Philology 139 Turkish Studies 17 Spanish Philology 98 Ugrofinistics – Hungarian Philology 17 Teaching of English 54 Linguistics and the information science 15 Japanese Studies 51 Classical Philology and Polish Philology 14 Italian Philology 45 Teaching of French 13 Teaching of German 43 Danish Philology 11 Russian-English Philology 42 Netherlands Philology 11 Applied Linguistics – Ecocommunication 42 Romanian Philology 10 Russian-Ukrainian Philology 39 Hebraic Studies 9 Korean Philology 35 Classical Philology 7 Sinology 35 Russian Philology with Applied Linguistics 7 Slavic Philology and Polish Philology 32 India Studies 7 New Greek Philology 28 Mediterranean Studies 7 Bulgarian Philology 27 Latvia Philology 5 Arabic Studies 26 Hungarian Philology 3 Serbian Philology and Croatian Philology 26 Finnish Philology 2 Vietnamese-Thai Philology 25 Lithuanian Philology 1 TOTAL: 2697 Source: survey by the Poznań City Hall languages are very important. At the Adam Mickiewicz University, among others, a unique in Poland VietnameseThai philology is offered, as well as Japanese studies and sinology. Cross-border mobility Foreign companies locating their activities in Poland are increasingly paying attention to whether their employees have spent some time abroad, eg. during an internship or studying. This happens primarily for two reasons. First, almost all companies, and especially companies with foreign capital, must nowadays keep in touch with clients or other branches located abroad. Often the knowledge of English is not sufficient, and we need to know the culture and customs of the country, and the easiest way getting to know these things is by spending some time there. Sec- 29 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle ond, for the employer sometimes important is the fact of departure, regardless of the destination country, because it provides a high mobility of the future employee and his willingness to relocate if, eg. the situation in the company demanded it. 30 Currently the most popular program that allows students to go abroad to study or practice is Erasmus, which allows the trip for a semester or two to the college, with which the student’s parent school has signed a contract. In the 2008/2009 academic year 1499 students from Poznań took advantage of this opportunity. More than 800 of them were taught at the Adam Mickiewicz University. The second took the University of Economics (234 students). The most popular destination countries were Germany (354 persons), Spain (189 people) and France (126 people). The share of people who went to different countries is presented in the Diagram 15. Students’ activity Currently, important from the employer’s point of view is not only a prestigious university diploma. It proofs first of all that the candidate is theoretically prepared for the position. Such competences, however, are not enough, also the practical knowledge is needed, and by far the most important is slowly becoming the experience. This state of matters is due to the growing number of university graduates with good substantial knowledge and poor expertise in the practical field. Both the City of Poznań, as well as universities try to prevent this by encouraging students to be active already during their studies. Also, students are doing everything to gain experience while learning at the university, engage in different activities; work, participate in internships, and also present their activity in the scientific circles, expanding their knowledge and skills through cooperation, debates and discussions. They learn in this way of working in a group and expand their communication skills. Activity in these circles is an opportunity to get acquainted with the representatives of science from other institutes, universities and centres, and also provides the ability to commune with the practical sphere of business. The numerous conferences are organized on various topics, which can enrich and complement the knowledge gained at the university. Diagram 15. The number of students from Poznań university level schools in terms of destination country of the scholarship Erasmus in 2008/2009 as the percentage of all going out of country (own elaboration based on FRSE data) 1% 2% 2% 2% 2% 1% 4% 3% 3% 24% 4% 4% 4% 13% 5% 5% 6% 8% 7% Germany Spain France Italy Portugal Turkey Finland Czech Holland Denmark Sweden Great Britain Belgium Austria Greece Norway Hungary Slovakia Other countries Diagram 16. The expectations of Poznań students towards the employers (source: survey by HAYS Poland, n=190) Friendly environment 58,1% good perspectives on high wages 57,0% 48,8% ambitious tasks and interesting projects 46,5% professional training and development 44,2% possibility of self-realization possibility to keep the balance between the work and private life 40,7% 27,9% competitive basic salary managers who support the development of employees 20,9% clear path of promotion 20,9% good reputation of the company 19,8% 16,3% security of employment attractive additional benefits 15,1% 10,5% high ethical standards of the company 0% In Poznan, scientific circles involved in almost every sphere, sub-fields or specialty are present. Their scope covers such “exotic” aspects, like the ancient culture of the East and dead languages, and so necessary and universal, like business law or medicine. All organizations of this type, however, is characterized by one common feature – focus on topics that in the course of study are discussed only superficially, which means that for the people with their good knowledge there is a high demand on the market. At the sole Adam Mickiewicz University there are 120 scientific circles, their profile of activities is very wide, because the university offers a very wide number of faculties. Poznań University of Economics has 63 active scientific circles, and the University of Technology more than 40. Expectations towards employers HAYS Poland conducted in the summer months, a survey among students of Poznań university level schools, asking them, among other things, about their expectations towards their future employers. Test results are presented in Diagram 16. The most important criterion, which the potential candidates to work in Poznań followed, was a friendly atmos- 20,0% 40,0% 60,0% phere at work (58% chose this answer). Employers can not ignore this aspect of their business, and should even use it, because it does not require any additional costs, and may even convince the personnel that it is not worth to change the job, despite lower earnings. In second place is the perspective of wage growth in the near future (57% of the respondents); starting salary is not as important (27.9% declared that its height plays an important role for them). This state of matters seems to be quite interesting; it means that the population of Poznań is focused on perspectives, innovation and responsibility. It prefers to sacrifice the actual moment for the future. At the observation of the market in terms of human capital one should not also ignore the factors such as the possibility of self-realization, expanding competences and the implementation of ambitious tasks that determine attitudes to the workplace. The secondary position when selecting full employment, surprisingly, has the job security or additional benefits. This means that issues related to working life are treated fairly instrumentally perceived primarily as a source of income, but must be interesting; while become irrelevant such things as the stability of social allowances. The lowest position occupied the ethical standards, only 10% of potential employees is guided by this feature when choosing the job. 31 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Diagram 17. The answer of Poznań students to the question about the industry in which they plan to work (source: survey by HAYS Poland, n=190) 32 18,8% Marketing HR & training Customer service Finance and accountancy IT Sale Health Care Law and Taxes Banking and investment Engineering Education Logistics and Purchase Administration Real Estate Construction Culture Social Care Production Others 12,7% 8,1% 6,1% 5,6% 5,1% 5,1% 4,6% 4,6% 4,1% 3,6% 3,6% 2,5% 2,5% 2,5% 2,0% 2,0% 2,0% 4,6% 0% 2,0% 4,0% 6,0% 8,0% 10,0% 12,0% 14,0% 16% 18,0% 20,0% Preferred Industry Job fairs in Poznań HAYS Poland studies have revealed in particular that the planned industries, in which people are to work, are very different – none of the answers was chosen by more than 20 percent of respondents. Greatest interest among future cadres enjoy the Marketing and the HR and Training (respectively 19% and 13%). As the next Customer service has been specified (8%), followed by other areas, which achieved no more than 6% of respondents. Distribution of answers to this question was presented in Diagram 17. One method, which can benefit the employer in order to find the desired staff, is to participate in job fairs organized among others by university level schools. The list of most important events of this type is presented below. Interest of students in the sector of modern business services It is already widely known fact that the modern business services sector in Poland is experiencing a dynamic and dramatic growth. Is interested in a well-qualified specialists, preferably would employ graduates of such faculties as Finance or Computer Science. Knowledge of foreign languages is also important. Fortunately, the interest is mutual. Most of the students have heard of the modern business services sector, expressed interest in it and willingness to bind the professional life with the sector (58%). 31% expressed the lack of more precise plans in this matter, which may indicate either lack of awareness of the sector or unwillingness to make long-range career plans. Only 10% openly expressed their unwillingness to work in the sector. 1. Poznań University of Technology Job Fairs The fairs were organized in 2011 for the fifteenth time. On 15-16 March in the Technical Library and Lecture Centre of University of Technology gathered more than 40 exhibitors, including the companies such as GlaxoSmithKline, Deloitte and Bridgestone. There were also workshops conducted by the employers. 2. European Job Days Were held on 4-5 March 2011 by the Regional Employment Office in Poznań within the European Employment Services network – EURES. It was their sixth edition. It was financed from the European funds. 3. Career Days Career Days are the classic job fairs combined with workshops. It was organized by student organization AIESEC Poland. It is the largest such event in Poland addressed to the students. These fairs are traditionally held in 9 Polish cities, including in Poznań, where the last edition took place (22 March 2011, in the Main Building of the Univer- sity of Economics). This important event was attended by over 40 employers from across the Poland. The next edition is planned for March or April 2012. The question about the method of learning a language also provides interesting information. Replies of Poznań students are presented in the Diagram 20. Knowledge of foreign languages among students The vast majority of students in Poznań broaden their knowledge in a language in most widely available method and requiring no additional funding, which is learning in school or at the college. Small but observable deviation was in the case of the English language. This was probably due to the fact that knowledge of it is the most advanced. To achieve this level the standard classes at the university are not enough, it also requires a personal commitment (self study), a living contact with the language (movies, newspapers, books, etc.) or a personal tutor support or participation in courses run by specialist language schools. From August 2010 to January 2011 the Polish Agency for Enterprise Development conducted research on students within the project Human Capital Balance. The surveys relating, among others, to foreign languages knowledge completed 2717 students in Poznań university level schools. The results are shown in the Diagram 19. The most popular language is English, just like in the whole country; more than 90 percent of students in Poznań are able to use this language. Second in terms of being commonly known was in this group the German language. His knowledge was declared by 47.7 percent of those surveyed, surpassing the level of the national average of 43.2 percent. Other popular languages are Russian, Spanish and French, which use a similar number of respondents (approx. 10%); in the case of French and Spanish, it exceeds the Polish average. The 3.1% of respondents declared knowledge of Italian and 6% also speak other languages, the mostly Scandinavian and from the Far East. Cooperation of science and business Cooperation of the business sector with the research centres makes mutual benefits. Private companies do not often have sufficient resources to invest in the areas most innovative, research, etc. The theoretical knowledge alone, without the practical use of it, seems worthless from the perspective of the employer. The programs of cooperation between the public sector specialised in advancing the knowledge, doing research and discoveries with the Diagram 18. The answer of the Poznań students to the question if they would like to work in the future in the BPO/SSC sector (source: survey by HAYS Poland, n=190) 23,3% Definitely yes Rather yes Rather not Definitely not Do not know 31,4% 2,3% 8,1% 34,9% 33 Diagram 19. The knowledge of foreign languages among the students in Poznań (source: own elaboration based on the Human Capital Balance – 2010, n=2717) 100,0% 90,5% Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 90,0% 34 80,0 70,0% 47,7% 60,0% 50,0% 40,0% 11,2% 30,0% 10,2% 10,1% 3,1% 6,0% 20,0 English German Russian Spanish French Italian Other languages Diagram 20. The methods of learning foreign languages among the students in Poznań (source: survey by HAYS Poland, n=190) 0,5% 6% 3% 13% 7,5% self study classes in school / at the university language school private lessons travelling abroad language courses abroad 70% private sector which needs that knowledge, are therefore the necessity. The City of Poznań understands the problem and is aware of strong connections between the mentioned sectors of economy and makes an attempt to widen their cooperation. Poznań can provide services in the field of research on a large scale and at a very high level. In addition to the university level schools, including ones among the best in the country, the city has about 50 research institutes, boasts that its economy is largely based on knowledge and eve- rything indicates that this character will be maintained and further developed, because of its 27 university level schools and over 140 000 students. The City Hall actively supports the creation and maintenance of links between the science and the business and for this purpose the Wielkopolska Innovation Platform was created – a platform for communication in the form of a website which provides information on current research and offers addressed to private enterprises (www.wpi. poznan.pl) The most important university level schools in Poznań have a person dedicated to the promotion of academic entrepreneurship. This facilitates the contact between students and academic staff with the private sector, which helps in the application of specialist knowledge acquired at university into practice, helps to see and become familiar with the realities of the private companies and to understand their needs. The Project “Promoter of the academic entrepreneurship” is gathering bids from the scientists that might interest the entrepreneurs. It also takes part in the potential process of commercialization of the proposal. A very good example of cooperation between the university and the business is a program of cooperation of Poznań University of Technology with Microsoft. It is a school belonging to the elite group of eleven European and only two Polish universities that were selected for direct recruitment for the internship. The University is in one group with the universities of Oxford and Cambridge. This state of matters is hardly surprising, given the results in international competitions that reach the students of this University. In the famous Imagine Cup organized by Microsoft, in the first five years they occupied the first place three times and the second place twice. In the last edition of the internships the most numerous group was the group of Polish students. The next step to facilitate the creation of networks of cooperation between universities and the private sector is a project implemented by the Poznań University of Technology with the support of the European Social Fund. Its aim is “the cooperation of the universities with the employers regarding strengthening practical elements of teaching in the form of practice and student internship. The value of the education at the Poznań university level schools in practice, which is the most valued in the labour market, is extremely important. The Poznań students made their achievements not only in competitions organized by the private companies, but also by the European Union. Future engineers from Poznań University of Technology won the contest for young scientists for the study of spiral diffraction lens. Also, the academic staff of the institutes win in prestigious international competitions. Poznań University of Technology Institute of Computer Science won the Second International Competition for the Design of Computer Systems, which was held in Washington. They defeated teams from 75 universities from around the world. It is also worth mentioning that the three students of Poznań University of Economics took first place in the sixth nationwide student contest for amateur of accounting. The above average knowledge of international financial reporting standards and tax law was required. In addition the University won the international ranking Eduniversal as the best school of business in the category Excellent Business Schools. Recruitment of employees – legal issues Employing the personnel Employment planning, requires careful examination of the nature and form of the provision of work and place of its execution by the prospective employees, and then implement regulations i.e. the type of employment contract, working hours tailored to the needs and capabilities of the employer, in order to optimize resources and reduce costs. There is no ideal time to hire personnel, and the ability or willingness to take up employment should be treated as an individual issue. However, in the case when the employer plans to hire graduates, especially in mass projects, the obligations associated with the completion of school and holiday period should be considered. The largest number of “fresh graduates” is ready to take up employment in November. In the case of the planned employment of the specialists, especially with years of experience at the given position, the period during which the employee is still associated with the previous employer, after deciding to change the job and handing notice, must be taken into account. Depending on the period of employment with the employer the notice period is: 35 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 36 − 2 weeks, if the employee has been employed for less than 6 months − 1 month, if the employee has been employed for at least 6 months − 3 months, if the employee has been employed for at least 3 years It should be noted that the remuneration for the work can not be lower than the minimum wage for work, which is determined annually and shall be published in the Official Journal of the Republic of Poland the “Monitor Polski,” by the Prime Minister’s announcement, no later than on 15th September. In 2011 the minimum wage in Poland is PLN 1386 gross. Establishing the employment The Labour Code in Article 29 paragraph 2 states that the contract should be made in writing and in case of failure to be made in writing, the employer shall on commencement of work by an employee, confirm in writing the arrangements on the parties to the contract, the type of the contract and its conditions. According to the fundamental principles of the Polish labour law, the creation and establishment of the conditions of employment, regardless of its legal basis, requires concerted wills of both the employee and the employer. (Article 11 of the LC6) A properly worded employment contract should specify: Through the establishment of the employment an employee undertakes to perform a specific type of work for an employer and under his direction and in the time and place designated by the employer, and the employer undertakes to hire an employee for the remuneration. (Article 22 paragraph 1 of the LC) 6 The Act of 26 June 1974 the Labour Code, uniform text. Journal Of Laws of 1998 No. 21 item 94, as amended. − the contracting parties, − type of the contract, − the date of concluding the contract, − type of work, − place to work, − remuneration for work, appropriate to the type of work, with an indication of its components, − working time, − start date. The specifying the type of contract means the duration of the intended duration of the employment relationship. Depending on the needs and discretion of the parties, the contract of employment may be either: for an indefinite term, for a definite term, including the replacement of an absent employee for that absence time – “an employment contract for replacement,”, for the duration of a particular job or for a trial period. relationship, even though their subject is apparently very close to a contract of employment. Distinguish a contract of employment form the civil contracts is essential from the viewpoint of the person providing the work. Employee’s rights such as: to the special protection of the salaries, paid annual leave or paid occasional release from work, are entitled only the persons employed under a contract of employment. In the case of a contract for an indefinite period the parties do not determine in advance the date by which the employment relationship is to last, expressing by that the intention of a permanent relation. An employment contract for a specified period gives a deadline of dismissal in advance. In principle, this type of contract is not subject to termination unless the parties entering into it for longer than 6 months, anticipated the possibility of early termination on a two-week notice. It should be noted that even when the content of the contract that this is one of the civil contracts, but in fact the contractor is treated as an employee, he may claim before a labour court to determine that between him and the employing entity exists an employment relationship. To curb the practice of concluding a series of successive fixed-term contracts by employers, the Polish legislator has introduced a provision (Article 25¹), under which the conclusion of the next fixed-term contract, if the two parties previously entered into such an agreement twice, is legally equal to signing a contract for an indefinite term of the employment, if the interval between the previous contract, and the establishing of another contract of employment does not exceed one month. An employment contract for replacement is a special form of fixed-term contracts and can be concluded in case of necessity of the replacement of an employee in his excused absence from work. The contract of employment for the duration of a particular job is initiated by indicating the job (tasks) for the execution of which the employee is being employed and completion of which results in termination of the employment. In principle, this type of contract is not subject to termination, except in cases provided by law. The contract for a trial period is intended primarily to check the suitability of the employee before hiring him permanently (for an indefinite term) or for a longer fixed period of time. Since this is a period of mutual familiarizing and checking of the parties, they benefit from the possibility of termination of employment. The maximum duration of the trial period is 3 months, while the parties may stipulate in the contract a shorter period. The civil law contracts such as: contract work, commission or agency contract do not establish the employment Schedule and systems of the working time Polish Labour Code provides a basic working system – base system (Article 129 of the LC), which assumes the following standards: − daily maximum 8-hour standard working time − average 5-day work week − average 40-hour working week. Settlement period in this system, i.e. the period for which the job is planned and after which it is accounted for each employee, may not be longer than 4 months. Exceptionally, due to the nature of work such as agriculture and livestock and guarding or property protection, it is permissible to introduce a six-month period, which can be extended up to 12 months, in the event of unusual organizational or technical conditions affecting the of work process. The basic system, as the name suggests, is treated as a system that should be used in most of the workplaces, including service centres, except that the type or organization of work do not allow the adaptation to the standards. In this case, the Labour Code provides for several specific systems whose introduction is permitted in exceptional circumstances and under strictly defined rules. Equivalent working time system, is characterized by a possibility of extension of the daily standard of the working time to 12 hours, in the case when, in due time will be balanced by a shortened daily working time standard. It is important that in the adopted settlement period the aver- 37 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 38 age standards of 40-hour and 5 – day working week were not exceeded. The introduction of this special scheme is permissible if justified by the nature of the work or its organization. A frequently occurring example is the need for twenty-four hour surveillance of equipment in the centres of IT services. The standard settlement period in this system is 1 month, while in particularly justified cases, may be extended to 3 or even up to 4 months. The employer may introduce a system of the performance working time in cases justified by the kind of work or the organization or place of work. − weekend work system, introduced at the written request of the employee, which means the provision of work only on Fridays, Saturdays, Sundays and public holidays. In this system daily working time may be extended to 12 hours, in the settlement period not exceeding a month. − reduced working time, allows to shorten the working time below the standards, for example through the introduction of breaks included in the working hours, if it is justified by the type of work, i.e. work in the conditions that are particularly harmful, monotonous work. Schedule of the working time The system is that the employee is not obliged to remain at the disposal of the employer for a specified time, but is obliged to perform the tasks set out with the employer in fixed units of time (day, week, month). The entrusted tasks should enable the job to be done in no more than the specified standards, assuming the average worker efficiency and diligence. Task work time, as a rule, it may be, when impossible or very difficult to control the worker, for example, when working with a client or project work outside the workplace. The Labour Code also provides for other systems of working time, classified as special: − system of the working time in continuous motion, is to ensure employee support of the production or service process, 7 days a week, 24 hours a day, at works, which, because of the type can not be stopped. The system allows for an extension of weekly working time to 43 hours on average over a reference period not exceeding 4 weeks and one day in some weeks, within the stipulated period, the daily working time may be extended to 12 hours. - interrupted working time system, allows for one break during the day at work, lasting no longer than 5 hours, which is not counted as the working time. The system can be entered only if it is justified by the type of work or its organization, especially when the intensity of work is variable and highly dependent on time of day. − shortened work week system, introduced at the written request of the employee, allows performing of work by an average of less than 5 days a week with simultaneously extended daily working time to no more than 12 hours and maintained 40-hour average weekly working time standards, in the settlement period not exceeding a month. In the schedule of the working time the employer is obliged to specify the days, hours, change system of work, and breaks for all employees, for a specific group or for the individual positions. Schedule of the working time is fixed by collective agreements, regulations or announcements of the employer. At the written request of an employee, an individual schedule of work can also be set, which becomes the part of the content of contract of employment. The employer is obliged to keep records of the working time for each employee, in order to properly determine the wages and other benefits. However, no records of the working hours of employees are made in case of the performance working time of the employees managing the workplace and those receiving a lump sum for overtime. Mass recruitment projects (timeframe) * Based on a recruitment project conducted by HAYS Poland. Poland is perceived as one of the most attractive markets in Central and Eastern Europe to locate the so-called service centres BPO/SSC, especially those that support the processes of high-skilled, knowledge-based, so-called KPO (Knowledge Process Outsourcing). In the case of this type of projects the fast start-up and development of the operation is required, often associated with the transfer of processes and services from other markets, and thus the employment of the numbers of specialists in a very narrow timeframe. HAYS Poland had the pleasure to participate in the investment process, as well as the company has been chosen the main provider of recruitment services for one of such investors – Service Centre of worldwide famous corporations. Threats to the project: − an investor was looking for more than 100 experienced professionals, with knowledge of most European languages, including such as niche as Scandinavian languages or Dutch. − the investor did not have legal personality in the Polish market, was not recognizable as a potential employer among a group of specialists sought. − at that time, in the region, there were no service centres, employing specialists with similar requirements. In the absence of legal personality, and thus the lack of the possibility of employment of personnel, investor took advantage of the so-called services of staff outsourcing. Within a month, two persons of the strict management were acquired, which then grew the organization and actively participated in the process of the staff selection. At the same time an active campaign was conducted aimed at promoting the brand and the employer, using the advanced tools of the so-called Online Employer Branding. The recruitment process itself has been divided into 5 phases (related, among others, to the transfer of processes from other markets so-called Transitions), in every phase there was a need of employment for approximately 20 professionals. The issue of the project consisted not only of getting to people with appropriate qualifications, but also on the persuading many candidates (70%) to relocate to another city (as mentioned, in this region at that time there was not a lot of workplaces employing people with the required profiles). Although such a complex operation, each phase went successfully- an average of 20 professionals were being 39 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle employed in the period 2-3 months. After one year from the date of commencement of the project, the Centre had over 100 employees and has successfully served 15 countries. Currently the centre is actively developing, acquiring new processes. 40 In this project about 100 specialists were acquired in the period of 1 year, which indicates an average rate of employment – 8 employees during the month. The complexity of the issues in the presented example, however, should be noted. tres is perceived as attractive, even among experienced professionals, which enables rapid development of organizations in the comparatively narrow timeframe. 2.2. Costs of business activity Labour costs are one of the major costs incurred by the company in almost all industries, in the case of modern business services sector it is certainly the most important cost. Pressure on the lowering it was the main driver of relocation to countries where labour costs are much lower, including Poland. In case of recruitment of people with lower qualifications such as graduates with knowledge of popular foreign languages, the average rate of recruitment is often greater than 20 people during a month. Note, however, that employee’s gross salary is only a portion of labour costs incurred by the employer. Generally, that labour costs for employers are composed of three elements: The image of employers in the sector of modern business services in recent years has changed significantly, the present example shows that the work for the service cen- • E mployee’s gross salaries including social security contributions paid by the employee and the advance on income tax; Table 4. Gross monthly remuneration in the industry of Finance and Accounting in the Wielkopolska Voivodeship Position Most often offered Minimum Maximum CFO/Board Member 30 000 20 000 45 000 Finance Manager 16 000 12 000 20 000 Finance Auditor 12 000 8 000 16 000 Finance Analyst 7 000 5 000 11 000 Internal Auditor 8 000 5 000 12 000 Accountant 4 500 3 000 6 000 Individual Accountant 5 000 4 000 8 500 Deputy Chief Accountant 9 000 7 000 11 000 Chief Accountant 13 000 11 000 16 000 Manager of Retail Locations 7 000 5 000 10 000 Leasing Specialist 5 000 3000 9 000 Dues Analyst 5 000 4 000 8 000 Actuarial Analyst 5 000 4 000 6 500 Actuary 9 000 6 000 12 000 Life Underwriter 6 000 5 000 10 000 Underwriter 5 000 4 500 7 000 Claim Specialist 5 000 4 000 6 500 Securities Broker 6 000 5 000 8 000 Investment Analyst 6 000 4 500 8 000 Manager, Capital Markets 13 000 10 000 20 000 Tax Adviser 11 000 9 000 14 000 Legal Advisor/In-house Lawyer 8 000 6 000 12 000 Manager of Legal Department 18 000 12 000 26 000 Junior Lawyer/Applicant 3 000 2 000 3 500 Lawyer/In-house 5 000 4 000 8 000 Lawyer/Associate 6 500 4 500 7 500 Senior Lawyer/ Law Office 8 000 6 000 10 000 Tax Manager 20 000 15 000 26 000 Tax Specialist 6 000 4 500 9 000 Source: Salary Report by Hays Poland 41 Table 5. Gross monthly remuneration in the industry of Pharmacy, Clinical research and Medical Devices in the Wielkopolska Voivodeship Most often offered Minimum Maximum Clinical Research Associate I 7 000 4 500 8 000 Clinical Research Associate II 9 000 7 500 11 000 Senior Clinical Research Associate 12 000 9 500 13 000 Lead CRA 14 500 12 500 16 000 Clinical Research Manager 17 000 15 000 19 500 Clinical Team Manager 16 000 14 000 17 000 Clinical Line Manager 16 000 14 000 17 000 Clinical Project Manager 18 000 16 000 20 000 Associate Clinical Operations Manager 19 000 16 500 22 000 Clinical Operations Manager 20 500 17 000 24 000 Medical Director 25 000 19 000 32 000 Quality Assurance Auditor 20 000 17 000 23 000 Regulatory Affairs Manager 16 000 14 000 19 000 Medical Advisor 13 500 12 000 18 000 Sales Representative 5 500 4 500 7 500 Key Account Manager 8 500 7 000 10 000 Sales Manager 17 000 15 000 19 000 Marketing Manager 18 000 15 000 22 000 General Manager 40 000 25 000 70 000 Business Unit Manager 23 000 20 000 27 000 Brand Manager 16 000 10 000 19 000 District Sales Manager 12 000 9 000 15 000 Product Manager 13 000 11 000 18 000 Sales Representative 8 000 6 000 10 000 Application Specialist 10 000 8 000 12 000 Product Manager 10 000 10 000 12 000 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Position 42 Clinical research Pharmacy Medical Devices Source: Salary Report by Hays Poland Table 6. Gross monthly remuneration in the industry of IT and Telecommunication in the Wielkopolska Voivodeship Most often offered Minimum Maximum Java Programmer 7 000 4 500 9 000 C++ Programmer 5 500 4 000 6 500 .NET Programmer 6 000 4 500 7 000 SQL Programmer 6 500 6 000 8 000 Architect/Application Designer 8 000 7 000 12 000 System Administrator 5 000 3 000 10 000 Database Administrator 5 000 3 000 12 000 Network Administrator 5 000 3 500 7 500 System Analyst 8 000 7 000 12 000 IT Business Analyst 12 000 10 000 16 000 Project Manager 9 000 6 000 15 000 Network Security Engineer 8 000 5 000 10 000 Technical Support Engineer 3 500 3 000 5 000 IT Manager/IT Director 10 000 6 000 25 000 CRM/ERP Consultant 12 000 8 000 22 000 WEB Designer 4 800 3 000 6 800 Sales Support Consultant (presales) 8 000 3 500 9 000 The trader (base) 10 000 5 000 13 000 Account Manager (base) 12 000 6 500 16 000 Position Source: Salary Report by Hays Poland • The costs of social insurance and Labour Fund and Guaranteed Employee Benefits Fund contributions; Other costs, including non-wage benefits, such as private health care or mobile phone. Gross salary, depending on the sector Gross salary is the biggest part of the remuneration. Its height depends on both the industry and the particular position. The costs of social insurance and Labour Fund, and Guaranteed Employee Benefits Fund contributions The costs of social insurance and Labour Fund, and Guaranteed Employee Benefits Fund contributions are the contributions for pension, disability pension and accident insurance and to the Labour Fund and Guaranteed Employee Benefits Fund. Premiums for pension, disability pension and sick insurance pay also the employee. In addition, form the employee’s gross salary is collected health insurance and advance on personal income tax. These contributions are deducted from his gross pay, affecting the net salary. The amount of premiums for accident insurance depends on the size and the nature of the company and its activities. For companies reporting to accident insurance no more than 9 employees the premium rate is 1.67%. If the company notifies the insurance for more than 9 people the height of the premium is determined either by the 43 Table 7. Gross monthly remuneration in the industry of Production, Purchasing and Logistics in the Wielkopolska Voivodeship Most often offered Minimum Maximum Production Director 15 000 8 000 20 000 Service Manager 12 000 6 000 16 000 Manager of Change 7 000 5 000 9 000 Process Engineer 5 000 4 000 8 000 Quality Manager 12 000 5 000 18 000 Quality Engineer 4 500 3 000 8 000 R&D Manager 12 000 8 000 16 000 Maintenance Department Manager 10 000 6 000 16 000 Purchasing Director 14 000 10 000 22 000 Indirect Buyer 5 000 3 500 8 000 Purchasing Manager 10 000 6 000 18 000 Purchasing Specialist 6 000 3 500 8 000 Director of Logistics 18 000 10 000 20 000 Manager of Logistics 14 000 8 000 18 000 Logistics Specialist 5 000 3 500 6 000 Logistics Solutions Sales Specialist 5 000 3 500 7 000 Distribution Center Manager 13 000 9 000 16 000 Manager of Transport 8 000 6 000 12 000 Shipping Manager 8 000 6 000 10 000 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Position 44 Production Purchasing Logistics Source: Salary Report by Hays Poland Social Insurance Institution, or it depends on PKD section, in which the company is registered. Minimally, it may be 0.67% for the financial and insurance business and a maximally of 3.33% for the mining industry. The amount of contributions for social insurance and Labour Fund and Guaranteed Employee Benefits Fund as a percentage of gross pay is presented in the Table 9. In the event that we offer higher wages to employees, relevant to the overall cost is the exemption of the employer from the obligation to pay contributions to the pension fund at the moment in which the sum of the employee’s annual salary exceeds PLN 100,770. Until then, the contributions are calculated in accordance with the approved standard as described in the Table 9. The exact method of calculating the individual contributions paid by an employer is presented in Tables 11 and 12. Table 11 shows the method of calculating premiums for individuals receiving a monthly salary of PLN 3,000 gross and Table 12 for those with salaries of PLN 30,000 gross. Table 8. Gross monthly remuneration in the sector BPO/SSC in the Wielkopolska Region Most often offered Minimum Maximum Junior Accountant (up to 6 months) 3 000 2 500 4 000 Senior Accountant (more than 2 years) 4 500 4 000 6 000 Team Leader 7 000 4 500 8 000 Associate (up to 6 months) 2 500 2 000 3 000 Senior Associate (more than 2 years) 3 500 2 500 4 000 Team Leader 7 000 6 000 8 000 Transition Manager 10 000 8 000 14 000 Reporting Analyst (more than 2 years) 5 500 4 500 7 000 Business Analyst 6 000 5 000 7 000 Continuous Improvement Specialist (more than 2 years) 6 000 5 000 8 000 PMO Analyst 5 000 4 000 6 000 Junior Accountant (up to 6 months) 3 500 3 000 4 500 Senior Accountant (more than 2 years) 5 000 4 500 5 500 Team Leader 8 000 7 500 9 000 Associate (up to 6 months) 3000 2500 3 500 Senior Associate (more than 2 years) 4 000 3 500 5 000 Team Leader 7 000 6 500 8 000 Transition Manager 11 000 9 000 15 000 Reporting Analyst (more than 2 years) 6 000 5 000 7 500 Business Analyst 7 000 6000 8 000 Position English language General Ledger Accountant Accounts Payable/Accounts Receivable /Call Centre Other Positions English + French/ German/ Spanish/ Italian General Ledger Accountant Accounts Payable/Accounts Receivable /Call Centre Other Positions English + Dutch/ Swedish/ Norwegian/ Finnish/ Turkish/ Greek General Ledger Accountant Junior Accountant (up to 6 months) 5 500 4 500 6 000 Senior Accountant (more than 2 years) 7 000 6 500 8 000 Associate (up to 6 months) 5 500 4 500 6 000 Senior Associate (more than 2 years) 6 000 5 500 7 000 Accounts Payable/Accounts Receivable /Call Centre Source: Salary Report by Hays Poland 45 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Table 9. The costs of social insurance and Labour Fund, and Guaranteed Employee Benefits Fund contributions for the employee and the employer 46 Employer’s contribution when the remuneration does not exceed PLN 100,770 per year Employer’s contribution when the remuneration exceeds PLN 100,770 per year Employee’s contribution when the remuneration does not exceed PLN 100,770 per year Pension Fund 9,76% - 9,76% Disability Pension Fund 4,50% - 1,50% Accident Fund 0,67% – 3,33% 0,67% – 3,33% - - Sickness Fund - - 2,45% 2,45% Labour Fund 2,45% 2,45% - - Guaranteed Employee Benefits Fund 0,10% 0,10% - - 17,48% – 20,14%* 3,22% – 5,88%* 13,71% 2,45% Total Employee’s contribution when the remuneration exceeds PLN 100,770 per year *depending on the height of the contribution to the Accident Fund (0,67% – 3,33%) Source: own elaboration Table 10. Approximate annual costs of popular non-wage solutions Training approx. 2,000 PLN Sporting activities approx. 1,000 PLN Private Health Care approx. 1,500 PLN Mobile Phone approx. 1,500 PLN Car approx. 60,000 PLN Source: own elaboration In both cases, the final contribution rate was assumed as 0.93 percent. In the first case the sum of the contributions represents 15.1% of the total costs of the employer, in the second case, only 7.0%. Popular non-wage solutions Hays Poland on the basis of many years of experience in the market, identified the most popular non-wage solutions offered by the companies operating in the Wielkopolska Province. These are mainly additional medical care, training and use of mobile phones. The last one exists in two versions, in the first only the business talks are financed, and in the second, there is also a limit on private conversations. The higher the position on which the person is employed, the higher limit of private conversations is financed. Slightly less popular are the opportunities to participate in sporting activities such as cards Multisport or similar and life insurance. Some companies, usually large companies, also offer the possibility to use the canteen. Using some or all of these opportunities, it is possible to create a unique remuneration policy based not only on the basic salary, but also on various non-wage solutions. They can make the company able to stand out from the competition and become a desirable employer in the market. Table 11. Calculating the employer’s costs for the monthly remuneration of PLN 3,000 gross (Source: own elaboration) Month Gross remunerapension tion Contribution for the Fund disability pension accident 0.93% labour guaran- total conteed social tribution benefits the cost for employer January 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł February 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł March 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł April 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł May 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł June 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł July 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł August 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł September 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł October 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł November 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł December 3000 zł 292,80 zł 135 zł 27,90 zł 73,50 zł 3zł 524,40 zł 3524,40 zł 36 000 zł 3513,60 zł 1 620 zł 334,80 zł 882 zł 36 zł Total 6 292,80 zł 42 292,80 zł Table 12. Calculating the employer’s costs for the monthly remuneration of PLN 30,000 gross (Source: own elaboration) Month Gross remunerapension tion Contribution for the Fund disability pension accident 0.93% labour guaran- total conteed social tribution benefits the cost for employer January 30 000 zł 2928 zł 1 350 zł 279 zł 735 zł 30 zł 5 322 zł 35 322 zł February 30 000 zł 2928 zł 1 350 zł 279 zł 735 zł 30 zł 5 322 zł 35 322 zł March 30 000 zł 2928 zł 1 350 zł 279 zł 735 zł 30 zł 5 322 zł 35 322 zł April 30 000 zł 1051,15 zł 484,65 zł 279 zł 735 zł 30 zł May 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł June 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł July 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł August 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł September 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł October 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł November 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł December 30 000 zł - zł - zł 279 zł 735 zł 30 zł 1 044 zł 31 044 zł 3 348 zł 8 820 zł 360 zł Total 360 000 zł 9 835,15 zł 4 534,65 zł 2 579,80 zł 32 579,80 zł 26 897,80 zł 386 897,80 zł 47 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Since 2000, a dynamic increase in the supply of modern office space has been observed in the Capital City of Wielkopolska. Only in 2003 on the market went more than 35,000 m2 of new offices. The years 2004-2006 were a period of slowdown in the housing market in Poznań. At that time, developers put into use only 700 m2. 2.3. Characteristics of a regional real estate market in the context of the needs of investors in the sector of modern business services Record in terms of new supply was undoubtedly the year 2009, in which developers have realized more than 46,300 m2 of offices. New buildings etched into the landscape of Poznań and are associated with it. We are talking specifically about Szyperska Office Centre (formerly Garbary 250 000m2) and the Malta Office Park A, B, C and Centre – 18,000 D (14,000 m2). A year later, on the market went the Scalar Office Centre (14 500 m2) and the next phase of Malta Of200 000 E (8 000 m2). In the first half of 2011 the fice Park building supply of the modern office space in the city expanded the Murawa Office Park (4,000 m2). The supply of office space Poznań with the total resources of modern office space of approximately 240,000 m2 is counted among the seven largest office markets in Poland next to Warsaw, Cracow, 250 000 Wrocław, Gdańsk, Katowice and Łódź. Most of the supply built in Poznań has been intended for the purpose of renting. The market is diverse, office space is available in mod200 000 ern office buildings as well as commercial-office buildings and renovated buildings. 150 000 150 000 Diagram 21. The supply of the modern office space in Poznań 100 000 100 000 250 000 50 000 50 000 200 000 0 0 150 000 <2000 2001 2002 <2000 2001 2002 2003 2003 2004 2005 2006 2007 2008 existing supply existing supply 2004 2005 new realizations 100 000 50 000 0 <2000 2001 2002 2003 2004 2005 existing supply 48 The stagnation in the market ended in 2007. It is when the building Andersia Tower was opened offering tenants 10,500 m2 and a few other smaller objects such as Nikel Technology Park Poznań I, R&B House, Villa Grey or the house at the 27th of December Street. A year later, another 16,800 m2 of modern office space went on the market in Poznań, including buildings: New Garbary Office Centre (6,800 m2), Omega (formerly Ataner Business Centre – 7,500 m2) and Arcade Gallery (2,500 m2). 2006 2007 2008 new realizations 2009 2010 H1 2011 Source: Jones Lang LaSalle, II quarter of 2011 2006 2007 2 2009 2010 H1 new realizatio Additionally, in progress in Poznań is almost 50,000 m2 of office space. In the construction is, among others, the last phase of Malta Office (building F with an area of approximately 6,500 m2), MM Gallery (6,000 m2), Andersia Business Centre (14,000 m2), Okrąglak (5,100 m2) and Pixel (14,600 m2 – the future office of Allegro). As for the location of the office buildings, more than half of them were executed in the central part of the city, especially along Roosevelt Street, Głogowska, Towarowa and Anders Square. The main factor influencing such placement of the office investments is the convenient access to the railway station Poznań Główny and Poznań Fairs. Main office properties located in the city center are: Delta, Globis Office Centre, Poznań Financial Centre, Andersia Tower, New Garbary Office Centre, Szyperska Office Centre. Additionally, to this project come the “mix-use” projects, i.e. focusing on the retail and office functions. These include objects such as Kupiec Poznański and Old Brewery Centre of Trade, Arts and Business. Another area in which there is a concentration of office buildings is the western part of the city, which additional attractiveness affects the vicinity of an international airport Ławica. Currently, the western areas focus in their resources about 23% of modern office space in the city. The largest office buildings in this part of Poznań are PGK Centre I and II (17,700 m2), Poznań Business Centre (5,400 m2) and Omega (7,500 m2). The remaining part of the Capital City of Wielkopolska Voivodeship office space falls on the eastern and northern parts of the city. The importance of these areas, especially Eastern, gradually increases due to growing over the past years Malta Office Park complex at the Archbishop Baraniak Street. Demand for office space The tenants of office space in Poznań are the local companies, as well as large international corporations. At the end of 2008, vacancy rate in existing buildings was 1%, which was a significant decline from a peak of almost 40% recorded in 2003. It is worth noting that more and more the local companies rent space in buildings of class A and B, which increase the comfort of the working environment and enhance their image. Until recently, Poznań had a limited amount of the office space of a metric area of 1,000 m2 or more, satisfying the requirements, among others, of the companies in the sector of modern business services. Given the small scale of the market, the vacancy rate in the first and second quarter of 2009 amounted to 4.6% and Diagram 22. The level of rents bids in main cities, in the best office buildings (€/ m2/ month) Warsaw Centre Warsaw Outside Centre Wrocław Poznań Cracow Tri-City Katowice Source: Jones Lang LaSalle, the end of II quarter of 2011 Łódź 10 15 20 25 49 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 4.8%, which meant less than 9,000 m2 of available office space. 50 This situation changed with the completion of two projects: Szyperska Office Centre (18,000 m2) and a Scalar BC (14,500 m2), which at the time of putting in use had more than a 70% vacancy rate. Consequently, the vacancy rate has risen sharply and now fluctuates around 11.4%, which translates to almost 27,000 m2 of vacancy office space in existing buildings. The level of rents in office buildings Due to the relative scarcity of high-class office space in Poznań, rents bids in the best facilities remain at a relatively high level of 14-15 €/m2/month. In this respect, only Warsaw and Wrocław are ahead of Poznań. Summary and Prognosis One can expect that the new supply of the office space throughout the 2011 will not exceed 16,600 m2, but we anticipate that in 2012 the activity of developers will slightly increase and the office space resources will widen by a further 42,600 m2 (including 14 600 m2 which Allegro will take). According to the estimations to the end of 2011 and the first half of 2012 rents bids will remain stable. 2.4. A vailability of communications Among the most important factors influencing the location of service centres there is a good accessibility of the facility. This means above all: the location by the important communication routes, the operation of the airport in the city with a wide network of connections with major European air hubs and the ability to adequately quickly reach such an airport. In October 2011 the Airport Poznań-Ławica had direct connections to over 30 airports located in 11 countries in Europe (Flight schedule, http://www.airport-poznan.com. pl; access 23/10/2011). In 2010 the port handled 1419 thousands passengers, which gave him the sixth place in Poland. It is worth noting that this meant an increase of 144 thousands passengers compared to 2008 – the higher was only in Gdańsk and Wrocław. As of 07.07.2010 Poznań had 64 weekly flights to major European air hubs: London, Frankfurt, Munich, Paris and Stockholm, which was the fourth result in the country. It is worth noting that having direct connections with such centres is very important from the viewpoint of management of service centres. An important advantage of Poznań for the investors in the sector of modern business services is its position at the A2 motorway. Already in December 2011 the last section of the A2 motorway will be put into use, allowing fast and direct connection to the Poznań agglomeration area with the motorway network in Western Europe. 51 Table 12. The overall indicator of quality of life in all samples from the years 2005-2011 in a cross-section of major cities (lack of data means that the city was represented in a variable less than 60 respondents) Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle The rank 52 2011 2009 2007 2005 1 1 3 2 2 2 8 3 4 7 4 5 6 5 3 1 6 9 10 7 7 5 8 11 14 9 6 2 10 14 11 Quality of Life City 2011 2009 2007 2005 Warsaw 0.46 0.42 0.27 0.21 Toruń 0.40 0.42 0.14 5 Poznań 0.36 0.32 0.18 0.16 4 Cracow 0.36 0.29 0.18 0.19 Gdynia 0.25 0.34 0.50 8 Szczecin 0.23 0.22 0.02 0.05 3 Wrocław 0.14 0.25 0.18 0.20 Bydgoszcz 0.14 0.09 -0.09 1 Gdańsk 0.11 0.25 0.27 0.27 12 10 Łódź 0.09 -0.03 0.00 -0.08 10 15 6 Lublin -0.01 0.17 -0.15 0.10 12 12 9 Częstochowa -0.02 0.08 0.03 13 15 11 Katowice -0.03 -0.06 0.00 14 17 Sosnowiec -0.03 -0.08 15 19 Zabrze -0.06 -0.10 16 20 Białystok -0.06 -0.11 17 13 Gliwice -0.14 0.07 18 16 13 Wałbrzych -0.16 -0.08 -0.07 19 18 16 Kielce -0.22 -0.09 -0.17 20 21 Radom -0.24 -0.24 -0.17 7 4 9 0.09 0.20 -0.01 Source: J. Chapiński, T. Panek (ed.) 2011, Social diagnosis, www.diagnoza.com, 23.10.2011. 2.5 Quality of life In this part of the paper, using the results of recent survey Social Diagnosis 2011, (Czapiński, Panek 2011) shows the position of Poznań in Polish cities rank in terms of quality of life. By creating synthetic measures of the quality of life, sought to maintain a balance between objective and subjective variables and also include in analysis of various aspects of life. Eight sub-indicators of quality of life, which was considered to be relatively independent, were used to create a synthetic indicator of quality of life: social capital, mental well-being, physical well-being, social welfare, the level of civilization, material prosperity, life stress, pathologies. All of these indicators, which included the variables measured in different scales, have been standardized, and the sum of their standardized values is a general indicator of quality of life for each of the cities analyzed in the Social Diagnosis 2011. Survey results indicate that Poznań is one of the top cities characterized by the highest quality of life. In 2011 the town was in third place in Poland in terms of quality of life index values (Table 12). Ahead of Poznań were only Warsaw and Toruń. A similar value of the index presented Cracow. Interesting are also the results of analysis of selected dimensions of quality of life. For example, Poznań has a second score in Poland in terms of material well-being index value (after Warsaw) and the third position in terms of civilisation level indicator value (which consisted of such elements i.e. level of education and active knowledge of foreign languages). An index value of social capital has allowed the placing of the Poznań in fifth place in the country. 2.6. Summary – service centres location factors and their changes Distribution of service centres depends on – often multistage – investment processes. The most important from the investor’s perspective is to ensure that location offers appropriate combination of accessibility and quality of personnel, costs of doing business and access to infrastructure. Generally, the above-mentioned location factors are important for all the investors of the sector. The representatives of the centres operating in Poznań did not differ significantly from the opinions of respondents from other centres. It is worth noting that depending on the strategy and associated location-specific preferences, the companies can pay special attention to the factors of their choice. Diagram 23 presents the opinions of representatives of the centres on the importance of individual factors in taken by them investment decisions on the location of the company. The five-point scale was used where 1 meant the evaluation as a completely irrelevant factor and 5 as a key factor. As the most important location factor for the service centre in Poznań, respondents considered the availability of highly qualified staff. The least important when deciding on the location of the centre was from their point of view of the city’s image. Among the other factors mentioned by respondents needs pointing out the operation in the agglomeration of the parent company of the centre (eg. possession of plant). Several of the analyzed centres considered this factor as important or even crucial in making an investment decision. Source: own elaboration In this part of the report the opinions of representatives of the centres on the evolution of selected location factors (determinants of conducting the business) were analyzed. Study on this issue was made on the basis of the on-line survey. The results indicate that the largest number of representatives of the Poznań agglomeration centres saw no significant changes in the context of an overall assessment of the location from the start of the activities centre. In the case of as many as four of the five factors dominated the respondents’ opinions about the lack of changes in the analyzed field. In the case of one factor – the availability of qualified employees – most of the representatives expressed the opinions about the negative changes. Interestingly, taking into account the evaluation of the analyzed factors in any case the positive opinions about the current changes did not constitute a majority. Table 13 presents the average values in the evaluation of the changes of selected location factors. A certain number of points were assigned to the individual opinions: the positive assessment of the changes: 5 points, opinions about the lack of change: 0 points, a negative assessment of change: -5 points. The grading scale has thus range from -5 (lowest obtainable score) to 5 (highest obtainable score). In general, the subjective assessment of respondents indicated a slight negative assessment of changes in the selected location factors of investment in the sector (total value: -0.28). The impact on this result had primarily Table 13. The evaluation of the changes of selected location factors. average value Accessibility of personnel Costs of business Availability of modern office space Availability of communications City’s image in opinion of investors -2,33 -1,78 1,07 0,00 1,67 Source: own elaboration 53 Diagram 23. The opinions of the representatives of the centres on particular location factors Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle City’s image in opinion of investors 54 Availability of modern office space Availability of communications Costs of business activity Accessibility of highly qualified personnel 1,0 1,5 the low score of the changes in the availability of qualified staff for the centres (-2.33). The deterioration of the situation in this respect in the local market was noted by most of the respondents. Similarly to other centres in the country, also the changes in the context of the costs of conducting business were negatively assessed (-1.78). Average opinion on the availability of communication indicates that the respondents did not see the significant changes in the situation in the context of this 2,0 2,5 3,0 4,0 4,5 5,0 factor (0.00). The analysis showed that the respondents among all of the analyzed factors the best score gave to the developments in the context of the image of the city (1.67). It should however be added that the opinion of the majority of respondents on the current cooperation with the local authorities is neutral (middle rating on the scale). Importantly, when comparing the number of positive and negative opinions, a clear predominance of the first, however, can be seen. 3. Characteristics of service centres in Poznań agglomeration Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle centres were formed. Taking into account the service centres with the foreign capital, the share of the city in the general number of centres in Poland in 2008 amounted to less than 7%. At present (fourth quarter 2011) increased to almost 9%. 56 3.1. History of development of modern business services sector in Poznań agglomeration The average service centre in the Poznań agglomeration operates since 20067, as well as in the country scale. The first foreign investors have appeared already in the 90’s, but the vast majority of the centres (63%) was established after 2005. Interestingly, in the Poznań agglomeration initially invested only the companies providing the outsourcing services (BPO/ITO), mostly Polish and German. It was only in 2005-2006, when the shared services centres appeared there (GlaxoSmithKline, MAN, Carlsberg, Dalkia Services, Duni). Each year a few companies of the sector of modern business services invest in Poznań. The largest annual increase of the new investments so far there has been in 2006, when five service centres were established. It is worth noting that in 2010 there was a significant increase in the number of new investments – in 2010-2011 seven new service centres were established. Among the most important factors that contributed to the significant increase in the number of new investments in the sector from 2005 onwards was certainly the positive response from the investors on the Polish accession to the European Union. The accession contributed to the growth of the country’s political credibility, and changes in the legal conditions of the business operation. The decisive importance in the context of the “investment boom” had, however, the development of the sector on a global scale and the related need to seek the new markets, meeting the demand for the provision of the modern business services (Górecki and others, 2011). Interestingly, since 2005 in Poznań, only two BPO/ITO were established (External Services and Ciber). For comparison – in the same period, as many as 11 shared services 7 From the analysis were excluded two Polish service centers: ZETO SA and Talex that have not yet provided outsourcing services at the start of operations (respectively in 1965 and 1989). 3.2. E mployment in the sector and its changes Among the 6.3 thousands persons employed in the service centres in the Poznań agglomeration, 2/3 are working in the centres of BPO/ITO (despite the fact that they do not predominate in number over the centres of the SSC). Approximately 1.9 thousands persons employ the shared services centres and less than 200 people – research and development centres. The dominant share of BPO/ITO is due to the large employment in Poznań in the companies of the call/contact centres industry (arvato services, Contact Center and Holicon). These three companies are the largest investors in the modern service sector business in the Poznań agglomeration. Taken together they employ more than half of the employees in the analysed area. It should be noted that this is a unique situation comparing to the competing with Poznań centres of the offshoring of business services in Poland. Interesting conclusions arise from analysis of the position of Poznań in terms of the employment in the service centres with the foreign capital. According to the data for the years 2008-2010, Poznań was the second in Poland (after Wrocław) the fastest-growing centre of the offshoring services. Number of employees in the Poznań service centres at the end of 2010 was about 90% higher than at the end of 2008. The share of the city in the total employment in the service centres in Poland increased from 4.4% to 5.7% (as of 31.12.2010). Now the share of Poznań is about 6%, so the clearly increasing trend can be noticed. The plans of the centres assume that at the end of 2012 in the sector in Poznań will be employed 8.2 thousands persons (up by 1/3 compared to the actual status). This value does not include the new jobs in centres that have not yet announced a start-up. It can therefore be assumed that eventually the value will be higher. Interestingly, the average service centre in Poland8 employs 245 persons. In Poznań, the value is 199 persons (for foreign 8 Taking into account only the centres with foreign capital. centres) and 209 persons for all. Statistically, therefore, the Poznań centres employ less people than at average in the country. 3.3. Types of business processes supported by the service centres Analysis of the structure of the services provided in the centres of the SSC and BPO/ITO and R&D showed9 that the business processes supported the largest number of centres in the Poznań agglomeration are the finance and accounting (14 centres) and the IT services (12). In nine centres the processes associated with the human resources management are conducted. Another position on the list of processes takes the research and development activity (six centres), which is provided not only in the R&D centres but also in some more advanced units providing the IT outsourcing services. Also, six centres provide the customer service (with the exception of the IT support). Services in the field of the supply management are performed in four centres and the financial services in two. Other, not previously mentioned services (including Decision Support and Knowledge Process Outsourcing and the documentation management and other support services) are provided in four centres (Table 14). Most of the respondents participating in the study, when questioned about the changes in the activity of the centres responded that during their operation there was the introduction of more advanced activities without reducing the existing scope of the services provided. Almost all (eleven) of the analyzed fourteen centres that responded to the question about the geographical cover 9 It should be noted that the reported estimates regarding the number of the centres providing particular services are the minimum values. This means that in fact they can take higher values. The estimates presented in the diagram do not sum up to the total number of the centres, because in many of them are provided several types of services. age of the supported business processes, provide services for the companies from the Western Europe. Of course, this applies to both the external clients and the internal one (the parent corporation). For the entities operating in Poland work ten of the fourteen centres analyzed. Half of the centres support the companies from the Central and Eastern Europe, and just under one third the companies from the area of North America. Another geographical scope of the services was characterized by two centres (CIBER and Grace), which also provided the services for the clients from the Middle East and Africa and Asia, Australia and Oceania. The geographical scope of services provided by the Poznań centres usually includes two or three of the analyzed areas. The main area of the provision of the services for the five centres is Western Europe, for the next five Poland, for the three North America, and for one the Central and Eastern Europe. 3.4. L anguages in which the centres provide services Service centres in the Poznań agglomeration provide services in over 21 languages, mostly European. Four of them (English, Polish, German and French) are used in more than half of the analyzed centres. The first three positions in terms of the number of languages in which services are provided deal: IKEA, Ciber and Duni10. In each of these centres are used at least 13 languages. Interestingly, in Poznań, the number of languages in use does not depend on the size of the centres. For example – each of the three above-mentioned centres employed in the fourth quarter of 2011 less than 100 people. It is also worth noting that a smaller number of languages (mainly English or German) is used in the most highly specialized centres, mainly of ITO profile or R&D. 3.5. S ervice centres and the country of origin of capital In the service centres in the Poznań agglomeration the enterprises from 12 countries have invested11, moreover the ownership structure of one of the centres is charac 10 Taking into account the 15 centres that responded to the question concerning the use of languages. 11 In the analysis as the country of origin of the investor was taken the State from which the capital actually comes, and not the parent (to the Polish subsidiary) company’s country of registration. 57 58 x x 2 Bridgestone x 3 Business Consulting Center 4 Carlsberg 5 CIBER Polska 6 Contact Center 7 Dalkia Services x 8 Duni EFF x 9 External Services 10 Franklin Templeton 11 GlaxoSmithKline Services 12 Grace x 13 Grant Thornton Frąckowiak x 14 Holicon 15 IKEA Business Service Center 16 itelligence 17 Jerónimo Martins 18 Kennametal 19 Lorenz Snack-World Services x 20 MAN Accounting Center x x 21 McKinsey x x 22 Mentor Graphics 23 Open Text x 24 Roche x 25 Samsung 26 Talex 27 Telcordia Poland x 28 Unilever x 29 WIKIA 30 ZETO S.A. x x x In total 14 12 9 other x financial services human resources management arvato services supply management IT services 1 customer service (with the exception of IT support) Service Centre research and development Item finance and accounting Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Table 14. Business processes supported by the service centres in the Poznań agglomeration x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 6 6 4 x 2 4 terized by the international capital share. Most centres (almost 60%) are owned by the companies from the European Union and more than one quarter of all centres – the American companies. The situation has not changed significantly over the past few years. Five centres belong to the Polish investors, and four – to German. Participation of the European Union in the employment structure is much higher than in the case of the participation in a number of centres and is at the level of 82%. More than 2.0 thousands persons are employed in companies with the German capital, and over 1.0 thousand is working in the Polish and French centres. Just a little over 10% of employees of the sector are employed in the centres where the investors are the U.S. companies. A large number of American centres, therefore, do not refer to the high level of employment. Almost half of the employment in the U.S. centres generates the largest investor from the USA – Franklin Templeton Investments. Other employees in the sector are working in centres owned by the investors from other countries, and also characterized by a majority international capital. 3.6. N on-wage benefits offered by the centres All the analyzed centres in the Poznań agglomeration offer their employees non-wage allowances. In most of them the employees have the possibility to use several allowances to choose from. Mostly offered benefit is a medical package (in private medical centres). About 2/3 centres allow employees to access the Benefit Card or similar type. Over half of the centres offer to employees the buying of a life insurance. In most centres, employees can also benefit from the co-funding of sports activities. Less popular non-wage privileges are: the purchase of shares on preferential basis, excursions, extra health insurance or pension fund. In several centres are also offered some benefits not listed above. Among them can be distinguished: subsidizing meals, tickets to the cinema or theatre, social events, company cars. It should be emphasized that the possibility of using some of the non-wage benefits in some cases depends on the positions occupied by employees. 59 4. The business environment as a whole Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle 4.2. T he structure of business entities 62 4.1. The dynamics of the formation of new businesses The employers highly value the initiative and entrepreneurship among the employees. One indicator that allows to estimate it could be the number of businesses registered in the register called the “REGON” per 10 thousands inhabitants of the region. In Poznań, the figure is 1773 and is one of the highest in Poland (more entities are registered only in Warsaw). In Poznań, systematically more and more new companies are established. Their number is larger than the number of the deregistered companies, so that the overall intensity of companies in Poznań is growing, despite the economic slowdown in 2009, although this year the increase was slower. These data were presented in the Diagrams 24 and 25. The Diagram 28 presents the companies in Poznań, in division due to the section of PKD. Over 25 percent of all those entities is active in the trade and repair sector, which covers a wide range of the commercial businesses, from small shops under the sole proprietor to the supermarkets employing dozens or hundreds of people. The attention draws also a very high share of businesses of the professional, scientific and technical sector – 13.9 percent. Higher rate occurs only in Warsaw. These companies are of such importance that within them is the majority of the most important today, essential services such as accounting, legal services and market analysis, and other modern business services. 4.3. T he opinions of employers on employees The best and the most reliable way to verify the skills of personnel available in the city is the opinion of the employers about them. The opinion of the companies already on the market on their own employees is very good Diagram 24. The number of the companies registered in the REGON in Poznań in the years 2005-2010 (source: own elaboration based on CSO, Local Data Bank) 10 000 8662 9000 7921 8000 7000 6000 6723 6697 2006 2007 7287 6161 5000 4000 3000 2000 1000 0 2005 2008 2009 2010 in Poznań. All companies draw above-average satisfaction with their subordinates. Not even one of the respondents interviewed by HAYS Poland paid the attention to any weakness of own human resources. Another positive is the fact that these resources are hardly rotating. The turnover rate is at the level of 2.5% to 4%. According to research by HAYS Poland only in one company, it has exceeded the above average. Diagram 25. The number of the companies deregistared in the REGON in Poznań in the years 2005-2010 (source: own elaboration based on CSO, Local Data Bank) 100 000 98092 98 000 96 000 94948 94 000 93250 91444 92 000 90666 89624 90 000 88 000 86 000 84 000 2005 2006 2007 2008 2009 2010 Diagram 26. The structure of the entities registered in the REGON in Poznań in 2010 due to the PKD section (source: own elaboration based on CSO, Local Data Bank) 1,6% 7,2% 8,3% 5,9% 0,1% 2,9% 9,9% 3,4% 13,9% 25,5% 4,4% 3,8% 4,0% 6,5% 2,5% Industrial processing Building industry Trade and repair Transport and warehousing Accommodation and catering services Information and communication Finance and insurance Real estate services Professional, scientific and technical activity Administration and supporting activity Public administration Education Health and social care Culture, entertainment and recreation Other services 63 5. The effects of the operation of modern business services sector companies in Poznań agglomeration Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle glomeration as a result of direct activity of business service centres totalled to approximately 8.1 million PLN (revenues from PIT, CIT and property tax). Due to the practice of paying taxes in the former place of residence nearly 3.0 million PLN is transferred outside the region. 66 The companies of the sector of the modern business services affect the local development in various ways. Most studies relate to the economic and socio-cultural aspects of that influence. The economic implications of such businesses can be expressed through the employment maintained or newly created in their environment, and taxes paid by the companies and their employees. Both the values related to the total employment or the tax revenues in the given spatial unit express the multiplier effects of the operations of the companies. The methodology for estimating such effects have been widely presented in the work of B. Domański and K. Gwosdz (2008). This report presents the cautious, minimum estimations of the multiplier effects. Where it was possible the results were compared with the results of similar studies obtained by J. Górecki and others (2011) in Małopolska (Cracow). 5. As a result of multiplier effects on income in 2010 due to the wages of the employees in the sector, more than 560 jobs operated, of which the most in the trade. 5.1. The main conclusions regarding the economic effects of the operation of service centres in Poznań agglomeration: 5.2. C orporate Social Responsibility 1. In 2010 the Polish local governments received an amount of PLN 8.8 million derived from taxes paid by the employees of Poznań service centres. The local government the Poznań agglomeration received from the title an amount of PLN 4.7 million. 2. The revenue of local and regional governments from participation in the corporate tax paid by the service centres amounted in total to PLN 2.4 million. In comparison with Cracow relatively more of the centres note the profit in Poznań. 3. In 2011, revenues from property taxes used by the business service centres in Poznań should reach the level of about 1.0 million PLN. 4. The estimated amount that you was received in 2010 by the budgets of local governments in the Poznań ag- 6. Through the direct and the indirect supply for the service centres about 675 jobs were created. The size of the effects of supply is in Poznań over 1/3 higher than in Cracow 7. In total, the presence of centres has brought at the end of 2010 more than 5.5 thousands jobs in the sole centres and at their service, including as a result of multiplier effects about 1.2 thousand. Thus, for every 1,000 jobs in the service centres in Poznań there are at least more than 220 jobs at its direct and indirect service. This gives about 20% higher value of the results in relative terms than in the case of Cracow. The results of the study indicate that among the 15 service centres that responded to the question of social commitment, a small majority (eight of them) take the initiative to the benefit of the local community, getting involved in sponsorship or charity activities. In the case of five of them these are the single actions, mostly not continued. Often they result from the initiative of the employees. Three of the analyzed companies conduct the wide range activities resulting from the assumptions of CSR strategy, characterized by a high degree of the social involvement. Typically, the conducted activities are the participation and/or financial support for the events organized by NGOs and social institutions, but also the individual philanthropic activities of the companies take place. The common form of involvement of companies in the local environment is the voluntary work that occurs in most of the centres with a high degree of social engagement (the so-called Volunteers Day). Corporate social responsibility has a specific spatial dimension. The analyzed centres generally engage in activities of the local range. Many representatives of the centres make it clear that their companies are only interested in the local initiatives. Bibliography Statistical Bulletin, 2011, the Statistical Office in Poznań. Household budgets in 2009 (2010), Central Statistical Office, Warsaw Social diagnosis, J. Chapiński, T. Panek (ed.) 2011, www. diagnoza.com, access 23.10.2011. Multiplier effects of local and regional development, B. Domanski, K. Gwosdz, 2008, [in:] JJ Parysek, T. Stryjakiewicz (eds.), Region of the socio-economic and regional development, Bogucki Scientific Publishing, Poznań, 217235. Modern business service sector in Małopolska, J. Gorecki, A. Bartoszewicz-Wnuk, M. Polkowski, R. Kijonka, 2011, Report prepared for the Małopolska Regional Development Agency by the Association of Business Service Leaders (ABSL). Information concerning the settlement of income tax from natural persons for 2010, 2011, the Ministry of Finance, http://www.mf.gov.pl , access 23/10/2011. Service centres in Cracow and their relationships with the local environment, Micek G., Parcel J, Górecki J., 2010, Publishing House of the Jagiellonian University, Cracow. Personnel demand of the business in the Poznań agglomeration, 2010, The final report of the study. Salary Report by Hays Poland, 2011, Warsaw. Timetable, http://www.airport-poznan.com.pl; access 23.10.2011 Socio-economic situation, 2010. http://www.poznan.pl, access: 23.10.2011. 67 Appendix 1 Report prepared for the Poznań City Hall by the Association of Business Service Leaders (ABSL) Hays Poland and Jones Lang LaSalle Service centers in Poznań metropolitan area No. Company name Type of a center Headcount Location 1 arvato services Polska BPO/ITO >1000 Poznań, Plewiska 2 Contact Center BPO/ITO 500-1000 Poznań 3 Holicon BPO/ITO 500-1000 Poznań 4 MAN Accounting Center SSC 250-500 Poznań 5 Franklin Templeton Investments SSC 250-500 Poznań 6 Roche SSC 250-500 Poznań 7 Carlsberg Accounting Service Centre SSC 200-250 Poznań 8 GSK Services SSC 200-250 Poznań 9 McKinsey EMEA Shared Services SSC 100-200 Poznań 10 Talex BPO/ITO 100-200 Poznań 11 Bridgestone EBS SSC 100-200 Poznań 12 itelligence BPO/ITO 100-200 Tarnowo Podgórne, Poznań 13 Jerónimo Martins SSC 100-200 Poznań 14 Business Consulting Center BPO/ITO 50-100 Złotniki (gmina Suchy Las) 15 ZETO BPO/ITO 50-100 Poznań 16 Dalkia Services SSC 50-100 Poznań 17 Kennametal SSC 50-100 Poznań 18 Ciber BPO/ITO 50-100 Poznań 19 Lorenz Snack-World Services SSC 50-100 Sady k. Poznania 20 IKEA Business Service Center SSC 50-100 Poznań 21 Unilever Polska R&D 50-100 Poznań 22 Grant Thornton BPO/ITO <50 Poznań 23 Duni EFF SSC <50 Poznań 24 Samsung R&D <50 Poznań 25 Telcordia R&D <50 Poznań 26 Wikia R&D <50 Poznań 27 Mentor Graphics R&D <50 Poznań 28 External Services BPO/ITO <50 Złotniki 29 Grace R&D <50 Poznań 30 Open Text BPO/ITO <50 Poznań COMMENT: Units that according to ABSL’s definition are not service centers are not included: Microsoft Innovation Center, contact centers of BZ WBK, Kleffmann and Starter, IT division of Allegro, Invest Bank, BZ WBK, Komputronik. Source: „Modern business services sector In Poznań metropolitan area”, prepared for Poznań City Hall by Association of Business Service Leaders in Poland (ABSL), Hays Poland and Jones Lang LaSalle, Poznań, 2011 68 City of Poznań Investor Relations Department pl. Kolegiacki 17, 61-841 Poznań direct: +48 61 878 5428 [email protected] Edited by: Wydawnictwo Miejskie Posnania ul. Ratajczaka 44, 61-728 Poznań www.wmposnania.pl Photos: fotoportal.poznan.pl, City of Poznań Archives Computer typesetting: Studio Graficzne Wydawnictwa Miejskiego Posnania Poznań 2012