Economic Crisis as viewed by employees in Czech Republic - 25 Sept. 2009

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1.What happened last year? 

In Czech Republic layoffs occurred due to economic crisis occur in foreign owned companies as well as in domestically owned companies. In the past 12 months 43,5% from 4423 respondents who filled in the questionnaire on mujplat.cz got the announcement about a layoff. Foreign owned companies have a higher occurrence of layoffs than the domestically owned companies; 30% of respondents working for a domestically owned company mentioned that their employer announced layoffs compared to 58% of respondents working for a foreign owned company. 

 

Layoff announcements according to age group 

Less than 25 years  32 % 

25 - 50 years  52 % 

50 - 60 years  43 % 

 

Sample of 4423 respondents. 

Data in respective age group indicates the share of those, who took notice of layoffs at their workplace. 

Source: MujPlat.cz 

 

Layoffs threatened more employees working in private sector (50% noted layoffs) rather than those in public sector (30% noted layoffs). The least affected group are qualified scientific workers, for example people employed in technical, health care or administrative occupations. The regional differences are minimal. 

 

Changes within company 

42% respondents positively answered the question about reorganisation. However this was the case of foreign owned companies in private sector. Agewise the most affected group is the group of younger than 25 years workers. 62% of them mentioned that they were directly affected by reorganisation at their workplace. According to the results, the higher the age, the less are the employees affected by reorganisation. 

Investing into human capital 

More than half of the respondents mentioned that they were offered training in the past 12 months. 60% of employees working in a foreign owned company got a training offer compared to 51% of empoyees working in a domestically owned company. There were no significant differences between age groups as far as training offers are concerned. 

 2.What is going to happen in a year’s time? 

Despite the current economic crisis employees in Czech Republic look positively into the future. More than two thirds do not expect the news of layoffs and three fourths do not fear that they will be personally affected by a layoff or sent to early retirement. To top it 47% employees expect a payrise in the coming 12 months compared to 16% employees who think that they will have instable and unsure income. 

Crisis however affects the expectations of new workplaces creation in Czech firms and organisations. Almost 9 out of 10 respondents noted that in the next year they do not expect mass hiring of new employees at their workplace. Every second one mentioned that he or she expects organisational changes and approximately one third of respondents want to find a new job despite these circumstances. 

Bankruptcy not expected by many 

Privatisations or fusions are not planned by most of the companies. Only 15% of employees expect fusion of their company with another one in the next 12 months. Privatisation is expected by less than 2% of respondents. Although crisis affects the companies, only 5,5% of employees answered that their employers are immediately threatened by bankruptcy. Considering that the employees do not fear for their jobs it is surprising that the same people do not trust the management. Up to 65% of employees do not expect a completely new management strategy in the next 12 months. New strategic initiatives from management are expected by less than half of the respondents. 

Massive fluctuation of employees not to be expected 

85% of respondents expect to work for the same employer also next year and the majority of them will do so at the same position; only 10% expect job promotion and 3,5% think they will be transferred to a position similar to the one they have now. Only 0,3% think they will be degraded on the job ladder. 

Payrise expected mostly in foreign owned companies 

The results of the survey do not significantly differ between foreign and domestically owned companies. What differs is that people working for foreign owned companies are more afraid of being laid off. Also the payrise expectations differ; 42,4% respondents working in domestically owned company expect payrise compared to 53,15% respondents who work in a foreign owned company. 

About the survey 

The survey took place from March 2nd till April 20th 2009 in the form of a questionnaire published on www.mujplat.cz. 9000 respondents from all over Czech Republic took part. For this topic only those answers of respondents were selected who stated that they were employed at the time of filling in the questionnaire. The aim of the research is to compare events of the past year with expectations of an individual in the next 12 months. In that way we can find out, who fears for his/her job most and who is affected by a possible job loss the most in reality.

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