Hunting Hands Eager to Work
Wroclaw based Work Service SA, Poland’s largest HR agency, has created a new niche; relocating production and manufacturing from special economic zones.
Work Service built its dominant position on the Polish HR market by supply the booming call center and hypermarket sectors with employees, a highly required service in light of the record number of Poles migrating to the UK, Ireland and other recently opened labor markets. As economic migration slowed and the Poland’s HR market stabilized, co- founder and president of Work Service, Tomasz Szpikowski, conceived the new service to keep the company’s sales momentum in pace. Moving production lines from the high-wage economic zones to areas with long-term structural unemployment reduces overhear expenditures as employees are eager to work for less pay in these low cost regions of Poland. While Work Service has provided the service for companies in all sectors, the support for automotive parts suppliers, including Bader and TRW, a global company focused on providing active and passive safety products with a division located near Czestochowa, demonstrate the success of the new niche product.
Bader GmbH & Co, a German manufacturer of premium leather for the automobile industry, based their Polish subsidiary in the Walbrzych Special Economic Zone near Bolesławiec. The Zone eventually attracted many more automotive companies, resulting in significant wage inflation. Since upholstery is a highly labor intensive process and the company faces inordinate sensitivity to the automotive business cycle, Bader solicited Work service’s expertise for a HR solution. Work Service conducted nationwide research and choose a location near Jarocin to hire 170 employees in the low wage region. Work Service constantly adjusts staff levels to reflect Bader’s sales cycle. Work Service devised a similar solution for TRW. Work Service reduced these companies’ respective HR expenditures with a highly flexible solution.
The growth of wages in the zones nationwide favors Poland’s largest employment agency. Tomasz Szpikowski states that “We are able to grow approximately 15% annually taking into consideration this factor only.” In the first half of 2007, revenues of the Group including branches, in the UK, Czech Republic, among others, were equal to 173 million PLN.
The company plans its debut on the Warsaw Stock Exchange in 2008. It anticipates acquiring between 150 and 200 million PLN, aimed mainly at acquisitions.