The risk related to the loss and the inability to obtain qualified staff

An important risk factor that may directly translate into the possibility of implementing the strategy adopted by the Group is the risk in the area of employees: related to both the loss and the inability to recruit staff with high qualifications, competences and experience, open to new knowledge and development, values and adapted to the organization’s objectives and culture.  Staff with appropriate, specialist or practical knowledge in specific business areas is crucial to building and maintaining the Group’s competitive advantage.  Competences that will be particularly in demand are soft skills, such as emotional intelligence, critical thinking, problem solving, and the ability to self-improvement and teach others.

In the Śnieżka Group, we consider the risk related to the loss and inability to recruit qualified staff in the context of:

• the influence of managerial and leadership competences of persons managing teams on the level of rotation, particularly in difficult, unstable situations and with high dynamics of change;
• facing the management staff with challenges in teams related to changes on the labour market,
• the risk of voluntary departures of employees related to the difficulty of retaining highly qualified, competent and experienced staff who make a significant contribution to the implementation of the Group’s strategic goals;
• struggle to keep the best talents in the face of growing competition from foreign employers and companies whose model is fully based on remote work.

The fluctuation and potential loss of competencies important for the Group may cause a decrease in the effectiveness of the Group’s operations and temporary problems with the implementation of the assumed business plans. Hiring new employees in some areas of the organization is associated with a time-consuming recruitment process and a relatively long adaptation process, and may be associated with the risk of a temporary reduction in the quality of work.  The departure of qualified employees additionally hampers the pursuit of a long-term personnel policy and may increase labour costs.

Both the departures of employees and the process of their recruitment, particularly in areas  characterized by a narrow field of specialization or those with the need for unique skills, are subject to a systematic process of monitoring and analysis in the Group.

In 2022, a number of measures were taken to reduce the risk of losing employees and facilitate the acquisition of appropriate competencies within the Group.  The Group companies focused on:

• further standardization of processes in the field of human resource management;
• increasing their flexibility and digitization.

This enables a quick reaction to the information about their expectations and needs obtained from the market and from employees. Performance indicators related to employee issues are described in the Report in section 3.4.4 “Employee involvement and development”.