Prague, 12 May 2015
The survey material allows clear comparison of financial compensation in 8 key segments in 14 regions in the Czech Republic. The greatest regional differences in salary value can be observed in the sectors of information technologies and finance, where the market is most dynamic. The survey also shows that there is a shortage of technical experts on the market and good language skills can help increase your salary by approximately CZK 10,000.
The survey also indicates that a number of sectors are beginning to offer opportunities to graduates, who were strongly disadvantaged on the job market last year. This year, graduates will find a number of job offers, mainly in the sector of sales and marketing or in shared services centres, which are showing rapid growth in the Czech Republic. However, foreign languages are an important prerequisite
Stimulation of the job market has been evident from the beginning of this year and not just in the growing number of vacant jobs, but also the candidates’ interest in changing their current job. “We currently register about 20% more job offers than last year,” said Martin Ježek, business director at Grafton Recruitment and added, “In 2014 salaries increased by 2.0%, which is the biggest jump since 2009. A similar degree of growth can be expected this year, however new investment projects in some regions may lead to even greater salary differentiation.“
The survey also clearly indicates what skills or experience contribute to better financial compensation. “Foreign languages are most important, regardless of profession,” said Martin Ježek. Another factor is the level of education achieved and specialisation in a specific branch. “University graduates in technical branches have the greatest chance of an above-average salary. A technical education is generally a gateway to higher salaries and this also applies to people with a secondary school education or candidates with vocational training. Salary is influenced to a specific degree by the area in which a job is sought, or where applicants are willing to commute or move. Prague and Brno are at the hypothetical apex in this aspect,“ Martin Ježek commented further.
Competition in IT
The survey shows that competition is strongest among applicants, and also among the companies themselves, where the job market is most dynamic, in the sectors of information technologies and telecommunications. This year the job market in this segment is affected by construction of new global technical support centres and rising demand for outsourcing of services. There is traditionally greatest demand for programmers for development of desktop, web and mobile applications among employers and so experienced programmers remain in short supply. Employers will also frequently employ candidates who do not meet their original requirements exactly.
The highest salaries for all IT positions are traditionally sustained in Prague. However, this year for the first time, conditions are comparable between Prague and Brno. Salaries over CZK 100,000 per month are normal in some positions. The best-compensated positions are Chief Information Officer (up to CZK 180,000 per month), SW Development Manager (up to CZK 150,000 per month), System Architect (up to CZK 100,000 per month), or Technical Support Director (up to CZK 100,000 per month).
Industry is being confronted with the problem when demand for experts exceeds supply
The rising demand for applicants with a technical education became evident last year and this demand is growing even more today. A number of companies have successfully overcome the crisis in lean form, but they are now expanding with the resulting intensive recruitment of new employees. Demand for specific qualified specialists is already exceeding supply and so companies wishing to recruit good quality employees must offer more than is usual on the market, because applicants have the opportunity to choose from multiple simultaneous job offers. Graduates are also frequently given opportunities and chances are also improving for secondary educated specialists, especially if they have foreign languages.
English also increases salaries in the field of construction
The construction industry should undergo greater growth in 2015 particularly during the second half of the year, a period for which a number of public tenders is being planned, mainly in the field of transport infrastructure and railway construction. The construction sector will also be affected by the growth of industry. We can consequently expect rising demand for Project Managers who will also be required to have foreign language skills, not only English, but also German or Russian. Salaries in the construction industry are remaining on a similar level in all regions and professions. Construction Site Managers with English can make up to CZK 10,000 more per month than those who speak only Czech.
Banking and financial services place emphasis on variable salary components
There is an increasing trend to compensate employees depending on their performance in the financial sphere this year. Salaries now contain a fixed component and also a variable component based on the achieved results. This year banking and finance also offer more opportunities to graduates, if possible from economic universities, with active language skills. Graduates, who have some experience in the sector, expect a salary several thousands of crowns higher than graduates without any experience at all. English speaking accountants especially are in short supply in this segment. Salary value differs quite a lot regionally, similarly to the IT segment. For instance an Actuary in Prague will make up to CZK 20,000 more than in Zlín, Jihlava or Ostrava.
Sales and marketing are recruiting graduates
In the field of sales and marketing companies are increasingly inclined to seek talents on the market, which they then employ on the basis of internships or in junior positions. This experience is a great opportunity, particularly for graduates. Another trend in the field of marketing is the rise in number of Online Marketing Specialist and Manager positions. Companies expect that candidates will have a deep understanding of the branch, frequently overlapping into IT, and also communication skills and managerial competence. Excellent English is essential for most marketing positions. Frequently recruited positions are also Brand Manager for the field of FMCG or Product Manager in electronics. It is interesting that salaries in sales positions are relatively uniform throughout the Czech Republic, while greater regional differences are evident in marketing.
Human resources on the rise
Revival of the market also results in rising demand for employees in the field of HR. This year there is greater demand for the roles of Generalist and HR Manager compared to last year. The good news for university graduates is that HR Administrator positions, which do not require experience, have begun to appear. However very good English is nearly always a prerequisite. Salaries are usually higher in international companies and we also encounter bonus schemes of from 5 to 20% of the annual salary for managerial roles.
The Business Services sector offers attractive employment to graduates with languages
Even though European countries have been facing strong competition from developing markets in Asia in recent years, the Czech Republic continues to experience significant expansion in the Business Services sector. Shared Services Centres are a very dynamic branch and a significant source of employment in regions throughout the Czech Republic. The centres assure a number of supporting activities, particularly in the field of customer service, HR, finance, accounting, purchasing and information technologies. Centres in the Czech Republic work for customers in various branches of industry, in many countries and foreign languages, also in unusual combinations, are consequently a very important prerequisite. Last year great changes in the conditions for employees of established companies also became evident. Most companies are aware of growing competition on the market and are initiating improvement of benefit packages, salary terms and opportunities for external training. A rise in salaries has also become evident, particularly in regard to positions requiring German. Salary terms in Prague and Brno are generally comparable and are roughly 20% higher than in other regions in the Czech Republic.
Pharmaceutical industry with strict requirements
The pharmaceutical market is very attractive, not only for job applicants who have an education and experience in this sector, but also for those who don't. However, the requirements for experience and education in the sector are so important that candidates, who cannot demonstrate they have these, find it very difficult to find employment. Attractive and regularly recruited positions include positions of a sales character (Key Account Manager, Pharmaceutical Representative, Area Manager) and also positions in regulation departments. The greatest differences in salaries between regions can be observed in the case of pharmaceutical representatives. Salaries of employees in Prague may be up to CZK 30,000 per month higher than those of employees in other regions.