site.btaBulgarian Companies Identify Inflation, Workforce Availability and Skills as Key Challenges in 2022, Survey Finds

Bulgarian businesses identify inflation, the availability and skills of the workforce as key challenges in 2022. The impact of current global shocks, such as inflation, the war for talent, the 'Big Quit' and disrupted supply chains continue to be major challenges, and 49% of companies identify employee skills as a worsening issue in 2022. This is according to the results of the third international survey conducted by Leadership Support in partnership with the German-Bulgarian Chamber of Industry and Commerce and Business Mark - Romania, asking how organizations are preparing to face the challenges related to the new, hybrid work environment, Leadership Support said on Wednesday. The study took place in the first half of 2022 and involved more than 250 companies from 27 industries.

The most pressing need for change and concrete plans for its implementation for companies is in terms of talent development strategies (nearly 50% of organizations) and the use and management of data (over 55%).

Compared to 2021, talent attraction and retention issues have increased, with 50% of organizations saying they experienced greater difficulty attracting quality employees this year.

Employee retention is a growing problem. More than two-thirds of respondents are experiencing difficulties related to higher pay expectations from employees. The limited supply of human resources in the labour market is cited by 50% of companies as a serious challenge. This calls for new measures to retain employees in a hybrid work environment, such as flexibility in work commitments (where, when, and how employees work), implemented by 65% of organizations.

A key focus of hybrid management is also supporting work-life balance. Additional paid leave, Fridays without meetings, flexible work schedules and additional unpaid leave are in place in two-thirds of organizations.

Leadership Support conducted the survey in parallel in Bulgaria, Germany and Romania. This allowed for an interesting comparative analysis between companies in the three countries in terms of the organizations' attitudes towards the hybrid work environment.

The weight of remuneration as a retention measure is 2-3 times higher in Bulgaria and Romania than in Germany. Twice as many companies in Germany view the organization's purpose and mission as an adequate talent retention measure compared to companies in Bulgaria and Romania.

Companies in all three countries agree that flexible working hours and additional paid leave are key factors in achieving work-life balance and employee retention.