12.4 Conclusion

In Poland, companies have to take account of considerable variations in the job market when deciding on their employees wages . With regard to geographical location, pay levels are much higher in the Warsaw region than in other major cities and the rest of the country, especially in the cases of managers and specialists. There are also pay differences between industries and according to form of ownership, with public companies paying higher salaries than private ones and foreign corporations paying more than domestic ones.

When determining the base salary of their employees most companies use analytical methods of job evaluation that have been developed in Poland for the Polish situation, with UMEWAP heading the list. However methods promoted by international human resource consultancies are growing in popularity, especially in the private sector. This could contribute to the modernization of this area and might also indicate a growing market orientation on the part of Polish companies.

With regard to performance appraisal and performance-related pay, Polish companies are increasingly developing their own appraisal techniques, although the heritage of the socialist era continues, especially in the public sector. It will be interesting to see whether sophisticated methods such as 360-degree feedback will enjoy more widespread use in the future. Performance- related pay accounts for a significant proportion of the remuneration of Polish managers. In terms of the percentage of employees concerned and its relative weight in the total compensation package, it is already more important than in some Western countries with long-established market economies.

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