Lately every third employed Latvian resident has personally experienced unfair treatment from their employer, according to results of a survey conducted by Kantar research company.
Although competition for talented and capable workers is at its peak now, a number of employers sometimes employ misleading tactics when creating relationships with employees.
According to experts, this kind of workforce management strategy is very short-sided, because it could cause severe risks to the company in a long-term perspective.
The survey reveals that the most common misleading methods employed in relations with existing and potential employees include non-payment of promised bonus pay, limitation of career growth potential, non-provision of promised work conditions, as well as non-compliance with company-defined values in practice.
Unfair pay policy is less common, but it still exists regardless –
12% of respondents say their actual wage turned out to be lower than what was promised or written in their contract.
“Unfortunately, many Latvian employers often employ the approach – workers aren’t rabbits, they won’t run away – in their workforce management strategy. But this belief is misleading. The labour market is dictated more by employees rather than employers. Considering that employees are the ones who compose the foundation of sustainable and economic growth of any organisation, developing high-quality, respectful relationships with existing and potential employees is in the interest of employers themselves. Employers who understand this today will be in a more advantageous position tomorrow,” says the head of the Institute for Corporate Sustainability and Responsibility Dace Helmane.
She points to how misleading strategy only serves to cause a trust crisis between employers and employees. This is something results of the survey show:
only 5% of employed Latvian residents trust the word of potential and existing employers.
It should be added that limited bonus pay options, inappropriate working conditions and limited career growth option are the factors that undermine relations the most.
The people immune to employers’ promises the most are generally men aged 40-49 living in Pieriga or Latgale – a low-skilled worker working in the industrial or commercial sector. Their personal monthly net income is considered medium-high – EUR 501 to EUR 700.
For comparison it is worth mentioning that the trust in promises from employers is the highest among women employed in the ICT sector.
According to experts, this is largely related to efforts from the state to increase the proportion of women in IT teams.
“Of course, unfair practices in Latvia’s corporate environment is nothing new. And it is unlikely we will be able to put an end to it completely, because people’s concerns about the future, which are further fuelled by various geopolitical and economic shocks, are a good foundation for various misleading tactics,” stresses Helmane.
She said it is possible to significantly lower the number of dishonest employers by teaching people to identify misleading situation and encouraging them to speak out about such situations.
“Because this is a situation when speaking out is gold, rather than silver. Experience shows that it is reputation crisis that motivates employers to take their employment policy more seriously,” says Helmane.
She also reminds that Latvian residents have to option to report dishonest employers to the State Labour Inspectorate. They can also anonymously report situations when organisations’ actual behaviour does not match their promises.
Also read: Clients to be able to receive new SEB Bank payment cards using Omniva parcel machines