Streamlining of organisational structures

Local companies may need assistance from foreign multinationals with an updating of equipments/technologies and restructuring their organization

. Foreign companies perform better. FDI have helped competitiveness

Cost savings are still popular;

Strategic alliances start to appear

A qualified workforce, but rather unproductive attitudes

In terms of scientists and engineers per capita, Slovakia rates among the highest in the region and the quality of information technology graduates ranks alongside the best in Western Europe. Companies like Siemens and Alcatel already engage in value-added software development in the country.

Average monthly labour costs in Slovakia are less than in Hungary, in the Czech Republic and than in Poland, but this does not mean that Slovakia is a country of cheap labour - rather, it is a source of cost-effective well qualified labour and this issue must also be considered within a productivity context.

The workforce is

• Qualified, especially in technical fields
• A little cheaper than in most neighbour countries
• Respectful for hierarchy, authority and rules (easiear to work with Slovakians than with Czechs or Poles, they are more disciplined)

A low productivity inherited from communism

• Any time spent in the company is considered as work
• Problems of absenteism
• Social life is developped in companies
• Lack of knowledge in business & marketing

A relatively low competitiveness

• IMD World Competitiveness Scoreboard: Slovakia ranks 48 out of 59 economies

• Global Competitiveness Index: Slovakia ranks 69 out of 142 countries

Changing corporate structures and mentalities

Westernization is increasingly influencing Slovak business culture but hierarchical structure and power relations are still present

 Foreign help is deemed necessary and welcome (slovakian particularity)

Firms suffer from lack of professionals, insufficient capacities and, as a result, low quality, particularly in services.

Total quality management is not widespread.

According to a PwC/Forbes magazine survey, Slovak CEOs trust in themselves. Despite the economic crisis in Europe and a war conflict in the neighbouring Ukraine, CEOs expect that their firms will do well and revenues
will grow.

 

Related articles

The Slovak economy

Higher education in Slovakia

 

To go further